Spain’s Climate Change and Energy Transition Law (Law 7/2021): what it asks of companies

What the law is

Law 7/2021 of 20 May on Climate Change and Energy Transition is Spain’s framework climate law. It sets the country’s targets for 2030 and the goal of climate neutrality by 2050 at the latest, and it contains a series of obligations for companies, public bodies and cities. Several of them have been developed by later royal decrees.

The national targets

For 2030 the law sets a reduction in greenhouse gas emissions of at least 23% compared with 1990, at least 42% renewable energy in final energy consumption, at least 74% renewable electricity, and a 39.5% cut in primary energy consumption. The National Integrated Energy and Climate Plan has since raised several of these. They matter for companies because they drive the rules and subsidies that follow.

The annual climate risk report

Article 32 requires listed companies, banks, insurers and other large companies that publish non-financial information to report every year on the financial impact of the risks of climate change on their business, including the risks of the transition to a sustainable economy and the measures taken. The report covers governance of climate risks, the strategic approach to adaptation and mitigation, the actual and potential impacts on the business, strategy and financial planning, how the risks are managed, and the metrics, scenarios and targets used. A royal decree is to set out the content in more detail.

The carbon footprint duty

Building on the law, Royal Decree 214/2025 now requires companies that must publish non-financial information to calculate their carbon footprint every year and publish a reduction plan with a target over at least five years. Entering it in the MITECO carbon footprint registry is voluntary for them, and open to any company that wants the ministry’s seal.

Charging points, low-emission zones and procurement

The law also affects companies through:

• Charging points: non-residential buildings with more than 20 parking spaces must have electric vehicle charging infrastructure, and large fuel stations must offer fast charging.
• Low-emission zones: municipalities with more than 50,000 inhabitants must set them up, which affects deliveries and company vehicles in city centres.
• Public procurement: public contracts can include criteria on emissions, energy efficiency and carbon footprint.
• Mobility: the law encouraged sustainable mobility plans for companies, which the 2025 Sustainable Mobility Act made mandatory for large workplaces.

Doing it in Greener Ahead

Greener Ahead does not prepare climate risk reports. Carbon accounting in Greener Ahead calculates the carbon footprint that Royal Decree 214/2025 and customers ask for, with Scope 1, 2 and all 15 Scope 3 categories and the source behind every tonne, and compares each year with your base year. It costs €1,495 per year with unlimited users, and you can try it free for 14 days without a card. Climate strategy, coming soon, adds reduction targets and an action plan. Check the pricing page for current details.

What applies to which company

The main company obligations that follow from Law 7/2021.

Steps for a large company

A workable order.

• Check whether you must publish non-financial information.
• Calculate the carbon footprint for Scope 1 and 2 at least, and decide on Scope 3.
• Set a reduction target over at least five years with the measures to reach it.
• Assess climate risks and their financial impact with management.
• Publish the footprint, the plan and the risk report with the non-financial information.