Investing in Spain's net zero transition: unlocking opportunities for sustainable investments

In the vibrant heart of Madrid, our inaugural event in the country showcased Spain’s ambitious net zero journey, uniting global investors, industry experts, and public leaders on how to unlock the benefits from sustainable investments. Hosted in partnership with our members Clifford Chance, and supported by Invest in Madrid.  

As the Madrid region attracts 67% of the country’s foreign investment, it was important to explore how such a key entry point into the country, adds to Spain’s role as one of the European leaders in sustainable investment and innovation.  

Our expert keynotes and panels delved into an exploration of investment strategies, technological advancements, and the role of EU climate regulations in accelerating Spain’s drive towards a sustainable future. With the Spanish government’s ambitious commitment for 81% of Spain’s energy usage to come from renewable sources, the discussions centred around the vital role of private and public sector collaboration to meet these goals, with a particular focus on the Madrid region as a model for attracting investment in clean energy and transport infrastructure.

A commitment to low taxes and innovation

At the core of Madrid's investment strategy is the commitment to creating an environment where both domestic and international investors can thrive. Rocío Albert, Minister of Economy, Finance and Employment for the Madrid Region, speaking at our event, emphasised that Madrid promotes low taxes as a core pillar of its investment attraction strategy.  

Since Isabel Díaz Ayuso's (president of the Madrid Region) administration took office, 32 tax cuts have been implemented, saving taxpayers a remarkable €31.3 billion. These measures are part of a broader strategy to foster a business-friendly environment that encourages investment and job creation - especially in sectors critical for future economic development such as clean energy and infrastructure.

Role of Public-Private Partnerships

A key theme throughout the event was the critical role of public-private partnerships (PPPs) in driving Spain’s infrastructure development.  

The opportunities stemming from accelerated permitting, tax incentives, and transparent regulations was echoed by many speakers, who agreed that a stable, predictable regulatory environment is key to attracting long-term capital for large infrastructure projects. In particular, green hydrogen, energy storage, and renewable energy are seen as areas with immense potential, despite challenges such as high costs and regulatory hurdles.

Madrid and Spain’s role in the energy transition

The event also highlighted Spain’s commitment to sustainability and green energy. As part of its ambitious plans, Madrid is emerging as a key player in the production of green hydrogen, pioneering the development of a green hydrogen plant (through the company Canal de Isabel II) and already deploying hydrogen-powered bus lines.  

The discussions put a spotlight on how to finance the energy transition, which requires €300 billion by 2030. Private investment is expected to cover 30% of this, with green hydrogen, biogas, and solar power seen as key areas for investment. However, regulatory certainty and clear, long-term policies are necessary to ensure that these projects are not only viable but also scalable.

Manuel González, CEO from Ignis Renovables stressed the importance of Power Purchase Agreements (PPAs) to mitigate market risks, especially in the Iberian market which has seen a surge in solar power. With increasing competition in the solar energy market, ensuring long-term contracts rather than relying on the fluctuating prices of the merchant market has become vital. Ignis’ focus on energy storage and hybrid battery systems for datacentres also reflects the growing demand for reliable, sustainable energy solutions across the Iberian country.

Spain’s competitive edge in renewable energy

Álvaro Ballarín from CEOE (the Spanish Confederation of Business Organisations) further elaborated on Spain’s competitive edge in the global energy market. Spain's renewable energy resources, particularly wind and solar power, are unmatched in Europe. The country receives 30-50% lower costs for solar photovoltaic (PV) production compared to other EU countries, making it an attractive location for solar and wind investments.

Spain also boasts ample space and favourable wind conditions for renewable energy projects, with vast, underutilised land available for solar farms and wind turbines. This space and wind favourability, coupled with competitive pricing for datacentres and other high-tech infrastructure, gives Spain a clear advantage in attracting investments in the future of clean energy.

The future of sustainable transport  

We concluded with discussions on the future of electric vehicles (EVs) and alternative fuels such as hydrogen in transportation. While EV adoption currently lags behind some European counterparts, Madrid’s robust infrastructure and progressive policy incentives are laying the groundwork for a future where electrification and sustainable mobility become the standard. Acknowledging challenges such as the need for more charging stations and enhanced battery technology, speakers maintained a forward-looking optimism about the region’s capacity to lead the charge in sustainable transport.