Law 7/2021 on climate change and energy transition

The purpose of this law is 1) to ensure compliance by Spain with the objectives of the Paris Agreement, 2) facilitate the decarbonisation of the Spanish economy, its transition to a circular model, so as to guarantee the rational and supportive use of resources, and 3) promoting adaptation to the impacts of climate change and the implementation of a sustainable development model that generates decent employment and contributes to the reduction of inequalities. This law ends new licensing for the exploration and extraction of oil and gas in the country.Articles 32 and 33 of the law notably establish climate risk reporting obligations on credit institutions and aim to facilitate investments in sustainable sectors in parallel.