ABSTRACT
The chapter focuses on the Italy's approach toward four crucial energy sources: coal, oil, natural gas, and renewables. Italy's energy mix has historically experienced a higher share of gas and oil products and a lower share of coal. The potential for further reduction in coal in the foreseeable future is large, owing to the extended growth of renewable energy and the local resistance to coal. While oil supply sources rely on over 30 countries, Libya and Russia are the dominant sources, each accounting for almost a quarter of all Italian crude oil imports. Italy has a twofold interest in natural gas: gas is used in industries and for domestic heating, but is also widely employed to produce electricity. The dilemma revolved around positive, albeit inevitably costly, climate and environmental policies and the competitiveness-driven imperative to reduce public expenditures, increase jobs, and foster growth.
