energy-subsidies-inventory-spain-2023-d3e4eb3a4c6a1951.pdf

This document describes the energy subsidy framework in Spain, detailing the taxation of fossil fuels, specific tax exemptions and reductions, and legislative measures aimed at eliminating fossil fuel dependence to achieve climate neutrality by 2050.

• Spain utilizes the Hydrocarbon Tax (IEH) and the Special Tax on Coal, regulated by Law 38/1992, to tax fossil fuel energy products. These taxes serve both a revenue-raising purpose and an environmental objective by incorporating "social costs of their consumption that are not reflected in the market price".
• The Spanish government provides various tax subsidies for energy products, including reduced tax rates and exemptions. Specific examples include reduced rates for diesel used in agricultural vehicles and stationary engines, and natural gas for professional use (excluding cogeneration or electricity generation). Exemptions are granted for energy products used as fuel in air navigation (excluding private recreational flight) and rail transport.
• Under Law 7/2021 on climate change and energy transition, Spain has prohibited the granting of "new exploration authorisations, research permits or hydrocarbon exploitation concessions" across the national territory, including the continental shelf and exclusive economic zone. The law requires that any new tax benefits for fossil fuels be justified by "social or economic interest or due to the lack of technological alternatives".
• To transition away from fossil fuels, Spain employs several support mechanisms, including a remuneration scheme for renewable energy, cogeneration, and waste technologies, as well as aid for self-consumption and energy renovation. These efforts are partially integrated into the Recovery, Transformation and Resilience Plan and the PERTE ERHA, which focuses on "renewable energies, green hydrogen and storage".

APA

International Institute for Sustainable Development (n.d.). energy-subsidies-inventory-spain-2023-d3e4eb3a4c6a1951.pdf. https://www.iisd.org/system/files/2025-11/energy-subsidies-inventory-spain-2023.pdf

Chicago

International Institute for Sustainable Development. energy-subsidies-inventory-spain-2023-d3e4eb3a4c6a1951.pdf. n.d. https://www.iisd.org/system/files/2025-11/energy-subsidies-inventory-spain-2023.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=energy-subsidies-inventory-spain-2023-d3e4eb3a4c6a1951.pdf |url=https://www.iisd.org/system/files/2025-11/energy-subsidies-inventory-spain-2023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndenergysubsidiesinventoryspain2023d3e4eb3a4c6a1951pdf, author = {{International Institute for Sustainable Development}}, title = {{energy-subsidies-inventory-spain-2023-d3e4eb3a4c6a1951.pdf}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/2025-11/energy-subsidies-inventory-spain-2023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }