Italy, once the engine of Europe’s industrial prowess, is now grappling with a triple threat: skyrocketing energy costs, dwindling output, and rising geopolitical risks. Italy has one of Europe’s highest industrial energy prices, forcing manufacturers to absorb unsustainable costs or relocate production. This challenge is compounded by a prolonged contraction in industrial output, accelerating a decades-long deindustrialization trend. Meanwhile, growing geopolitical instability has placed energy security at the forefront of national priorities, underscoring the need for a stable domestic energy supply.

Meeting these challenges calls for a bold, forward-looking industrial strategy that embraces change. The European Union has already sent a strong market signal with the launch of the Clean Industrial Deal, a comprehensive policy framework that positions clean technologies as key drivers of competitiveness and decarbonization. Meanwhile, countries around the world that have prioritized cleantech innovation and manufacturing are now leading global supply chains and have reduced their exposure to volatile and high-risk commodity dependencies.

Cleantech is not a climate add-on: it’s the next engine of industrial competitiveness. Domestic clean energy can shield industries from price volatility and reduce reliance on imports while leveraging Italy’s manufacturing and innovation strengths can create globally competitive cleantech champions. Countries that act now will lead the next industrial era, and Italy must move swiftly to secure its place.

Italy is not starting from scratch: it already holds the cards to lead the clean industrial era, from a strong manufacturing base to deep expertise in sectors like advanced materials and electrification. As one of Europe’s largest manufacturing economies, Italy boasts a deeply rooted industrial base with expertise in sectors critical to the clean transition, from advanced materials to precision engineering. The country is also home to world-class innovators, consistently producing breakthroughs in circular economy solutions, energy storage, and electrification technologies. Italy has already demonstrated leadership in first-wave cleantech industries, including high-efficiency solar, grid infrastructure, and sustainable mobility, and has pioneered some of Europe’s most advanced waste-to-resource systems. At the same time, it holds immense untapped potential for renewable energy deployment. Coupled with a highly skilled workforce and a strong network of research institutions, Italy has everything needed to translate cleantech innovation into industrial and economic strength. However, to capture this opportunity, it must take decisive action to scale its cleantech champions and ensure they are at the heart of its industrial future.

Turning this potential into reality requires an industrial policy that drives cleantech deployment at scale. This is Cleantech for Italy’s plan. We are a coalition of investors, innovators, industrial leaders, and policymakers – the key players across the cleantech innovation and financing value chain – who are ready to step up and take leadership. Italy must move beyond early-stage innovation and establish the conditions for commercialization, industrial adoption, investment, and regulatory efficiency. The following pillars outline how to position cleantech at the core of Italy’s industrial future.

1. Turn innovation into industry

Italy produces high-quality cleantech innovations, yet too many breakthroughs fail to reach the industrial scale. Transforming research into commercial success requires a clearer path from the lab to the factory floor. We need to bridge the gap between innovation and industrialization, ensuring Italian cleantech technologies scale at home rather than abroad.