popular articles

Spanish Parliament Rejects the Continuation of the Tax on Energy Companies

Spanish lawmakers rejected the continuation of an exceptional tax on energy companies, highlighting significant parliamentary disagreement and raising concerns about the future of investments tied to the country's energy transition.

Please share:

The continuation of the exceptional tax on energy companies in Spain, proposed by Pedro Sánchez’s government, was rejected on Thursday by a majority of lawmakers in Parliament. This fiscal measure, introduced in early 2023, aimed to finance purchasing power support measures implemented in response to the economic impact of the war in Ukraine.

Originally designed as a temporary measure, the tax was set to expire in December 2024. However, the Socialist Party and its coalition allies from Sumar proposed extending it, triggering strong criticism from the affected companies. Several energy giants, such as Repsol, expressed their opposition in October, even threatening to suspend investments in Spain deemed essential for the country’s energy transition.

Divided Parliamentary Allies

The rejection of this measure was made possible by an unexpected alliance between the Popular Party (PP, right), the Catalan independence party Junts, the Basque Nationalist Party (PNV), and the far-right Vox party. These groups supported an amendment by the PP to eliminate the tax. The 183 votes against, out of the 350 members of Parliament, sealed the fate of the proposal.

This decision marks a turning point in the political balance of Parliament. Although the coalition between the Socialist Party and Sumar included the continuation of this tax in their government agreement, the lack of an absolute majority prevented them from passing this controversial measure.

Corporate and NGO Pushback

In addition to pressure from energy companies, organizations like Greenpeace criticized the lawmakers’ decision. The NGO denounced it as a move favoring “the interests of energy companies over the citizens,” emphasizing the environmental stakes tied to the vote.

The government, for its part, had already softened its stance in late November by withdrawing the idea of continuing the energy tax during the review of a fiscal bill. Priority was instead given to extending a similar tax on major banking groups, deemed less politically and economically contentious.

Economic and Climate Consequences

This decision is likely to have significant implications for Spain’s economy and its energy transition. The fiscal uncertainty may deter crucial investments in renewable energy, slowing the country’s efforts to achieve its climate goals.

Furthermore, the rejection of this measure reflects persistent tensions between economic priorities and climate commitments, a dilemma many European governments face. Critics now question Spain’s ability to maintain a balance between these two imperatives amidst political fragmentation.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Starting July 2025, a European label will allow passengers to compare CO2 emissions from flights, aiming to promote less polluting options.
The UK electricity grid operator, National Grid, announces an ambitious £35 billion plan to double electricity transmission capacity by 2031, in alignment with the government's environmental goals.
The UK electricity grid operator, National Grid, announces an ambitious £35 billion plan to double electricity transmission capacity by 2031, in alignment with the government's environmental goals.
Nigeria approves Shell's $2.4 billion sale of 30% onshore assets
Nigeria approves Shell's $2.4 billion sale of 30% onshore assets
The Department of Energy grants a conditional $15 billion loan to PG&E to modernize California's infrastructure. This project is part of a larger effort to transform regional energy policy.
The Department of Energy grants a conditional $15 billion loan to PG&E to modernize California's infrastructure. This project is part of a larger effort to transform regional energy policy.
Germany’s energy policy, marked by the nuclear phase-out, has driven electricity prices up in Sweden, affecting households and businesses. Stockholm accuses Berlin of neglecting regional impacts and suspends a key interconnection project.
A project supported by the UNDP and the European Union aims to reduce energy losses and modernize Kazakhstan's electric infrastructure, the largest greenhouse gas emitter in Central Asia.
A project supported by the UNDP and the European Union aims to reduce energy losses and modernize Kazakhstan's electric infrastructure, the largest greenhouse gas emitter in Central Asia.
The Court of Audit reveals €200 billion in investment needs to modernize French electrical grids by 2040, urging a balance between shareholder and consumer financial efforts.
The Court of Audit reveals €200 billion in investment needs to modernize French electrical grids by 2040, urging a balance between shareholder and consumer financial efforts.
Donald Trump's proposal to impose a 25% tariff on all imports from Canada and Mexico risks disrupting supply chains and increasing costs for American businesses and consumers.
Donald Trump's proposal to impose a 25% tariff on all imports from Canada and Mexico risks disrupting supply chains and increasing costs for American businesses and consumers.
Reforms aimed at accelerating energy permits have been excluded from the U.S. budget bill, postponing discussions to a Republican-led Congress that plans more ambitious changes.
The U.S. Supreme Court reviews the fuel industry’s challenge against California’s exclusive right to impose electric vehicle sales targets, a key issue for national emission standards.
The U.S. Supreme Court reviews the fuel industry’s challenge against California’s exclusive right to impose electric vehicle sales targets, a key issue for national emission standards.
Japan plans to reduce its reliance on thermal energy to 30%-40% by fiscal year 2040-2041 while significantly increasing renewable energy, according to a draft Strategic Energy Plan.
Japan plans to reduce its reliance on thermal energy to 30%-40% by fiscal year 2040-2041 while significantly increasing renewable energy, according to a draft Strategic Energy Plan.
In response to climate pressures, the Biden administration proposes limiting public support for oil and gas projects abroad. An initiative that could redefine global energy policy.
In response to climate pressures, the Biden administration proposes limiting public support for oil and gas projects abroad. An initiative that could redefine global energy policy.
Niger has received a 20 MW diesel power plant as a strategic donation from Morocco. This project aims to strengthen local production in a context marked by high dependency on Nigeria for energy supply.
The Zawiya refinery, essential for fuel supply in Libya, has suspended its activities after armed clashes caused significant fires and sparked a local crisis.
The Zawiya refinery, essential for fuel supply in Libya, has suspended its activities after armed clashes caused significant fires and sparked a local crisis.
Despite corruption charges against Gautam Adani, CEO of the eponymous conglomerate, Sri Lanka confirms the continuation of the strategic Colombo container terminal project, vital for its struggling economy.
Despite corruption charges against Gautam Adani, CEO of the eponymous conglomerate, Sri Lanka confirms the continuation of the strategic Colombo container terminal project, vital for its struggling economy.
Faced with the threat of Russian gas cuts, Moldova is enacting a 60-day state of emergency to safeguard its energy security and prevent a humanitarian crisis during one of the most critical winters for its energy independence.
Faced with the threat of Russian gas cuts, Moldova is enacting a 60-day state of emergency to safeguard its energy security and prevent a humanitarian crisis during one of the most critical winters for its energy independence.
Electricity prices in Estonia fell by 9.6% in November, averaging €82.56/MWh, driven by increased wind energy production and higher-than-average temperatures.
Utah Governor Spencer Cox proposes an ambitious budget to double energy production within ten years, focusing on nuclear and geothermal energy, contrasting with federal priorities on solar energy.
Utah Governor Spencer Cox proposes an ambitious budget to double energy production within ten years, focusing on nuclear and geothermal energy, contrasting with federal priorities on solar energy.
Energy prices in Europe far exceed those in the United States and China, putting the manufacturing industry at a disadvantage. An urgent review of energy and industrial policies is needed to safeguard European competitiveness.
Energy prices in Europe far exceed those in the United States and China, putting the manufacturing industry at a disadvantage. An urgent review of energy and industrial policies is needed to safeguard European competitiveness.
SSE Transmission submits an ambitious plan to Ofgem, aiming for £22 billion in investments to support energy transition, create thousands of jobs, and strengthen Scotland's electricity infrastructure.
SSE Transmission submits an ambitious plan to Ofgem, aiming for £22 billion in investments to support energy transition, create thousands of jobs, and strengthen Scotland's electricity infrastructure.
China accelerates reforms for a unified electricity market, but local trade barriers limit the transmission of renewable energy from remote regions to high-demand urban centers.
The International Monetary Fund announced an agreement with Ecuador on the first review of its economic aid program, paving the way for a $500 million disbursement amid an energy and economic crisis.
The International Monetary Fund announced an agreement with Ecuador on the first review of its economic aid program, paving the way for a $500 million disbursement amid an energy and economic crisis.
The former nuclear leader Areva settles a €4.8 million fine in a corruption case in Mongolia from 2013 to 2017, thus avoiding legal prosecution. An investigation reveals controversial payments through intermediaries.
The former nuclear leader Areva settles a €4.8 million fine in a corruption case in Mongolia from 2013 to 2017, thus avoiding legal prosecution. An investigation reveals controversial payments through intermediaries.
India has called on the International Court of Justice to uphold the current UN climate framework, sparking tensions with small island states advocating for stricter measures.
India has called on the International Court of Justice to uphold the current UN climate framework, sparking tensions with small island states advocating for stricter measures.

Advertising