The world’s second largest economy is set to sign a landmark deal with the EU to curb greenhouse gas emissions that will see its carbon price rise to €100 a tonne.
The agreement will be the first of its kind and, with it, the first to require governments to reduce their emissions by a percentage of their gross domestic product.
In a move that will be seen as a watershed in the global fight against climate change, the European Commission has also committed to a new system to track the emissions of each country.
The plan, which was revealed late on Thursday, will mean that a country will not only be obliged to contribute to the EU’s ambitious target to cut greenhouse gas emission by 30 per cent below 2005 levels by 2030, but will also be able to choose how it goes about doing so.
The deal also sets out a new legal framework to help the bloc fight climate change and help countries avoid legal penalties that can hit countries like Spain.
The move will mark a turning point in the EUs climate policy, which has been driven by the desire to save money in a rapidly changing world.
In recent years, countries have taken on massive amounts of debt in an effort to make up for the lost revenue that was due to climate change.
But the cost of inaction has been crushing.
A recent study by the think tank Oxfam found that the EU had paid out more than €4 trillion in subsidies to fossil fuel companies since 2007.
The EU has also pledged to reduce greenhouse gas output by an average of 6 per cent per year until 2030.
The accord will also see the EU spend an extra €1.2 trillion to fight global warming over the next 15 years.
The new carbon price is a key part of the EU plan to reduce its greenhouse gas profile and to help countries like Italy, which are already heavily reliant on coal and other fossil fuels, make up the shortfall.
“It is a major milestone, but I think it is also a moment for us to start seeing the true impact of the carbon price and how we can create a climate strategy that can make a real difference for the future,” said Michel Barnier, the EU president.
In a statement, the Commission said it was pleased to sign the agreement.
“The agreement with the European Parliament and Council is a significant milestone in the evolution of the climate policy and a way to contribute significantly to the fight against global warming,” it said.
“This is a great opportunity to work together to reduce the climate impact of fossil fuel use, and we will do this by taking a step forward to address the CO2 pollution that is currently contributing to climate disruption and our carbon footprints.”
The agreement was first announced last year.
The pact will include a framework for countries to set targets for their emissions and to decide how they will do so.
A deal on how to measure and track CO2 emissions is due to be signed by EU leaders at a summit in September.
The first step is for the EU and the 27 other countries that joined the bloc in 2004 to agree a framework and rules for measuring CO2.
The second is for countries like Belgium and Sweden to set their own targets and to set an annual target.
The final step is to have the Commission publish a national CO2 emission target.
For Italy, the plan means that it will be able choose how to meet its CO2 targets.
A majority of Italians want to cut their CO2 by up to 30 per, or 40 per cent, by 2030 from 2005 levels.
In Italy, many people live in rural areas and do not own cars or other means of transport.
The country is currently the only EU country without a national emissions target, which means that the country will have to pay for the emissions that it emits on its own.
Italy will have the opportunity to set up its own national emissions targets for the first time.
The commission will give Italy a mandate to set emissions targets that are comparable to the ones in the other EU countries, and to ensure that these targets are based on the best available science.
With a new agreement, Italy will have a much stronger hand in how it wants to manage its emissions.
It will be more able to push for changes to its emissions target that are not seen as “in line with the international standard” of emissions reduction.
“Italy is already one of the biggest emitters of CO2 in the world, but this agreement will allow us to do more to limit our emissions, and the country has the power to make the most of this opportunity,” said Matteo Renzi, the prime minister of the Northern League party, which governs in Italy.
However, with the country facing its own climate change challenges, the deal is expected to be met with scepticism from some members of the European parliament.
“I’m not so sure we can do this in the way that we have planned,” said Jean-Claude Juncker, the president of the parliament.
“The European Parliament