IndustriAll Europe is stepping up its monitoring of how the green and digital transitions are reshaping Europe’s industrial base. With our Just Transition Manifesto, we have set out clear conditions for a transformation that is fair for ALL workers, that “does not destroy but preserves and creates good quality jobs”, and that is “anticipated, managed and negotiated with workers for every aspect that concerns them” .
To deepen this work, we are launching a new series of webnews articles based on country fact files prepared by Stefan Guga (Syndex) for our Fair Transformation workshop in Sesimbra. Italy is the first in this series — and the findings show both progress and serious risks.
Italy’s transition is advancing, but too slowly
The fact file shows that less than a fifth of Italy’s energy consumption came from renewable sources in 2024, and “the shift to renewables is much slower than in the EU overall”. Italian industry remains heavily dependent on fossil fuels, especially natural gas.
The automotive sector is facing deep structural challenges. Production volumes have fallen by 35% since 2019, and the share of battery electric vehicles in total production remains far below the EU average. Other major sectors — paper, chemicals, steel — have also “structurally lost volume” in recent years.
Digitalisation is moving faster. Almost 36% of manufacturing companies now have high or very high digital intensity, and the use of artificial intelligence has doubled in two years. Yet this technological progress has not led to more high tech manufacturing jobs. Employment in these segments has slightly shrunk, while “low tech” sectors such as food and apparel have grown.
Workers face uncertainty as investment slows
Despite manufacturing adding 132,000 jobs between 2019 and 2024, production volumes have declined in several transition exposed sectors. Italian trade unions warn of a slowdown in green transition investments due to economic uncertainty — a clear risk that Italy may miss the window for a fair and forward looking transformation.
Strong social dialogue exists — and must be fully used
Italy has long standing collective bargaining structures, including joint sectoral observatories that bring unions and employers together. New 2025 agreements in the chemical, pharmaceutical and energy sectors establish a joint national body on training to help workers adapt to new technologies. National agreements now explicitly address the green transition, digitalisation and AI, and require consultation on data security and technological change.
These institutions give Italy a solid foundation — but they must be fully mobilised to steer the transition, anticipate restructuring and secure quality jobs.
IndustriAll Europe’s message
Italy can still deliver a Just Transition. But this requires proactive industrial and just transition planning, negotiation and investment. Workers must not be on the menu, but have a seat at the table when planning the decarbonisation or digitalisation. With the right policies and genuine social dialogue, Italy can turn today’s challenges into a sustainable industrial future that leaves no worker or region behind.