Spain | A plan for the climate

Summary

The Spanish government's Recovery, Transformation and Resilience Plan aims to transform the Spanish economy by taking advantage of Next Generation EU grants and its Recovery and Resilience Facility, valued at about EUR 140 billion — just over half of which will be allocated through grants and the remainder via loans.

Key points

• Key points:
• The Plan features four main axes, being one of those the ecological transition plan, which aims to facilitate the transition to a carbon-neutral economy by 2050. In this regard, the ecological transition is expected to receive 37% of the funds granted by the European plan.
• The National Integrated Energy and Climate Plan 2021–2030 (NIECP) prioritizes improvements in energy efficiency (home refurbishments, urban planning and sustainable mobility through the promotion of electric vehicles, among others) for which it allocated at least EUR 18.5 billion of public spending over the next 10 years in January.
• The needed changes in the transition towards a renewable based power generation scheme require a longer time span, and hence, they act at a slower pace than those that favor energy efficiency. Therefore,any increase in taxes on greenhouse gas emissions will be postponed until the economic cycle improves and the necessary mechanisms to mitigate the distributional impacts are designed.

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