Spanish strategy for International Climate Finance

Enacted in 2021, this law establishes Spain's legal framework for achieving climate neutrality by 2050, aligning with the Paris Agreement and Sustainable Development Goals. It mandates a 23% reduction in greenhouse gas emissions by 2030 (compared to 1990 levels), alongside ambitious renewable energy targets, including 42% of final energy consumption from renewables and 74% renewable electricity generation by 2030. Energy efficiency measures aim for a 39.5% reduction in primary energy consumption within the same timeframe. The law also prohibits new hydrocarbon and radioactive mineral exploitation, requires emission-free transport systems in cities with populations exceeding 50,000, and emphasises sustainable urban mobility.

The legislation includes a national Just Transition Strategy to ensure equitable economic opportunities, particularly for vulnerable regions, while fostering adaptation and resilience to climate risks across critical sectors such as water, biodiversity, and health. It creates governance mechanisms like the Expert Committee on Climate Change and Energy Transition to monitor progress and updates to Spain's Integrated National Energy and Climate Plan (PNIEC). Projecting investments exceeding €200 billion by 2030, the law is expected to enhance Spain’s GDP by €16.5–25.7 billion annually and generate 250,000–350,000 new jobs. The focus on education, innovation, and public awareness underscores its commitment to a holistic and inclusive transition.

This collection represent a body of policies, strategies, and plans enacted under this law. 

Law 7/2021 on climate change and energy transition [Spain]

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Laws and Policies

CCLW

CCLW national policies

The Spanish Strategy for International Climate Finance outlines Spain’s commitment to supporting global climate action through a coordinated framework aligned with the Paris Agreement and the Sustainable Development Goals. Mandated by the Climate Change and Energy Transition Law (Law 7/2021), the strategy focuses on enhancing climate-resilient, low-carbon development by aligning funding with their national climate priorities. It excludes support for unabated fossil fuel projects except in limited, clearly defined cases consistent with the 1.5°C target. Principles guiding the strategy include coherence with EU taxonomy, gender equality, human rights, and fostering public-private collaboration.Key objectives include fulfilling Spain’s international commitments by scaling up climate finance to €1.35 billion by 2025, integrating climate goals into development cooperation, and leveraging investment to advance ecological transitions. The strategy prioritises renewable energy, green transitions, and sustainable development projects while enhancing accountability and alignment with recipient countries’ climate plans.

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

People with different national or cultural traditions from the dominant population

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

An integrated system of hazard monitoring, forecasting and prediction, that enables individuals, communities, governments, businesses and others to take timely action to reduce disaster risks in advance of hazardous events.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Actions to adapt human health, healthcare systems and well-being to climate change.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

Actions to adapt and increase the resilience of rural and urban infrastructure and settlements to climate change.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

Dedicated pool of financial resources for climate-related projects.

Zoning and spatial planning are both methods for guiding the distribution of people and activities in a space, and are regulatory restriction.

woman and genders outside of the gender binary

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities to move goods and people, alongside the storage of products.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Finance that is primarily directed towards climate change adaptation, including increasing resilience and robustness to actual or expected climate change and its effects.

Spanish strategy for International Climate Finance

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance