Belgium, (Brussels Morning Newspaper) The Italian government is rethinking the green push, stressing that businesses cannot afford to implement new rules aimed at meeting climate targets.

Earlier this year, Italy called on the EU to revise the energy efficiency directive, plans to phase out the sale of new cars with internal combustion engines, and more ambitious environmental targets for industry, according to Reuters reported on Monday.

Italy announced last week that it would go back on the 2021 commitment to stop financing fossil fuel projects, stressing that it needs to take a cautious approach and adapt to the energy crisis.

“The problem is that we cannot help the environment by destroying our industries,” Italian Prime Minister Giorgia Meloni pointed out after the EU summit in Brussels on Friday and concluded, “the road to a green economy must be socially and economically sustainable.”

Environmental activists have expressed concern over the government’s lack of environmental ambitions, warning that Italy’s move could discourage other countries from implementing more ambitious climate policies.

EC is critical as well

The European Commission criticized Italy for not being more ambitious on the green front, warning that Italian industry will lose out if it does not join the push for environmentally friendly technologies.

Last week, European Commissioner for Economy Paolo Gentiloni pointed out “the transition is here… you have to work on how to make it feasible and gain leadership in this process.”

“You don’t have to be the last wagon in the train trying to hold the others back,” he concluded.

Italian export credit agency SACE noted in a statement that it would support refining and oil storage programs until the start of 2024, and oil distribution until the start of 2028.

“The Italian Climate Policy takes into account both climate objectives… as well as the current energy crisis,” SACE stressed and added that additional investments are needed “to diversify sources of supply, in particular in relation to gas.”

According to critics, Italy will continue to invest in fossil fuels to protect the economy in the short term, but miss out on the opportunity to transition to green technologies and take advantage.