Companies are hastening the shift towards increased product pricing in the name of sustainability.
Italy is leading the way in prioritising sustainability projects, according to recent data, due in part to the ongoing war in Ukraine. However, the transition to renewable energy faces significant hurdles, as highlighted in the "The Decade That Matters 2.0" study by BayWa r.e.
Italy's heavy dependence on fossil fuels and a lack of strategic actions for energy storage and grid flexibility are major barriers to the expansion of renewable energy sources in the country. These factors create technical and logistical challenges, limiting the effective use and reliability of renewable energy.
Alessandra Toschi, CEO of BayWa r.e. Italy, has criticised the excessive bureaucracy that slows down renewable energy plants in Italy. The transition to renewable energy is clear, but almost 50% of Italian companies believe it won't happen before 2050.
The combined effects of the climate and energy crises are accelerating the transition to renewable energy in Italy. In fact, 62% of Italian businesses report that the increase in energy prices has sped up their sustainability projects.
The war in Ukraine has had significant implications for the energy sector in Italy, leading to increased focus on renewable energy and sustainability projects. The war has also led many parts of the world to seek alternative fossil fuel sources to reduce dependence on Russia. As a result, mentions of coal on the web increased by nearly 12% compared to 2021, while web mentions of coal grew by 130% between 2020 and 2022.
Despite these challenges, 96% of Italian businesses are already using or planning to use renewable energy. Currently, 41% of businesses are using renewable energy, with 55% planning to do so in the future.
However, lack of government support (45%) and costs (45%) are the main barriers to zero emissions for Italian companies. Toschi has urged for the removal of obstacles in the fight against climate change, both in Italy and across Europe.
The study used social media listening tools to analyze the evolution of public debate online, and found that users are increasingly using terms like "climate crisis" and "climate action" instead of "global warming" online. This shift in language reflects a growing awareness and concern about the urgency of addressing the climate crisis.
The study surveyed a panel of business executives and political decision-makers in Europe, the UK, and the US, and found that 40% of Italian businesses estimate an increase in business costs of between 11% and 20% due to the war in Ukraine.
In conclusion, while Italy is leading the way in prioritising sustainability projects, the transition to renewable energy faces significant challenges. However, the combined effects of the climate and energy crises, as well as the increasing awareness and concern about the climate crisis, are accelerating the transition to renewable energy in Italy. It is crucial for the Italian government to provide support and remove barriers to enable businesses to transition to renewable energy and achieve their zero-emission targets.
- The transition to renewable energy in Italy's business sector is being accelerated by the combined effects of the climate and energy crises, with 62% of Italian businesses reporting an increase in their sustainability projects due to rising energy prices.
- Despite Italy's initiatives in prioritizing sustainability projects, the focus on renewable energy faces obstacles, such as technical and logistical challenges caused by factors like a lack of strategic actions for energy storage and grid flexibility, and excessive bureaucracy that slows down the development of renewable energy plants.
- In light of the ongoing war in Ukraine and the subsequent increase in energy prices, 40% of Italian businesses estimate an increase in their business costs of between 11% and 20%, as alternative fossil fuel sources are being sought to reduce dependence on Russia, leading to a nearly 12% increase in mentions of coal on the web compared to 2021.
- Acknowledging the challenges faced in the transition to renewable energy, it is essential for the Italian government to provide support and remove barriers, such as lack of government support (45%) and costs (45%), to enable businesses to transition to renewable energy and achieve their zero-emission targets, for the future of the environment and the Italian economy.
