Fiscal and Economic Consequences of a Net-Zero Transition in Spain

To meet the goal of net-zero emissions by 2050, Spain will need to take further climate action in the years ahead. Enhanced policy measures, such as taxes, subsidies and standards, will have implications for the public budget and for the economy.

This paper estimates the fiscal and economic impacts of Spain's transition to net-zero carbon emissions by 2050, utilizing the OECD’s ENV-Linkages model for a detailed quantitative scenario analysis. It compares a baseline scenario, reflecting current policies, with a Net-Zero Emissions (NZE) scenario that incorporates additional climate measures.

The findings indicate that achieving net-zero emissions is compatible with economic growth and fiscal stability in Spain.