Impact of regional investment on the sustainable development goals: A group analysis of economic and territorial development

Abstract The European Green Deal aims at increasing the sustainability of European economic sectors to mitigate the effects of climate change. Complementing this initiative, the Next Generation EU (NGEU) program, whose budget will exceed 800 billion € by 2026, is not merely a recovery plan but also a catalyst for green technologies and sustainable activities. Within this framework, Italy stands as the largest beneficiary of funds. The present study explored the distribution to date of 194.4 billion € NGEU funds across Italian regions and the Sustainable Development Goals (SDGs) that have received the most significant attention as a result of this funding. Leveraging multiple comprehensive datasets, including one encompassing more than 306,706 measures and sub‐measures, the analysis revealed that 55.5 billion € was directed towards Italy's “Green Revolution and Ecological Transition,” with a further 104.1 billion € allocated towards (predominantly) SDGs 7 and 9. Moreover, 70.3 billion € was directed towards southern Italy (including the islands), while 81.0 billion € was allocated to the north. Although the population in the north is approximately one‐third larger than that of the south, on a per capita basis, the north received 2930 € while the south received a significantly greater sum of 3470 €. Thus, the NGEU has not significantly reduced the north–south divide in economic terms. Furthermore, some southern regions have shown satisfactory sustainability performance, despite receiving a relatively lower allocation of NGEU funds. The “Made in Italy” initiative may represent a strategic approach to increasing competitiveness in the global and digital markets and fostering fraternity among Italian regions. The present research offers valuable insights into the regional distribution of funds and their impact on sustainable development, suggesting that territorial gaps may be mitigated through a pragmatic, community‐based approach.