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Italy Approves Fifth Recovery Plan Revision, Redirecting €1.24 Billion to EV Incentives and Biometane

The updated plan reallocates underutilized funds to support electric vehicle adoption and biometane production, with EU approval pending.

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Overview

  • €597 million originally allocated for EV charging stations will now fund a scrappage program to replace 39,000 internal-combustion vehicles with electric ones.
  • The scrappage incentives include up to €11,000 for low-income families and 30% cost coverage for micro-enterprises, capped at €20,000 per vehicle.
  • €640 million previously earmarked for industrial hydrogen projects has been redirected to biometane development, targeting 2.3 billion m³/year production by mid-2026.
  • The revised plan adjusts 107 milestones, representing 30% of remaining targets, to meet EU funding deadlines by June 2026.
  • The proposal, approved domestically on May 19, 2025, has been submitted to the European Commission for final approval.