News

First draft of Decree on areas suitable for hosting RES is ready: an overview

On 15 December 2021, Legislative Decree No. 199 of 8 November 2021 came into force, transposing EU Directive 2018/2001 on the promotion of the use of energy from renewable sources. The Legislative Decree expressly refers to "areas suitable to host the installation of electricity production plants from renewable sources" and entrusts the Ministry of Ecological Transition (MiTE) to establish criteria and principles to identify them. On 25 May 2022, the MiTE announced that the first draft of the text was ready and has been sent to the Ministries of Agricultural Policy and of Culture for consultation.

The Decree deeply innovates the procedures for identifying suitable areas for hosting renewable energy sources (RES), overcoming the original approach based on the identification of non-suitable areas and instead establishing an opposite criteria, according to which suitable areas should be identified first through a process that empowers the various levels of government and actively involves regions and the autonomous provinces.

Since the planning processes of the territories fall within the exclusive jurisdiction of the latter, the main objective of the Decree will be to identify uniform national principles and criteria, whereas the concrete determination of such areas will be left to regional laws, without this prejudicing possible activation of the state's substitution powers in the event of inertia of the regions.

In order to ensure expediency to the authorization procedure, the relevant landscape authority will have to provide a mandatory, non-binding opinion. Once the deadline for issuing the opinion has expired, the competent administration may in any case decide on the application for authorization.

Pending the issuance of the MiTE Decree, Legislative Decree 199/2021 established that some areas and territories will be automatically considered as suitable, ensuring certainty to the investors and encouraging the development of RES.

The list of the areas to be considered ex-lege suitable can be found here.

More information is available through the following link.

MiTe publishes its guidelines for agrivoltaic systems

The document is the result of work done by Council for Agricultural Research and Analysis of Agricultural Economics (CREA), National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA), Energy Services Manager (GSE) and Energy System Research (RSE) under the coordination of the Ministry of Ecological Transition.

It is a 39-page compendium that reviews minimum installation and monitoring requirements, also an analysis of investment costs.

Most importantly, it provides an unambiguous definition of agrivoltaics: a system that adopts solutions "aimed at preserving the continuity of agricultural and pastoral cultivation activities on the installation site." Systems may, therefore, be characterized by different spatial configurations, degrees of integration and innovative features, but the ultimate goal must always be a productive synergy in which crops and solar panels influence each other in a positive way.

When installing an agrivoltaic system, it is essential to assess its compatibility with cultivated plants. With this in mind, the paper briefly reports the results of several studies that evaluated the production output of different crops in conditions of reduced direct illumination. The paper identifies crops as:

  1. Unsuitable
  2. Poorly adapted
  3. Suitable
  4. Moderately adapted
  5. Very suitable.

The last two classes include, for example, onions, beans, cucumbers, zucchini, potatoes, hops, spinach, lettuce, and broad beans.

The text also outlines some reward factors or priority selection criteria for accessing incentives, such as the application of modern precision farming concepts, self-consumption, use of spectrally selective photovoltaic devices or transparent modules, increased electrification of farm consumption, and attention to landscape integration of agrivoltaic systems.

The guidelines are available through the following link.

New Decree implementing the NRRP approved: news in the energy sector

The second Law Decree to speed up the implementation of the National Recovery and Resilience Plan (NRRP) has officially been converted into law with the Parliament's favorable vote. The relevant text has been published on the Official Gazette on 30 June, introducing novelties within the energy sector ("NRRP Decree 2").

With regard to green hydrogen, NRRP Decree 2 stipulates that the consumption of renewable electricity in electrolysis plants will not be subject to the payment of general system fees, even if the energy production plant and the electrolyzer are connected by means of a grid with a third-party connection obligation. In addition to this, an exemption for green hydrogen that is not directly used as fuel in heat engines has been introduced, as such hydrogen is expressly exempted from the payment of excise taxes to which other energy products remain subject.

NRRP Decree 2 does not simply introduce novelties, but also provides for the amendment of some of the provisions contained in the previous Energy Decree No. 51 of 20 May 2022, by expanding the rules aimed at increasing the production of electricity from bio-gas to biomass plants as well (with a capacity of up to 1MW).

Finally, under article 24-bis of NRRP Decree 2, a new eco-bonus for sports facilities has been introduced, which provides capital grants with a maximum value of EUR 1 million for investment projects aimed at the installation of renewable energy generation plants and the associated storage systems. The grant provides for a maximum total expenditure limit of EUR 60 million for the year 2023 and is aimed at, inter alia, national sports federation, amateur sports facilities and sport promotion bodies.

NRRP Decree 2 is available through the following link.

NRRP Decree 2: new incentives for water treatment plants

The Ministry of Ecological Transition, with NRRP Decree 2, has officially implemented the investment described in the NRPP's point 4.4, aiming at promoting the reuse of water resources and allowing the adaptation of the current Italian water system to the European model. The measure aims to finance, in particular, projects potentially able to make the purification of waste water discharged in the sea or inland waters more effective, with the final objective being to transform sewage treatment plants into real "green factories" to allow the reuse of purified water for agricultural or industrial purposes.

In particular, NRRP Decree 2 establishes the criteria for the distribution of the resources allocated to the measure, amounting to EUR 600 million, and the eligibility criteria for project proposals. About 45% of the funds provided will be allocated to the southern part of Italy to address the recent drought emergency due to the worsening climate crisis and the failure to adapt the water system to the provision of the European Sectoral Directives.

The measure officially came into force through its publication on the Ministry's website. As of 7 July 2022, the dedicated platform for uploading the project proposals will be accessible and remain active until 23 August 2022.

NRRP call for proposals: EUR 21 million for health, environment, biodiversity and climate

On 30 June 2022, the Ministry of Health published the call for proposals for the implementation of 14 projects on health, environment, biodiversity, and climate under the NRRP, whose total investment amounts to EUR 21 million.

The call finances 14 programs divided into two macro areas: (a) "priority programs for the health sector" and (b) "programs involving actions with high synergy with other institutions/sectors."

The call is open from 15 July until 10 August, and proposals can be submitted by the regions and the autonomous provinces of Trento and Bolzano as proponents or lead partners.

Further information are available through the following link.

FIGC (Italian Football Federation) promotes Declaration on the Environmental Sustainability of Football

The FIGC (Italian Football Federation), in collaboration with the Scuola Superiore Sant'Anna and the relevant football leagues, published the Declaration on the Environmental Sustainability of Football, aimed at defining functional guidelines for practical application of environmental sustainability in the context of governance, infrastructure management, event management, partnerships, and involvement of stakeholders and fans.

Subscription to the Declaration is free; opened to all Italian clubs, both professional and amateur; and granted by filling out a form provided by the relevant leagues to which they belong. The subscriber clubs will be included in a special list and subsequently involved by FIGC in the management of the initiatives that will be undertaken.

In this regard, it may be recalled that, as part of the "Sustainability Strategy," the UEFA identified four guidelines in the field of environmental sustainability: circular economy, counteracting climate change, sustainability of events and sustainability of infrastructures. This is a programmatic approach that shares the goals set by the United Nations Agenda 2030, aimed at urging responsible consumption of resources and encouraging the development of climate-friendly interventions and adaptation of towns.

The Declaration is available through the following link.

"Caro bollette" Decree enters into force

On 1 July 2022, Law Decree No. 80 of 30 June 2022, also known as "Caro bollette" or "Expensive Energy" Decree, an urgent measure to support the purchasing power of households and help the productive capacity of businesses vis-à-vis the rising of energy prices, came into effect.

The Decree intervenes to buffer the quarterly costs of electricity and natural gas, while also adding some measures to guarantee the liquidity of gas storage companies. The Decree also provides for the zeroing of general system charges for the third quarter of 2022, the strengthening of social bonuses, and the reduction to 5% of VAT on gas consumed at the civil and industrial levels.

The Decree is available through the following link.

Case Law

Photovoltaic systems: Supreme Court rules out 15% tax rate

With judgment no. 3461 of 11 February 2021, the Italian Supreme Court rejected the appeal brought by the Revenue Agency (Agenzia delle Entrate), which held that registration tax should be applied with a rate of 15% in the event of the establishment of surface rights on agricultural land for the construction of photovoltaic systems. The subject of the dispute concerned a question of interpretation concerning the classification of the establishment of a surface right in an agricultural area. According to the Revenue Agency such case should fall within the scope of the third sentence of art. 1 of the Tariff Part one annexed to Presidential Decree 131/1986, according to which the transfer of agricultural land and its appurtenances in favor of persons other than direct cultivators and professional agricultural entrepreneurs are registered in the relevant social security and welfare management.

The courts of first and second instance, ruling before the Supreme Court, instead ruled in the sense of categorizing such a deed in the first sentence of art. 1 of the aforementioned Tariff, which covers deeds of transfer or constitution of real property rights of enjoyment.

The application of the first theory would result in the application of the 15% rate on the value of the rights granted, whereas the second theory would result in the application of the 9% rate.

The Supreme Court embraced the second theory, on the assumption that the right to create and maintain a construction on someone else's land (so-called surface right) would be equated to the establishment of a real property right, in that the transfer could occur only in the event that a construction is built in the exercise of the surface right and, subsequently, the successor in title would have arranged for its alienation. Furthermore, the first sentence of art. 1 of the Tariff refers to "every constitution act" of real property rights, regardless of the nature of the land on which they are imprinted. This leads to the conclusion that the registration tax of 9% applies with respect to the establishment of a surface right.

The text of the judgment is available here.

EU

Stop to thermal engines by 2035. EU agreement on green measures package

The European Council announced that it has reached an agreement on the "Fit for 55" package of climate measures, which include a 100% reduction in CO2 emissions by 2035, until a definitive stop to the sale of gasoline and diesel cars.

The main goal of these measures is to help achieve EU climate goals, particularly carbon neutrality by 2050. At the explicit request of some member states (such as Italy), alternative technologies, such as synthetic fuels or plug-in hybrids can be used if they are suitable for ensuring the complete elimination of GHG emissions.

The European Council also agreed in establishing a five-year extension of the exemption from CO2 obligations granted to manufacturers that produce fewer than 10,000 vehicles per year. This clause, the so-called "Ferrari amendment," will particularly benefit luxury brands.

The package thus outlined will now have to go through the European Parliament.

More information on the "Fit for 55" program can be found here.

New measures to ensure reduction of GHG emissions. Implementing Regulation 2022/996 has been published

Commission Implementing Regulation (EU) 2022/996 entered into force on 30 June 2022, establishing rules to verify that economic operators:

  1. Meet sustainability criteria;
  2. Provide accurate data on the reduction of GHG emissions;
  3. Meet the criteria for certification of Indirect Land Use Change (ILUC) low-risk biofuels, bioliquids and biomass fuels

The regulation is divided into four sections that deal with the following topics:

  1. General principles of governance, internal monitoring, grievance procedure and transparency;
  2. Control processes and supervision of control activities;
  3. Specific rules on the European Union database;
  4. Specific rules on compliance with ILUC low-risk certification requirements;
  5. Methods for determining emission reductions through soil carbon storage;
  6. Management and monitoring practices to promote and monitor soil carbon sequestration and soil quality.

The Regulation is available here.

New EU funding for circular economy: 598 million allocated through LIFE program

The European Commission has launched a "call for proposals" for projects in connection with the European LIFE program for the year 2022, in order to protect the environment and combat climate change.

This is one of the largest programs funded within the European Green Deal, with the goal of achieving zero emissions by 2050 without affecting Europe's productivity.

The LIFE program, endowed with EUR 598 million funding, is divided into four subprograms:

  1. Nature and biodiversity: halting and reversing the loss of habitats and wildlife species in all sectors;
  2. Circular economy and quality of life: supporting the transition to a circular economy, protecting and improving the natural resources;
  3. Climate change mitigation and adaptation: supporting the implementation of the 2030 energy and climate policy framework with the EU climate neutrality goal by 2050 and the new EU climate change strategy;
  4. Clean energy transition: supporting the implementation of policies focused on energy efficiency and small-scale renewable energy.
  5. Public and private legal entities are eligible to submit proposals. The deadline is set for 8 September 2022.

All calls for proposals can be found on the Funding and Tenders Portal of the European Union.

Deadlines and how to submit proposals can be found here.

New Rules for Corporate Sustainability Reports: provisional political agreement reached between Parliament and the European Council

The European Council and Parliament have reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD), which aims to close some loopholes in the current non-financial disclosure rules that did not allow investors to have full knowledge of the sustainable aspects of coporate management, thus slowing the transition toward a sustainable economy. The new Directive aims to introduce more detailed non-financial information reporting requirements, thus ensuring that companies have a legal obligation to report on sensible sustainability issues such as human, environmental, social rights and corporate governance factors, minimizing the risk of greenwashing. The Directive also introduces a new certification requirement with regard to sustainability reports, which will have to be published within a special section included in the company's annual report to ensure greater accessibility by investors. The reports will have to be certified by an accredited independent auditor or certifier, ensuring compliance with the new European standards developed by the European Financial Reporting Advisory Group (EFRAG).

The new obligations will come into force through three different implementation steps and will be aimed at a wide range of companies, including large companies and companies operating within regulated markets, as well as non-EU companies that exceed the limit of EUR 150 million in net turnover achieved within the EU territory and have at least a subsidiary office in the EU.

The proposed Directive, once and if it receives approval from the Council and the European Parliament, will enter into force on the 20th day following its publication in the Official Gazette of the European Union.

The complete text of the provisional agreement is available here.

EU taxonomy: methane gas and nuclear power included in green investments despite rejection by Environment and Economy Committees

The proposal of the European Commission to include methane gas and nuclear power in the list of green investments has received a first opposing opinion through a joint vote of the European Parliament's Environment Committee and Economy Committee.

Although the two committees recognize the importance of methane gas and nuclear power to ensure stable energy supplies during sustainable transition, the technical criteria developed by the Commission would be insufficient to meet the environmental sustainability standards laid down by the Taxonomy.

In particular, the rejection of nuclear power was justified by the failure to respect the principle of not causing excessive harm to the environment, with reference to the management and disposal of nuclear waste. The rejection of methane gas was justified by the fact that methane gas installations should emit less than 100 g of CO2e/Kwh to significantly contribute to the mitigation of climate change; however, most efficient plants now emit no less than 316 g of CO2e/KWh.

Despite these oppositions, the Parliament, meeting in plenary session on 6 July, decided, by 278 favourable votes to 328 contrary, to reject the amendment proposal presented by the two committees.

Before the green light for possible methane gas and nuclear power funding becomes effective, however, there is one last date to meet. The Commission has proposed to categorise certain activities related to fossil gas and nuclear energy as transitional and capable of contributing to climate change mitigation. If the European Council does not object by 11 July, then the version of the delegated act on the taxonomy approved by the Parliament will officially enter into force and will be applied from 1 January 2023.

More information available on the European Parliament website.

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