Business obligations and new developments regarding carbon dioxide absorption projects
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On 12 April 2025, Royal Decree 214/2025, of 18 March, on the registration of carbon footprint, offsetting and carbon dioxide absorption projects (the "Register"), and by which the obligation to calculate the carbon footprint and to draw up and publish greenhouse gas (CO2) emission reduction plans, was published in the Official State Gazette.
Royal Decree 214/2025 does not extend the group of companies that are obliged to calculate the carbon footprint or establish a reduction plan beyond companies that prepare consolidated accounts and capital companies whose average number of employees during the financial year exceeds 500 and are considered public interest entities or meet the condition to be considered large companies.
These companies are still obliged to publish information on their carbon footprint and reduction plan, but are not obliged to register in the Register, which is voluntary and useful for accrediting environmental requirements that may be imposed from the perspective of public procurement.
The General State Administration, its autonomous bodies, as well as the management entities and common services of the social security system, and other entities of the state administrative public sector, must calculate and report their carbon footprint from the financial year 2026, and include scope 3 emissions from the year 2029. In this case, registration in the Register will be mandatory.
The two types of CO2 absorption projects currently registrable in the Register (reforestation with change of land use and actions in burnt forest areas for the restoration of the existing forest mass) are thus extended to include CO2 removals generated in Spain in projects of activities related to land use, land use change and forestry or blue carbon related projects, which lead to an increase in stored carbon. However, absorption projects shall meet the following minimum requirements:
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Generation of net benefit in CO2 absorption and accurate, consistent, comparable and transparent quantification.
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Legal and economic additionality.
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Carbon storage in the long term and at least during the period of permanence.
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No negative impact on the protection or restoration of biodiversity, the prevention and control of pollution, the transition to a circular economy, the sustainable use and protection of water and marine resources and adaptation to climate change.
Calculation of CO2 removals generated by projects shall be based on the Intergovernmental Panel on Climate Change (IPCC) guidelines and good practice guidance, national greenhouse gas inventory and national forest inventory data or other available information.
The Spanish Climate Change Office shall take the necessary measures to ensure the traceability of the removals generated by registered CO2 absorption projects.
The equipment, weapons systems, facilities and activities whose purpose is the protection of essential national defence interests are excluded from the scope of application of Royal Decree 214/2025.
Royal Decree 214/2025 repeals the previous Royal Decree 163/2014 of 14 March, as of 12 June 2025. However, entries made in the Register in accordance with the conditions set out in the latter will continue to be valid, unless they need to be updated...which already determines the ex ante validity of the new Royal Decree 214/2025
The content of this publication is for information purposes only and should not be relied upon as a basis for making a decision, in which case you should seek specific legal advice tailored to your circumstances.