This chapter provides a snapshot of some key environmental trends in Italy between 2002 and 2012. It highlights some of the country’s main environmental achievements, as well as the remaining challenges on the path towards a greener economy and sustainable development. The chapter describes Italy’s progress in reducing the carbon, energy and material intensities of its economy; in managing its natural asset base, including water and biodiversity resources; and in improving the environmental quality of life.

This chapter reviews the main strategies and initiatives launched in the areas of sustainable development and environmental management during the period 2002-12. It examines Italy’s environmental governance, the regulatory framework for environmental protection, and programmes to ensure compliance with environmental requirements. The chapter also reviews the application of mechanisms in place to improve horizontal and vertical co-ordination, as well as the instruments used to systematically evaluate the environmental impacts of economic and sectoral policies. Progress in promoting environmental democracy, through open access to information and improved public participation in decision making, is also discussed, along with a programme promoting environmental education.

This chapter presents efforts to mainstream environment into Italy’s economic policy. It examines the use of tax policy to pursue environmental objectives and progress in removing fiscal incentives that can encourage environmentally harmful activities. Opportunities for green tax reform are also assessed. The chapter includes a discussion of public and private investment in environmental protection and resource use, as well as environment-related infrastructure. Investment in clean energy and sustainable transport modes are also discussed. In addition, the chapter examines promotion of environmental technologies and eco-innovation along with the growth of an internationally competitive environmental goods and services sector as a source of economic growth and jobs. Finally, the international dimensions of Italy’s environmental policy are reviewed, with a focus on mainstreaming the environment into development co-operation programmes, greening export credit systems, and promoting the corporate social responsibility of Italian multinational enterprises.