Spain: Advances in the reform that will require certain companies to calculate and prepare a reduction plan for their carbon footprint

Additional provision twelve of Law 7/2021 of May 20, 2012, the Climate Change and Energy Transition Law, ordered the Government to amend Royal Decree 163/2014, of March 14, 2014, creating the carbon footprint, offsetting and CO2 absorption projects register, to introduce the obligation for certain companies to calculate and prepare a reduction plan for their carbon footprint.

With that aim, on November 21 the bill amending Royal Decree 163/2014, of March 14, 2014, was laid out for public information until December 13.

Among other amendments, the bill modifies article 6, relating to “activities subject to registration in Section a) “Section on carbon footprint and reduction of greenhouse gas emissions”, to make the registration of so-called “scope 3” emissions only continue to be voluntary for small and medium-sized companies. For companies not falling within this category, it is stated that these indirect emissions will be gradually included in the footprint of the organization to be registered.

In relation to the necessary verifications for registration, the draft legislation broadens the scope of those that have been recognized and includes among them the ISAE 3410 reports and other non-specific carbon footprint systems such as EMAS or ISO 50001 in the event that the necessary additional information is provided.

It is important to note that the amendment laid out for public information also foresees  that the organization’s greenhouse gas emission reduction plan will have to set out, at least, one quantified reduction target with a five-year time horizon together with the measures for achieving it.