Spain | Unlocking Spain’s Green Potential through EU ETS Revenues

Summary

Revenues from the EU Emissions Trading System (EU ETS) are a fiscal resource available for climate action and the energy transition. By allocating 25% of the expected 2030 revenues to cleantech (€1.1–2.4 billion) and attracting private investment, Spain would strengthen its industrial capacity and competitiveness.

Key points

• Key points:
• EU ETS running rules: The EU ETS allocates most emission allowances via auctions under common EU rules ensuring transparency. Member States receive allowances to auction based on historical emission quotas, and since 2023 should devote all revenues to climate and energy transition goals.
• Relevance of receipts in Europe: ETS auctions have generated over €245 billion since 2013, becoming a not negligible fiscal tool for climate policy. In 2024, Member States received €25 billion, financing innovation, modernization, and energy security programs.
• Perspectives of receipts in Spain: Spain, with about 8% of total allowances, raised €3.3 billion in 2023 but devoted only a third to climate action. Rising carbon prices could lift annual revenues to €4.3–9.6 billion by 2030—up to triple current levels.
• Potential use for cleantech: Allocating 25% of Spain’s future ETS revenues (€1.1–2.4 billion yearly) to cleantech manufacturing could attract private investment, reinforce industrial capacity, and enhance competitiveness.

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