Climate Sustainability

El Niño is a recurring Pacific Ocean warming event that affects Latin American countries in very different ways. Its economic impact depends on each country's exposure and vulnerability, influencing growth, inflation, agriculture and infrastructure through diverse climate transmission channels.

Spain has made significant progress in reducing greenhouse gas emissions alongside continued economic growth. However, this process has been uneven: emissions remain concentrated in a limited number of economic sectors, and the pace of decarbonization varies considerably across regions.

Spain’s renewable-based power model has increased resilience to external energy shocks, especially at the wholesale level, but incomplete grid readiness, limited storage and high non-energy costs constrain how much of that advantage reaches final consumers.

The impacts of climate change on people are not uniform across the population. Gaps in access to income, assets, and decision-making power mean that the effects of climate change can amplify existing structural inequalities, including those related to gender.

While global investment in renewables has doubled over the past decade, investment in power grids has increased by only 20%. In Spain, distribution grid congestion and renewable energy curtailment are consistent with a pattern of underinvestment.

At the end of 2025, the decree enacting the new General Water Law and amending the 1992 National Waters Law was published. These changes stem from campaign commitments made by President Claudia Sheinbaum and from the National Water Plan presented in November 2024. The key points are analyzed below.

When considering long-term economic growth, climate change is highly relevant. It is not only about managing the immediate losses from extreme weather events, which after the initial shock are often mitigated through public spending, insurance payouts, and private reconstruction.