Italy

Italy’s official development assistance strategy and priorities are developed by the Ministry of Foreign Affairs and International Development Cooperation. This ministry also oversees the Italian Agency for Development Cooperation, which examines, develops, finances, manages, and controls the cooperation initiatives.

Italy’s priorities for development cooperation are set out in the Programming and Policy Planning Document, currently for 2020–2024. It focuses on gender; education and vocational training; humanitarian aid and fragile context; and agricultural development, food security, and climate change. In 2023, Italy established the Italian Climate Fund, with an annual allocation of €840 million (both in grants, soft loans, and guarantees) until 2026 and €40 million from 2027 onward. Cassa Depositi e Prestiti S.p.A (CDP), Italy’s financial institution for development cooperation entrusted to support initiatives promoting sustainable and inclusive development, manages the resources.

In October 2021, ADB signed a memorandum of understanding (MOU) with the CDP. The MOU sets the strategic guidelines for ADB and the CDP to collaborate in the cofinancing, knowledge, and capacity building to support ASEAN governments in promoting green and sustainable infrastructure. The MOU also indicates CDP’s interest in supporting the ASEAN Catalytic Green Finance Facility (ACGF) and an indicative contribution of €132 million ($155 million) to cofinance ACGF-supported projects through loans or third-party grants to relevant governments.

Highlights of ADB–Italy Engagement in 2023:

Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 840 transactions valued at $533 million with banks domiciled in Italy from inception to December 2023. During the same period, the TSCFP supported over 462 Italian exports and/or imports valued at $444.1 million. In 2023 alone, the TSCFP supported 106 transactions valued at $151.2 million with banks domiciled in Italy and supported 38 Italian exports and/or imports valued at $31 million. Exports and/or imports were mainly to or from Bangladesh, Viet Nam, and Pakistan. Underlying goods involved mostly industrial machinery and capital goods, food and agriculture-related goods, as well as raw and non-energy commodities.

Special Funds. Italy is a founding member of ADB and has contributed $1.3 billion to ADB special funds since 1966. Of this commitment, $1.2 billion went to the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve quality of life.