The Spanish recovery plan: assessing its contribution to the green transition in the European Union

Abstract

Background: The Next Generation EU (NGEU) is the primary financial instrument of the European Union’s post-COVID recovery policy. In particular, this major stimulus package is being used as an opportunity to accelerate the process of decarbonisation and reinforce climate policies. The article analyses Spain’s recovery plan and assess its potential contribution to the EU’s environmental and sustainability goals. Method: the study is drawn on a combination of academic literature, legal instruments and EU institutions and Spanish Government documents. The approach is mainly analytical. Results: NGEU funds provide Spain with the opportunity to undertake profound changes to construct a more resilient economic model. The green transition is the main axis of the Spanish recovery plan, with almost 40 % of resources allocated to this process. Investments and reforms aimed at the ecological transition are currently being implemented in Spain at a rapid pace, in line with the EU’s goals and policies. Conclusions: The new challenges generated by the war in Ukraine will require Spain to deploy additional efforts not initially covered by the recovery plan. In particular, the deployment of renewable energy and improvement of circular economy policies will be crucial to accelerate the green transition.