The complete decarbonization of Italy’s power sector by 2035 is achievable but requires a massive ramp-up of installed renewable capacity in the coming decade, environmental groups said.

Critics say the new windfall tax in Italy could slow energy transition efforts and ultimately undermine national decarbonisation targets.

Boosting national gas and renewables production are among the energy pledges of the new government in Italy led by far-right leader Giorgia Meloni, which was sworn in on October 22.

Climate activists are increasingly calling for a coordinated withdrawal of EU countries from an obscure international treaty that allows energy companies to sue governments over legislation that they deem as hurting their fossil fuel investments. Italy was recently ordered to pay £210m in compensation to the UK’s Rockhopper.

The future of gas in Italy is increasingly a matter of contention among parties, as the Ukraine crisis exposed the country’s dependence on Russian imports.