New law 7/2021, on Climate Change and Energy Transition

To this end, the Climate Change and Energy Transition Law contemplates a series of important measures:

1. Objectives and planning of the energy transition

The objectives for 2030 are as follows:

• To reduce the Spanish economy’s greenhouse gas emissions as a whole by at least 23% by 2030, compared to 1990.
• To achieve penetration of renewable energies in final energy consumption of at least 42%.
• To achieve an electricity system, generated at least 74% by renewable energy sources.
•  Improve energy efficiency by reducing primary energy consumption by at least 39.5% with respect to the baseline, in accordance with EU regulations.

By 2050, the objective is for Spain to achieve climate neutrality and the electricity system must be based exclusively on renewable energy sources.

2. Renewable energies and energy efficiency.

• Integration of renewable energies in the electricity system, promoting reversible hydroelectric plants.
• The Government will promote and facilitate the efficient use of energy and the use of energy from renewable sources in the building sector.

3. Energy transition and fuels

The law encourages the penetration of renewable gases, including biogas, biomethane, hydrogen and other fuels manufactured exclusively with renewable raw materials and energies.

4. Emission-free mobility and transport

• Measures will be taken to achieve a fleet of passenger cars and light commercial vehicles without direct CO2 emissions by 2050.
• Municipalities with more than 50,000 inhabitants and island territories must introduce mitigation measures in their urban planning to reduce emissions from mobility.
• The installation of electric recharging points will be facilitated.
   

5. Adaptation to climate change

• A National Climate Change Plan will define strategic objectives, indicators and risk reports.
• The law takes into account the integration of the risks derived from climate change in the planning and management of sectoral policies (hydrological, coastal, territorial and urban planning and food security). It also takes into account the establishment of measures for the protection of biodiversity and its habitats in the face of climate change, and the increase in the capture capacity of CO2 sinks.

6. Just transition measures

The law defines the publication of a Just Transition Strategy every five years. This strategy aims to optimise opportunities in activity and employment, for the transition to an economy that is low in greenhouse gas emissions.

7. Resources at the national level for the fight against climate change and energy transition.

• Measures are established to integrate the fight against climate change in public procurement procedures.
• Also established is a framework to facilitate sustainable investments.
• It includes the obligation for the electricity system operator, the Technical Manager of the gas system and the Hydrocarbons Logistics Company (Compañía Logística de Hidrocarburos, or CLH) to submit a report evaluating the risks and opportunities associated with a decarbonized energy system.
   

8. Education, research and innovation

Environmental education is included in the educational curricula, and a commitment to training for the jobs of the future is promoted.

9. Governance and public participation.

A Committee of Experts on Climate Change and Energy Transition is created, which is responsible for evaluating and making recommendations on energy and climate change policies and measures, including regulations. These will go towards an annual report they will prepare.

The plans, programs, strategies, equipment and general provisions adopted in the fight against climate change and the energy transition to a low carbon economy will be carried out under open formulas guaranteeing the participation of interested social and economic agents, as well as the general public.