This study examines regional variations in Italy's green industry specialization and their implications for energy and industrial policies. Utilizing the Taxonomy Alignment Coefficient (TAC) and Taxonomy Exposure Coefficient (TEC), the research assesses the alignment of provincial sectors with low-carbon economies and their dependence on fossil fuels, respectively.

Findings reveal significant heterogeneity across Italian provinces: regions like Aosta, Bergamo, and Brescia exhibit strong green specialization, while areas such as Turin, Rome, and Catanzaro are more reliant on vulnerable, high-emission industries. These insights inform policy recommendations tailored to regional contexts. For provinces with high green specialization, policies should enhance competitive advantages through investment in research and development, subsidies for green innovation, and support for sustainable operations.

Conversely, regions with high vulnerability, particularly in Southern Italy, require strategies focused on economic diversification and a transition away from fossil fuel-dependent industries, including investments in renewable energy projects. Provinces with dual specialization necessitate balanced approaches that manage the decline of vulnerable sectors while fostering green industry growth, such as retraining workers and supporting SMEs in innovation. The study emphasizes the necessity of a coherent national strategy to complement regional efforts, ensuring equitable resource distribution and 2 reducing North-South disparities.

Adaptive policies, responsive to technological and market evolutions, are crucial, as is collaboration between public and private sectors to drive innovation and inclusive growth. By addressing regional specificities and promoting innovation, Italy can effectively navigate the green transition and position itself as a leader in global sustainability efforts.