The oil sector in Spain has appeared to slow the decarbonisation of the national economy, reporting only a 1% reduction in greenhouse gas emissions since 1990. In contrast, the energy sector has driven the transition by cutting around 19% of its emissions over the same period, according to a newly published evaluation.
The study titled Analysis of GHG Emissions from the Spanish Economy and Proposals for Its Decarbonisation examines trends in Spain’s emissions since 1990. It was prepared by Talent for Sustainability in collaboration with the Sustainability Observatory and was presented to the Senate on Tuesday.
Industry observers describe the oil sector as contributing almost no decarbonisation to the broader economy, a factor that shapes how both organisations operate.
Within the analysis, the energy sector is described as historically the most polluting due to its links with the rest of the economy and its heavy reliance on fossil fuels. Yet in 2020 it ranked as the third most polluting subsector, accounting for 13% of total GHG emissions, following industry at 24% and transport at 23%. This apparent shift is attributed to a substantial reduction in emissions since the 1990s, aided by a growing dependence on renewable sources such as wind, solar, and thermosolar technologies.
Since 2008, several electricity providers have reported notable reductions: Endesa with a 76% decrease in verified emissions, Iberdrola with 62%, and Naturgy with 59%, according to the study’s quantified findings.
The study also highlights that increases or decreases in GHG emissions since the 1990s have a strong link to Spain’s GDP. It notes a sharp drop during the 2008 financial crisis and a further significant reduction of 12.5% in 2020, largely due to the COVID-19 pandemic and the resulting decline in economic activity.
The four “levers” of decarbonisation
In addition, Elsa Arnaiz, head of Talent for Future, explains that the authors outline a series of recommendations organized around four primary levers for decarbonising the national economy. These levers focus on policy and market design choices that can accelerate the transition while balancing economic and social considerations.
Arnaiz emphasizes reform in energy taxation and the phased elimination of subsidies for fossil fuels. She also calls for reforms in transport finance that prioritize passenger and goods movement by rail, along with improvements in energy efficiency labeling and targeted protections for vulnerable groups affected by the transition.
She has already initiated conversations with political groups across the spectrum, including the PP, PSOE, and Más País, with the aim of elevating these measures on the political agenda and in broader public discourse.
Facing the transition without fear
Fernando Prieto, director of the Sustainability Observatory, argues that some measures will require changes many people find difficult, such as reducing the number of cars or re-evaluating dietary patterns. He stresses the need to shed the fear of changing lifestyles in order to decarbonise the economy.
Cristina Narbona, the first vice-chair of the Senate Committee, attended the report’s presentation and highlighted Spain’s significant renewable energy capacity within Europe. She also noted that Spain’s electricity grid has earned recognition as one of the continent’s most efficient infrastructures for managing renewable energy, underscoring the country’s potential to sustain the transition.
These insights suggest that the path to decarbonisation is complex but feasible, leveraging both policy reform and technological advancement to reduce emissions while supporting economic resilience. The report contributes to the ongoing national dialogue about how best to align environmental goals with social and economic priorities across Spain.
Notes: the study provides a framework for measuring progress and identifying practical steps that can be adopted in the coming years to strengthen Spain’s commitment to a low-emission economy.