Spain Strengthens Climate Regulations with Royal Decree 214/2025
Overview
Spain’s Real Decreto (Royal Decree) 214/2025 is set to start on June 12, 2025, strengthening climate regulations through emissions tracking, reporting, and transparency. Carbon footprints and emission reduction plans will now be mandatory for large companies and public entities.
Photo by Chris Boland on Unsplash
Background:
This decree builds upon Royal Decree 163/2014 which revolved around the creation of a voluntary carbon footprint registry. Decree 214/2025 is making that carbon footprint registry mandatory, while including new regulations as well. All of these actions are in support of Spain’s work against climate change, specifically under the Law 7/2021 on Climate Change and Energy Transition.
What the Updated Decree Entails:
Carbon Footprint Calculation:
Large companies are required to calulcate their annual carbon footprint, including Scope 1 and Scope 2 emissions
Private companies have voluntary reporting for scope 3, while public companies will be required to include the final scope in calculations starting in 2028.
Carbon Footprint Registry:
Previously, only the carbon footprints of organizations was able to be registered. This registry expands to include products and events.
Emission Reduction Plans:
Companies must create and submit plans to lower their emissions that include specific targets that are measurable.
Public Disclosure Requirements:
Both the calculated carbon footprints and emission reduction plans are required to be on company websites and registered officially.
Challenges:
The majority of Spanish SMEs have not registered their carbon footprint yet, which will prove to be a challenge in adhering to these regulations.
There are a multitude of automation solutions that are increasing accessibility when it comes to these reporting tasks. Properly measuring indirect emissions can prove to be difficult for many companies. With the looming 2028 deadline for mandotory Scope 3 reporting, this is proving to be a challenge for many.
Through requirng companies to publish their footprint and reduction plans, there is increased transparency and therefore accountability. However, this can also lead to scrutiny for the company.
Both emission measuring and reduction plans can be costly, further adding to the many financial burdens of businesses.
Looking Ahead:
This decree was approed by the Council of Ministers on March 18, 2025 and will go into effect on June 12, 2025. Large companies and public sector organizations are those that are first to adhere to the new requirements.