Climate Change and Energy Transition Law 7/2021

Spain's Climate Change and Energy Transition Law 7/2021, of 20 May, is the country's framework climate law. Its purpose is to ensure Spain meets its commitments under the Paris Agreement, to drive the decarbonisation of the economy towards climate neutrality, and to strengthen adaptation to climate impacts. It is the national anchor for much of Spain's environmental legislation on energy and climate.

What does Law 7/2021 set out to do?

The law fixes climate neutrality by 2050, meaning a balance between greenhouse gas emissions and removals, supported by a 100% renewable electricity system. As intermediate goals for 2030 it originally set, as a minimum to be revised upward over time:

• Reduce net greenhouse gas emissions by at least 23% versus 1990 levels.
• Reach at least 42% renewables in final energy consumption.
• Achieve an electricity system with at least 74% renewable generation.
• Improve energy efficiency by reducing primary energy consumption by at least 39.5%.

These minimums are operationalised and, in practice, raised through the National Integrated Energy and Climate Plan (PNIEC) 2023-2030, which the law requires to be updated periodically in line with growing EU ambition.

Key measures

• End of fossil fuel extraction: no new licences for exploration or extraction of hydrocarbons, and an end to hydraulic fracturing (fracking).
• Clean mobility: new passenger cars and light commercial vehicles must be zero-emission by 2040, and low-emission zones are required in larger municipalities.
• Renewables and efficiency: support for renewable energy, self-consumption and energy efficiency.
• Adaptation: integration of climate risk into planning, with sectors such as agriculture, water and tourism in focus.

What it means for companies: the carbon footprint obligation

One of the most concrete corporate impacts of Law 7/2021 is its mandate (in its twelfth final provision) to make the calculation of the carbon footprint and the publication of an emission reduction plan mandatory for certain companies. That mandate was delivered by Royal Decree 214/2025, of 18 March, which renewed the national carbon footprint registry run by MITECO and, for the first time, obliges qualifying large companies to:

• Calculate their scope 1 and scope 2 emissions (progressively incorporating relevant scope 3 categories).
• Publish a greenhouse gas emission reduction plan.
• Register the result with MITECO.

Benefits of compliance

Beyond avoiding penalties, aligning with Law 7/2021 helps companies access public funding for decarbonisation and adaptation projects, strengthen their reputation with customers and investors, and cut costs through energy efficiency. Measuring the carbon footprint accurately is the first practical step.

At Manglai we help companies measure their carbon footprint and prepare the reduction plans and reporting that Law 7/2021 and Royal Decree 214/2025 require. Discover how Manglai can help you.