On 18 March 2025, the Council of Ministers of Spain approved a new Royal Decree establishing the Registry of Carbon Footprint, Compensation, and CO₂ Absorption Projects. This initiative reinforces the country’s commitment to combating climate change and promotes a more sustainable economy.
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Under this regulation, companies are required to measure their carbon footprint and develop specific plans for its reduction. This measure aims not only to decrease greenhouse gas emissions but also to improve production processes, increase efficiency, and foster innovation within the Spanish business sector.
Who does this measure apply to?
The obligation is directed at companies already subject to Law 11/2018, of 28 December, on non-financial information and diversity. This includes entities that prepare consolidated accounts and capital companies with more than 500 employees that are considered of public interest or meet the criteria to be classified as large companies. Additionally, all institutions of the General State Administration, including ministries, autonomous bodies, and social security management entities, must annually calculate their carbon footprint according to the requirements established in the Royal Decree.
Stronger climate commitments
This measure aligns with Law 7/2021, of 20 May, on Climate Change and Energy Transition, strengthening Spain’s commitment to emission reduction and the transition towards a low-carbon economy. According to the Vice President of the Government and Minister for the Ecological Transition and the Demographic Challenge, Sara Aagesen, “Measuring the carbon footprint allows us to reduce emissions, improve production processes, be more efficient and competitive, drive innovation, and be less dependent on fossil fuels.”
What happens next?
As a Royal Decree, this regulation comes into effect upon its publication in the Official State Gazette (BOE) and does not require approval by the Congress and the Senate. Affected companies and entities must adapt to these new obligations by implementing effective measurement systems and reduction plans.
Stay tuned to our blog for more updates and analyses on this and other key sustainability initiatives.
