The Twin Transition: a challenge for the agri-food sector

The agri-food sector is currently at a crossroads.

On one hand, there's an urgent need to reduce environmental impact and increase resilience to climate change; on the other, a push toward digitalization as a lever to improve efficiency and competitiveness.

It is within this context that the twin transition comes into play, the dual ecological and digital transition promoted by the European Union as a strategic key for a sustainable future.

This transformation affects the entire sector, but takes on particular significance in regions such as Sicily, where agriculture is a vital economic resource and where significant potential coexists with structural challenges. The transition of the agri-food system calls for targeted responses and tools that can enhance local specificities.

The goal along this path is to achieve smart and sustainable agriculture, capable of ensuring greater resilience and more efficient resource use.

Innovation and sustainability for Italian agriculture

The agri-food sector is one of the most important for the Italian economy, but also among the most exposed to the effects of climate change. At the same time, it is responsible for a significant share of CO₂ emissions.¹ In this scenario, the twin transition represents a strategic lever to innovate, adapt, and reduce environmental impact.

The twin transition in Italian agriculture is based on the integration of environmental sustainability and digitalization of processes, providing an opportunity to become more efficient, resilient, and competitive. Sector companies — particularly small and medium-sized enterprises (SMEs) — are already responding to this challenge: more than half are using digital tools to support sustainable farming practices.² However, access to funding and infrastructure disparities continue to hinder large-scale adoption.³

Among the most promising technologies in Italy is Agriculture 4.0, a central expression of the twin transition in the agri-food sector. Agriculture 4.0 refers to the evolution of precision farming based on the use of digital technologies to collect, integrate, and analyse data from various sources, with the goal of supporting farmers’ decisions while improving both sustainability and profitability.⁴

Some of the key technologies in Agriculture 4.0 include: Artificial Intelligence, used to select crops, assess risks, and perform predictive maintenance on machinery and equipment; Internet of Things (IoT), enables smart objects to communicate and exchange data through sensors and digital technologies, allowing for environmental monitoring and real-time control of farming activities; Agrometeorology, supports more informed and efficient agricultural decisions by improving productivity based on weather conditions. ⁵

At the institutional level, there are also key investments and funds supporting the twin transition in Italian agriculture. Italy’s National Recovery and Resilience Plan (NRRP), through Mission 2, has allocated funds for the adoption of sustainable technologies and Agriculture 4.0 solutions.⁶ The 2023–2027 Common Agricultural Policy (CAP) Strategic Plan also introduces an integrated national strategy for agriculture, food, and forestry, incorporating tools to promote green transition and digital innovation, aligned with NRRP funding. ⁷

In Sicily, the 2014–2022 Rural Development Programme (RDP) has been a key instrument in implementing the twin transition, aiming to make agriculture more competitive, sustainable, and inclusive by promoting innovation, resource efficiency, digitalization, and rural development.⁸

Despite a market slowdown in Agriculture 4.0 in 2024 (-8%), interest in digital tools and farm management software continues to grow: 41% of farms have adopted at least one 4.0 technology. However, only 8% are considered digitally mature. This underscores the need to strengthen skills, enhance infrastructure, and provide stable incentives to support the transition in the long term. ⁹

Sicily’s path toward smarter agriculture

Sicily, the leading Italian region in terms of utilized agricultural area and the share of organic farming, is a representative territory for understanding both the needs and the potential of the twin transition.¹⁰

In recent years, there have been positive developments: increased digitalization, diversification of activities, and the launch of pilot projects based on 4.0 technologies, such as smart water management, waste recovery, and advanced crop monitoring.¹¹

Despite this momentum toward agricultural transition, targeted interventions are still needed to address the current needs of local farms, considering the predominance of SMEs in the Sicilian territory.

In particular, it is crucial to facilitate access to national and European funds, especially for small farms facing high upfront investment costs, which risks exacerbating the gap with larger agricultural enterprises that have greater financial resources.¹²

Another key issue is training: many small farms still show cultural resistance to change and lack specific digital skills. Training and awareness programs are needed to guide farms through digital and green transition topics, highlighting their potential in the agricultural sector.¹³

On the infrastructure side, investments are required to improve digital accessibility and innovation in rural areas. Furthermore, collaborative networks between companies should be supported, with the aim of creating true innovation clusters for agricultural digitalization.¹⁴

Finally, a sustainable and long-term transition must promote youth entrepreneurship and social inclusion, as a fundamental step to ensure new generations enter and remain in the agricultural sector, supporting employment and local innovation.¹⁵

In this context of profound transformation, the TRANSFORM project takes shape, created with the goal of strengthening the skills of workers and small and medium-sized enterprises in key sectors of the green and digital transition. Through a collaborative approach inspired by the Living Lab model, TRANSFORM fosters dialogue and co-creation between public and private actors, aiming to align training pathways with the real needs of the labour market and to support a fair and sustainable transition.

The twin transition is not only a technological or environmental challenge but also an opportunity to rethink the Italian agri-food model with a focus on resilience, inclusiveness, and sustainability. Supporting businesses and regions along this path means laying the foundation today for a fairer, more digital, and environmentally respectful future.