In Spain, a landmark lawsuit charges Iberdrola, the nation’s leading electricity supplier, with greenwashing against Repsol, the major oil company. The case has opened a three-way clash that has drawn in Teresa Ribera, the third vice president and minister for the Ecological Transition. Ribera announced on X that she was filing the complaint out of a sense of fatigue with greenwashing, signaling a broader push to scrutinize environmental claims made by big energy players.
Repsol responded on Thursday through its chief executive, Josu Jon Imaz. He asked, in effect, whether the goal was to shut down refineries and put 28,000 jobs at risk. He argued that Spain cannot shed its heavy reliance on fossil fuels in the near term, noting that a long-term mobility strategy could see a reduced need for gasoline and diesel by 2040 or 2050. Ribera, in turn, asserted a different path, aligning with Iberdrola and outlining a future built on electrification and renewable energy while seeking affordable and stable electricity prices for consumers, and a steady role for industry in the transition.
Ribera’s stance reflects a long-standing alignment with Iberdrola, which has tested the boundaries of energy policy during the 2021 crisis that included a summer drain on reservoir levels and a later decision to limit revenues for inframarginal plants such as nuclear and hydro. The minister’s rhetoric has not been novel, nor has Repsol’s counterarguments, which frame the dialogue as a broader ideological debate over the path to decarbonization.
Technological Change
Shortly after taking office, Ribera spoke before the Ecological Transition Commission in Madrid, hinting that diesel would soon be a thing of the past. A draft climate law once tied a deadline to 2040, a target later revised. Imaz and Repsol’s leadership argued that no entity should dictate which technologies will define the future, emphasizing a plural approach to energy choices.
Since then, Ribera has prioritized electrification, presenting a contrast to Repsol’s more diversified energy model. Repsol, while not abandoning electricity, has built its own branded electricity arm and ranks as the fourth-largest retailer in the market. Yet it has not renounced its core revenue stream in oil. Sources from Ribera’s ministry describe a dual aim: keeping electricity affordable and stable through renewables, while maintaining industrial capacity and employment in the country.
In the ministry’s view, decarbonization must proceed with green gases, green hydrogen, and a robust industrial base that includes refining and chemical sectors. The objective is to sustain employment for the country’s 28,000 refinery workers while modernizing the grid and empowering renewable expansion. Demand patterns in 2023, influenced by slower technological progress in transport and industry, contributed to a lower electricity consumption level than seen in two decades, underscoring the complexity of balancing reliability, price, and decarbonization.
Other Clashes
Another episode of friction among Iberdrola, Repsol, and Ribera occurred in late 2020. The cabinet approved a measure designed to shift a portion of renewable subsidies into the electricity and fuel bills, with the aim of steering consumers toward technological changes. Though the policy was not enacted, the argument from Repsol leadership claimed that the electricity sector could not expect others to foot the bill for its modernization. The pandemic and the energy crisis that followed tempered the disagreement, albeit with ongoing tensions alongside the energy tax regime.
In mid-January, after Imaz defended the idea of rethinking the ecological transition at the Davos forum and argued that current European policies rest on an ideological approach, Ribera labeled his stance as denialism and a delay tactic. She argued that relying on a neutral stance toward technology while continuing to burn fossil fuels was untenable. The goal, she reiterated, is to translate policy into action that accelerates real transformation in the energy sector.
Temporal Alignment
The lawsuit itself has not been made public. Iberdrola contends that Repsol promotes sustainability initiatives while ultimately seeking to promote fuels. The company argues that Repsol is the largest emitter among Spain’s major players and yet markets itself as a leader in sustainability and energy transition, which Iberdrola says breaches competition law through deceptive actions and omissions about environmental commitments.
The timing of the suit coincides with a ministerial consumer guide that advises firms on greenwashing practices and with impending sustainable-consumption legislation. The directive will evaluate environmental claims on a case-by-case basis to prevent eco-posturing and ensure that environmental statements are supported and verifiable, aligning with broader EU rules requiring businesses to demonstrate and verify environmental claims beyond mere rhetoric.
UK Precedent
In the United Kingdom, the advertising regulator found that Repsol’s biofuel campaign relied on a strategy heavily centered on oil and gas exploration, with biofuels comprising only a minor share of its business compared to its broader fossil-fuel activities. The ruling extended to Shell and Petrobras as well. Separately, the UK financial watchdog signaled a move to stop greenwashing in retail products, with a new rule set to take effect later this year.