ANNEX to the COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 13 July 2021 on the approval of the assessment of Italy’s Recovery and Resilience Plan (NextGeneration EU)

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Information on Italy's Recovery and Resilience Plan

ANNEX of COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 13 July 2021 on the approval of the assessment of Italy’s Recovery and Resilience Plan (RePower EU)

COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 13 July 2021 on the approval of the assessment of Italy’s Recovery and Resilience Plan (NextGenerationEU )

The Italian PNRR. A summary overview

COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 13 July 2021 on the approval of the assessment of Italy’s Recovery and Resilience Plan (RePower EU)

Italy's National Plan for Resilience and Recovery #NextGenerationItalia

Approved by the Council of EU

Amended (NextGenerationEU)

Amended (RePower EU)

To benefit from the support of the Recovery and Resilience Facility set up by the EU in the aftermath of the COVID-19-induced economic crisis, Member States submit their recovery and resilience plans to the European Commission. Each plan sets out the reforms and investments to be implemented by end-2026 and Member States can receive financing up to a previously agreed allocation. Each plan should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 2019 and 2020 adopted by the Council. It should also advance the green and digital transitions and make Member States’ economies and societies more resilient. The Commission validates the plan after which it effectively enters in force and EU subsidies can start flowing towards the member state.37% of the plan’s total allocation is assessed to be directed towards reforms and investments supports climate objectives. Notable investments include the following:Sustainable mobility: integrate more regions into the high-speed rail network and complete the rail freight corridors; boost sustainable local transport through the extension of cycle lanes, metros, tramways and zero- emission buses, including the construction of electric charging stations across the country and hydrogen refuelling points for road and rail transport. €32.1 billion
<ul>
<li>Energy efficiency in residential buildings: financing large-scale renovation of residential buildings to make them more energy efficient. €12.1 billion The plan supports interventions for the improvement of energy efficiency of residential buildings by which beneficiaries may benefit from a tax rebate over the next five years for the amounts spent, provided that the energy savings of those interventions are higher than 30%. By the end of 2025, building renovation interventions will be completed for at least 32 million square meters.</li>
<li>Renewable energy and circular economy: developing the production and incentivising the use of renewable energies including green hydrogen as well as increasing recycling, reducing landfill waste and improving water management. €11.2 billion</li>
</ul>
After that, Italy requested 03 more updates to the plan, 1 in 2024 and 2 in 2025, being the last one on 10 October 2025 and so- called "NextGenerationEU – The road to 2026". The Commission approved it on 4 November 2025 and the Council as well. Ultimately, the measures (investments and reforms) subject to amendment amount to 173. The total number of targets and objectives has been reduced from 614 to 575. Ten new measures have been introduced, including four instruments that operate as financial vehicles: the National Connectivity Fund; the Agrisolar Park Facility; the Grant Scheme for Investments in Water Infrastructure; and the Student Housing Fund

Italy's National Plan for Resilience and Recovery 

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Aligning the skills of the workforce with the requirements of the just transition.

Actions or measures to adapt terrestrial systems to climate change.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

This sector provides medical services, manufactures medical equipment, and develops pharmaceuticals to maintain and improve health.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

A tax advantage is an economic benefit applied to certain accounts or investments that are, by law, tax-reduced, tax-deferred, or tax-free. This can apply to investments in areas such as green energy projects or the agricultural sector, where tax advantages can help manage financial risks.

Actions to adapt human health, healthcare systems and well-being to climate change.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

Activities that relate to the production of goods and services from forests.

Actions or measures to adapt freshwater systems to climate change.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

Electrical energy generated from mechanical devices driven by flowing fresh water.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

This sector involves the distribution, treatment, and conservation of water resources.

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

This sector provides communication services, software development, and IT solutions.

woman and genders outside of the gender binary

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

This sector involves activities to move goods and people, alongside the storage of products.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Council implementing decision on the approval of the assessment of the recovery and resilience plan for Italy

<div>To benefit from the support of the Recovery and Resilience Facility set up by the EU in the aftermath of the COVID-19-induced economic crisis, Member States submit their recovery and resilience plans to the European Commission. Each plan sets out the reforms and investments to be implemented by end-2026 and Member States can receive financing up to a previously agreed allocation. Each plan should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 2019 and 2020 adopted by the Council. It should also advance the green and digital transitions and make Member States’ economies and societies more resilient. The Commission validates the plan after which it effectively enters in force and EU subsidies can start flowing towards the member state. 37% of the plan’s total allocation is assessed to be directed towards reforms and investments supports climate objectives. Notable investments include the following: </div><ul><li>Sustainable mobility: integrate more regions into the high-speed rail network and complete the rail freight corridors; boost sustainable local transport through the extension of cycle lanes, metros, tramways and zero- emission buses, including the construction of electric charging stations across the country and hydrogen refuelling points for road and rail transport. €32.1 billion</li><li>Energy efficiency in residential buildings: financing large-scale renovation of residential buildings to make them more energy efficient. €12.1 billion The plan supports interventions for the improvement of energy efficiency of residential buildings by which beneficiaries may benefit from a tax rebate over the next five years for the amounts spent, provided that the energy savings of those interventions are higher than 30%. By the end of 2025, building renovation interventions will be completed for at least 32 million square meters.</li><li>Renewable energy and circular economy: developing the production and incentivising the use of renewable energies including green hydrogen as well as increasing recycling, reducing landfill waste and improving water management. €11.2 billion</li></ul>

ANNEX to the COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 13 July 2021 on the approval of the assessment of Italy’s Recovery and Resilience Plan (NextGeneration EU)

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance