Spain

The Law on Climate Change and Energy Transition was approved in may 2021 by the Spanish General Courts. Although this law is rather ambitious, it doesn't specifically target the Green Economy.

On the other side, this Law is supported by different planning tools, which have already been defined, aimed at articulating the implementation of measures, as well as the definition of governance in matters of climate and energy. The first of them is the National Integrated Energy and Climate Plan (PNIEC) 2021-2030. [the EU has set an emission reduction target of 55% for 2030, while Spain, both in the PNIEC and in the CC and TE Law, sets it at 23%. There is a clear lack of ambition that may jeopardize the neutrality target for 2050]. The second is the Long-Term Decarbonisation Strategy 2050 and finally, the Just Transition Strategy. All these plans and strategies point the way to a green economy, however there is no comprehensive Strategy.

Spain has in place a space for public participation in regulatory projects, both for prior public consultation, as well as for the hearing and public information process in the process of drafting regulations for the General State Administration. However, this mechanism is far from a systematic engagement for a comprehensive consultation. This is why the IV Open Government Plan 2020-2024 "is committed to improving citizen participation in public affairs in order to improve the conditions for the participation of citizens and organizations representing collective interests in the design, execution and evaluation of public plans and programs, in consultative bodies and through electronic media and social networks." Participation and consultation is not made on regular basis. Related to the presence of women on corporate governance, there is only a recommendation for listed companies to have at least 40% women on the Board of Directors. Nothing related to workers.

Since 2018 in Spain, companies with more than 250 employees or turnover greater than 40m euros have the obligation to report on their due diligence processes and key indicators (environmental and social) of non-financial results. However, there are no concrete behavioural obligations beyond reporting. The National Securities Market Commission recommends listed companies to report on certain social and environmental aspects. But no obligation of behaviour in this regard. The Spanish Global Compact is very active in the promotion of SDGs in business. Recently, the Agenda 2030 Secretary of state has funded a consultation to analyze the contribution of Spanish companies to sustainable development, with cases of good practices

A project for the Valuation of Natural Assets in Spain (VANE) was carried out (some years ago) by the University of Alcaltogether with the Ministry of the Environment, with the main objective of facilitating the identification and economic valuation of the environmental functions and services in the Spanish territory. However, there is no evidence that further steps have been taken in that direction. Moreover, there is a Spanish Inventory of Natural Heritage and Biodiversity. Finally, there is a project of Environmental Goods and Services Account to present, in a manner compatible with the national accounts system, information on the production activities of the national economy that generate environmental products. However, there is no further information about this project.

In the "Long-term strategy for a modern, competitive and climate-neutral Spanish economy in 2050" there is chapter devoted to the involvement of the financial sector. However, this chapter is all related to what it is being done at the EU level with few translation to the national level. In the "PNACC- National Plan for Adaptation to Climate Change 2021-2030" there is also a chapter devoted to the financial system and insurance activity. But in this case it only contains very vague commitments to encourage or promote measures related to adaptation to climate change.

There is a commitment to launch a sovereign green bond program. The Spanish Treasury will issue this type of instrument in 2021 to finance the transition towards decarbonisation of the Spanish economy. The Spanish Treasury will design the Green Bond Framework, supported by the experience of other sovereign issuers and harmonization efforts at the European level, and will acquire transparency commitments when reporting on the notional allocation of funds and on the impact of the investments. However, there is no further information about the volume or extension of these bonds. On the other hand, Spain has a Ecological Public Procurement Plan since 2019.

Spanish financial institutions participate in the annual stress tests conducted within the European Union under the auspices of the European Banking Authority. Currently this testing only covers financial risks, but the European Central Bank (ECB) has announced plans to conduct its first supervisory climate stress test on EU banks in 2022. The test builds on the results of the central bank's economy-wide climate stress test released in September 2021, and will assess the vulnerability and preparedness of individual financial institutions - forming a major milestone of the ECB's Climate Plan.

The EU emissions trading system (EU ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world's first major carbon market and remains the biggest one. The EU is currently in phase four (2021-2030) of the Emissions Trading System. However this scheme does not cover all sectors.

Within the context of the Long-Term Decarbonisation Strategy and the Integrated National Energy and Climate Plan, coordinated actions focused on achieving climate neutrality of the different economic sectors in 2050 are framed. However, with varying ambition, integration and monitoring.

Strategic Framework in SME Policy, approved in April 2019, which aims to improve the capacity of small and medium-sized enterprises in the face of the challenges of the global and digitized economy, and contribute to creating a suitable climate to favour their growth. The strategic framework is organized into seven levers: entrepreneurship, business management and talent, regulatory framework, financing, innovation and digitization, sustainability, and internationalization.

There is a debate around carbon budgets in the new Draft Law on climate change and energy transition. Some parties have tabled amendments to this bill - in line with the inclusion of carbon budgets. However, there is no certainty that the government will accept these amendments. On the other hand, the government of the Autonomous Community of the Balearic Islands has implemented a plan of carbon budgeting.

The Integrated National Energy and Climate Plan (2021- 2030) defines the objectives of reducing greenhouse gas emissions, penetration of renewable energies and energy efficiency. Determines the lines of action and the path that, according to the models used, is the most appropriate and efficient, maximizing opportunities and benefits for the economy, employment, health and the environment; minimizing costs and respecting the needs of adaptation to the most CO2 intensive sectors. However, he has been criticized for lack of ambition.

The GreenEmploys Program of the Ministry for Ecological Transition is an initiative to promote and improve employment, entrepreneurship and the environment. It is co-financed by the European Social Fund (ESF) within the framework of the 2014-2020 Employment, Training and Education Operational Program. It has a double objective: - That the environment and sustainability are the bases for better jobs and more competitive companies. - That workers and companies are key actors in improving the environment. The European Union (EU) Europe 2020 Strategy for growth and jobs recognizes the importance of the transition towards a green and resource efficient economy to achieve smart, sustainable and inclusive growth. In October 2020, the Ministry for the Ecological Transition and the Demographic Challenge announced aid for 10.7 million for the creation of green jobs.

The Government of Spain has a Social Bond of Electricity for vulnerable consumers as part of its "National Strategy Against Energy Poverty 2019-2024". However, poor integration of environmental issues. In Spain, the Autonomous Communities have a Minimum Insertion Income (RMI) program aimed at individuals and families who lack sufficient financial resources to cover their basic needs, accompanied by a process of social intervention. In some cases, these programs are also linked to job placement processes. In 2020, the Government of Spain approved a new Minimum Vital Income (IMV), at the state level. A new Social Security benefit aimed at providing income to vulnerable families. However, this income has not had the expected impact so far. These measures are part of the "National Strategy for Prevention and Fight Against Poverty and Social Exclusion 2019-2023". There is no integration of environmental factors in these policies or Strategy.

Spain has in place a space for public participation in regulatory projects, both for prior public consultation, as well as for the hearing and public information process in the process of drafting regulations for the General State Administration. However, this mechanism is far from a systematic engagement for a comprehensive consultation and it has no consultation or dialogue processes with local communities and marginalised groups to learn about policies. This is why the IV Open Government Plan 2020-2024 "is committed to improving citizen participation in public affairs in order to improve the conditions for the participation of citizens and organizations representing collective interests in the design, execution and evaluation of public plans and programs, in consultative bodies and through electronic media and social networks." On the other hand, the recent spanish Recovery Plan do consider a detailled impact assesment on Gender.

In Spain, the Autonomous Communities have a Minimum Insertion Income (RMI) program aimed at individuals and families who lack sufficient financial resources to cover their basic needs, accompanied by a process of social intervention. In some cases, these programs are also linked to job placement processes. In 2020, the Government of Spain approved a new Minimum Vital Income (IMV), at the state level. A new Social Security benefit aimed at providing income to vulnerable families. However, this income has not had the expected impact so far. These measures are part of the "National Strategy for Prevention and Fight Against Poverty and Social Exclusion 2019-2023". There is no integration of environmental factors in these policies or Strategy. There are other interesting local innovative iniciatives such as the B-MINCOME promoted by the City of Barcelona (https://ajuntament.barcelona.cat/bmincome/en)

The goals related to the management and protection of coastal zones and marine ecosystems are being addressed through the development of regulations for the protection of the coast and the marine environment: Law 41/2010, on the Protection of the Marine Environment; Law 42/2007, on Natural Heritage and Biodiversity; the Coastal Law; and the Law on National Marine Parks. However, EU key regulations such as the MSP Directive have not been yet fully implemented. The Ministry of Ecological Transition is carrying out different actions with the aim of preventing and reducing pollution in marine and coastal areas. All these actions are integrated into the measurement programs of the Spanish Marine Strategies, which are the planning tool for the marine environment. Most of the activities that contribute to the progress of SDG 15 in Spain are carried out within the framework of Laws 43/2003 on Forestry, as well as Law 42/2007 on Natural Heritage and Biodiversity.

The need to conserve and enhance natural capital is an explicit policy target in the EU's Biodiversity Strategy to 2020 and its Seventh Environment Action Programme. Some EU-level projects operating within Spain, including the EU Biodiversity Strategy to 2020, include ecosystem service assessments and environmental stock mapping- such as the Annual report 2018 on the state of Natural Heritage and Biodiversity. In Spain, work has been carried out by organized civil society (led by the Fundaci Nueva Cultura del Agua) on the potential of rivers following the approach to water accounting.

The Biodiversity Foundation was created by and is part of the Ministry for the Ecological Transition and the Demographic Challenge. Its main reason for being is to protect the natural heritage of Spain. However, this institution could not be considered as an advisory boby beyond financing and implementing biodiversity projects.

Spain has some environmental taxes in place and new taxation is also being proposed on some aspects such as air transportation and on single use plastic containers. However, there is no an holistic approach including removing subsidies that support environmentally harmful practices or align fiscal policy with the polluter pays principle.