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5.0 Industry, “and yet it moves”…

by Marzio Nava

After 4.0 Industry, which has offered so much to the companies in terms of innovation, the 5.0 Industry is now timidly showing up. Timidly because, at the moment, there is only the framework of the measure presented by the Government; what is missing, instead, is the essential part that will be detailed in two implementing decrees. The measure can be traced within the “package” containing 6.3 billion euros of European funds from RepowerEU, to which are added another 6.4 billion euros of “wartime residue” from 4.0 Industry. Almost 13 billion euros, a nice amount.

There is not much time left, the incentives are closely linked to projects implemented in 2024 and 2025. The details of how to proceed and act are not available yet but the crucial year 2024 is already in progress. As it often happens, we arrive late, in a rush and even a bit disoriented. Everything revolves around the keywords: innovate and reduce energy consumption. Machine tools, robots, automated warehouses. However, there is an expansion compared to the old range of assets: software or applications for monitoring energy consumption and self-produced energy or introducing energy efficiency mechanisms are now also included; as well as, if purchased together with these, software for business management.

The measure had been expected for months by the companies, many of them suspended their investments anticipating the new tax credits. A part of the guidelines is recovered from the “stock funds” of the 2017 Budget Law, which had prepared the groundwork and constituted the driving force behind the 4.0 Industry. But there’s more, as mentioned; the resources must be used in innovation projects that reduce energy consumption in the production facility by at least 3%, or the processes involved in the investment by at least 5%. Some things are already known, others are not. As it usually happens in such cases, it will be necessary to navigate through the maze of bureaucracy, in the context of implementing decrees, and subsequent administrative practices.

It’s hard work, but it can be worth it. Training on digital technologies will be a crucial key: only up to 10% from the expenses of the total investments will be covered by the financing and in any case, up to 300.000 euros.

However, companies will be required to address to external trainers. In essence, the tax credit is inversely proportional to the amount of investments made: the underlying reasoning is to give a helping hand to small and medium-sized enterprises. Incentives do not only concern purchases. Leasing is also included, along with cloud computing solutions. At first glance, the measure raises some concerns. How will it be possible to measure the reduction of at least 3% in energy consumption of the production facility?
Furthermore, there are some sectors excluded from the incentives, such as sectors with high energy consumption, like companies in the production of paper, ceramics, steel, non-ferrous metals, cast iron, cement, various chemicals, hydrogen, and others.

These are strategic sectors, important industrial supply chains, and excluding them penalizes competitiveness. They should be included to support them on the path towards lowering emissions, promoting their green development. And last but not least, there is the open issue of the cumulation of benefits, especially in some areas of the south of Italy. In conclusion to quote Mark Zuckerberg, CEO and founder of Meta (Facebook), “the biggest risk is not taking any risk,” and this is valid in every sphere of life but especially in business activity.

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