Climate Shocks Threaten Italy’s Growth, Says IMF

Rome: Climate shocks pose a threat to Italian economic growth, the IMF said on Thursday following its Article IV mission here, calling on Rome to show more ambition in its efforts to address the environmental crisis. It said “climate-related shocks, including extreme weather events” could “dampen growth and further constrain fiscal space.”

According to Ansa News Agency, the IMF emphasized the need for Italy to accelerate its transition to renewable energy sources, adapt to a changing climate, and invest in resilient energy infrastructure to mitigate the impacts of extreme weather and reduce dependence on energy imports. “Climate-related risks and energy security are macro-critical for Italy, given the reliance on agriculture, tourism, and foreign energy supply,” the IMF noted. It highlighted that while the 2024 National Energy and Climate Plan provides a strategic foundation, more ambitious action is necessary to meet the 2030 climate targets and enhance energy security.

Italy has been severely affected by a series of devastating and frequently deadly extreme weather events in recent years, underscoring its vulnerability to the climate crisis. According to Germanwatch’s ‘Climate Risk Index 2025’ report released in February, extreme weather events linked to the climate crisis have resulted in over 765,000 deaths worldwide between 1993 and 2022, including around 38,000 deaths in Italy. The report further identified Italy as the fifth-worst-affected country by these climate events during this period, following Dominica, China, Honduras, and Myanmar.

Scientists attribute the increasing frequency and intensity of extreme weather events such as heatwaves, droughts, supercharged storms, and flooding to the climate crisis caused by human greenhouse gas emissions. The burning of fossil fuels, including oil, gas, and coal, which generates enormous profits for global energy companies, is identified as the primary driver of these emissions.