** Following lengthy negotiations at the Ministry of Enterprises and Made in Italy, a preliminary agreement for decarbonizing the former Ilva steelworks in Taranto has been signed by all relevant national and local authorities. Enterprises Minister Adolfo Urso hailed the pact as “a breakthrough that could encourage investors.”
Trade unions, however, expressed significant reservations. Uilm, Fiom, and Fim general secretaries Rocco Palombella, Michele De Palma, and Ferdinando Uliano jointly stated, “there are no certainties.” Conversely, Confindustria President Emanuele Orsini welcomed the deal, satisfied that “a decision was made not to close Ilva.”
The eight-hour talks did not finalize a comprehensive program agreement, nor resolve the decarbonization timeline or the location for the DRI (Direct Reduced Iron) plant. These critical issues were deferred to further meetings starting in September. Nevertheless, the negotiations narrowed the gap between the national government and local stakeholders.
Taranto Mayor Piero Bitetti, who had opposed the government’s decarbonization plan and participated only via videoconference, emphasized he signed “a document, not a program agreement.” However, he acknowledged the text incorporated his key demands, particularly the binding obligation for full site decarbonization stipulated in the new tender and the exclusion of sourcing gas via a carrier ship – a major point of contention.
Puglia Region President Michele Emiliano declared it “a day that will remain in the history of Puglia and the whole of Italy,” stating one of Europe’s largest factories “can finally be reborn in harmony with the inviolable rights to life, health, work, and environmental protection.”
Meanwhile, local environmental groups continue their protests. Peacelink and Giustizia per Taranto have filed an appeal with the Regional Administrative Court (TAR) against the Integrated Environmental Authorization (AIA) granted to the former Ilva in July, which permits continued coal-based production for another 12 years.
The preliminary decarbonization agreement between the government and local entities specifically outlines:
The construction of electric furnaces to replace blast furnaces, which will be gradually decommissioned within a “fixed timeframe” specified during the award phase of the new tender for an investor.
A new meeting after September 15th (the deadline for binding investor bids) to decide the location of the DRI plant for producing direct reduced iron.
Studies into territorial compensation, including exploring new prospects for reindustrializing the steel plant’s freed-up areas (involving a commissioner appointment), and evaluating active and passive labor policies to prevent or mitigate negative employment impacts.
A further meeting in September will aim to finalize “a program agreement that meets the territory’s needs, balancing the satisfaction of the right to health, the environment, and work.”
The agreement text also notes key differences in the new tender compared to the previous one, particularly:
The “binding obligation for the full decarbonization of the Taranto site.”
Employment protection as an “inalienable principle.”
The “possibility for bidders to present offers for the entire company complex, specific business units, or the entire Northern or Southern plant complex.” This potential fragmentation is a major concern for the unions.