Spain's US$10.5bn 'Social Climate' Housing and Mobility Plan

The Spanish Government has unveiled a €9bn (US$10.5bn) policy package designed to strengthen its energy security and sustainability by upgrading the country’s housing and e-mobility stock. 

Around 52% of the budget, roughly €4.7bn (US$5.5bn) will be allocated to the buildings sector, while the remaining 48% or €4.4bn (US$5bn) will be directed to the transport sector.

Only vulnerable households will be eligible to access the funding, especially those experiencing energy poverty or with low and lower-middle incomes who lack the resources to renovate their homes. 

For transport, those who can benefit from the funding are users affected by a lack of viable alternatives to private internal combustion engine (ICE) vehicles, as well as the self-employed and micro-enterprises—those with fewer than 10 employees and less than €2m (US$2.3m) in annual revenue—that are highly dependent on fossil fuels in their fleets.

"Spain and Europe have made great progress in decarbonisation", says Spanish Prime Minister Pedro Sánchez. But he stresses the need to "be aware that this drive for decarbonisation is losing momentum as a result of the advance of denailist discourse.

“There should not be a choice between making ends meet or making it to the end of the century, that sustainability should not be a luxury and that the transition should also be a lever for cohesion, a catalyst for promoting greater equity, greater efficiency and, undoubtedly, greater social justice.

“The energy revolution cannot favour only those who can afford to change their cars, install solar panels on their roofs or renovate their homes without public aid."

Out for review 

The draft Social Climate Plan has been submitted to the European Union for public review. 

It forms part of the European Social Fund for Climate Action, an EU initiative that provides Member States with resources to finance structural investments in the building and road transport sectors.

With rising energy prices and a constrained fuel economy, due to the conflict in the Middle East, the Spanish government felt the need to act to protect its citizens. 

Sara Aagesen, the third Deputy Prime Minister and Minister for Ecological Transition, says the investment has maintained Spain’s “green agenda”. 

"It is a plan in which the energy transition continues to be a driving force for justice and equity and a commitment to the ecological transition, which is a policy of protection, modernisation, competitiveness and progress," Sara says.

Building on momentum

This funding adds to the country’s impressive shift in the energy transition so far. 

A longtime leader in renewables, the country is also one of the most active electric vehicle markets in Europe. 

Sales of EVs in Spain grew 80% in 2025, supported by purchase subsidies, the International Energy Agency reports. 

Sustainability leaders won’t want to miss Sustainability LIVE: The Leadership Summit at London Climate Action Week, taking place at Code Node on 25 June 2026.

Register now for this exclusive invite-only event.

In May 2026, Spanish utility Iberdrola, as part of its joint venture with BP Pulse, announced record deployment of EV charging points in 2025, surpassing 2,500 stations in Spain and Portugal.

The joint venture has set a goal of installing 11,700 operational fast- and ultra-fast-charging points by 2030.

“This new milestone reflects the strength of our commitment and the dedication of the Iberdrola | bp pulse team to an increasingly extensive, reliable infrastructure focused on user needs. Our goal is to continue driving ultra-fast, simple, and accessible charging that facilitates the advancement of electric mobility in Spain and Portugal,” says Pablo Pirles, CEO of Iberdrola | bp pulse.