Spain unveils €9bn climate plan tied to stalled EU directive

Spanish Prime Minister Pedro Sánchez has presented a 9,000 million euro "Social Climate Plan" aimed at housing rehabilitation and transport modernization, but the funds remain contingent on parliamentary approval of a European Union directive that has been blocked for months. The plan, co-financed by the EU's Social Climate Fund, allocates 4,700 million euros to help vulnerable households transition to energy efficiency and 4,300 million euros to modernize and decarbonize mobility, including a social transport pass that would make public transit practically free for millions of citizens. Sánchez has urged parliament to support the necessary legislation, stating the plan would help families "not have to choose between making ends meet and saving the planet." The announcement comes amid political pressure on the government, as the indictment of former president José Luis Rodríguez Zapatero has strained relations with parliamentary allies who are beginning to distance themselves from the administration. The European funds are specifically tied to Spain's transposition of the ETS2 directive, which extends the emissions trading system to cover transport and buildings. That transposition has stalled in Congress since 2023, with right-wing parties including Vox and Junts presenting amendments against the legislation needed to unlock the funds. The government intends to push the measure forward through a legislative proposal modifying the 2005 law on greenhouse gas emission rights. The plan is currently in public consultation until the end of June, with the Ministry for the Ecological Transition hoping to submit the final proposal to Brussels before year-end, approximately one year behind the original EU deadline. Transport Minister Óscar Puente highlighted that while 77 percent of the population has guaranteed mobility rights in urban areas, that figure drops to just 6 percent in rural zones, where the plan aims to strengthen connectivity. Carlos Bravo of the Alliance for a Fair Social Climate Plan, representing 27 civil society organizations, welcomed the announcement after nearly a year of waiting but emphasized that parliamentary approval of the ETS2 directive remains essential for the European funds to materialize.