Italy - Climate
At a glance
Italy’s spends a moderate amount of its ODA on tackling climate change; emphasis is on the agro-forestry sector
In 2018, Italy spent US$187 million of its bilateral allocable ODA on projects which targeted action against climate change as a principal or significant objective, making it the 16th-largest Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee (DAC) donor to the issue, in absolute terms.
Italy spent 16% of its allocable bilateral ODA on climate finance in 2018. This is considerably less than the average DAC average of 22%. This puts Italy in 21st place out of 30 DAC members, in terms of spending on climate-related issues relative to overall ODA volumes.
Funding to this sector peaked in 2017 — reaching a high of US$309 million — and together with overall bilateral ODA declined by US$122 to US$187 million in 2018.
Climate finance: funding for projects tagged in the OECD’s Creditor Reporting System (CRS) database with the Rio markers for climate change mitigation and/or climate change adaptation. Projects can be tagged with either or both markers.
Each marker has three possible scores:
- Principal, for projects in which climate change mitigation or adaptation is a fundamental and explicitly stated goal;
- Significant, for projects in which climate change mitigation or adaptation is not a key driver but still an explicitly stated goal; or
- Not targeted, meaning the project does not address climate change mitigation or adaptation.
Not all projects are screened against the Rio markers; this funding falls into the ‘not screened’ category.
Italy’s three-year Programming and Policy Guidelines mentions ‘environment’ as one of Italy’s priorities. Italy puts a special emphasis on agro-forestry as one of the key sectors contributing to the emission of greenhouse gasses. The guidelines highlight Italy’s intention to facilitate the involvement of the private sector in helping to mitigate and adapt to climate change in the forestry sector.
Italy will be supporting the United Kingdom (UK) on its presidency of the 2020 United Nations Climate Change Conference, also known as COP 26, the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). Italy will be hosting a number of key preparatory events such as a Youth Event and the Pre-COP Summit, which were planned for October in Milan, shortly before the Conference, scheduled for November 2020. Because both countries have been heavily affected by the COVID-19 crisis, the Conference has been rescheduled for 2021.
Only a small portion of Italy’s ODA is channeled toward projects that name climate change adaptation or mitigation as a principal goal
Italy’s climate-related ODA focuses equally on mitigation (81%) and adaption (83%). As is apparent from the relative size of these percentages, there is also significant overlap between the two markers. Projects can target both, climate adaptation and mitigation, in this case a project receives both markers. In 2018, 63% of Italy’s funding for actions against climate change was channeled toward projects tagged with both markers. (For more information on the markers, see box.)
In 2018, 11% of Italy’s bilateral allocable ODA was spent on projects with a significant climate change component (DAC average: 15%). Only 5% of funding targeted climate change as a principal goal (DAC average: 7%). A large proportion (84%) of Italy’s bilateral allocable ODA did not target climate change or was not screened against the Rio markers in 2018 (DAC average: 78%).
Projects in the agriculture sector (incl. forestry, fishing, rural development) received the largest share (44%) of Italy’s climate financing in 2018. Water and sanitation received 13%, followed by humanitarian aid (13%).
Government documents place an overwhelming emphasis on climate resilience in the agriculture sector. Since 2014 Italy has partnered with the Food and Agriculture Organization (FAO) to build and promote the Global Alliance for Climate-Smart Agriculture (GACSA). With Italian backing (US$2 million between 2017-2019), the FAO has also implemented a project in nine small island states in the Caribbean and the Pacific Region, to integrate their priorities in agriculture with the commitments they made under the UN Framework Convention on Climate Change.
Italy supports the Green Climate Fund and has recently shown leadership in strengthening multilateral efforts by opening the Africa Centre for Climate and Sustainable Development
Italy also contributes climate financing through multilaterals, though not all these funds are counted as ODA. This includes contributions to the Green Climate Fund (GCF) to which Italy contributed a total of €200 million (US$236 million).
As part of the Paris Agreement, Parties to the United Nations Framework Convention on Climate Change (UNFCCC) have agreed to establish a Capacity-building Initiative for Transparency (CBIT). This initiative aims to strengthen the transparency of government institutions towards the Paris agreement. The activities are financed by the CBIT trust fund hosted by the Global Environment Facility (GEF). Italy has supported the initiative with a voluntary contribution of US$4 million in 2016.
In January 2019, the Italian government opened the Africa Centre for Climate and Sustainable Development (ACSD). The Center was conceived during Italy’s G7 Presidency in 2017, at the Environment Ministers meeting in Bologna, created in partnership with the United Nations Development Programme (UNDP) and FAO. It is dedicated to the promotion of sustainable development, with a special interest in initiatives linked to climate, Climate-Smart Agriculture, access to water, clean energy generation, gender equality.
Italy is also a strong supporter of the Global Bioenergy Partnership (GBEP) which since its creation in 2006 supports support wider, cost-effective use of biomass and biofuels. Italy has chaired the partnership between 2019 and 2020 and has contributed €4.7 million or US$5.5 million between 2006-2020.
Within the Italian Agency for Development Cooperation, the Environment Office is concerned with the topic of climate change
Within the Ministry of Foreign Affairs and Development Cooperation (MAECI), the Directorate General for Development Cooperation (DGCS) defines Italy’s priorities around development. Relevant in setting priorities around climate change is also the Italian Ministry for the Environment, Land, and Sea.
Within the Italian Agency for Development Cooperation (AICS), the office in charge of programs most concerned with topics of climate change is the ‘Environment’ office. It is currently headed by Valeria Clara Rizzo.