Just a decade ago, Spain was at the forefront of Europe’s debt crisis. Fast forward to the present day, and the country is one the EU’s largest economies, with a GDP of $1.7 trillion in 2024.
However, it’s also one of the most climate-vulnerable regions of the continent.
Climate events in Spain are becoming more frequent and the impacts of flash flooding and extreme heat waves risk derailing the country’s progress. However, Spain is taking action with sustainable energy, inclusive social policy, and ESG-aligned finance.
Let’s take a closer look at Spain’s climate crisis, its approach to ESG, and the startups helping to build a greener future.
Extreme weather’s impact on Spain
Although climate change is affecting many regions of the world. Spain has no respite.
In fact, data shows that Spain is one of the 20 countries most affected by climate change in the past 30 years.
Heat is one of these impacts. Last June, the temperature hit over 46ºC in the Andalusian village of El Granado, making it the hottest on record. These extreme temperatures are putting lives at risk and threatening to disrupt agriculture.
Further, 20% of Spain is already experiencing desertification and extreme heat is exacerbating the issue. Climate change and overexploitation of water, particularly groundwater extraction, puts a further 74% at risk of desertification.
While mainland Spain is suffering from a lack of water, coastal regions have the opposite problem. Many coastal areas are extremely vulnerable to rising sea levels and extreme floods are more common. In October 2024, Spain experienced one of its deadliest floods in decades, with the Valencia region and nearby areas suffering devastating impacts. The severity of the storm was linked to climate change. In 2025, the pattern has repeated across Eastern Spain and the Balearic Islands, currently battling extreme floods this October.
Madrid, the epicenter of Spain’s economy, is suffering from a climate ‘flip’ in the last 20 years, switching quickly from dry to wet extremes. While the city and its citizens suffer from high temperatures in the summer, extreme winters are becoming more common. In 2021, Storm Filomena brought the heaviest snowfall in over a century and freezing temperatures for two weeks
Spain tackles climate change with ESG
It looks clear that Spain is set to turn a corner. With over €163 billion in EU Recovery and Resilience Facility (RRF) funds, Spain is executing one of the most ambitious green transition programs in Europe. Spain is also recalibrating its governance, corporate culture, and social contract around ESG principles.
“Spain is not just seeking recovery—we are building a resilient, low-carbon, inclusive economy,” says Nadia Calviño, former Minister of Economy and now President of the European Investment Bank. “ESG is at the core of that transformation.”
Startups are helping to advance the progress towards a greener future in Spain through climate initiatives. Credibl ESG is one company leveraging tech to help organizations meet sustainability goals.
The power of sustainability-focused startup tech
Technology is going to play a crucial role in helping Spain keep on track with its green legislation and industrial and commercial organizations have the power to swing the needle.
This comes during a time when Spain is a leading implementer of the EU Green Deal. Here, Spain is leading on ESG integration through the Just Transition Strategy, focusing on coal-mining regions, climate law with a net-zero goal by 2050 and corporate governance frameworks aligned with CSRD and SFDR.
With Credibl’s platform available to companies across Spain, it’s set to advance ESG uptake and help to drive organizational change.
Credibl is a leading provider of sustainability and ESG solutions, leveraging advanced GenAI technologies. Trusted by more than 150 leading organizations, the company simplifies complex sustainability challenges, like managing indirect emissions and delivering end-to-end traceability across products and supply chains.
Its AI-powered platform enables businesses to produce accurate, audit-ready sustainability reports that comply with international standards, while providing insights to manage climate-related risks and drive sustainable growth.
Earlier this year, Credibl marked its presence at the ESG Tech Unlocked 2025 in Spain. The team joined ESG leaders, innovators, and technology partners at Spain’s first national event focused on tech-powered sustainability.
The tech platform ensures that ESG isn’t a tick box exercise in compliance, but a framework to meaningfully advance decarbonization initiatives to create a sustainable future and meet net zero goals.
