The transition towards a low-carbon economy is reshaping the corporate and financial landscape worldwide. In Spain, the recent amendment of Royal Decree 163/2014, aligned with the objectives of Law 7/2021 on Climate Change and Energy Transition, introduces a set of obligations regarding the measurement and reduction of the carbon footprint which will mark a turning point for many organizations.
STAY UPDATED
Subscribe to stay current on ILP Insights
We also present this collaboration in video format, should you prefer this medium:
Who is affected by this new regulation?
As of 2025, a wide range of entities, from large corporations to public bodies, will be required to calculate their carbon footprint and design reduction strategies. This group includes:
- Large companies: In particular, those exceeding two of the following thresholds: 250 employees, €40 million in turnover, or €20 million in assets.
- Public administrations: This also applies to ministerial departments, autonomous bodies, and managing entities of the Social Security system.
What does this new obligation entail?
The affected organizations must:
- Calculate their carbon footprint: Quantify the direct and indirect greenhouse gas emissions associated with their activities.
- Develop a reduction plan: Establish concrete targets and measures to reduce emissions.
- Register with the Spanish Office for Climate Change: Publicly disclose their commitment to sustainability and ensure transparency of their actions.
Beyond legal compliance
Adaptation to this new regulatory framework is not merely a matter of legal compliance, but also an opportunity to:
- Align business with climate objectives: Demonstrate a commitment to sustainability and the fight against climate change.
- Mitigate risks: Anticipate potential negative impacts of climate change on business activity.
- Access new business opportunities: Leverage emerging markets linked to the low-carbon economy.
The European perspective
Spain thus aligns itself with the ambitious objectives of the European Union, which aims to achieve climate neutrality by 2050. Initiatives such as the European Climate Law, the Green Deal, and the Fit for 55 Programme provide a robust legislative framework to foster decarbonization across all sectors.
In a context of growing environmental awareness and regulatory pressure, carbon footprint management becomes a key competence for companies and professionals in the financial sector.
If you enjoyed this article, you may also find the following of interest:
How to calculate the carbon footprint of your company? An approach to ISO 14064
