FIRE and European Climate Foundation Propose Policies for Industrial Electrification in Italy

A 2025 study by FIRE, supported by the European Climate Foundation, evaluates Italy's industrial electrification value chain and its decarbonization potential. It outlines policy proposals to support electrification, emphasizing the need for strategic planning and cooperation among stakeholders. Key recommendations include revising energy taxation, ensuring adequate electricity grid development, and providing dedicated incentives for technologies like heat pumps. The study identifies challenges for SMEs and suggests mechanisms to facilitate financing and support R&D efforts for successful electrification.

Published Mar 24, 2026

In 2025, FIRE, in collaboration with the European Climate Foundation, conducted a study on the potential of industrial electrification in Italy. The study assessed the entire value chain, identifying barriers and opportunities.

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It proposed policies to support electrification, emphasizing strategic planning across all stages of the supply chain. Key recommendations include revising taxation on electricity and fossil fuels, enhancing electricity grid capacity, and providing incentives for decarbonization technologies like heat pumps. The report highlights challenges faced by SMEs and suggests mechanisms like the FER T scheme and auctions linked to white certificates to support financing and stimulate costly solutions.