Legislative Decree January 9, 2026, No. 5 and the new legal and technical framework for the promotion of renewable sources
With Legislative Decree January 9, 2026, No. 5, Italy transposes the EU Directive 2023/2413 RED III and organically redefines the national regulatory framework for the promotion of renewable sources. The provision amends Legislative Decree No. 199/2021, coordinating it with the most recent developments in European climate and energy legislation. It introduces a complex set of objectives, definitions, obligations, and technical criteria intended to significantly impact industrial strategies, investments, and energy supply models.
Renewable energy purchase agreements and overcoming the traditional perimeter of PPAs
One of the most significant elements concerns the introduction of the definition of renewable energy purchase agreement, understood as the contract whereby a natural or legal person commits to purchasing renewable energy directly from a producer. The definition includes electricity as well as energy intended for heating and cooling from renewable sources. This regulatory choice expands the perimeter traditionally associated with Power Purchase Agreements, which have so far focused mainly on electricity, and opens up new contractual models for the direct supply of renewable energy. This results in a strengthening of the legal certainty of medium-to-long-term bilateral agreements and greater integration between production and consumption, with significant effects on companies’ energy planning and cost stabilization.
Renewable fuels of non-biological origin and alignment with European legislation
The decree explicitly introduces and regulates renewable fuels of non-biological origin (RFNBOs), defined as liquid and gaseous fuels whose energy content derives from renewable sources other than biomass. Included in this category, among others, are renewable hydrogen and hydrogen-based fuels.
The national framework is coordinated with EU Delegated Regulation 2023/1184, which sets the conditions under which electricity used in the production of RFNBOs can be considered fully renewable and defines the calculation methodologies for greenhouse gas emission reductions. This alignment strengthens the role of advanced renewable fuels as central tools for the decarbonization of industry and transport.
New national targets for 2030
The decree sets a binding national target of 39.4 percent renewable energy share on gross final energy consumption by 2030. The target is accompanied by a series of indicative sectoral targets. In buildings, a minimum share of 40.1 percent renewable energy is envisaged, also considering renewable energy drawn from the grid. In the industrial sector, an average annual increase of 1.6 percentage points in the renewable share is required. A share equal to 5 percent of new installed capacity must come from innovative technologies. These objectives directly guide investment choices and strengthen the coordination between energy policies, building planning, and industrial strategies.
Industry and transport between obligations, quotas, and incentive mechanisms
In the industrial sector, the decree introduces specific targets for the use of RFNBOs and renewable hydrogen. The contribution of these sources must reach at least 42 percent by 2030 and 60 percent by 2035. The operational modalities for achieving the targets will be defined by implementing decrees of the Ministry of Environment and Energy Security. In the transport sector, the framework of obligations is strengthened and expanded. Fuel suppliers, including electricity, must guarantee by 2030 a minimum share of 29 percent renewable sources on final energy consumption. The decree extends the perimeter of countable fuels to include advanced biofuels, RFNBOs, fuels from recycled carbon, and renewable electricity. Specific minimum quotas and multiplication factors are introduced to incentivize solutions with greater environmental value.
Sustainability criteria, certification, and emission reduction
A significant part of the decree is dedicated to updating sustainability criteria and greenhouse gas emission reduction for biofuels, bioliquids, and biomass fuels. Requirements for biodiversity protection, sustainable forest management, and soil carbon maintenance are strengthened. A lowering of the size thresholds for plants subject to obligations and an extension of the application duration of the criteria are provided.
A national sustainability certification system is established, supported by the recognition of European voluntary schemes. A transitional regime is also provided to ensure continuity for already incentivized plants. Amendments to Annexes VI and VII of Legislative Decree 199/2021 specify the calculation methodologies for emissions throughout the entire fuel life cycle. The precise definition of calculation methodologies enables companies to measure and transparently demonstrate emission reductions, improving the comparability of environmental performance. In perspective, this approach supports more informed industrial choices, strengthens ESG positioning, and promotes the integration of renewable fuels in decarbonization strategies and ETS mechanisms.
Guarantees of origin, traceability, and energy communities
The decree strengthens the role of Guarantees of Origin as a central tool for renewable energy traceability. Simplified procedures are introduced for small-scale plants, with power below 50 kW, and for those included in Renewable Energy Communities. Guarantees of Origin assume a key role for the transparency of commercial offers and for the valorization of renewable energy in relationships between producers, suppliers, and final customers. In this context, a reflection opens on the role of Energy Communities as entities capable of sharing energy and also operating as producers able to sell renewable energy to final customers. The integration of tools such as PPAs and Guarantees of Origin fosters the development of innovative contractual models.
Operational impacts and prospects for companies
Overall, Legislative Decree No. 5 of 2026 redesigns the regulatory framework of the energy transition and requires companies to revise project timelines, economic assessments, and procurement strategies. The regulation combines objectives with a complex system of obligations, incentives, certifications, and contractual tools that require integrated legal, technical, and economic skills. For managers and administrators, the challenge is to translate this new regulatory framework into coherent decisions, avoiding fragmented approaches and seizing the opportunities offered by tools such as PPAs, energy communities, and advanced renewable fuels. The decree thus marks a solid regulatory basis from which to rethink business models, investments, and positioning in the energy market.
