Study on harmful (Fossil and Non-fossil) subsides and ecological income in Spain

The study examined the scale, characteristics and impacts of environmentally harmful fossil and non-fossil subsidies in Spain, with the objective of identifying opportunities for reform and supporting a more inclusive and environmentally sustainable transition. The analysis sought to strengthen the evidence base on subsidies at both national and subnational levels, highlighting their implications for public finances, social equity and environmental objectives.

The work included a review of international definitions and approaches to fossil and environmentally harmful subsidies, as well as an assessment of the implications of key climate and energy policies in Spain, including measures associated with the European Union’s “Fit for 55” package. The study quantified and characterised major harmful subsidies in sectors such as mobility, housing and agriculture, identifying the groups and economic actors that benefit from them and assessing their distributional and environmental impacts.

In addition, the project evaluated alternative policy measures and incentives capable of supporting the ecological transition, drawing on international best practices. The analysis explored options to improve access to transition opportunities for households and SMEs, strengthen transparency mechanisms and redirect public resources towards sustainable mobility, building renovation and agroecological transformation. The project resulted in a set of recommendations and reform proposals aimed at accelerating a fair and effective ecological transition in Spain.