EU Commission approves Italy's ETS aid expansion to €3.6bn

Greater relief for energy-intensive industries from indirect CO2 costs (ETS-driven electricity price mark-ups) to prevent carbon leakage; payouts until 2031.

On 20 July 2026 the European Commission approved an amendment to Italy's state aid scheme compensating indirect emission costs: the total budget rises from €1.5bn to €3.6bn (maximum annual budget from €140m to €600m) and the maximum aid intensity from 75% to 80% of indirect costs; newly designated sectors at risk of carbon leakage are added. Payouts run until 2031 based on the previous year's electricity costs. Separate from the use of the EU escape clause for energy investments decided on 21 July (own entry).