Energy security has become the main focus for Europe’s economic stability, autonomy, and transition to green technologies, especially after the disruption in the traditional supply routes due to geopolitical tensions. In this landscape, Azerbaijan has positioned itself as a reliable long-term energy partner for the European Union, with Italy playing a vital role as a strategic transit hub. Italy is currently the largest European buyer of Azerbaijani oil and gas, while Italian state-owned energy companies have become active in Azerbaijan’s energy sector. However, Europe’s increasing demand for secure and sustainable energy supplies comes not only with opportunities, but also risks. Continued dependence on limited suppliers and bottlenecks in infrastructure may create vulnerabilities for the EU economy. At the same time, Azerbaijan’s vast hydrocarbon reserves and growing renewable energy potential offer a strategic pathway to strengthening Italy’s and Europe’s energy resilience while advancing sustainability goals. This working paper argues that Azerbaijan-Italy energy cooperation represents a strategic model for balancing energy security, economic development, and green transition.

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