ODA Spending

How much ODA does Italy allocate to climate projects?

In 2022, Italy spent US$399 million on climate and was the 15th largest OECD DAC donor to climate in absolute terms. Funding to this sector dropped from the country’s highest-ever in 2020, US$598 million, but remains above pre-2020 levels.

How is Italian climate ODA changing?

Italy spent 18% of allocable bilateral ODA on climate finance in 2022, less than the DAC average of 29%, making Italy the 21st-largest OECD DAC donor in terms of bilateral allocable ODA on climate-related issues relative to total bilateral allocable ODA volumes.

In 2022, Italy’s climate-related ODA focused slightly more on adaptation, spending US$374 million, than mitigation, which totaled US$334 million. There is also a significant overlap between the two markers for projects that target both. Of Italy’s funding for action against climate change, US$309 million was channeled toward projects tagged with both markers.

In 2022, 12% of Italy’s bilateral allocable ODA was spent on projects with a significant climate change component, below the DAC average of 16%. Meanwhile, 7% of funding targeted climate change as a principal goal. A large proportion, 82% of Italy’s bilateral allocable ODA, did not target climate change or was not screened against the Rio markers in 2022, above the the DAC average of 71%.

How does Italy allocate climate ODA?

Bilateral Spending

Government documents place a strong emphasis on climate resilience in the agriculture sector. Since 2014, Italy has partnered with the FAO to build and promote the GACSA. In 2022, Italy allocated 14% each of its climate-focused ODA to the energy and agriculture sectors.

Multilateral Spending and Commitments

Italy’s climate finance is relatively low. Italy contributes to climate financing through multilaterals, though not all these funds are counted as ODA. This includes contributions to the following multilaterals:

Funding & Policy Outlook

Planet is one of the five core pillars in Italy’s three-year Programming Guidelines for 2021-2023. These guidelines affirm Italy's commitment to multilateral approaches such as the OECD - DAC ENVIRONET, FAO, UNEP, UNDP, and the IUCN. An increased emphasis on environmental protection and climate change was incorporated into the document in its latest iteration.

On January 28-29, 2024, Italy hosted the Africa-Italy Summit, during which 25 African leaders and diplomats joined Italian and EU leaders to launch the pilot programs of the Mattei Plan for Africa. Italian Prime Minister Giorgia Meloni announced EUR5.5 billion (US$6 billion) in credits, grants, and guarantees under the plan. EUR3 billion (US$3.3 billion) will come from the Italian Climate Fund, as announced at COP28.

On November 27, 2023, the Italian Parliament adopted a COP28 resolution, signed by 19 Italian MPs from all parties in the majority coalition, committing to the 0.7% ODA/GNI target, with half of ODA dedicated to tackling climate change.

Former Prime Minister Draghi put climate change at the heart of his political agenda by creating a Ministry of Ecological Transition to ensure that the economic recovery following the COVID-19 crisis goes hand in hand with the transition to green energy.

The Italian Parliament and Senate voted to incorporate the protection of the environment, biodiversity, and ecosystems in the interest of future generations into ‘Article 9’ of the Italian Constitution on February 22, 2022.

Italy is also a staunch supporter of the GBEP, which supports a wider, more cost-effective use of biomass and biofuels. Italy chaired the partnership in 2019.

Key Bodies

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