EUROPEAN COMMISSION

Brussels, 16.6.2021

COM(2021) 322 final

2021/0156(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Spain

{SWD(2021) 147 final}

2021/0156 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Spain

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility 1 , and in particular Article 20 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Spain. In 2019, the gross domestic product per capita (GDP per capita) of Spain was 84,8 % of the EU average. According to the Commission’s Spring 2021 forecast, the real GDP of Spain declined by 10,8 % in 2020 and is expected to decline by 5,6 % cumulatively in 2020 and 2021. Longer-standing aspects with an impact on medium-term economic performance include the high unemployment rate and high share of workers on temporary contracts; large stocks of external, private and government debt; structurally low productivity growth; and shortfalls in investment.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Spain in the context of the European Semester. In particular, in the area of public finances the Council recommended to preserve the sustainability of the pension system, strengthen the fiscal and public procurement frameworks at all levels of government, take all necessary measures to effectively address the pandemic and strengthen the health system’s resilience and capacity, sustain the economy and support the ensuing recovery, and, when economic conditions allow, pursue fiscal policies aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability, while enhancing investment. In the area of employment, the Council recommended to foster transitions towards open-ended contracts, support employment through arrangements to preserve jobs, effective hiring incentives and skills development, and reinforce the capacity of employment and social services, as well as unemployment protection, notably for atypical workers. In the area of education and skills, the Council recommended to improve access to digital learning, reduce early school leaving, improve educational outcomes and increase cooperation between education and business with a view to improving the provision of labour market relevant skills and qualifications, in particular for information and communication technologies. In the area of social policies, the Council recommended to improve support for families, address coverage gaps in minimum income schemes and reduce fragmentation of national unemployment assistance. In the area of investment, the Council recommended Spain to front-load mature public investment projects, promote private investment and focus investment on the green and digital transition, in particular on fostering research and innovation, clean and efficient production and use of energy, energy infrastructure and interconnections with the rest of the Union, rail freight infrastructure, water and waste management and sustainable transport. In the area of business climate, the Council recommended to further the implementation of the Law on Market Unity and ensure the effective implementation of measures to provide liquidity to small and medium-sized enterprises (SMEs) and the self-employed, including by avoiding late payments. Lastly, in the area of public administration, the Council recommended Spain to improve coordination between different levels of government. Having assessed progress in the implementation of these country-specific recommendations at the time of submission of the recovery and resilience plan, the Commission finds that substantial progress has been achieved with respect to the specific recommendation on taking all necessary measures, in line with the general escape clause of the Stability and Growth Pact, to effectively address the pandemic, sustaining the economy and supporting the ensuing recovery.

(3)On 2 June 2021, the Commission published an in-depth review under Article 5 of Regulation (EU) No 1176/2011 of the European Parliament and of the Council 2 for Spain. The Commission’s analysis led it to conclude that Spain is experiencing macroeconomic imbalances, in particular vulnerabilities related to high external and internal debt, both government and private in a context of high unemployment rate and have cross-border relevance.

(4)[The Council recommendation on the economic policy of the euro area recommended to euro area Member States to take action, including through their recovery and resilience plans, to, inter alia, ensure a policy stance which supports the recovery and to further improve convergence, resilience and sustainable and inclusive growth. The Council recommendation also recommended to strengthen national institutional frameworks, to ensure macro-financial stability and to complete EMU and strengthen the international role of the euro.] [If the Council recommendation is not adopted by the time of the CID adoption, please remove the recital]. 

(5)On 30 April 2021, Spain submitted its national recovery and resilience plan to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework, of local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. The national ownership of the recovery and resilience plans is underpinning their successful implementation and lasting impact at national level and credibility at European level. Pursuant to Article 19 of that Regulation, the Commission has assessed the relevance, effectiveness, efficiency and coherence of the recovery and resilience plan, in accordance with the assessment guidelines of Annex V to that Regulation.

(6)The recovery and resilience plans should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 and of the EU Recovery Instrument set up by Council Regulation (EU) 2020/2094 3 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union’s economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(7)The implementation of the Member States’ recovery and resilience plans will constitute a coordinated effort of investment and reforms across the Union. Through the coordinated and simultaneous implementation of these reforms and investments and the implementation of cross-border projects, these reforms and investments will mutually reinforce each other and generate positive spillovers across the whole Union. Therefore, about one third of the impact of the Facility on Member States’ growth and job creation will come from spillovers from others Member States.

Balanced response contributing to the six pillars

(8)In accordance with Article 19(3), point (a) and section 2.1 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the specific challenges and the financial allocation of the Member State concerned into account.

(9)The green and digital pillars are, together with social and territorial cohesion and gender balance, the key cross-cutting lines of action in the plan and are underpinned by relevant reforms and investments. The green components of the plan include relevant measures to support sustainable mobility, building renovation, biodiversity (including transformation of the agri-food and fishing systems and preservation of ecosystems integrating climate change adaptation), circular economy, water and waste management, energy and transport infrastructures and renewable energy including renewable hydrogen, among others. The green transition is present throughout the plan, from areas such as the modernisation of the fiscal system (which includes measures on green taxation) to measures to support skills and jobs for the green transition. In relation to the digital pillar, the recovery and resilience plan includes a number of components that should contribute directly to the digital transformation of the country with a lasting impact. Substantial investments should support digital infrastructures (including connectivity, cybersecurity and 5G), the process of digitalisation and modernisation of the industry including SMEs, the digitalisation of the public administration including the justice and health systems and the acquisition of digital skills (covering formal education, vocational education and training and lifelong learning).

(10)Most components in the plan are expected to contribute to the pillar on smart, sustainable and inclusive growth, with a wide array of measures aiming to strengthen competitiveness and productivity, and enhance research, development and innovation. Relevant components in the area of smart, sustainable and inclusive growth include those on industrial policy, support to SMEs, support to the tourism sector and support to research, development and innovation. Eighteen out of the thirty components in the plan are expected to contribute specifically to the social and territorial cohesion pillar, with measures reinforcing inter-regional sustainable mobility, educational opportunities in rural areas through digital means, investments in social housing, modernising and strengthening social services and inclusion policies, and modernising active labour market policies. Measures aiming to extend the use of open-ended contracts in the labour market or aiming at more equitable taxation are expected to have a positive impact on social cohesion. In order to build up on the territorial cohesion pillar referred to in Article 3 of the Regulation, the implementation of the Facility should aim to reduce disparities between the levels of development of the various regions and the backwardness of the least favoured regions in Spain. The contribution of the Recovery and Resilience Facility to the development of the Canary Islands, an EU outermost region with permanent constraints to be addressed by tailored measures, requires particular attention in line with Article 349 of the TFEU.

(11)Several components in the plan should support the pillar on health, economic, social and institutional resilience. For instance, the components on the reinforcement of the health system and the modernisation of the public administration seek to strengthen resilience in these two areas, while reforms modernising the tax system, including through a more effective prevention of tax fraud, and aiming at more effective spending intend to boost economic and social resilience. Other measures enhance the capacity of the country to preserve its natural capital and to react to natural disasters. The pillar on policies for the next generation is supported through measures in the education system (such as extending the offer of early childhood education and care and of vocational education and training), digital skills (such as measures aimed at tackling the digital gap for vulnerable students) and the labour market (such as a new action plan against youth unemployment). It also envisages the approval of a law on family diversity that includes a review of the family benefits with the objective of reducing child poverty.

Addressing all or a significant subset of challenges identified in Country Specific Recommendations

(12)In accordance with Article 19(3), point (b) and section 2.2 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations, including fiscal aspects thereof and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011, addressed to Spain or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(13)The recommendations related to the immediate fiscal policy response to the pandemic can be considered as falling outside the scope of Spain’s plan, notwithstanding the fact that the Member State has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the provisions of the General Escape Clause. Moreover, the recommendation to make sufficient progress towards the medium-term budgetary objective in 2020 is no longer relevant, due both to the lapsing of the corresponding budgetary period and the activation in March 2020 of the General Escape Clause of the Stability and Growth Pact in the context of the pandemic crisis.

(14)The plan includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Spain by the Council in the European Semester in 2019 and in 2020, notably those in the areas of employment, such as labour market segmentation, active labour market policies and capacity of public employment services; education and skills, such as early-school-leaving and labour market relevant skills, including digital; social policies, such as minimum income schemes, unemployment assistance and family support; investment, such as green and digital transition, strategic sectors and research and innovation; business climate, such as law on market unity, late payments and insolvency framework; public administration and public procurement.

(15)The plan includes legislative reforms to reduce the use of temporary contracts in the private and public sectors, including by simplifying the menu of contracts and generalising the use of open-ended contracts. Reforms and investments in the area of active labour market policies should prioritise vulnerable groups, notably through the action plan against youth unemployment and the rationalisation of hiring incentives. These actions should be supported by the digitalisation of public employment services, with the goal of providing more effective support to jobseekers and workers in transition.

(16)Based on the experience gathered with short-time work schemes, the plan also aims to set up a new flexibility and stabilisation mechanism to provide internal flexibility to firms and stability to workers in the face of cyclical or structural shocks, with a special focus on training. The mechanism should ensure effective upskilling and re-skilling and facilitate the voluntary mobility of workers, within and across firms, with the view to addressing the country-specific recommendation on preserving employment.

(17)Several labour market reforms in the plan are still subject to the outcome of the process of social dialogue, and their final design is therefore yet to be determined. These reforms should be part of a comprehensive package that supports job creation and reallocation and addresses labour market segmentation. Milestones should specify that these reforms should be conducted respecting social dialogue and as part of a comprehensive approach that balances the need for flexibility and security in the labour market. This applies in particular to the new flexibility and stabilisation mechanism and to the reform of collective bargaining.

(18)The creation of 135 000 new places of vocational education and training and the formal accreditation of professional skills acquired through work experience and non-formal training, among other investments and reforms in the field of skills, aim to contribute to the provision of labour market relevant skills and qualifications that should accompany the green and digital transition of the country. In the area of education, the creation of 1 000 service units to support vulnerable students and the implementation of a programme to support and guide low performing pupils aim to prevent early-school leaving. In addition, access to digital learning is expected to be significantly boosted through investments in devices and skills, as well as through the development of online courses.

(19)The plan includes a reform to further improve the design of the nationwide minimum income scheme and envisages investing in pilot projects to support the social and labour market integration of its beneficiaries through activation pathways. Both measures aim to address the relevant country-specific recommendation. Other reforms such as the new law on families, the modernisation of social services and the simplification and improvement of unemployment assistance are expected to support addressing long-standing country-specific recommendations on social policies.

(20)The public investment delivered by the plan is expected to mobilise private investment across several sectors, including sustainable and clean energy and transport, building renovation, the agri-food sector, fisheries, and health and key digital technologies, thereby contributing to address country-specific recommendations in the area of investment. Reforms such as the law on business creation and growth, which should foster an early payment culture and remove unnecessary and disproportionate regulatory barriers, are expected to improve business climate. Meanwhile, the adoption of the National Public Procurement Strategy intends to make public procurement more efficient. The plan is also expected to contribute to enhancing the effectiveness of research and innovation policies with measures that seek to reinforce the governance of research and innovation at all levels and reorganise public research undertaken in the universities system and public research organisations, among other measures. Measures also seek to strengthen coordination between the different levels of government, including by ensuring interoperability between central and regional government IT platforms.

(21)To address challenges in the area of public finances, the plan includes measures with a view to strengthening the governance of the spending review system and commits to implement reforms resulting from previous spending reviews and a tax system reform. The latter should take place after a tax expert committee issues recommendations on how to enhance the sustainability of the public finances and improve efficiency. Within that context, the system of family support should be reviewed with a view to improving its effectiveness. In addition, the plan includes significant measures in the area of healthcare, including investments in high-technology equipment, to support addressing country-specific recommendation on the health system’s resilience and capacity.

(22)Lastly, the plan includes a reform of the pension system with the aim of preserving its adequacy and long-term sustainability. Some of the measures such as a revised indexation system, incentives for late retirement and regulatory changes concerning early retirement should be discussed in the context of social dialogue. The final design of this and other reforms under discussion with the social partners, such as the new mechanism for flexibility and stability in the labour market, should be compatible with the medium to long-term fiscal sustainability of public finances.

(23)By addressing the aforementioned challenges, the plan is expected to also contribute to correcting the imbalances 4 that Spain is experiencing, notably with respect to high external and internal debt, both government and private, in a context of high unemployment.

Contribution to growth potential, job creation and economic, social and institutional resilience

(24)In accordance with Article 19(3), point (c) and section 2.3 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of the Member State, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(25)Simulations by the Commission services show that the plan has the potential to increase the GDP of Spain by between 1,8 % and 2,5 % by 2024 5 . The mix of investments and reforms presented by Spain is set to stimulate economic growth through multiple channels, including by improving total factor productivity, boosting trading capacity and skills, removing barriers to investments and increasing efficiency gains in the labour market. In particular, reforms and investments in the areas of education and skills, digitalisation, research and innovation are expected to make the largest contribution to economic growth and job creation.

(26)The reforms and investments outlined in the plan have the potential to address significant vulnerabilities of the Spanish economy related to the external sector. For instance, investments in research and innovation, in reskilling and upskilling the labour force and in support to the internationalisation of SMEs can raise business competitiveness. Moreover, investments in renewable energy and energy efficiency can reduce energy imports. The plan partially contributes to tackling the country’s existing vulnerabilities from a fiscal standpoint. The envisaged policies aiming to fight and prevent tax fraud and to ensure more efficient public spending, including through reforms in the area of public procurement, and taxation are expected to lay the ground towards strengthening the fiscal and public procurement frameworks. The plan is also expected to effectively reduce territorial disparities through reforms and investments to address the demographic challenge in rural areas and small municipalities, such as dedicated investments to improve energy efficiency in municipalities below 5 000 inhabitants, deploy ultra-fast broadband, boost entrepreneurship in rural areas and support just transition in territories facing challenges deriving from the transition process towards a climate-neutral economy.

(27)The recovery and resilience plan submitted by Spain includes measures aiming at addressing social cohesion challenges identified in previous country reports and country-specific recommendations to Spain, and monitored through the Social Scoreboard. Specific measures point at addressing vulnerabilities in the social protection system, such as the simplification and improvement of unemployment assistance, the streamlining of the system of non-contributory benefits and the review of the system of family benefits, with a view to reducing child poverty. The full implementation of the national minimum income scheme, adopted in June 2020, should be supported through pilot projects to support the socio-economic inclusion of the beneficiaries of the scheme. Furthermore, the plan aims to strengthen social cohesion and the social protection system by maintaining the purchasing power of pensioners over time in line with practices in other Member States.

(28)The plan presents a number of reforms and investments with the potential to contribute to the implementation of the European Pillar of Social Rights, and the Action Plan, endorsed at the Porto Summit of 7 May 2021. They include specific measures aiming to improve the employability of the youth, reduce the rate of early-school leavers and increase further participation of children in early childhood education and childcare, as well as measures to strengthen social protection as described above. The reforms envisaged in the area of active labour market policies include the review of hiring incentives, the reinforcement of adult learning and the reform and digitalisation of public employment services. These are complemented with the reforms in the area of vocational education and training and digital skills, and are expected to improve workers’ employability and thus raise the employment rates and reduce unemployment rates. Spain expects that the plan will lead to a relevant reduction of income inequality in the medium-long run, on the back of job creation and job quality, fairer taxation, more effective social protection and significant investments in early childhood education and care, long-term care, social services and social housing.

Do no significant harm

(29)In accordance with Article 19(3), point (d) and section 2.4 to Annex V of Regulation (EU) 2021/241, the recovery and resilience plan is expected to ensure that no measure for the implementation of reforms and investments projects included in the recovery and resilience plan does significant harm to environmental objectives (Rating A) within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council 6 (the principle of ‘do no significant harm’). In line with Regulation (EU) 2021/241 and the ‘Do no significant harm’ Technical Guidance of the European Commission 7 , Spain has provided a complete assessment that no measure for the implementation of reforms and investment projects included in the plan is expected to do significant harm to the environmental objectives.

(30)By selecting measures that either contribute substantially to environmental objectives, or have no or an insignificant foreseeable impact on environmental objectives, it is expected that many measures in the plan do no significant harm from the outset, such as in education and training, labour market, public administration and culture and sports. The assessment provided for other measures demonstrates that they are designed to ensure compliance with the ‘do no significant harm’ principle. These measures include broad support schemes that span across sectors and activities, such as in research, development and innovation, and support to industry and to SMEs. Spain has provided evidence and assurances substantiating that the measures should not lead to significant harm to any of the six environmental objectives, namely climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. Where needed, Spain has proposed the implementation of mitigating measures or included specific elements in the design of the measures to avoid significant harm, which should be ensured through relevant milestones and targets. This is particularly the case for measures supporting strategic projects covering installations under the EU Emissions Trading System, specific waste treatment activities, irrigation for agricultural production, and broad support schemes ranging across sectors and activities.

Contribution to the green transition including biodiversity

(31)In accordance with Article 19(3), point (e) and section 2.5 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The Spanish recovery and resilience plan includes measures supporting climate objectives for an amount which represents 39,7 % of the plan’s total allocation, calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the recovery and resilience plan is consistent with the information included in the National Energy and Climate Plan 2021-2030 8 (NECP).

(32)The recovery and resilience plan includes reforms and investments related to the green transition, with a particular strong contribution to climate objectives stemming from the components on energy renovations in housing and urban areas, sustainable mobility and renewable energy. Doing so, the financial contribution for Spain allows frontloading investments necessary to reach the EU increased climate ambition to reduce net greenhouse gas emissions by at least 55 % by 2030 compared to 1990, towards EU climate neutrality by 2050, as provisionally agreed by the European Parliament and the Council within the framework of the ‘European Climate Law’ 9 . As regards energy efficiency, Spain’s contribution to the EU level target in its integrated National Energy and Climate Plan 2021-2030 is to reduce its primary energy consumption by 39,5 %. The recovery and resilience plan sets the objective of renovating at least 355 000 unique residential dwellings as part of at least 510 000 renovation actions, at least 600 hectares of urban areas, an equivalent of at least 40 000 residential buildings and 690 000 m2 of non-residential buildings, at least 26 000 residential buildings in municipalities and urban areas with fewer than 5 000 inhabitants, and at least 1 230 000 m2 of public buildings by 31 August 2026. Investments in energy renovations of residential buildings in the plan represent an important share of the public support foreseen in the NECP in this area. They will contribute to the energy saving target by 2030, and to the objective set in the NECP in terms of number of dwellings to be renovated. However, additional public funding will still be needed to mobilise the total volume of investments necessary to achieve the objective set in the NECP for 2030, and to ensure a relatively higher leverage factor to attract private investments. Reforms and investments on renewable energy should increase substantially the development and deployment of renewable energy sources in Spain and contribute towards the achievement of its 2030 renewable energy share target of 42 %, as set out in the NECP. The plan includes support to innovative renewable sources in industry and buildings (close to 4 GW) and to renewable energy in islands. Measures on electricity infrastructure aim at the promotion of smart grids and the deployment of flexibility measures and storage. For this purpose, reforms foresee to establish an enabling framework to facilitate the integration of renewables into the energy system, the deployment of energy storage, as well as demand management and flexibility services. The plan will also invest in renewable hydrogen and contribute to Spain’s overall ambition of installing 4 GW of hydrogen electrolysis capacity by 2030 in order to generate renewable hydrogen and up to 200 hydrogen refuelling stations. This should contribute to decarbonise hard-to-abate sectors, such as industry and transport.

(33)The measures of the plan contribute to Spain achieving its current 2030 target of reducing greenhouse gas (GHG) emissions by 26 % compared to 2005 for sectors under the Effort Sharing Regulation (EU) 2018/842 10 , including transport, agriculture, waste and buildings. Investments in sustainable mobility aim at reducing emissions from transport, the sector where GHG emissions continue to grow most. The plan will contribute to Spain’s overall ambition of installing 80 000 to 110 000 recharging points and achieving a fleet of at least 250 000 plug-in electric vehicles by 2023. It will also provide incentives to private companies to replace their passenger and freight transport fleets with cleaner vehicles. In addition, the plan will create low emission zones in municipalities and encourage the use of active transport modes such as cycling and walking as well as improve and promote the use of urban public transport, including railway, with the aim of contributing to a reduction of private traffic by 35 % by 2030 and air pollution. The plan also includes investments on the modal shift of freight from road to rail, including the finalisation of 1 400 kilometres of the Atlantic and Mediterranean TEN-T corridors, investment in railway tractor equipment to switch to hydrogen or electricity, and the development of inter-modality hubs and improved access for rail to ports.

(34)As regards biodiversity, the plan includes measures in line with the new EU Biodiversity Strategy, for instance, to preserve the valuable forest carbon sinks through fire prevention actions and strengthened fire protection, and by increasing CO2 absorption through enhanced sustainable forest management actions. The investments in the biodiversity conservation of 50 000 hectares by 30 June 2026, including wetlands, and the restoration of ecosystems, with an ecosystem restoration target of 30 000 hectares by 31 December 2024, should also contribute to both climate change mitigation and adaptation. Measures also relate to the protection, conservation and restauration of marine and terrestrial ecosystems and their biodiversity. Moreover, the plan supports ecological connectivity and promotes green infrastructure, including in urban areas.

(35)Additionally, the recovery and resilience plan includes measures to improve the waste management legislation and is accompanied by investments fostering the circular economy. Measures also aim at improving water management through reducing wastewater leakages and increasing water reuse. The plan also provides for investments in flood risk mitigation and coastal adaptation, in recovering and improving the situation of ground water and aquifers, in water efficiency in agriculture, and in reducing nitrates pollution.

Contribution to the digital transition

(36)In accordance with Article 19(3), point (f) and section 2.6 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that effectively contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. These measures contribute to the digital objective for an amount which represents 28,2 % of the plan’s total allocation, calculated in accordance with the methodology of Annex VII to Regulation (EU) 2021/241.

(37)The recovery and resilience plan contains investments and reforms that are expected to have a long-lasting impact in the digital transformation of the economic and social sectors and significantly contribute to address the challenges resulting from the digital transition. In particular Spain is expected to invest in areas such as digital skills, the digitalisation of business and the integration of advanced technologies in the business sector. Horizontal actions that benefit the entire economy and population (such as enhanced connectivity) are complemented by targeted actions addressing specific sectors (such as tourism, SMEs, culture and media) or specific segments of population (such as students, civil servants and the unemployed). The plan includes the deployment of the seven strategic plans under the 2025 Digital Spain Agenda: the Connectivity Plan, the 5G Promotion Strategy, the National Artificial Intelligence Strategy, the National Digital Skills Plan, and the Digitalisation Plan for Public Administrations, the Plan for Digitalisation of SMEs and the Spanish Audio-visual Hub Plan. The digital measures foreseen take into account the EU Digital Strategy, the European Industrial Strategy, the EU Skills Agenda, the European Pillar of Social Rights, the European Education Area and the Digital Education Action Plan.

(38)The plan includes investments to close the digital divide between urban and rural areas and to enable the full potential of 5G connectivity. There are investments foreseen in the deployment of ultra-fast broadband in certain areas lacking this sort of infrastructure, such as rural areas or historic urban centres. 5G network is expected to be deployed along certain parts of the cross-border sections with France and Portugal, along certain parts of the main national transport corridors, in areas not covered by mobile operators, and in certain critical hotspots such as business parks, industrial areas and around focal public services. Connectivity services for vulnerable groups and SMEs are supported to expand the share of people and businesses connected to the internet. The plan includes measures to increase the level of digital skills of the population, targeted measures in the education system (such as digitalisation of education and training of teachers and vocational education), investments on reskilling and upskilling of workers and jobseekers. In addition, the plan includes support for the digitalisation of business and integration of advanced technologies, with specific support for SMEs through the substantial deployment of a ‘Digital Toolkit’. Furthermore, the plan includes reforms and investments on advanced digital skills, including artificial intelligence and cybersecurity, which are expected to increase trust on digital services and technologies, and help the adoption of these advanced digital technologies on a lasting basis. Finally, the plan includes a comprehensive package of reforms and investments to improve the digitalisation of the public administration at all levels, with specific consideration of interconnection and interoperability. These cover the justice system, the tax administration, public employment services, digital public procurement, public health, the transport sector, the conservation of ecosystems and biodiversity, coast preservation and water management, and electricity networks.

Lasting impact

(39)In accordance with Article 19(3), point (g) and section 2.7 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a lasting impact on Spain to a large extent (Rating A).

(40)The reforms outlined in the plan are expected to bring about a structural change in relevant policies and in the administration, notably by strengthening the labour market and modernising social protection and by enhancing the functioning of the administration, including through its digitalisation. As regards the labour market, the plan presents a wide array of reforms aimed at tackling unemployment and labour market segmentation, including in the public administration. These measures are expected to bring a lasting impact, notably by promoting quality job creation and helping to reduce the long-standing high unemployment rate, while contributing to reinforce social cohesion in a sustainable manner. The plan also includes relevant reforms in the area of skills, notably digital, with a specific focus on upskilling of the low skilled and on reskilling of the labour force in line with labour market needs. Efforts to modernise and improve the effectiveness of social protection may have a durable effect on supporting higher labour market participation, stabilising income over the economic cycle, improving the social and economic integration of all, and reducing inequalities. The digitalisation of the public administration should be accompanied with measures ensuring that public policies are subject to impact assessments and evaluations, including for expenditure. In addition, the envisaged reforms of the public procurement system and the insolvency framework are expected to support a more effective allocation of funds and assets in the country. 

(41)The recovery and resilience plan contains numerous investments supporting innovation and enhancing the modernisation and competitiveness of the industry, notably SMEs, with a view to bringing about a long-lasting impact. Measures should help Spain embrace faster the principles of sustainability and digitalisation. The full implementation of the investments envisaged in these areas has the potential to place Spanish firms in a better place to compete in the markets that will emerge from the digital and green transition, decarbonise traditional industry and boost a new efficient and sustainable economy. The recovery and resilience plan invests in the energy renovation of buildings in Spain. Moreover, the plan also seeks to contribute to the achievement of internationally agreed decarbonisation and air quality objectives through actions to transform urban environments. All these measures are expected to support the energy transition of Spain and reduce dependency on energy imports in the medium term, while protecting natural capital and ecosystems. The lasting impact of the plan can also be enhanced through synergies between the plan and other programmes financed by the cohesion policy funds, notably by addressing in a substantive manner the deeply rooted territorial challenges and promoting a balanced development.

Monitoring and implementation

(42)In accordance with Article 19(3), point (h) and section 2.8 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan are adequate (Rating A) to ensure effective monitoring and implementation of the recovery and resilience plan, including the envisaged timetable, milestones and targets, and the related indicators.

(43)The national arrangements for the implementation of the recovery and resilience plan are set out in Royal Decree-Law 36/2020 of 30 December approving urgent measures for the modernisation of the public administration and the implementation of the Recovery Plan. A Commission for the Recovery, Transformation and Resilience, which gathers all ministers competent for the plan, is in charge of the political guidance and should be chaired by the President of the Government. A new Secretariat-General for European Funds within the Ministry of Finance shall act as the responsible authority for the Recovery Plan. That body should draw up requests for payment to the Commission, once the bodies responsible for the achievement of the relevant milestones and targets declare that these have been met, and the General Comptroller of the central government (‘IGAE’) provides reasonable assurance of their achievement. In general, the milestones and targets are clear and realistic and the proposed indicators for them are relevant, acceptable and robust. Moreover, the sequencing of milestones and targets is sufficiently clear to allow for payments and monitoring progress and reflects a strong frontloading of the measures, with most of the milestones and targets concentrated in the period between 1 January 2021 and 31 December 2023. Milestones and targets are also relevant for measures already completed which are eligible according to Article 17(2) of the Regulation. The satisfactory fulfilment of these milestones and targets over time is required to justify a disbursement request. An integrated information system should be set up and shared between all relevant administrations.

(44)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument to assist Member States in the implementation of their plan.

Costing

(45)In accordance with Article 19(3), point (i) and section 2.9 of Annex V to Regulation (EU) 2021/241, the justification provided in the plan on the amount of the estimated total costs of the recovery and resilience plan is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(46)Spain has provided individual cost estimates for all investments and reforms with an associated cost in the recovery and resilience plan, relying on a number of sources to justify them. These include calls of interest specifically launched for the purposes of the plan, external references provided by international organisations, and procurement contracts referring to similar services or past investments of similar nature, among others. As a result, cost estimates for most of the measures in the plan are deemed reasonable. Spain has used simplified cost options with respect to both flat rates and unit costs. An independent validation with regards to the reasonability of a significant share of the cost estimates in the plan has been provided by the General Comptroller of the central government (‘IGAE’). The amount of the estimated total costs of the plan is in line with the nature and type of the envisaged reforms and investments. As a result, cost estimates for most of the measures in the plan are deemed plausible. Spain has provided sufficient information and evidence that the amount of the estimated total costs is not covered by existing or planned Union financing. Finally, the amount of estimated total costs of the recovery and resilience plan is commensurate to the expected national economic and social impact.

Protection of financial interests

(47)In accordance with Article 19(3), point (j) and section 2.10 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan and the additional measures contained in this Decision are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with EU law, including for preventing, detecting and correcting corruption, fraud and conflicts of interests, and for protecting the Union finances in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council.

(48)The internal control system described in the recovery and resilience plan is based on robust processes and structures, previously developed for the monitoring of the Structural Funds. It identifies the actors and their roles and responsibilities for the performance of the internal control tasks clearly. The Spanish General Comptroller of the central government (IGAE) is the audit body, who will also coordinate the work of the regional bodies. IGAE, together with the internal control units of the different authorities are the main actors responsible for the control and audit of the plan. Altogether, the control system and other relevant arrangements, including for the collection and making available of data on final beneficiaries, are adequate with respect to preventing, detecting and correcting corruption, fraud, conflict of interest when using the funds under Regulation (EU) 2021/241 and to avoid double funding under that Regulation and other Union programmes. A specific milestone should be included in order to ensure the implementation of the integrated information system, including compliance with the obligation to collect and store data on final beneficiaries, contractors, subcontractors and beneficial owners in accordance with Article 22 of that Regulation.

(49)Spain has indicated that an integrated system for the management and reporting of the milestones and targets is being developed in order to meet specific management and reporting requirements described in the plan. In accordance with Article 20(5), point (e) of Regulation (EU) 2021/241, Spain should implement this measure in order to comply with Article 22 of that Regulation and confirm the status of its implementation with the first payment request by means of a dedicated audit report. The report should analyse any related weaknesses found and corrective actions taken or planned.

(50)In addition, the establishment of the procedure and format of the information to be provided by the entities of the State, Autonomous Communities and local public sector for the monitoring of projects and the accounting execution of expenditure charged to projects under the plan should be set out as a specific milestone to be fulfilled at the latest by the time of the submission of the first payment request. 

Coherence of the plan

(51)In accordance with Article 19(3), point (k) and section 2.11 of Annex V to Regulation (EU) 2021/241, the plan includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions.

(52)The recovery and resilience plan presents a comprehensive and balanced package of reforms and investments. Measures within components are mutually reinforcing, with all components including a set of well-balanced reforms and investments. Furthermore, measures are also mutually supportive and complementary across the different components. Finally, the plan proposes a broad set of reforms that should generally facilitate the implementation of all measures in the plan by enhancing sectoral regulation and the business climate. The strengthening of public institutions, with a set of reforms that aim at improving the functioning and interoperability of the public administration, is expected to facilitate the effective delivery of reforms and investments and enhance accountability to the civil society. Measures aimed at supporting strong public sector institutions and systems are also expected to contribute to fiscal health and sustainability. The fact that many of the reforms should be frontloaded to the first two years of the plan, between 1 January 2021 and 31 December 2022, should allow for an effective implementation of investments.

Equality

(53)Spain has provided extensive information on the expected contribution of the plan to gender equality and equal opportunities for all and the mainstreaming of those objectives. The recovery and resilience plan has a strong focus on gender balance, which is one of the four cross-cutting lines of action in the plan. There are different measures across the plan with direct impact in reducing the gender gap, such as the promotion of information and communication technologies specialist vocations among women, measures to boost the implementation of pay transparency and gender equality plans in companies, an increase in the offer of early childhood education and care, investments supporting women entrepreneurship and the social and labour integration of women from vulnerable groups.

Security self-assessment

(54)Spain has provided a security self-assessment for investments in digital capacities and connectivity, in accordance with Article 18(4), point (g) of Regulation (EU) 2021/241. In Component 15 (Digital Connectivity) of the plan, Spain has explained that as part of the two reforms envisaged under the component it will implement the recommendation of the European Commission on Connectivity 11 and the law on the requirements to ensure the security of 5G electronic communications networks and services, and this law will include the key recommendations of the European Commission Communication of 29 January 2020 “Secure 5G deployment in the EU — Implementation of the EU toolbox” 12 .

Cross-border and multi-country projects

(55)The Spanish recovery and resilience plan includes measures that should allow for progress on existing cross-border or multi-country projects on transport (TEN-T: rail connections on the Mediterranean and Atlantic corridors and across the Central Pyrenees) and digital connectivity (by means of submarine cables). The plan also includes measures that are expected to facilitate the participation of Spanish firms in potential cross-border or multi-country projects, including on planned Important Projects of Common European Interest in areas such as microprocessors, renewable hydrogen, satellite secure communication and next generation cloud and edge computing.

Consultation process

(56)As required by Article 18(4), point (q) of the Regulation (EU) 2021/241, the recovery and resilience plan of Spain includes a summary of the consultation process carried out for its preparation and implementation. In the preparation of the plan, Spain carried out targeted consultations with social partners, stakeholders and advisory councils. Spain also made use of calls for expressions of interest to approach businesses for the design of investments. Through these calls, the authorities collected a wide range of proposals that should serve as the basis of the strategic projects to be supported by the plan.

(57)To ensure ownership by the relevant actors, it is crucial to involve all regional and local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the plan. Ensuring a broader ownership for the implementation of the plan would contribute to enhance its effectiveness and expected long-lasting impact. The Recovery and Resilience Facility Regulation recognises that regions and local authorities are important partners for the implementation of reforms and investments. For the implementation of the plan, Spain has set up a new Sectoral Conference for the Recovery, Transformation and Resilience to coordinate regions, local entities and the central government. In addition, existing sectoral conferences in various policy areas should support the implementation as regards specific measures within their area of competence. The plan highlights that social partners will be consulted in the final design of a number of relevant measures announced in the plan, such as the labour market and pension system reforms.

Positive assessment

(58)Following the positive assessment of the Commission concerning the Spanish recovery and resilience plan with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) and Annex V of that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the plan, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the plan in the form of non-repayable financial support.

Financial contribution

(59)The estimated total cost of the recovery and resilience plan of Spain is EUR 69 528 050 000. As the recovery and resilience plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the recovery and resilience plan is higher than the maximum financial contribution available for Spain, the financial contribution allocated for Spain’s recovery and resilience plan should be equal to the total amount of the financial contribution available for Spain.

(60)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Spain is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Spain should be made available now for a legal commitment by 31 December 2022. Where necessary following the updated maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution without undue delay.

(61)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053 13 . The support should be paid in instalments once Spain has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan.

(62)Spain has requested pre-financing of 13 % of the financial contribution. That amount should be made available to Spain subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241.

(63)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any other Union programme than Regulation (EU) 2021/241 or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

HAS ADOPTED THIS DECISION:

Article 1
Approval of the assessment of the recovery and resilience plan

The assessment of the recovery and resilience plan of Spain on the basis of the criteria provided for by Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the recovery and resilience plan, the arrangements and timetable for monitoring and implementation of the recovery and resilience plan, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 2
Financial contribution

1.The Union shall make available to Spain a financial contribution in the form of non-repayable support amounting to EUR 69 512 589 611. 14 An amount of EUR 46 592 869 727 shall be available to be legally committed by 31 December 2022. Subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241 calculating an amount for Spain equal to or more than this amount, a further amount of EUR 22 919 719 884 shall be available to be legally committed from 1 January 2023 until 31 December 2023.

2.The Union financial contribution shall be made available by the Commission to Spain in instalments in accordance with the Annex. An amount of EUR 9 036 636 649 shall be made available as a pre-financing payment, equal to 13 per cent of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

3.The pre-financing shall be released subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

4.The release of instalments in accordance with the Financing Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Spain has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan. Subject to the entry into force of the legal commitments referred to in paragraph 1, to be eligible for payment, milestones and targets shall be completed no later than 31 August 2026.

Article 3
Addressee

This Decision is addressed to the Kingdom of Spain.

Done at Brussels,

(1)    OJ L 57, 18.2.2021, p. 17-75.

(2)    Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).

(3)    Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I , 22.12.2020, p. 23.).

(4)    These macroeconomic imbalances refer to the recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011 in 2019 and 2020.

(5)    These simulations reflect the overall impact of NGEU, which also includes funding for ReactEU, and increased funding for Horizon, InvestEU, JTF, Rural Development and RescEU. These simulations do not include the possible positive impact of structural reforms, which can be substantial.

(6)    Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

(7)    Technical Guidance on the Application of ‘do no significant harm’ under the Recovery and Resilience Facility Regulation, COM (2021) C58/01.

(8)    https://ec.europa.eu/energy/sites/ener/files/documents/es_final_necp_main_en.pdf.

(9)    Based on the amended Commission proposal (COM(2020)563 final) for a Regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (‘European Climate Law’).

(10)    Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reduction by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

(11)    C (2020) 6270

(12)    COM/2020/50

(13)    OJ L 424, 15.12.2020, p. 1.

(14)    This amount corresponds to the financial allocation after deduction of the Spain’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

EUROPEAN COMMISSION

Brussels, 16.6.2021

COM(2021) 322 final

ANNEX

to the

Proposal for a Council Implementing Decision

on the approval of the assessment of the recovery and resilience plan for Spain

{SWD(2021) 147 final}

ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN

1.Description of Reforms and Investments

A. COMPONENT 01: SUSTAINABLE, SAFE AND CONNECTED MOBILITY SHOCK PLAN IN URBAN AND METROPOLITAN ENVIRONMENTS

This component of the Spanish recovery and resilience plan addresses challenges concerning air quality, which mainly affect major metropolitan areas, and have led to more than 20 000 premature deaths in Spain in 2018. The overarching objective of the reforms and investments in this component is to transit towards a clean, safe and smart urban mobility. The specific objectives pursued by this component are the following:

·accelerate the implementation of low-emission zones in all municipalities with more than 50 000 inhabitants and the capitals of the provinces, and the penetration of electric mobility;

·promote active mobility, as well as other measures to help reduce the use of private cars; 

·the digital and sustainable transformation of the public transport sector as a real alternative to the use of private vehicles;

·improving the quality and reliability of the short-distance railway services to increase its effective use in metropolitan environments, to the detriment of the private vehicle;

·optimising traffic management and facilitating decision making to promote cleaner mobility.

The component addresses the Country Specific Recommendations on promoting public and private investment and fostering the green transition (Country Specific Recommendation 3 2020), promoting investments in innovation and in energy efficiency (Country Specific Recommendation 3 2019), as well as on strengthening cooperation across level of governments (Country Specific Recommendation 4 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the ‘Do no significant harm’ (‘DNSH’) Technical Guidance (2021/C58/01).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C1.R1) - Roll-out plan for recharging and boosting electric vehicle infrastructure

The objective of this measure is to strengthen the operational and regulatory framework facilitating the deployment of recharging infrastructure to boost the use of electric vehicles.

The reform shall consist of the adoption of the following regulatory framework that aims at removing the barriers currently hampering the diffusion of charging points:

-Royal Decree regulating publicly accessible charging services and ensuring the proper and reliable functioning of the points installed;

-Royal Decree Law 23/2020 of 23 June 2020, contributing to speed up the processing of recharging infrastructure by declaring the charging facilities with a power above 250kW to be of public benefit;

-Order TMA/178/2020, reducing the administrative burden for the approval and deployment of electricity charging facilities at fuel filling stations;

-Amended Technical Building Code, increasing the minimum amounts of electric vehicle charging infrastructure in both residential and tertiary car parks, exceeding the minimum requirements of the Energy Efficiency in Buildings Directive; and

-Amended Low Voltage Electrotechnical Regulation, incorporating obligations for charging infrastructure in car parks, which are not linked to a building.

The implementation of the reform shall be completed by 30 June 2022.

Reform 2 (C1.R2) - Mobility and Financing of Transport Act

The objective of this measure, implemented by means of a law, is to provide the regulatory framework underpinning the renewed mobility policy in Spain grounded on an improved sustainability and digital dimension.

The law shall foresee, at least:

·the set-up of a payment mechanism for the use of the State’s roads to be introduced from 2024 according to the ‘polluter-pays’ principle. The aim of such measure is to internalise the external cost of road transport, thereby creating incentives for greater efficiency in this sector and leading to a reduction of greenhouse gas emissions.

·a number of obligations and methodological guides applicable to municipalities and companies of a certain size to incentivise the implementation of a Sustainable Urban Mobility Plan and sustainable work-related mobility schemes respectively;

·the set-up of mechanism to increase rigour in infrastructure planning in line with the recommendations issued by the independent fiscal authority (Autoridad Independiente de Responsabilidad Fiscal, AIReF), incorporating considerations on sustainability and social cost-benefit analysis;

·the set-up of a predictable financing system of urban transport across the country’s municipalities based on uniform distribution criteria of State funds;

·the introduction of a regulatory sandbox facilitating innovations in mobility and transport sector and their entry into the market;

·the improvement of the governance in line with AIReF recommendations by establishing: (i) a National Mobility System to foster coordination and cooperation between the three territorial administrations with responsibility for transport and mobility; (ii) a Higher Council for Transport and Mobility, as a body for advising, discussing and involving the productive sectors, academia and civil society in defining transport and mobility policies; and (iii) an Integrated Transport and Mobility Information Platform to integrate information from different administrations and external sources on transport and mobility. This shall allow administrations to optimise the design of public policies and improve their capacity to respond to crises and emergencies.

The measure shall be published in the official journal by 31 December 2023.

Investment 1 (C1.I1) - Low-emission areas and transformation of urban and metropolitan transport

The objective of this measure is to foster the sustainable and digital transformation of transport services, with the aim of contributing to reduce the use of private vehicles in urban environments by 35 % by 2030. The measure shall also cover incentives for the transition to cleaner passenger and freight transport fleets of companies providing transport services. This investment shall be implemented by the local authorities, the Autonomous Communities and the Ministry of Transport, Mobility and Urban Agenda (MITMA).

The investment projects the Autonomous Communities are set to undertake may relate to: (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administrative management and the improvement of its accessibility; (d) measures for prioritising collective transport and active mobility, including cycling infrastructure and pedestrian lanes; (e) incentivising the penetration in Spain of new zero-emission technologies in transport; (f) parkings for deterrence located outside these municipalities and capitals of province to reduce traffic entering to the urban centre and (g) the extension or upgrading of the rail transport system (e.g. metros or railways); (h) digitalisation projects complementing measures to support sustainable mobility, including real time information systems on public transport services, mobility as a service, projects to improve intermodal or inter-service ticketing, projects to support traffic and mobility management and information analysis in order to increase the efficiency of the transport system and (i) any other project that: i. contribute to improving air quality, especially in urban areas ii. incentivise the reduction of the use of private transport in urban and metropolitan areas iii. incentivise the use of public transport or iv. incentives active and healthy mobility.

Projects by the local authorities will for instance consist of: (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administration management and the improvement of its accessibility; and (d) measures to incentivise and prioritise collective transport and active mobility

This aid shall be allocated to municipalities with more than 50 000 inhabitants and the capitals of the provinces and, under certain conditions, may also be allocated to municipalities of between 20 000 and 50 000 inhabitants.

The investment projects MITMA is set to undertake concern the humanisation and organisation of traffic in urban roads under its responsibility. Investments shall contribute to promoting the mobility of pedestrians and cyclists and other new forms of mobility (scooters) or reducing car spaces and reducing vehicle speed, with the aim of reducing both air emissions and noise pollution.

The incentives to transform passenger and freight fleets of transport companies shall consist on the following aid lines: (a) aid for the acquisition of zero- and low-emission passenger and freight vehicles; (b) aid for the deployment of refuelling infrastructure for commercial vehicles with alternative fuels (electric, LNG, CNG and biomethane); (c) aid for undertakings for the acquisition or adaptation of trailers and semi-trailers to intermodal transport; and (d) aid for undertakings for the scrapping of old vehicles.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, support for aid line (a) shall only cover electric and hydrogen ‘low-floor’ buses (M2 and M3 categories, typically urban and suburban buses); ‘high-floor’ buses, including LNG/CNG, hybrid, electric and hydrogen (M2 and M3 categories, typically inter-urban coaches) compliant with EURO VI-E (M2 and M3 categories, typically inter-urban coaches); and zero-emission 1 , low-emission 2 and LNG/CNG trucks running on biofuels, bioliquids and biomass fuels 3 . For aid line (b), the refuelling infrastructure for commercial vehicles shall comply with conditions for biofuels, bioliquids and biomass fuels 4 .

Selection criteria shall ensure that at least EUR 310 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 2 195 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.

The investments under this measure shall be implemented by 31 December 2025.

Investment 2 (C1.I2) – Incentive scheme for the installation of recharging points, the purchase of electric and fuel cell vehicles and innovation in electro-mobility, recharging and green hydrogen

This measure aims at supporting the compliance with the Spanish National Framework for Alternative Energy in Transport, accelerating the implementation of the National Integrated Energy and Climate Plan and supporting territorial cohesion by electrifying mobility in rural areas. The investment is articulated in different aid schemes that shall incentivise the roll-out of electric vehicle and fuel cell vehicles while encouraging individual innovation projects linked to the electro-mobility, value chain and vehicle fleet renewal at large- including exploiting the green hydrogen technology. The investment shall also include the installation of public charging stations in residential areas as well as on the national road network. The selection criteria used in the calls for proposals to allocate the aid schemes shall include: i) the environmental impact reduction, ii) technical-economic viability, iii) level of technological development and innovation, iv) replicability and scalability, v) employment generation associated with the project, direct and indirect and vi) impact on value chain and synergy with other sectors, mainly industrial.

This investment shall be implemented by 31 August 2025.

Investment 3 (C1.I3) - Measures to improve the quality and reliability of rail transport services

The objective of this measure is improving the attractiveness and accessibility of the public short-distance railway network (so-called Cercanías) so that it becomes the backbone of mobility in urban areas and replaces the use of private vehicles in metropolitan areas. The projects shall be executed by ADIF (railway infrastructure manager) and RENFE (the operator of rail services with Public Service Obligations).

ADIF shall implement infrastructure investments in the Cercanías railways, including track renewal, upgrading of stations and improvements in the electrification and signalling system. Furthermore, RENFE shall be responsible for the implementation of investments for the modernisation of the management of public rail transport. Investments shall mainly range across five dimensions: (a) digitalisation of security systems in stations; (b) passenger information systems; (c) improvement of access control; (d) the adaptation of self-selling machines to new technologies; and (e) fitting-out of facilities in the stations of the Cercanías network.

The implementation shall be completed by 30 June 2026.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

Number	Measure	Milestone / Target	Name	Qualitative indicator for milestones	Quantitative indicator for target			Time		Description of each milestone and target
					Unit	Base-line	Goal	Q	Year
1	C1.R1	M	Order TMA/178/2020 and Royal Decree-Law 23/2020	Provision in the order and Royal-Decree Law indicating their entry into force				Q4	2020	Entry into force of i) Order TMA/178/2020 to reduce the administrative burden for installing the electric recharging facilities in fuel service stations and defining the time required for the infrastructure disposal, (ii) Royal Decree-Law 23/2020 of June 23, declaring of public utility the recharging infrastructure with power greater than 250 kW to accelerate the deployment of this type of facilities
2	C1.R1	M	Amendments to the Technical Building Code (TBC), the Low Voltage Electrotechnical Regulation (LVER) and approval of a Royal Decree to regulate public recharging services	Provision in the Code, Regulation and Royal Decree indicating their entry into force				Q2	2022	Entry into force of: i) amendments to the Technical Building Code (TBC) to provide for a) the obligation to provide pre-installation for charging points in 100 % of the new parking spaces in residential buildings and 20 % of new parking spaces in commercial and other buildings, b) to install one charging point for every 40 new parking spaces (and one for every 20 parking spaces in General State Administration buildings) and c) the obligation for previously existing non-residential car-parks of more than 20 parking spaces to adapt to the above requirement (i.e. installation of one charging point for every 40 parking spaces) by 2023; ii) amendments to the Low Voltage Electrotechnical Regulation (LVER) to incorporate obligations for charging infrastructure of car-parks which are not linked to a building and; iii) the Royal Decree to regulate public recharging services, including the relationship of subjects participating in the provision of the service (charging point operators, electric mobility service providers) and establishing their rights and obligations
3	C1.R2	M	Adoption of a Law on sustainable mobility and transport financing	Provision in the law indicating the entry into force of the law				Q4	2023	Entry into force of the adoption of a Law on sustainable mobility and transport financing improving the planning, coordination and efficiency of public transport policies, supporting transport digitisation and the use of public transport and setting-up a financing system for the conservation and maintenance of public infrastructures which internalises environmental costs
4	C1.I1	T	Budget spent in purchases or awarded by municipalities aiming at promoting sustainable mobility		Million EUR	0	400	Q4	2022	Publication of the award of the project or subsidies in the OJ or in the Public procurement platform or execution of expenditure associated to purchases by municipalities that shall contribute to promote sustainable mobility in municipalities with more than 50 000 inhabitants and capitals in the province and, under certain conditions, may also be allocated to municipalities of between 20 000 and 50 000 inhabitants. Projects shall support for instances: (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administration management and the improvement of its accessibility; (d) measures to incentivise and prioritise collective transport and active mobility. Selection criteria shall ensure that out of the total final budget of EUR 1 500 000 000, at least EUR 310 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 1 190 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.
5	C1.I1	T	Budget spent in purchases or awarded by Autonomous Communities of at least EUR 900 million aiming at promoting sustainable mobility		Million EUR	0	900	Q4	2023	Publication of the award of project or subsidies in the OJ or in the Public procurement platform or execution of expenditure associated to purchases by Autonomous Communities. Projects and subsidies awarded and purchases carried out by Autonomous Communities shall: 1) contribute to promote sustainable mobility by providing subsidies to private companies to (a) scrap old heavy vehicles (b) renew their heavy passenger and freight fleets with cleaner vehicles, (c) buy or adapt their trailers or semi-trailers for intermodal transport or (d) install recharging and refuelling points with alternative fuels (electric, LNG, CNG and biomethane); Subsidies should be provided in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01); or 2) contribute to promote sustainable mobility in municipalities with more than 50 000 inhabitants and capitals in the province by supporting for instances (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administration management and the improvement of its accessibility; (d) measures for prioritising collective transport and active mobility, including cycling infrastructure and pedestrian lanes; (e) incentivising the penetration in Spain of new zero-emission technologies in transport; (f) parking for deterrence located outside these municipalities and capitals of province to reduce traffic entering to the urban centre; (g) the extension or upgrading of the rail transport system such as metros or railways;(h) digitalisation projects complementing measures to support sustainable mobility, including real time information systems on public transport services, Mobility as a service, projects to improve intermodal or inter-service ticketing, projects to support traffic and mobility management and information analysis in order to increase the efficiency of the transport system and (i) other projects that: i. Contribute to improving air quality, especially in urban areas ii. Incentivise the reduction of the use of private transport in urban and metropolitan areas iii. Incentivise the use of public transport or iv. Incentives active and healthy mobility. Selection criteria shall ensure that at least EUR 900 000 000 contribute to the climate change objectives with a 40 % climate coefficient in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.
6	C1.I1	T	Projects completed promoting sustainable mobility, including in urban and metropolitan areas		Number	0	25	Q4	2023	At least 25 projects to promote sustainable mobility, in 150 urban and metropolitan areas with more than 50 000 inhabitants and, under certain conditions, to the urban areas between 20 000 and 50 000 inhabitants, have been completed. Projects promoting sustainable mobility are the following: i. Projects developed by municipalities that shall contribute to promote sustainable mobility in municipalities with more than 50 000 inhabitants and capitals in the province and, under certain conditions, may also be allocated to municipalities of between 20 000 and 50 000 inhabitants. Projects shall support for instances: (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administration management and the improvement of its accessibility; (d) measures to incentivise and prioritise collective transport and active mobility. A project is a set of defined, interrelated and coordinated activities, carried out with a common objective within certain time and budget limits, for which a subsidy is requested. One municipality can develop more than one project. ii. Projects promoting sustainable mobility in urban and metropolitan areas developed by Autonomous Communities. This shall concern the typologies a) to i) specified in the investment C1.I1. Urban and metropolitan areas are defined as municipalities with more than 50 000 inhabitants, capitals in the provinces and, under certain conditions, municipalities with more than 20 000 inhabitants. Each Autonomous Community can develop more than one project. iii. Projects providing subsidies to private companies to (a) scrap old heavy vehicles, (b) renew their heavy passenger and freight fleets with cleaner vehicles, (c) buy or adapt their trailers or semi-trailers for intermodal transport or (d) install refuelling points with alternative fuels (electric, LNG, CNG and biomethane). At least 8 500 heavy vehicles or refuelling points need to be subsidised so as to consider that one project promoting sustainable mobility has been completed. Subsidies should be provided in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
7	C1.I1	T	Budget spent in purchases or awarded by municipalities aiming at promoting sustainable mobility		Million EUR	400	1 500	Q4	2024	Publication of the award of the project or subsidies in the OJ or in the Public procurement platform or execution of expenditure associated to purchases by municipalities that shall contribute to promote sustainable mobility in municipalities with more than 50 000 inhabitants and capitals in the province and, under certain conditions, may also be allocated to municipalities of between 20 000 and 50 000 inhabitants. Projects shall support for instances: (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administration management and the improvement of its accessibility; (d) measures to incentivise and prioritise collective transport and active mobility. Selection criteria shall ensure that at least EUR 310 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 1 190 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241. (Baseline: 31 December 2022)
8	C1.I1	T	Award in projects improving new forms of mobility in state roads		Million EUR	0	105	Q4	2024	Publication in the OJ or in the Public procurement platform of the award by the Ministry of Transport, Mobility and Urban Agenda of at least EUR105 million in projects improving state roads in urban areas. Projects will consist of constructing new cycling lanes, enlarging the pedestrian areas, reducing the parking areas or improving the safety on crossings
9	C1.I1	T	Projects completed promoting sustainable mobility, including in urban and metropolitan areas		Number	25	280	Q4	2025	At least 280 projects to promote sustainable mobility, including in urban and metropolitan areas, have been completed, to contribute to sustainable mobility in the 150 urban areas with more than 50 000 inhabitants and, under certain conditions, to the urban areas between 20 000 and 50 000 inhabitants. Projects promoting sustainable mobility are the following: i. Projects developed by municipalities that shall contribute to promote sustainable mobility in municipalities with more than 50 000 inhabitants and capitals in the province and, under certain conditions, may also be allocated to municipalities of between 20 000 and 50 000 inhabitants. Projects shall support for instances: (a) the conversion of public transport fleets in order to achieve the objectives of the Clean Vehicles Directive and in compliance with the ‘do no significant harm’ Technical Guidance (2021/C58/01); (b) the implementation and management of low emissions zones (LEZs); (c) the digitalisation of public transport, its administration management and the improvement of its accessibility; (d) measures to incentivise and prioritise collective transport and active mobility. A project is a set of defined, interrelated and coordinated activities, carried out with a common objective within certain time and budget limits, for which a subsidy is requested. One municipality can develop more than one project. ii. Projects promoting sustainable mobility in urban and metropolitan areas developed by Autonomous Communities. This shall concern the typologies a) to i) specified in the investment C1.I1. Urban and metropolitan areas are defined as municipalities with more than 50 000 inhabitants, capitals in the province and municipalities with more than 20 000 under certain conditions. Each Autonomous Community can develop more than one project. iii. Projects providing subsidies to private companies to (a) scrap old heavy vehicles, (b) renew their heavy passenger and freight fleets with cleaner vehicles, (c) buy or adapt their trailers or semi-trailers for intermodal transport or (d) install refuelling points with alternative fuels (electric, LNG, CNG and biomethane). At least 3 000 heavy vehicles or refuelling or recharging points or refuelling points need to be subsidised so as to consider that one project promoting sustainable mobility has been completed. Subsidies should be provided in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01). (Baseline: 31 December 2023)
10	C1.I1	T	State roads in urban areas improved to promote new forms of mobility		Number	0	34	Q4	2025	At least 34 state roads in urban areas improved by constructing new cycling lanes, enlarging the pedestrian areas, reducing the parking areas or improving the safety on crossings. This investment shall be undertaken by the Ministry of Transport, Mobility and Urban Agenda in the roads it owns in urban areas.
11	C1.I2	T	Award of innovative projects promoting electro-mobility		Million EUR	0	250	Q2	2023	Publication in the OJ of the award of at least EUR 250 million in calls supporting innovative projects promoting electro-mobility. The selection criteria used in the calls for proposals to allocate the aid schemes shall include: i) the environmental impact reduction, ii) technical-economic viability, iii) level of technological development and innovation, iv) replicability and scalability, v) employment generation associated with the project, direct and indirect and vi) impact on value chain and synergy with other sectors, mainly industrial.
12	C1.I2	T	Electric vehicles and recharging points deployed		Number	0	238 000	Q4	2023	At least 238 000 electric vehicles (BEV, REEV, PHEV, FCEV) and recharging points subsidised
13	C1.I2	T	Completion of innovative projects promoting electro-mobility		Number	0	85	Q4	2025	Completion of at least 85 projects deployed under the support program for innovation projects on electromobility (MOVES Singulares).
14	C1.I3	T	Short distance (Cercanías) rail lines		Number (Km)	0	200	Q4	2023	At least 200 km of short distance rail lines upgraded in any of the subsystems: platform, track, electrification, security and communications/signalling facilities. The length of short distance rail lines being upgraded should be interpreted in terms of the length located in urban or metropolitan areas where a significant intervention which is not the amount to make or repair has been implemented. Interventions could include the electrification, track renewal, improvement of Signalling and safety systems and station improvements which go beyond maintenance and repairs and shall be implemented along the national territory in all population centres which have services from Cercanías Ferroviarias.
15	C1.I3	T	Stations improved with digitalisation		Number	0	420	Q4	2023	At least 420 stations improved with all or some of the projects developed by RENFE as SPO operator, listed next: • Digitalization of security systems in stations (such as intelligent video analytics, cybersecurity and fraud control) • Passenger information systems • Improvement of access control to stations • Ticket vending machines projects • Facilities adaptation
16	C1.I3	T	Improved “Cercanías” stations		Number	0	20	Q4	2023	At least 20 “Cercanías” stations improved by ADIF mainly in terms of accessibility works and new or renovated railway tracks
17	C1.I3	T	Cumulative budget awarded for investments in short distance rail lines		Million EUR	0	1 619	Q4	2024	Publication in the OJ of the cumulative budget awarded for investments in short distance rail lines: at least: EUR 1 619 000 000.
18	C1.I3	T	Short distance (Cercanías) rail lines upgraded		Number (km)	200	700	Q2	2026	At least 700 km of short distance rail lines upgraded in any of the subsystems: platform, track, electrification, security and communications/signalling facilities. The length of short distance rail lines being upgraded should be interpreted in terms of the length located in urban or metropolitan areas where a significant intervention which is not the amount to make or repair has been implemented. Interventions could include the electrification, track renewal, improvement of signalling and safety systems and station improvements which go beyond maintenance and repairs and shall be implemented along the national territory in all population centres which have services from Cercanías Ferroviarias. (Baseline: 31 December 2023)
19	C1.I3	T	Stations improved with digitalisation		Number	420	850	Q2	2026	At least 850 stations improved with all or some of the projects developed by RENFE as SPO operator, listed next: • Digitalization of security systems in stations (such as intelligent video analytics, cybersecurity and fraud control) • Passenger information systems • Improvement of access control to stations • Ticket vending machines projects • Facilities adaptation (Baseline: 31 December 2023)
20	C1.I3	T	Improved “Cercanías” stations		Number	20	70	Q2	2026	At least 70 “Cercanías” stations improved by ADIF mainly in terms of accessibility works and new or renovated railway tracks (Baseline: 31 December 2023)

B. COMPONENT 02: Implementation of the Spanish Urban Agenda: Urban Rehabilitation and Regeneration Plan

This component of the Spanish recovery and resilience plan shall address the energy rehabilitation of buildings, their decarbonisation, and the improvement of their quality and comfort. It shall also address social rental housing, increasing its stock and ensure a fairer and more inclusive recovery. In addition, the component seeks to address energy poverty by supporting social or affordable rental housing. Digitalisation activities are also included. This component of the Spanish recovery and resilience plan supports implementing the National Energy and Climate Plan (NECP) of Spain, which provides for the renovation of 1 200 000 residential buildings by 2030, and of the heating and cooling systems of on average 300 000 residential buildings per year. In this context, Spain proposes to:

a)Develop and implement reform measures, including the Spanish Urban Agenda, Spain’s long term renovation strategy, a Housing Law, a Law to improve the Architectural landscape and the creation of ‘one-stop-shops’ for building renovations;

b)renovate at least 355 000 unique residential dwellings as part of at least 510 000 renovation actions, at least 600 hectares of urban areas, an equivalent of at least 40 000 residential buildings and 690 000 m2 of non-residential buildings, at least 26 000 residential buildings in municipalities and urban areas with fewer than 5 000 inhabitants, and at least 1 230 000 m2 of public buildings by 2026, achieving on average primary energy savings of more than 30 %, including by renovating and upgrading heating and cooling systems;

c)construct at least 20 000 new dwellings for social rental purposes or at affordable prices with primary energy demand of at least 20 % below the requirements of nearly zero-energy buildings; and

d)implement at least 100 pilot projects at local level that support energy efficiency and the implementation of the Spanish Urban Agenda.

This component of the Spanish recovery and resilience plan supports the green transition (Country Specific Recommendation 3 2019) and energy efficiency improvements in particular (Country Specific Recommendation 3 2020). It also improves support to families (Country Specific Recommendation 2 2019; Country Specific Recommendation 2 2020) and helps front-loading mature public investment projects and promote private investment to foster the economic recovery (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

B.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C2.R1) – Implementation of the Spanish Urban Agenda (and associated action plan)

The objective of this measure is the preparation and approval of the Spanish Urban Agenda, which shall be a strategic and non-regulatory document incorporating sustainability into the field of urban development policy. It shall also be a working method guiding all public and private stakeholders to achieve equitable, fair and sustainable development within their particular areas and serve local administration, cities and villages, regardless of their population size as a tool with a strategic, integrated and comprehensive perspective, as required by the Urban Agenda for the EU and the New Leipzig Charter.

The Spanish Urban Agenda shall include a diagnosis of the weaknesses and challenges faced by Spain’s cities and villages, in order to achieve urban development that is environmentally sustainable, socially cohesive and economically feasible. It shall include a strategic framework structured around the following ten strategic challenges: demographic; environmental; economic and social; the current building stock situation; vulnerability to the adverse effects of climate change; (high) dependence on tourism; and pollution-related risks.

The Urban Agenda shall also include a specific action plan for the National Administration and include guidance to support local entities in preparing their own local action plans in accordance with the methodology proposed by the General State Administration, committing to improving the public and public-private governance. Investment 6 shall complement this reform by supporting the preparation of at least 100 local action plans.

As part of the Urban Agenda and the need to meet Directive (EU) 2018/844 on the energy performance of buildings and on energy efficiency, Spain shall establish a long-term renovation strategy to support the renovation of the national stock of residential and non-residential buildings. This shall include both public and private buildings and shall achieve a highly energy efficient and decarbonised building stock by 2050, facilitating the cost-effective transformation of existing buildings into nearly zero-energy buildings.

The implementation of the measure shall be completed by 30 June 2020.

Reform 2 (C2.R2) – 2020 update of the Spanish long-term renovation strategy and associated action plan

The objective of this measure is the implementation of the Long-Term Renovation Strategy (ERESEE). This shall include actions for preparing, discussing in dedicated Working Groups, approving and disseminating the strategic document of the Long-Term Renovation Strategy action plan. The action plan shall be in accordance with the actions included in the ERESEE. In order to implement the ERESEE, several Working Groups shall be created in order to develop clear recommendations for the implementation of the action plan for Urban Rehabilitation and Regeneration. Reports with the recommendations by the Working Groups shall be published.

In Part III of the ERESEE, ‘Implementation’, the ERESEE shall include a set of actions, among which a set of reforms is outlined as part of a roadmap promoting urban rehabilitation and renewal, and fostering the green and digital transitions. The roadmap shall be structured around eleven axes and actions aimed at improving governance, regulations and financing. This roadmap shall be included in the strategic document as the main step towards implementing the ERESEE. The most relevant actions include:

·Refurbish public administration buildings (aligned with Component 11 of the Spanish recovery and resilience plan);

·fund areas identified for improvement, including new taxation favourable to renovation, both in the residential and tertiary sectors;

·promote and mobilise private finance;

·fight energy poverty;

·deploy a new energy model in the building sector, to encourage renewable energy consumption in buildings;

·activate and aggregate demand for rehabilitation;

·improve supply-side conditions, by boosting the modernisation of the rehabilitation sector through research, development and innovation, digitalisation, and monitoring, reinforcing skills and trainings;

·disseminate information to citizens and businesses, and exchange good practices between administrations; and

·develop statistics and indicators to monitor publicly funded actions so that public policies can be properly assessed.

This strategic document shall allow the implementation of the ERESEE, within the framework of the Spanish Urban Agenda, integrating the different administrations (central, regional and local).

The implementation of the measure shall be completed by 30 June 2023.

Reform 2 (C2.R3) – Housing Law

The objective of this measure is to implement, by means of the Housing Law, a first of a kind regulation in Spain, to address the various public planning, programming and collaboration instruments already in place to support the right to decent and adequate housing. It shall address the rehabilitation and improvement of the existing housing stock, both public and private, and regeneration and renewal of the residential environments in which they are located, to improve the quality of life. The law addresses the achievement of a sufficient level of housing stock for rental property, available at affordable prices.

The legislation shall address various planning, programming and collaboration instruments to ensure fulfilment of the right to decent and adequate housing, including, as one of its priorities, the rehabilitation and improvement of the existing housing stock, as well as the regeneration and renovation of the residential environments in which they are located.

In addition, the law shall encourage an increase in the supply of affordable and social housing by ensuring compliance with the requirements currently laid down for nearly zero-energy buildings according to the Basic Energy Saving Document (DB-HE) of the Technical Building Code (CTE) and shall avoid measures that could hinder housing supply in the medium term.

This implementation of the reform shall be completed by 30 September 2022.

Reform 3 (C2.R4) – Law on the Quality of Architecture and Building Environment and New National Architecture Strategy

The objective of this law is to declare the quality of architecture and buildings as a public good, to improve the quality of life, promote architecture’s social roots, promote the sustainable development of urban areas and hubs, contribute to economic and social development, and protect and safeguard the cultural and natural heritage.

To this end, the Law shall address various initiatives and actions closely linked to the rehabilitation and regeneration programmes in this component of the Spanish recovery and resilience plan. In particular, the law shall regulate: (i) inter-administrative cooperation measures in the field of procurement of architectural, engineering and urban planning projects and works; (ii) tools to disseminate good practice and support, training and public-private partnerships; and (iii) the promotion of rehabilitation from a comprehensive perspective, such as the one described above.

This implementation of the reform shall be completed by 30 September 2022.

Reform 4 (C2.R5) – Renovation offices (‘one-stop-shop’)

The objective of this measure is to encourage and extend the local renovation offices set up in some municipalities to accompany households and communities of owners in the highly complex tasks of rehabilitating a residential building.

To this end, this measure shall further encourage and extend this approach by establishing a process to ensure an effective collaboration and cooperation between central, regional and/or local governments. This includes reinforcing coordination of all public support (at central, regional or local levels). All levels of government shall be involved in these one-stop shops to maximise the effectiveness of renovation actions.

The implementation of the reform shall be completed by 30 September 2021.

Reform 5 (C2.R6) – Improved funding for renovation actions

The objective of this measure is to addresses one of the main impediments to the launching of the renovation activity, namely access to finance on favourable terms. To have a renovation loan approved it is, at times, necessary to grant an individual personal loan to every individual owner within a building. This has represented an obstacle for the deep and integrated renovation of buildings.

To address this issue, the measure:

·Establishes a new Instituto de Crédito Oficial (ICO) guarantee line to partially cover the risk of loans granted by private financial institutions to renovate residential buildings;

·promotes the adoption of specific regulatory provisions, including the reform of the Horizontal Property Law, to improve access to finance for communities of owners; and

·encourages the deployment of green finance by financial institutions.

The implementation of the reform shall be completed by 30 September 2022.

Investment 1 (C2.I1) – Rehabilitation programme for economic and social recovery in residential environments

The objective of this measure is to support energy efficiency renovations in residential buildings and neighbourhoods. The actions under this measure shall implement at least 510 000 renovation actions in at least 355 000 unique dwellings, achieving on average a primary energy demand reduction of at least 30 % verified by energy performance certificates. The following actions shall be supported:

a)A programme to support energy renovations at neighbourhood level, by providing grants and other support with on average EUR 20 000 per dwelling. The programme shall renovate at least 600 hectares of urban areas, achieving on average a primary energy demand reduction of at least 30 % verified by energy performance certificates. The actions include improving energy efficiency, deploying infrastructure for electric mobility, improving the accessibility of buildings and removing hazardous substances. A maximum of 15 % of the measure shall be dedicated to improvements at the level of neighbourhoods, such as improvements of outdoor lighting, cycling paths, green infrastructure and drainage systems, taking into account the socio-economic characteristic of the neighbourhood.

b)A programme to support energy renovations of residential buildings by providing grants of on average EUR 15 000 per dwelling. The level of support is higher for those actions for which the reduction of primary energy demand is higher and for low-income households. The actions include improving energy efficiency, deploying infrastructure for electric mobility, improving the accessibility of buildings and removing hazardous substances.

c)A set of activities shall address the incentives for energy renovations. This comprises, among others, (i) the possibility to deduct renovations from the personal income tax if at least a 30 % primary energy demand reduction is achieved, and (ii) the improvement of the funding framework by encouraging public-private partnerships.

A Royal Decree shall lay down the technical requirements to ensure compliance with the 30 % average reduction in primary energy demand. Amendments to the personal income tax shall be approved by Royal Decree-Law and, their objective shall be to define the tax incentives for the building renewal actions to achieve an improvement in energy efficiency.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C2.I2) – Programme for the construction of social rented housing in energy-efficient buildings

The objective of this measure is to build at least 20 000 new dwellings for social rental purposes or at affordable prices compliant with energy efficient criteria. These shall be built in particular in areas in which social housing is currently insufficient and on publicly owned land.

The primary energy demand of the social housing shall be at least 20 % below the requirements of nearly zero-energy buildings. To this end, a Royal Decree shall lay down the technical requirements to limit the value of primary energy demand to 80 % of the limit set in section HE 0 of the Basic Energy Saving Document (DB-HE) of the Technical Building Code (CTE).

The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (C2.I3) – Energy Rehabilitation of Buildings Programme

The objective of this measure is to support energy renovations of an equivalent of at least 40 000 residential buildings and 690 000 m2 of non-residential buildings and by improving energy efficiency and integrating renewable energy. The programme only supports renewable energy, excluding fossil fuels, provides a higher aid intensity for Energy Communities and allows for pre-financing the renovation actions. The specific actions cover the improvement of energy efficiency by thermal insulation, the use of renewable energy in heating and cooling systems, and improving the lighting system. An eligibility criterion is foreseen that on average a primary energy demand reduction of at least 30 % is achieved verified by energy performance certificates.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C2.I4) – Regeneration programme and demographic challenge

The objective of this measure is to support renovations of buildings in municipalities and urban areas with fewer than 5 000 inhabitants. Actions include improving the energy efficiency of buildings, public equipment and infrastructure, renewable energy generation and consumption, self-consumption and local energy communities of owners, and sustainable mobility (such as electric charging stations). Two types of actions shall take place:

a)For energy efficiency, at least 26 000 energy renovations shall take place in residential buildings, achieving on average a primary energy demand reduction of at least 30 % verified by energy performance certificates.

b)At least 250 unique clean energy projects shall be implemented through competitive tenders or investments by local authorities in the following areas: (i) installation of electrical or heating and cooling renewable for public buildings or infrastructure (including at least 80 % self-consumption); (ii) energy renovations of public buildings or infrastructure (achieving at least 30 % primary energy savings verified by energy performance certificates); (iii) sustainable mobility (projects for modal shift or electric mobility); (iv) reducing light pollution through improved public lighting; and (v) local energy community or other community-led projects in these municipalities.

To this end, the regulatory bases and call for investment aid extended to local authorities shall be published in the Official Journal.

The implementation of the investment shall be completed by 30 June 2026.

Investment 5 (C2.I5) – Public Buildings Rehabilitation Programme

The objective of this measure is to support energy renovations in public buildings, including in public administration, educational, social care, sports, health, cultural or public service. At least 1 230 000 m2 of public buildings shall be renovated, achieving on average a primary energy demand reduction of at least 30 % verified by energy performance certificates. The measure supports: (i) improvements in the use of water, materials, waste management and climate change adaptation; (ii) improvements in the accessibility of buildings; (iii) removal of hazardous substances and improving indoor air quality; and (iv) the conservation of buildings.

The implementation of the investment shall be completed by 30 June 2026.

Investment 6 (C2.I6) – Support programme for the development of pilot projects for local action plans of the Spanish Urban Agenda

The objective of this measure is to support local authorities in implementing the ten strategic objectives of the Spanish Urban Agenda through approving at least 100 local action plans. The ten strategic objectives of the Spanish Urban Agenda are: (i) planning land use and using it more rationally, preserving and protecting it; (ii) avoiding urban sprawl and revitalising existing cities; (iii) preventing and reducing the impacts of climate change and resilience; (iv) using resources sustainably and promoting the circular economy; (v) promoting proximity and sustainable mobility; (vi) encouraging social cohesion and striving for equality; (vii) promoting and encouraging the urban economy; (viii) ensuring access to housing; (ix) leading and promoting digital innovation; and (x) improving instruments of participation and governance.

The measure shall (i) serve as a role model and guide for other local authorities in developing their own action plans; (ii) implement the Spanish Urban Agenda with action plans at local level; and (iii) implement concrete projects as part of the local action plans to highlight the potential of the Spanish Urban Agenda. The support is awarded through competitive tendering, and comprise in particular crosscutting and integrated projects with a strategic vision and through a governance model that ensures the widest participation.

The investments under this measure shall be completed by 31 December 2022.

B.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

C. COMPONENT 03: Environmental and Digital Transformation of the Agri-Food and Fisheries System

This component of the Spanish recovery and resilience plan shall improve the sustainability, competitiveness and resilience of the agri-food and fisheries sector economically, environmentally and socially. To meet this objective, the investments and reforms included in this component of the Spanish recovery and resilience plan focus on the following elements:

a)Improving the efficiency and sustainability of irrigation;

b)boosting the sustainability and competitiveness of agriculture and livestock farming;

c)enacting a strategy to promote the digitalisation in the agri-food and rural sectors as a whole; and

d)boosting the sustainability, research, innovation and digitalisation of the fisheries sector.

The component addresses the Country Specific Recommendations on the promotion of investments in innovation and in energy efficiency (Country Specific Recommendation 3 2019), improving access to digital learning (Country Specific Recommendation 2 2020), and on promoting public and private investment and fostering the green transition (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

C.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C3.R1) – Amendment of the rules governing trade relations in the food chain, including amending Law 12/2013 of 2 August 2007 on measures to improve the functioning of the food chain

The objective of this measure is to improve the functioning of the food chain by amending the national legislation governing trade relations in the food chain (Law 12/2013), including but going beyond the transposition of Directive (EU) 2019/633. The measure shall at least cover:

a)Extending the scope of the law by including (i) trade relations to both Member States and third countries whenever an operator is located in Spain, and (ii) raw materials and other products covered by Annex I to the Treaty on the Functioning of the European Union;

b)extending the minimum content of food contracts by including (i) contractual penalties, (ii) exceptions for reasons of force majeure, and (iii) a reference to the request for mediation by involved parties to address cases of non-agreement;

c)expanding the list of unfair commercial practices such as the unilateral amendment of contracts in terms of volume or the return of unsold products; and

d)recognising the Food Information and Control Agency as the body responsible for establishing and developing the control system necessary to check compliance with the law at national level, and as a contact point for cooperation between enforcement authorities, as well as with the European Commission and the Autonomous Communities in their respective territorial areas.    

The measure is complementary to (i) the Royal Decree-Law 5/2020 of 25 February 2020, which adopted urgent measures regarding agriculture and food, and (ii) Law 8/2020 for the modification of Law 12/2013, on urgent measures to improve the functioning of the food chain.

The implementation of the measure shall be completed by 31 December 2021.

Reform 2 (C3.R2) – Development and review of the regulatory framework for the environmental sustainability of livestock farming

This measure shall improve the environmental sustainability of livestock farming by developing and revising the legislative framework as follows:

a)Developing a general register of Best Available Techniques (BATs) to facilitate calculations of polluting and greenhouse gas (GHG) emissions in pig and poultry farms, as well as the covering of other environmental data. It shall provide a better assessment of livestock farmers’ compliance with GHG and pollutant emission commitments.

b)Gradually revising the planning legislation in the livestock sectors, which lays down requirements on location, distance, size, health conditions, biosecurity and the environmental and animal welfare infrastructure on farms in sectors that already have it (pig farming), as well as establishing a new regulatory framework in sectors (poultry farming), which had not yet been regulated. It shall establish individual sectoral emission reduction commitments, laying down requirements according to their contribution to the generation of the pollutants, in application of the principle of proportionality.

The measure includes both legislative provisions, to be published by the end of 2022. It also anticipates that the implementation of the general register of BATs shall be operational for pig and poultry farms by 31 December 2023. The application of the revised planning legislation shall be carried out progressively within approximately two years of its publication.

The implementation of the measure shall be completed by 31 December 2022.

Reform 3 (C3.R3) – Legislative framework on sustainable nutrition in agricultural soils, and legislation on pollution of agricultural origin

The objective of this measure is to regulate agricultural fertilisation to address the different sources of nutrient input to agricultural soils in a consistent manner. In addition, it shall provide technical advice to farmers to support them complying with legal requirements and rationalising fertilisation. This shall: (i) address the adverse effects of climate change; (ii) reduce water pollution by nitrates and phosphates of agricultural origin; and (iii) improve air quality.

The proposed legislative framework is connected to another legal instrument: the draft Royal Decree on the protection of waters against diffuse pollution caused by nitrates from agricultural sources (which shall replace Royal Decree 261/1996 of 16 February). It also links to the drawing up of an action plan to prevent, correct and reduce diffuse pollution caused by nitrates, especially from agricultural sources. This measure shall introduce a Royal Decree, transposing Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources, setting more ambitious objectives than the Nitrate Directive and increase convergence with water planning objectives under the Water Framework Directive.

The implementation of the measure shall be completed by 31 March 2023.

Reform 4 (C3.R4) – Boosting the governance and sustainable management of Spanish irrigation

The objective of this measure is to establish a governance mechanism at national level to allow all sectors and levels of public authorities concerned to cooperate on irrigation. This includes environmental sustainability, implementation criteria and aspects related to the applicable legislation. The measure shall set up an observatory on the sustainability of irrigation in Spain to provide data on the economic, social and environmental impacts of irrigation on the territory.

The implementation of the reform shall be completed by 31 December 2022.

Reform 5 (C3.R5) – Implementation of the Action Plan II of the Strategy for Digitising the Agri-Food and Rural Areas

This measure seeks to continue the implementation of the Spanish Strategy for the Digitalisation of the Agri-food and Rural Areas, adopted by the Spanish government in March 2019. The measure shall set out a second action plan that responds to the strategy’s three basic objectives: (i) reducing the digital divide; (ii) promoting the use of data; and (iii) boosting business development and new business models.

The measure shall continue supporting the adoption and incorporation of digital processes and skills in economic activity linked to rural areas and their social fabric. The measure shall design, elaborate and implement the second action plan of the Digitalisation Strategy of the Agri-food Sector and the Rural Areas.

The implementation of the measure shall be completed by 31 December 2023.

Reform 6 (C3.R6) – Revision of the national regulatory framework for the regulation of sustainable fisheries

The objective of this measure is to: (i) encourage integration of economic and social sustainability into fisheries management; (ii) provide greater legal certainty for all actors in the fisheries sector; and (iii) provide greater transparency, modernisation and digitalisation in fisheries management. The measure shall take into account the objectives of EU policies and challenges, including the reform of the Common Fisheries Policy, the Strategy Biodiversity 2030, Marine Strategies, and the Sustainable Development Goals.

To achieve these objectives, the measure shall achieve the following:

a)Revising the current Fisheries Law to align it to the new sustainability criteria and research needs in fisheries;

b)updating the management of the different tools, methods and censuses of the national fishing grounds trough a Royal Decree; and

c)implementing a law to modernise control, inspection and sanctioning systems in the field of fishing.

The publication of a Royal Decree on upgrading the management of the different tools, methods and complaints of the national fishing grounds is foreseen by 30 June 2022.

The implementation of the measure shall be completed by 31 December 2022.

Investment 1 (C3.I1) – Plan to improve efficiency and sustainability in irrigation

The objective of this measure is to improve the efficiency and sustainability of irrigation through a set of selected actions. It shall promote water savings and energy efficiency in irrigation activities. These actions include:

a)Modernising actions, including at least: (i) actions in areas replacing surface water or groundwater with the use of unconventional water resources (such as reclaimed water in accordance with Regulation (EU) 2020/741 and desalinated water in compliance with the ‘Do no significant harm’ Technical Guidance 2021/C58/01) as part of a modernisation process; and (ii) actions that increase water savings or achieve a further decrease in water demand or higher energy savings;

b)modernising irrigation systems with an energy impact, including (i) a preferential treatment of actions that do not require electricity for their operation over those that need it or require renewable energy; and (ii) modernisation measures to facilitate energy self-sufficiency, including the use of renewable energy; and

c)fostering new technologies, such as: (i) actions enabling higher levels of implementation of new technologies and innovations to achieve more efficient irrigation; and (ii) actions proposing a higher degree of intensity in the modernisation of irrigation.

Implementation of the measure shall be carried out by the public enterprise Sociedad Estatal de Infraestructuras Agrarias (SEIASA). To this end, an agreement between the Ministry of Agriculture, Fisheries and Food (MAPA) and SEIASA shall regulate the public/private financing regime for the investments in the modernisation of irrigation, the project selection criteria, the plan implementation procedures as well as the list of actions to be carried out. This list of actions shall at least include:

a)The substitution of the use of groundwater or surface water by the use of non-conventional water resources (reclaimed water or desalinated water in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01));

b)the implementation of water regulation systems (reservoirs) that allow for gravity irrigation;

c)the replacement of open-air ditches with underground pipes;

d)the construction of filtering and pumping systems; and

e)the installation of meters and remote management systems.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, desalinated water shall be produced using the best available technology with the lowest environmental impacts in the sector. All irrigation activities shall be carried out in compliance with the Water Framework Directive, the necessary Environmental Impact Assessments shall be carried out in accordance with Directives 2009/147/EC and 92/43/EEC, and the required mitigation steps for protecting the environment shall be implemented.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C3.I2) – Plan to boost the sustainability and competitiveness of agriculture and livestock farming (I): Modernising animal and plant health laboratories

This measure shall improve food security in the agricultural and livestock sector by ensuring rapid actions in response to outbreaks of animal diseases, including those affecting humans, as well as plant pests by building facilities that have a biosafety level 3. Specifically, the measure shall ensure the entry into operation of the following facilities:

a)the Level 3 Biological Safety Laboratory (LSCA-Santa Fe);

b)the Level 3 Biological Safety Animal Facility (LCV-Algete); and

c)the National Plant Health Laboratory in Lugo.

The implementation of the investment shall be completed by 31 December 2023.

Investment 3 (C3.I3) – Plan to boost the sustainability and competitiveness of agriculture and livestock farming (II): Strengthen capacity building and biosecurity systems in nurseries, cleansing and disinfection centres

This measure shall strengthen the prevention and protection against animal diseases and plant pests whose incidence has increased by climate change, by improving capacity building and biosecurity systems in nurseries as well as cleansing and disinfection centres. It shall strengthen biosecurity systems in facilities producing plant reproductive material, which play an important role in obtaining pest-free material with a reduction in the use of plant protection products.

Support shall take the form of investment aid targeted at agricultural holdings of plant reproductive material, and centres for cleaning and disinfection of means of transport for live animals. Specifically, grants are envisaged for the technological improvement of these facilities through automation, robotisation, and the installation of new cleaning and disinfecting systems such as thermal disinfection.

The measure includes the strengthening of at least 465 cleansing and disinfecting centres, and centres producing plant reproduction material with increased training and biosecurity systems.

The implementation of the investment shall be completed by 31 December 2023.

Investment 4 (C3.I4) – Plan to boost the sustainability and competitiveness of agriculture and livestock farming (III): Investments in precision agriculture, energy efficiency and circular economy in the agriculture and livestock sector

This measure shall promote the sustainability and competitiveness of the agriculture and livestock sector via investments in: (i) precision agriculture; (ii) energy efficiency; (iii) the circular economy; and (iv) the use of renewable energy.

More specifically, investments relate to the following:

a)Implementing new systems to manage agricultural waste, and livestock effluents and their by-products, including structural reforms;

b)modernising greenhouses, both their installations and equipment;

c)promoting the use of bio-gases and renewable energies; and

d)collecting real time data using sensors that make it possible to use precision agriculture and technology on farms, which includes the implementation of satellite navigation systems (GNSS) and geolocation in livestock farming.

The measure shall be implemented in the form of individual or collective investments in agricultural holdings or agricultural service companies. At least 5 000 farms shall have completed projects for precision agriculture, energy efficiency, the circular economy and the use of renewable energy.

The implementation of the investment shall be completed by 30 June 2026.

Investment 5 (C3.I5) – Strategy for the Digitisation of the Agri-Food and Forestry Sector and the Rural Environment: development of actions to support the digitalisation and entrepreneurship of the agri-food and forestry sector and the rural environment

This measure shall set out actions in the Strategy for the Digitalisation of the Agri-food, Forestry and Rural Sectors, adopted by the Spanish government in March 2019, and in its second action plan 2021-2023. The actions shall include:

a)A specific financial support line for SMEs in the agri-food sector to incentivise innovative and digital business projects, to be implemented through the provision of participative loans;

b)a digital innovation hub for businesses in the agri-food sector, to be implemented through an in-house contract and public procurement by competitive tendering;

c)an observatory on digitalisation in the agri-food sector via a partnership agreement between the MAPA and the collaborating body; and

d)a platform of Agricultural Knowledge and Information System (AKIS) advisors to function as a tool to foster the transfer of knowledge and information between AKIS actors, to be implemented though an in-house contract and public procurement by competitive tendering.

As part of the measure, at least 60 agri-food SMEs shall implement innovative and digital business projects that shall be compliant with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) and financed through participative loans by the end of 2023.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the legal agreement between the Ministry of Agriculture, Fisheries and Food, and the Empresa Nacional de Innovación (ENISA) and the subsequent investment policy of the financial instrument shall:

I.require the application of the Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and

II.exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 5 ; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 6 ; (iii) activities and assets related to waste landfills, incinerators 7 and mechanical biological treatment plants 8 ; and (iv) activities and assets where the long-term disposal of waste may cause harm to the environment;

III.require the verification of legal compliance with the relevant EU and national environmental legislation of the projects by ENISA for all transactions, including those exempted from sustainability proofing.

No activities related to carbon capture and storage shall be supported.

The implementation of the investment shall be completed by 30 June 2026.

Investment 6 (C3.I6) – Plan to promote sustainability, research, innovation and digitalisation in the fisheries sector (I): Modernisation of the network of marine reserves of fisheries interest

The objective of this measure is to modernise the network of marine reserves of fisheries interest by means of the following actions:

a)The acquisition of two special-purpose support vessels to ensure control and surveillance of the activities carried out in the reserves;

b)the implementation of information and communication technology to enable control and monitoring of the reserves, by acquiring (i) at least four pieces of night vision equipment to detect prohibited activities; and (ii) drones with sufficient power to allow control and monitoring activities and optimise the existing means;

c)the extension of the network of reserves by the creation of a new marine reserve; and

d)the updating of an existing marine reserve, Faro de Alborán, and its surroundings in order to facilitate access, improve its energy efficiency as well as to equip it with adequate facilities (i.e. a radar radio link to the Peninsula) to monitor and control the reserve.

The acquisition of the two special-purpose support vessels and the implementation of information and communication technology to enable control and monitoring shall be implemented via public procurement procedures.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the two special-purpose support vessels shall be of the best available technology with the lowest environmental impacts in the sector. The investment concerning the extension of the network of marine reserves shall consist of a study for the creation of a new marine reserve, which is planned to be carried out through an in-house contract. The same applies to the works planned to update the Faro de Alborán reserve and its surroundings, which shall include a necessary study on the construction and optimisation of energy.

The implementation of the investment shall be completed by 31 December 2024.

Investment 7 (C3.I7) – Plan to boost the sustainability, research, innovation and digitalisation of the fisheries sector (II): Boosting fisheries and aquaculture research and supporting training

This measure shall improve the quantity and the quality of the scientific knowledge that informs decision-making in matters of fisheries management. The measure includes: (i) the purchase of at least two acoustic probes to equip two existing fishing and oceanographic research vessels to ensure the quality of the data obtained for the scientific assessment of the different stocks of pelagic species; and (ii) the promotion of fisheries and aquaculture research to ensure an ecosystem-based approach to decision-making in fisheries management.

The acquisition of the two acoustic probes shall be implemented on the basis of a public procurement procedure in which the tender shall take place on an exclusive basis. The promotion of fisheries and aquaculture research shall be achieved through the signing of agreements with public research bodies and, where appropriate, through assignments to own resources for the recruitment of on-board observers, or tendering.

The implementation of the investment shall be completed by 30 June 2022.

Investment 8 (C3.I8) – Plan to boost the sustainability, research, innovation and digitalisation of the fisheries sector (III): Technological development and innovation in fisheries and aquaculture

The objective of this measure is to establish a more environmentally, economically and socially sustainable fisheries and aquaculture sector by means of two lines of action:

a)The creation of public-private partnerships to boost blue growth in the sector, in order to implement projects that serve as catalysts for blue economy processes; and

b)support for technological development and innovation in the sector.

The measure envisages the completion of at least 20 research, development and innovation projects for the adoption of new technologies that favour the resilience and sustainability of the fisheries and aquaculture sector.

The implementation of the investment shall be completed by 31 December 2023.

Investment 9 (C3.I9) – Plan to boost sustainability, research, innovation and digitalisation in the fisheries sector (IV): Digitalisation and use of ICTs in the fisheries sector

This measure aims to improve the surveillance of fishing activity to ensure environmental sustainability as well as the medium and long-term viability of the fisheries sector. The measure comprises two lines of action:

a)An aid scheme for the digitalisation of the fisheries and aquaculture sector, including (i) aid for devices for electronic submission of catches as well as their geolocation for vessels less than 12 metres in length; and (ii) aid for the installation of a surveillance system using cameras for remote monitoring of fisheries and combating discards for vessels over 24 metres in length; and

b)modern ICT solutions for fishing surveillance, including (i) a catch registration system with the possibility of tracking vessels of less than 12 metres in length; (ii) the establishment of a drone flight service for fisheries control and surveillance, and a remote monitoring system for catches of fishing vessels over 24 metres in length; and (iii) devices and software (i.e. the installation of a second firewall) for the reinforcement of the security of the Spanish Fisheries Information System.

The digitalisation of the Spanish fisheries and aquaculture sector shall be implemented in the form of grants for competitive tendering, whilst the implementation of modern ICT solutions for fishing surveillance shall proceed through open and centralised procurement.

The implementation of the investment shall be completed by 31 December 2024.

Investment 10 (C3.I10) – Plan to boost the sustainability, research, innovation and digitalisation of the fisheries sector (V): Support to the fight against illegal, unreported and unregulated fishing

This measure shall support the fight against illegal, unreported and unregulated fishing, which continues to be a threat to marine ecosystems. To this end, the measure supports the following investments:

a)The acquisition of four patrol vessels; and

b)the modernisation of three high seas patrol vessels that shall be used to combat illegal, reported and unregulated fishing.

The measure shall be implemented through a public procurement procedure for the construction of patrol vessels and through the amendment of an agreement with the Spanish Navy in the case of offshore patrol vessels, which shall provide legal cover for the transfer to be made to the Navy, managing the above-mentioned modernisation works.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the acquisitions and modernisations of vessels shall only be of the best available technology with the lowest environmental impacts in the sector.

The implementation of the investment shall be completed by 31 December 2022.

Investment 11 (C3.I11) – Plan to boost sustainability, research, innovation and digitalisation in the fisheries sector (VI): Support for the financing of the fisheries sector

This measure shall provide financing for investment projects in the fisheries sector through the provision of a loan to the Sociedad Anónima Estatal de Caución Agraria (SAECA). The objective of the measure is creating a financial line of funding for projects related to sustainable fishing action, including: (i) improving working and safety conditions; (ii) digitising of processes and systems; (iii) improving the value and traceability of products; (iv) searching for new products and presentations, including packaging; and (v) boosting innovation, energy improvement and efficiency, and the transition to energy with a lower climate impacts.

The measure is implemented through an agreement between the Ministry of Agriculture, Fisheries and Food, and SAECA to support the financing of investment projects in the fishing sector. The mechanism is based on a loan to SAECA for the creation of a line of financing intended to re-guarantee projects with actions related to sustainable fishing activity. The agreement shall include a condition that guarantees that the investments made with this financing complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the legal agreement between the Ministry of Agriculture, Fisheries and Food, and SAECA and the subsequent investment policy of the financial instrument shall

I.require the application of the Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and

II.exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 9 ; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 10 ; (iii) activities and assets related to waste landfills, incinerators 11 and mechanical biological treatment plants 12 ; and (iv) activities and assets where the long-term disposal of waste may cause harm to the environment; and

III.require the verification of legal compliance with the relevant EU and national environmental legislation of the projects by SAECA for all transactions, including those exempted from sustainability proofing.

The implementation of the investment shall be completed by 30 June 2022.

C.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

D. COMPONENT 04: Ecosystems and Biodiversity

This component of the Spanish recovery and resilience plan shall address Spain’s vulnerability to the direct and indirect adverse effects of climate change due to its biogeography and geomorphology by enhancing the conservation status of ecosystems, through their ecological restoration, where necessary, and reversing biodiversity loss, ensuring sustainable use of natural resources and preserving and improving ecosystem services. This component shall also contribute to the adaptation of ecosystems to the adverse effects of climate change by adopting measures to minimise its effects, by focusing on forest fires. Additional emphasis shall be placed on the protection, preservation and restoration of marine ecosystems.

The implementation of this component of the Spanish recovery and resilience plan shall (i) launch the blue agenda to improve the seas and their biodiversity; (ii) increase the share of marine protected areas, by protecting at least 18 % of the Spanish territory by the end of 2025, defending both fauna and flora; and (iii) introduce, for the first time in Spain, a framework for marine management.

In addition, it will also preserve and sustainably manage rural areas, their ecosystems, biodiversity and woodland. Rural areas – where depopulation has had a particularly adverse impact – are home to a large part of Spain’s rich natural heritage and are, therefore, a source of local wealth, opening opportunities to reverse demographic decline.

This component of the Spanish recovery and resilience plan supports investment in the green and digital transition (Country Specific Recommendation 3 2020). It also supports proper land management, in particular, forest management, nature protection and restoration aligned with the objectives of the European Green Deal and the EU Biodiversity Strategy for 2030.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

D.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C4.R1) – Conservation of terrestrial and marine biodiversity

This reform shall update the biodiversity and natural heritage legislation to support meeting commitments stemming from the Convention on Biological Diversity and the recently adopted EU Biodiversity Strategy for 2030.

The main action of this reform shall be to prepare, approve and deploy the Strategic Plan for Natural Heritage and Biodiversity (as set out in Law 42/2007 on Natural Heritage and Biodiversity), to have a long lasting impact on the conservation and management of all Spanish natural systems as well as on the services it provides to society. This reform shall also include the following actions under this measure:

a)Adoption of the Biodiversity, Science and Knowledge Strategy that shall identify the main research gaps and establish specific areas in which research in biodiversity is necessary.

b)Adoption of the Royal Decree approving the Plan for the Marine Protected Areas Network that shall promote an ecologically coherent network contributing to the conservation of areas of natural heritage and marine biodiversity, fostering a planned, effective and coherent management of marine protected areas.

c)The National Strategy for the Conservation of Pollinators shall provide the necessary actions to improve the situation of pollinators. This Strategy shall focus especially on the (i) promotion of favourable areas for pollinators; (ii) improvement in its management and reduction of risks created by harmful species; (iii) phytosanitary products; and (iv) promotion of research on the conservation of pollinators, and the dissemination of the related research findings in this area.

d)Adoption of the regulation for updating authorities, administrative and scientific, under the Convention on International Trade in Endangered Species of Wild Fauna and Flora Regulation (CITES Regulation) that shall guarantee the implementation of the measures derived from CITES, and shall ensure that trade is not detrimental to the conservation status of species and their long-term survival.

e)The Wetlands Conservation and Restoration Plan that shall guarantee the preservation and rational use of wetlands.

The development of these actions under this measure shall be directly supported by Investment 1 and Investment 2 of this component of the Spanish recovery and resilience plan (described below). It shall also complement the other two reforms and investment described in this component of the Spanish recovery and resilience plan.

The implementation of the measure shall be completed by 31 December 2022.

Reform 2 (C4.R2) – Restoration of ecosystems and green infrastructure

The aim of this reform is to develop and implement the central government Strategy for Green Infrastructure, Connectivity and Ecological Restoration, to restore damaged ecosystems and consolidate a network of fully functional terrestrial and marine natural and semi-natural areas connected in Spain by 2050.

This reforms incorporates seven different lines of action to: (i) reduce the effects of fragmentation and loss of ecological connectivity; (ii) restore habitats and ecosystems in key areas; (iii) maintain and improve the provision of ecosystem services of green infrastructure elements; (iv) improve the resilience of elements linked to green infrastructure; (v) ensure territorial coherence; (vi) incorporate effective green infrastructure; and (vii) ensure adequate communication, education and participation of interest groups and society in the development of green infrastructure.

This reform is further supported by Investment 3 of this component of the Spanish recovery and resilience plan, addressing in particular the recommendations of the EU Biodiversity Strategy for 2030 on the incorporation of ecological corridors, large-scale planting of trees, significant progress in the rehabilitation of contaminated land and the objective of ensuring that cities with at least 20 000 inhabitants have an ambitious urban greening plan. It is also related to Reform 1 and Investment 1 of this component of the Spanish recovery and resilience plan.

The implementation of the measure shall be completed by 30 June 2021.

Reform 3 (C4.R3) – Sustainable forest management

This reform shall update the 1999 Spanish Forest Strategy together with the 2002-2032 Spanish Forestry Plan, developing a package of actions to boost the forestry sector, covering the Spanish forest as a whole: protection of species and areas, fires, ownerships, evolution, the current status and trends in forest areas and resources, among others. The reform shall address the economic and social revitalisation of large rural areas, which face serious problems of depopulation and it shall be well aligned with the European Green Deal.

The Spanish Forestry Strategy shall have five strategic priorities:

1)The conservation and enhancement of natural heritage, biodiversity and connectivity.

2)Protection, health security and protection of prevention and adaptation to natural and environmental risks.

3)Forest bio-economy: green economy and jobs, mobilisation of forest resources, and sustainable socio-economic development of the forestry sector.

4)Development and improvement of knowledge and forestry culture.

5)Forest governance model: the regulatory, administrative and instrumental framework of the Spanish forestry policy.

There are two main instruments in the Spanish Forest Strategy, which are necessary to reform the forestry sector as a whole. The first is the adoption of guidelines for sustainable forest management. These guidelines shall cover issues such as biodiversity, climate change and the circular bio-economy. Secondly, Strategic Guidelines for Forest Fires Management in Spain, which shall establish the objectives to follow, define the main lines of work and identify the groups in society with certain degree of responsibility. These strategic guidelines are crucial to control forest fires and increase the strategic positioning of the forest sector in the context of the ecological transition.

The implementation of the reform shall be completed by 30 June 2022.

Investment 1 (C4.I1) - Digitalisation and Knowledge of natural heritage

The investment shall establish a system to digitalise the management, control and monitoring of natural heritage, covering both the terrestrial and marine fields. This investment shall achieve a substantial improvement in knowledge of species and habitats, as well as in mapping information and natural heritage, including geological. The investment focuses on the acquisition of information and its management, including:

1)A programme to improve knowledge and digitalisation of biodiversity and natural heritage management at national level with the development of monitoring networks, the deployment of sensor and the use of fixed and mobile digital information acquisition systems.

2)Development of an information management systems or platforms at national level with additional analytical and dissemination capabilities.

The avionics system of the amphibian aircraft fleet shall be updated. This investment shall improve the operation of fire-fighting devices by introducing technological updates, such as better cameras and sensors of fire coordination, to render aircrafts safer and more efficient at firefighting.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, improving the avionics system in the amphibian aircraft fleet shall be incorporated only into existing aircrafts and shall not increase the lifetime or capacity of these aircrafts. It shall only ensure safety and flight conditions during operations where they are used to extinguish forest fires.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C4.I2) - Conservation of terrestrial and marine biodiversity

This investment shall comprise a set of direct investments and grant lines for the conservation of both terrestrial and marine biodiversity. It shall include five lines of actions, which shall be aligned with Reform 1:

1)Conservation of terrestrial biodiversity, addressing improvement of the conservation status of species and habitat, the prevention of threats and mortality as well as actions to control and eradicate invasive alien species.

2)Improvement of infrastructures, which includes actions such as the provision, refurbishment and upgrading of facilities and infrastructure associated with the management of natural heritage and awareness-raising as well as highlighting and disseminating the importance of biodiversity conservation for human health and well-being.

3)Conservation of marine biodiversity, which shall establish a conservation plan for 30 % of the sea area by 2030. This investment shall protect at least 18 % of the Spanish marine territory by 2025.

4)Restoring wetlands, through actions to conserve, improve and restore wetlands and in particular, those linked to the Wetland Conservation and Restoration Plan provided in Reform 2.

5)Control of international trade to improve and consolidate the network of CITES rescue centres and strengthen the action plan against illegal trafficking.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, for the purchase of special-purpose vessels, the selection criteria for the investment shall ensure that only the best available technologies with the lowest environmental impacts in the sector shall be selected, taking into account the special purpose they are serving.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (C4.I3) – Restoration of ecosystems and green infrastructure

This investment shall contain a set of actions to support the implementation of Reform 2. The aim is to restore natural ecosystems and areas degraded by mining activities, as well as other initiatives in urban environments aimed at promoting urban connectivity and reversal.

The investment sets a target of restoring at least 30 000 hectares of natural ecosystems. The restoration actions shall focus on degraded territories or ecosystems by the elimination of artificial elements, the improvement of the soil and morphology and revegetation and naturalisation. Regarding mining, the investment shall rehabilitate at least 30 former mining sites. The rehabilitation of former mining sites includes decontamination of the soil, recovery of the morphology and revegetation and naturalisation of the former mining sites that are no longer in operation.

Finally, the investment shall promote green infrastructure, covering the needs of local authorities, including: (i) urban planning and regeneration strategies with the objective to create and regenerate green and blue infrastructure and freeing up urban space to increase biodiversity, soil permeability and natural connectivity in the cities; (ii) actions and projects covering governance and participation processes, management of green and blue spaces and urban metabolism projects related to biodiversity; and (iii) support for equipment and infrastructure projects for urban planning.

The implementation of the investment shall be completed by 30 June 2026.

C4.I4 Sustainable forest management

This investment shall comprise investments in sustainable forest management:

1)Actions that shall improve forest management addressing the combating of forest fires and other forest management interventions; technical support to forest owners and administrations to consolidate public ownership; forest management plans to promote biodiversity and the sustainable use of forests.

2)Actions that shall protect and adapt to climate change, including the renewal of at least 100 special purpose firefighting assets, fire brigade bases and progress on forest improvement actions.

3)A set of actions shall support the forestry sector as a key resource for addressing the demographic challenge, with a special focus on green entrepreneurship and the local bio-economy. This part of the investment shall include grants to local authorities and other public and private actors to promote competitiveness, entrepreneurship and sustainability of the forestry sector and its industry. These actions shall have a special focus on the creation of green jobs, in particular by supporting the participation of women and young people in the forestry sector and green entrepreneurship.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the measure shall explicitly prevent and exclude support for monoculture plantations, especially eucalyptus, in order to minimise water stress and fire risks. For the acquisition of aerial assets (airplanes or helicopters) and the purchase of new land-based firefighting equipment, only the best available technologies with the lowest environmental impacts in the sector shall be supported, taking into account the special purpose they are serving.

The implementation of the investment shall be completed by 30 June 2026.

D.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February unless indicated differently in the description of the action. Amounts in the table do not include VAT.

E. COMPONENT 05: Coast and Water Resources

This component shall aim to improve the management of water resources, implement a coastal adaptation policy to address the adverse effects of climate change, and strengthen the implementation of marine strategies and maritime spatial plans.

To improve the management of water resources Spain needs to address different challenges such as identifying new emerging pollutants (e.g. micro plastics), an existing investment gap in the planning, adaptation of the coast to climate change, control and management of the Public Hydraulic Domain, Maritime-Terrestrial Property and water treatment, and the delay taking place in the deployment of new technologies and ICT technologies for water management. To this end, Spain shall improve the efficiency of the sector. Spain shall also aim to better align its management of water resources with environmental objectives such as those set out in the European Green Deal, the Biodiversity Strategy for 2030 and the EU Zero Pollution Action Plan. To this end, different strategies shall be deployed such as the digitalisation of public administration to have access to information, including water quality and compliance with ecological flows, the provision and improvement of environmental infrastructure, the safety of infrastructure, or the improvement of groundwater status and aquifer recovery.

The impact of erosion and flooding on the coast has been exacerbated by climate change. Therefore, this component of the Spanish recovery and resilience plan shall also implement a policy of adaptation of the Spanish coast to the adverse effects of climate change. To combat erosion and reduce the risk of flooding, a number of adaptation measures shall be introduced such as the environmental recovery of degraded areas, improving orderly and correct accessibility to the public land-based maritime domain, or drafting and implementing nature-based solutions, among others. This line of action shall create a more resilient coastline to the effects of climate change, and shall also better prepare the tourism sector and other sectors dependent on the state of coastal areas. In addition, this shall further strengthen the role of the Copernicus programme, which is crucial to prevent and assess the damage and impact of extreme weather events.

As part of this component of the Spanish recovery and resilience plan, Spain shall promote the optimal sustainable development of maritime sectors, and protect the marine environment with the aim of achieving its good environmental status by adopting a law, transposing the Marine Strategy Framework Directive and strengthening its implementation.

This component of the Spanish recovery and resilience plan contributes to focus investment-related economic policy on fostering energy efficiency and resource use (Country Specific Recommendation 3 2019). It also focuses investment on the green and digital transition, in particular by fostering research and innovation, clean and efficient production and use of energy sources, energy infrastructure, water and waste management and sustainable transport (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

E.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C5.R1) – Water plans and strategies and regulatory changes

The reform shall address the review and update of the Water Law, its regulations and other secondary legislation, to ensure a legal framework favourable to foster investments. The reform shall include the adoption and revision of a number of plans and strategies that form the basis of investments and water management that shall strengthen and increase investments. These regulatory changes shall be aligned with the European Green Deal.

This reform shall address numerous issues regarding all types of water such as an improved financial framework for wastewater reuse, a Water Strategy for Ecological Transition, adoption of technical standards for the safety of dams and their reservoirs, adoption of a national plan for purification, remediation, efficiency, savings and reuse of water (implementation of treatment, sanitation, efficiency, savings, re-use and infrastructure safety – DSEAR Plan), the third cycle of river basin management plans and second-cycle review of flood risks management plans, among others.

The measure shall be completed by 30 June 2023.

Investment 1 (C5.I1) – Implementation of treatment, sanitation, efficiency, savings, re-use and infrastructure safety (DESEAR) actions

This investment shall carry out the following actions:

1)Implementation of purification, sanitation and reuse of water measures. The objective of this line of action is to improve the collection and treatment of urban wastewater. In some cases, actions shall reuse urban wastewater, thus reducing the current abstraction pressures. The new treatment measures shall achieve a net zero energy consumption of the complete wastewater treatment system. Infrastructures shall be considered at least for new or upgraded wastewater treatment infrastructures providing additional capacity for wastewater treatment. The treatment will be newly designated or upgraded to a level at least in accordance with the Urban Waste Water Treatment Directive (Directive 91/271/EEC). The improvement and renewal of existing infrastructure shall result in a reduction in average energy consumption of at least 10 %. These savings shall be achieved through the implementation of energy efficiency measures (cogeneration, energy and heat recovery, photovoltaic panels, LED lighting, etc.) in the drafting of the projects and the introduction of energy efficiency clauses and criteria in calls for projects and works.

2)Actions to improve efficiency and reduce water losses. The actions shall implement a subsidy scheme for the improvement of efficiency in the supply networks of medium and small municipalities, allowing municipalities or public bodies with responsibility for water supply to improve it by reducing losses in distribution networks and actions to repair and improve water storage facilities as well as facilities in medium and small municipalities. The inhabitants served by these infrastructures shall correspond to those served by the water distribution system.

3)Investments to improve the safety of dams and reservoirs. These are actions shall ensure the safety of existing large state-owned dams by implementing the corresponding emergency plans and other complementary actions. This shall not lead to the construction of new dams or the extension of existing dams.

The investment shall be completed by 30 September 2023.

Investment 2 (C5.I2) - Monitoring and restoration of river ecosystems, aquifer recovery and flood risk mitigation

The objectives of this investment are to:

1)Monitor and restore river ecosystems and natural river reserves. This line encompasses a number of concrete actions aimed at restoring river space, expanding monitoring networks and improving inventories of hydro morphological pressures threatening it.

2)Establish actions to mitigate flood risk. This line of action includes already existent flood risks management plans, including prevention measures for spatial and town planning, the development of technical guidelines to reduce the vulnerability of exposed areas in flood zones and to promote the adaptation to flood risk of different economic sectors. Furthermore, municipalities shall address the implementation of river restoration measures in urban environments, introduce sustainable drainage systems, and improve the permeability of urban environments and their connection with the environmental values of rivers in urban areas by developing technical guidelines and objectives of water planning.

3)Adopt measures to reduce groundwater abstraction by drawing from alternative resources (aquifer recovery). These measures shall reduce the abstraction of some groundwater bodies – in particular those threatening the Doñana area and certain aquifers in the southeast of Spain – and expand piezometric monitoring networks.

This investment shall be completed by 31 December 2023.

Investment 3 (C5.I3) – Digital transition in the water sector (Digital Environmental Enforcement)

The digital transition can play a crucial role in improving the efficiency of the water sector. In order to improve the digitalisation of water management, there shall be three lines of action in this investment:

1)Improve knowledge and use of water resources, following actions such as improving digital water monitoring systems, strengthening the monitoring and control of public water resources and infrastructure, and implementing effective forecasting and alert systems to reduce the impact of floods.

2)Actions to monitor rainfall in river basins and coastal areas. This line of action shall promote renewing the network of meteorological radars and completing it with new short-band facilities such as the renewal and improvement of automatic meteorological stations for radar real time calibration and the design, development and implementation of a national radar centre.

3)Improved meteorological observation and monitoring and prevention of climate risks, this shall include a new integrated meteorological aid system, tools for meteorological observation for early warning including the implementation of the Integrated Global Observing System, the establishment of outsourcing, the automatic quality control and labelling of meteorological data through the use of artificial intelligence techniques, the depth of NoSQL data for the effective implementation of data based on the processing of large volumes of data.

The investment shall address the entry into service of 26 tools or renewed infrastructure to improve the knowledge and use of water resources, and to monitor rainfall and other meteorological data to prevent climate risks.

The investment shall be completed by 31 December 2023.

Investment 4 (C5.I4) – Adapting the coastline to climate change, and implementing Marine Strategies and Maritime Spatial Planning Plans

Climate change is having and is expected to have strong adverse effects on the Spanish coast. This investment shall implement the Strategy for Adaptation of the Coastal to the Effects of Climate Change, with the objective to increase the resilience of the Spanish coast to climate change and climate variability, and to integrate climate change adaptation into the planning and management of the Spanish coast. This shall include the creation of escorts, artificial beaches, floating surfaces, sediment management, nature based solutions, beach and dune system restoration, coastal protection infrastructure, implementation of smart grids for coastal erosion remote monitoring, or actions with similar effects.

This investment shall protect and restore the coastal ecosystems or degraded areas. This shall be achieved through different actions such as: (i) relocating installations affected by backsliding; (ii) delimiting the State-owned land-based maritime domain; (iii) recovering improperly or inappropriately occupied State-owned maritime land; (iv) risk assessment and management or similar actions; (v) environmental recovery of degraded coastal areas and ecosystems, conservation and management of the coastline; and (vi) actions with similar effects.

The measure shall also improve the orderly and correct accessibility to the public land-based maritime domain by recovering land to provide access to the public domain, planning, management and restoration of access or actions with similar effect. The investment shall address the implementation of strategic marine planning policies. This shall be implemented by Maritime Spatial Planning, Marine Strategies, scientific advice on oceans, and climate and the development of a georeferenced web application for sea users.

This investment shall be completed by 31 December 2023.

E.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

F. COMPONENT 06: Sustainable Mobility (Long-Distance)

This component of the Spanish recovery and resilience plan addresses the following challenges: 1) the transition towards more sustainable modes of transport; 2) reducing the emissions of the transport sector; 3) making the transport sector safer, more accessible, sustainable and inclusive.

The objectives of the component are: the development the Spanish rail network (in particular the core TEN-T corridors and the non-core TEN-T network); establishing a more interoperable transport network (rail, road, ports) with the objective to reduce its carbon footprint; the improvement of cross-border connections with France and Portugal; the modernisation of the transport sector with the adoption of advanced digital technologies.

This component addresses the Country Specific Recommendations on the promotion of investment on energy efficiency and resource use and on the promotion of rail freight infrastructure (Country Specific Recommendation 3 2019) and on the investment on the green and digital transition and sustainable transport (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

F.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C6.R1) – Safe, Sustainable and Connected Mobility Strategy

The objectives of the measure are to:

a)Increase security of the mobility network ensuring better protection of people and goods, improving standards and reducing accidents.

b)Increase sustainability prioritising daily mobility, economic and social equity, energy efficiency and the fight against climate change.

c)Enhance connectivity with digitalisation, technological progress and multimodal connectivity.

The strategy shall address specific actions in the following nine areas:

I.Mobility for all (ensuring universal accessibility at a reasonable costs);

II.New Investment Policies (to ensure adequate financing of transport infrastructures and services);

III.Secure mobility (prioritizing investment in monitoring, maintenance, and cybersecurity);

IV.Low-emission mobility (increase efficiency, reduce energy consumption);

V.Smart mobility (boost R&D and mobility innovation, build and manage intelligent infrastructure);

VI.Smart Intermodal Logistics Chains (prioritize the transport of goods by rail in public and private agendas);

VII.Connecting Europe and Connected to the World (connect ports to intermodal logistic terminals and intensify cooperation with neighbouring countries to coordinate the construction and/or improvement of cross-border infrastructures);

VIII.Social and labour aspects (gender balance and re- and upskilling actions for the transport workforce); and

IX.Digitalisation of the ministry of transport, mobility and urban agenda to embrace digital transition and become more open and innovative.

The implementation of the measure shall be completed by 31 December 2021.

Reform 2 (C6.R2) – Indicative Rail Strategy

The objectives of the reform is the establishment of instruments to ensure that the rail network meets the mobility needs of the future in a coherent and effective way. The strategy shall set up a clear planning scenario for the railway transport mode and it shall make it possible to align investment priorities with the Strategy for Safe, Sustainable and Connected Mobility (R1).

The reform shall consist of several actions including:

a)establishing a clearer planning of actions in the railway sector, especially geared toward everyday mobility;

b)improving network maintenance;

c)ensuring economic sustainability of the rail network;

d)prioritising resource efficiency, with an ex-ante and ex-post evaluation of investment projects;

e)enhancing interoperability of the network, especially on the trans-European network corridors, and intermodality of the network;

f)boosting rail freight traffic;

g)enhancing safety in rail transport and

h)fostering the digitalisation of transport and innovation to ensure connected mobility.

The implementation of the measure shall be completed by 31 December 2022.

Investment 1 (C6.I1) – National transmission network: European Corridors

The objectives of the measure are to build new railway infrastructure in the core European TEN-T corridors and modernising and upgrading the existing ones.

The investment shall consist in actions on the following main dimensions:

a)Platform: Projects that make it possible to set up the infrastructure that shall support the rail tracks and which includes embankments, clearance, viaducts, tunnels, etc. These are mainly construction of new infrastructure;

b)Replacement of services: Actions that shall restore existing services (light, irrigation, water, etc.) which are affected during the execution of the railway works;

c)Tracks: Actions for the assembly and supply of track materials (ballast, sleepers, rail, switches and expansion devices) on new railway sections, as well as the renewal of existing tracks;

d)Electricity: Actions addressing the electrification of lines including: overhead contact line, traction substations, transformation centres, power remote control, high-voltage power lines;

e)Traffic signalling and control: Projects addressing the implementation of new signalling and traffic control systems;

f)Telecommunications: Projects addressing fixed and mobile telecommunications on railway lines.

g)Stations: Upgrading and rehabilitation of existing stations, as well as the construction of new stations.

Works shall be completed on at least 1 400 kilometres of network included within the Atlantic and Mediterranean Corridors, including actions to improve existing sections and investments to make progress in the construction of new sections.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C6.I2) – Trans-European Network for Transport Program, other works

The objectives of the measure are to improve the national transport network covering all transport modes (rail, road, air) in order to make it more reliable, sustainable, secure and resilient.

The investment shall consist in the following actions:

a)Upgrading the rail network in relation to the non-core TEN-T network with works on at least 900 kilometres;

b)Making road network safer in accordance with national and European regulations.

c)Boosting the development of the Single European Sky (20 projects);

d)Supporting the digital transformation of the Ministry of Transport, Mobility and Urban Agenda.

Selection criteria shall ensure that at least EUR 1 010 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 301 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3 (C6.I3) – Intermodality and logistics

The objective of the measure is to implement Axis 6 of the Secure, Sustainable and Connected Mobility Strategy (R1) on Smart Intermodal Logistics Chains.

The investment consists in three lines of actions:

a)development or upgrade of nine strategic intermodal and logistical terminals to, in some cases, integrate the intermodal terminals with the logistics area and, in all cases, to boost the shift of freight from road to rail;

b)improve rail and road access to Spanish ports to boost rail freight transport, by improving connection of ports to the rail (2 ports) and road network (one port);

c)improved accessibility (19 projects) and sustainability in ports (projects in 25 port authorities).

Selection criteria shall ensure that at least EUR 584 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 217 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C6.I4) – Support programme for sustainable and digital transport

The objectives of the measure are to improve the efficiency of the transport system by digitising and introducing new technologies in the sector, and by supporting the most sustainable means of transport, in particular rail. This investment is aligned with the initiatives of the Connecting Europe Facility (CEF) work programme and calls for the development of the Trans-European Transport Network.

The investment shall consist in a package of 15 actions in the following areas:

Action line 1. Interoperability in rail freight transport

1. On-board European Rail Traffic Management Systems (ERTMS);

2. Actions removing barriers to rail interoperability;

3. Innovation and development of the variable gauge axis in locomotives;

Action line 2. Promotion of transport intermodality

4. Construction, adaptation or upgrading of cargoes and intermodal Rail-Road terminals and their land connections;

5. Support for sustainable freight transport (rail and maritime) based on ECO-INCENTIVES to supply and demand;

Action line 3. Modernisation of rail freight equipment

6. Actions supporting the refurbishment or upgrading of wagons for rail freight, including for the establishment of rail highway services;

7. Actions to support the refurbishment or adaptation of railway equipment with other material using alternative fuels as hydrogen or electricity;

Action line 4. Safe, sustainable and connected road transport

8. Construction and upgrading of secure parking areas for commercial vehicles and provision of information services;

9. Intelligent Transport Services for the Road Sector (ITS) in toll motorway concessions and other road safety and conservation services;

10. Actions supporting the deployment of alternative refuelling infrastructure for heavy duty vehicles on the road network. The eligibility criteria of this measure shall ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) by setting out a condition under which the transition and distribution infrastructure of gaseous fuels shall be enabled at the time of construction for the transport of renewable and low-carbon gases;

11. Actions to support the refurbishment or adaptation of machinery for sustainable road pavement, reduced carbon footprint and sound reductions;

Action line 5. Sustainability of maritime and air transport

12. Support for the deployment of alternative fuels in Ports and Airports. The eligibility criteria of this measure shall ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) by setting out a condition under which the transition and distribution infrastructure of gaseous fuels shall be enabled at the time of construction for the transport of renewable and low-carbon gases;

13. Support for the uptake of alternative energy technologies in the maritime sector;

Action line 6. Digitalisation of transport

14. Projects for the digitalisation of passenger and freight transport services at national level;

Transfer to Autonomous Communities

15. Projects for the digitalisation of passenger and freight transport services at regional and local level;

Selection criteria shall ensure that at least EUR 63 500 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 210 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.

The implementation of the investment shall be completed by 30 June 2026.

F.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

Number	Measure	Milestone / Target	Name	Qualitative indicator for milestones	Quantitative indicator for target			Time		Description of each milestone and target
					Unit	Base-line	Goal	Q	Year
82	C6.R1	M	Strategy on sustainable, secure and connected mobility (public consultation)	Notice of end of consultation				Q4	2020	End of the public consultation process of the strategy addressing actions in the following nine areas: 1) Mobility for all (to ensure universal accessibility at a reasonable costs); 2) New Investment Policies (to ensure adequate financing of transport infrastructures and services); 3) Secure mobility (prioritizing investment in monitoring, maintenance, and cybersecurity); 4) Low-emission mobility (increase efficiency, reduce energy consumption); 5) Smart mobility (boost R&D and mobility innovation, build and manage intelligent infrastructure); 6) Smart Intermodal Logistics Chains (to prioritize the transport of goods by rail); 7) Connecting Europe and Connected to the World (connect ports to intermodal logistic terminals and intensify cooperation with neighbouring countries to coordinate the construction and/or improvement of cross-border infrastructures); 8) Social and labour aspects (gender balance and re- and upskilling actions for the transport workforce); 9) Digitalisation of the ministry of transport (MITMA).
83	C6.R1	M	Strategy on sustainable, secure and connected mobility (approval)	Approval by Council of Ministers				Q4	2021	Approval by Council of Ministers of the strategy addressing actions in the following nine areas: 1) Mobility for all (with the aim to ensure universal accessibility at a reasonable costs); 2) New Investment Policies (to ensure adequate financing of transport infrastructures and services); 3) Secure mobility (prioritizing investment in monitoring, maintenance, and cybersecurity); 4) Low-emission mobility (increase efficiency, reduce energy consumption); 5) Smart mobility (boost R&D and mobility innovation, build and manage intelligent infrastructure); 6) Smart Intermodal Logistics Chains (prioritize the transport of goods by rail in public and private agendas); 7) Connecting Europe and Connected to the World (connect ports to intermodal logistic terminals and intensify cooperation with neighbouring countries to coordinate the construction and/or improvement of cross-border infrastructures); 8) Social and labour aspects (gender balance and re- and upskilling actions for the transport workforce); 9) Digitalisation of the ministry of transport MITMA.
84	C6.R2	M	Indicative Rail Strategy	Publication in the Official Journal				Q4	2022	Publication in the Official Journal of the approval resolution of the Indicative Rail Strategy with actions on: a) establishing a clearer planning of actions in the railway sector, especially geared toward everyday mobility; b) improving network maintenance; c) ensuring economic sustainability of the rail network; d) prioritising resource efficiency, with an ex-ante and ex-post evaluation of investment projects; e) enhancing interoperability of the network, especially on the trans-European network corridors, and intermodality of the network; f) boosting rail freight traffic; g) enhancing safety in rail transport; h) fostering the digitalisation of transport and innovation to ensure connected mobility. For all actions included in the ‘Indicative Rail Strategy’, ensure the fulfilment of the provisions of Law 21/2013 on environmental impact assessment and Law 9/2018 of 5 December, amending Law 21/2013, and implement the required mitigation actions for protecting the environment of the Environmental Impact Assessment (EIA).
85	C6.I1	M	Core TEN-T network: award of projects	Official notification of project award-				Q4	2022	At least EUR 1 400 000 000 budget awarded on the core TEN-T network in the following corridors: ATLANTIC CORRIDOR • Y Vasca: Vitoria-Bilbao-San Sebastian/Astigarraga-Irun • Valladolid-Palencia-León • León-La Robla-Pola de Lena • Castejón-Pamplona • Ourense-Monforte • Talayuela-Plasencia-Cáceres-Mérida-Badajoz MEDITERRANEAN CORRIDOR: • Frontera francesa-Barcelona/Tarragona-Vandellós • Sagunto-Teruel — Zaragoza • Zaragoza-Tarragona • Castellón-Valencia-La Encina-Alicante • Murcia-Cartagena • Murcia-Almería COMMON TO BOTH CORRIDORS • Linking HSL Barcelona — HSL Levante • Alcázar de San Juan-Manzanares • Madrid-Seville The works shall include the following types of actions: • Platform. It includes projects that make it possible to set up the infrastructure that shall support the tracks and which includes embankments, clearance, viaducts, tunnels, etc. These are mainly construction of new infrastructure. • Replacement of services. It includes actions aimed at the restoration of existing services (light, irrigation, water, etc.) which are affected during the execution of the railway works. • Tracks. It includes actions for the assembly and supply of track materials (ballast, sleepers, rail, switches and expansion devices) on new railway sections, as well as the renewal of existing tracks. • Electricity. It includes actions aimed at the electrification of lines including: overhead contact line, traction substations, transformation centres, power remote control, high-voltage power lines, etc. • Traffic signalling and control. It includes projects aimed at the implementation of new signalling and traffic control systems (ERTMS, etc.). • Telecommunications. Includes projects related to fixed and mobile telecommunications on railway lines (such as fibre optic, GSM-R) • Stations. It includes the upgrading and rehabilitation of existing stations, as well as the construction of new stations.
86	C6.I1	T	Core TEN-T network: progress of works	-	Number (km)	0	335	Q4	2024	At least 335 kilometres of completed works on the core TEN-T network in the corridors and with the characteristics defined in target #85 of Q4 2022
87	C6.I1	T	Core TEN-T network: completion of works	-	Number (km)	335	1 400	Q2	2026	At least 1 400 kilometres of completed works on the core TEN-T network in the corridors and with the characteristics defined in target #85 of Q4 2022. (baseline: 31 December 2024).
88	C6.I2	M	TEN-T network different transport modes (rail and road): partial budget award	Official notification of project award-				Q4	2022	Cumulative budget awarded of at least EUR 1 000 000 000 (total budget EUR 1 717 000 000) in interventions in the non-core TEN-T network in different transport modes (rail and road). Projects shall be selected with the following selection criteria: a) Make rail network more interoperable mainly in relation to TEN-T with works on at least 900 km of network (EUR 1 010 000 000). This shall include the following interventions: • Improvement of the technological infrastructure for rail traffic management • Security (such as cybersecurity, installation of crash detectors) • Acoustic protections/Noise maps • Development of satellite technology applied to ERTMS rail signalling • Electrification of sections (such as Monforte-Lugo) • Track renewal (such as Soria-Torralba, Xátiva-Ontinyent and Monforte-Lugo) • Improvement of the control-command and signalling subsystem (such as Soria-Torralba and Ávila-Salamanca) • Creation of new sections or variants (such as Palencia-Santander, variant of Rincón de Soto and Variant of Ourense) b) Make road network safer in accordance with national and European regulations, (EUR 707 000 000). • Improving road safety (including road safety in at least 80 tunnels) and protecting vulnerable wildlife and users (EUR 357 000 000) • Sustainability and energy efficiency and noise reducing action (EUR 302 000 000) • Digitalisation: Implementation of monitoring systems for bridges, tunnels, using Big Data analytics and Internet of Things; digitalisation of road for monitoring and maintenance (EUR 35 000 000). • Implementation of Intelligent Transport Systems in bus-VAO lanes (EUR 13 000 000) • Update of the primary preliminary draft of the fixed link across the Strait of Gibraltar (EUR 2 300 000) Selection criteria shall ensure that at Q2 2026 at least EUR 1 010 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 301 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.
89	C6.I2	T	Non-core TEN-T network: progress on rail works	-	Number (km)	0	347	Q4	2024	At least 347 kilometres of works completed with the aim to make the rail network more interoperable mainly in relation to TEN-T with a final target of overall works on at least 900 kilometres of network. Works are in areas defined in the project award of Q4 2022 point a) (Milestone 88)
90	C6.I2	T	Single European Sky: project awarded and progress on projects completion	-	Number	0	15	Q4	2024	A cumulative total at least 15 projects completed (final target 20 projects) in digitalization and security for the development of the Single European Sky from the following list of selection criteria: A cumulative total at least 15 projects completed (final target 20 projects) in digitalization and security for the development of the Single European Sky from the following list of selection criteria: • Direct investments through ENAIRE (Air Navigation Manager in Spain) for the development of the Single European Sky, related to the modernisation of air traffic control systems and surveillance systems, the digital transformation of the information systems and the evolution of communications systems. • Digitalisation of aeronautical documentation (data and mapping) available to users for the operation of flights • Extension of Earth/Air coverage and Digitisation of Voice in Pilot-Controller Communications. Improve low-level coverage in certain airspace areas by modernising ground communications infrastructure • Evolution of the voice communications system in air traffic control centres through digitalisation and advanced technology, providing improved quality, increased safety, availability of information and increased contingency capacity • Technological modernisation of the primary radar network, improving performance and directing systems towards a complete digitisation of primary radars using all available technological advances to increase operational efficiency • Evolution of radar systems secondary to Modo S. technology providing information to the Air Traffic Control System • Replacement of the Hardware equipment of the different ENAIRE systems • Development of different management and operation applications for the management of ENAIRE • Technological modernisation of shipping systems by prioritising their complete digitisation and the implementation of systems monitoring and remote control solutions • Creation of infrastructure for the implementation of new air traffic control systems. Essential to ensure the implementation of the new operational concepts in Spain. In addition, modernisation of installations to ensure resilience against failures is included. • Digitalisation and automation of technical operation management for the improvement of remote systems monitoring tools in an integrated way • Modernisation of the air traffic control system for compliance with regulatory criteria, incorporating improvements in capacity, safety, cybersecurity and digitalisation concepts all stemming from the Single European Sky
91	C6.I2	M	Digitalisation of Ministry of Transport, Mobility and Urban Agenda	Official notification of work completion				Q4	2024	Completion of the following projects: • Building Information Modeling (BIM) launching a collaborative platform for managing digital information and models. • Boosting Mobility as a Service, providing open data and using new technologies for mobility analysis and optimisation. • Implementation of a system of analysis, monitoring, surveillance, control of needs, service implementation and deployment and application of new technologies in land transport. • The Digitisation Plan of the Directorate-General for Roads. • Development of new services and improved management in the fields of air, maritime and geographical information, among others.
92	C6.I2	T	New or upgraded TEN-T network, other works	-	Number (km)	347	900	Q2	2026	At least 900 kilometres of works completed with the aim to make rail network more interoperable mainly in relation to TEN-T with works. Works are in areas defined in the selection criteria of project award of Q4 2022 point a) (Milestone 88). (baseline: 31 December 2024).
93	C6.I2	T	Single European Sky: project completion	-	Number	15	20	Q2	2026	At least 20 projects completed in digitalization and security for the development of the Single European Sky with projects selected accordingly to the project award (Milestone 90) selection criteria.(baseline: 31 December 2024).
94	C6.I2	M	State Road network adapted to current regulation	Project completion				Q2	2026	Completion of the works to make the State road network safer in accordance with national and European regulations Works are in areas defined in the selection criteria of project award of Q4 2022 point b) (Milestone 88) and include works in at least 80 tunnels, works to improve fences and signage to reduce the likelihood of wildlife being struck, implementation of actions to improve the safety conditions of the most vulnerable road users such as pedestrians and cyclists (walkways, cycle lanes), noise reducing action, digitalisation (implementation of monitoring systems for bridges, tunnels, using Big Data analytics and Internet of Things; digitalisation of road for monitoring and maintenance), implementation of Intelligent Transport Systems in bus-lanes.
95	C6.I3	M	Intermodal and Logistic Infrastructures: partial budget award	Official notification of project award-				Q4	2022	Cumulative budget awarded of at least EUR 330 000 0000 (total target budget of EUR 974 000 000) in interventions provided to improve intermodal and logistic infrastructures Projects shall be awarded accordingly to the following selection criteria: a) development and upgrade of nine strategic intermodal and logistical terminals (TILOS EUR 217 000 000), to integrate the intermodal terminal with the logistics area, in some cases, and to boost modal shift of freight from road to rail, in all cases. These terminals and logistic facilities are: • Vicálvaro in Madrid; • La Llagosta in Barcelona • San Luis in Valencia • Júndiz in Álava. • Logistic facility of Can Tunis (Barcelona) • Orduña terminal (Bizkaia) • Logistics facility in Lezo (Gipuzkoa) • Muriedas (Santander) • Escombreras terminal (Murcia) b) improvement in rail access to two Spanish ports (EUR 407 700 000) and in road access to one port (EUR 43 000 000) , including: • Rail access to the Port of A Coruña • Rail access to the port of Castellón • Access to the Port of Algeciras • Construction of 750-metre sidings. c) improved accessibility (19 projects) and sustainability (25 projects) in ports (EUR 306 000 000), including: • Accessibility (EUR 176 000 000,): railway access works, including works to refurbish and upgrade, as well as new access and improvement of internal traffic in ports, by adapting the infrastructure that continues its external land-based access. • Sustainability: including adequacy of water supply and sanitation systems; air quality improvement plans; installation of more efficient energy networks; solar photovoltaic installations; renovation of lighting networks and installation of LED technology; power consumption control systems; refurbishment of processing systems The objective of the actions is to implement Area 6 of the Secure, Sustainable and Connected Mobility Strategy (R1) on Smart Intermodal Logistics Chains. Selection criteria shall ensure that out of the total target budget of EUR 974 000 000, at least EUR 584 000 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 217 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.
96	C6.I3	M	Budget execution for the intermodal and logistics infrastructure	Official notification of budget execution				Q4	2024	Cumulative Budget executed for at least EUR 590 000 000 for the intermodal and logistics infrastructure structures Works are in areas defined in the selection criteria of project award of Q4 2022, points a), b) and c) (Milestone 95)
97	C6.I3	T	Intermodal and logistic infrastructure	-	Number	0	12	Q2	2026	Completion of works in nine strategic intermodal and logistic terminals (Tilos) and three ports access new or upgraded to boost rail freight transport. Works are in areas defined in the selection criteria of project award of Q4 2022, points a) and b) (Milestone 95).
98	C6.I3	T	Completion of projects of rail accessibility and of projects of sustainability in ports	-	Number	0	44	Q2	2026	Completion of 44 actions (19+25): at least 19 projects of rail accessibility and completion of projects of sustainability within the ports in different 25 port authorities. Works are in areas defined in the selection criteria of project award of Q4 2022, points c) (Milestone 95).
99	C6.I4	M	Support to the programme of sustainable and digital transport.	Publication Official Journal				Q4	2022	Publication in the Official Journal of the award of EUR 800 000 000under the programme of sustainable and digital transport. Projects shall be awarded for the following 15 actions. Action line 1. Interoperability in rail freight transport – EUR 45 000 000 1. On-board European Rail Traffic Management Systems (ERTMS) 2. Actions removing barriers to rail interoperability in accordance with the TSIs. Noise reduction systems in rolling stock Adaptation of locomotives to various working voltages Installation of variable gauge axles on freight wagons 3. Innovation and development of the variable gauge axis in locomotives. Action line 2. Promotion of transport intermodality EUR195 000 000 4. Construction, adaptation or upgrading of cargoes and intermodal rail-road terminals and their land connections 5. Support for sustainable freight transport (rail and maritime) based on ECO-INCENTIVES to supply and demand Action line 3. Modernisation of rail freight equipment EUR 125 000 000 6. Actions supporting the refurbishment or upgrading of wagons for rail freight, including for the establishment of rail highway services. 7. Actions to support the refurbishment or adaptation of railway tractor equipment with other material using alternative fuels (hydrogen or electricity). Action line 4. Safe, sustainable and connected road transport EUR 56 500 000 8. Construction and upgrading of secure parking areas for commercial vehicles and provision of information services (Delegated Regulation (EU) No 885/2013). 9. Intelligent Transport Services for the Road Sector (ITS) in toll motorway concessions and other road safety and conservation services. 10. Actions supporting the deployment of alternative fuels refuelling infrastructure for heavy duty vehicles on the road network 11. Actions to support the refurbishment or adaptation of means and machinery to achieve sustainable pavement: reduced carbon footprint and sound reducers Action line 5. Sustainability of maritime and air transport EUR 111 000 000 12. Support for the deployment of alternative fuels in Ports and Airports. 13. Support for the uptake of propulsive alternative energy technologies in the maritime sector. Action line 6. Digitalisation of transport EUR 47500 000 14. Projects for the digitalisation of passenger and freight transport services at national level. Transfer to Autonomous Communities EUR 220 000 000 15. Projects for the digitalisation of passenger and freight transport services at regional and local level. For actions 10 and 12, selection criteria shall comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), ensuring that the infrastructure is enabled at the time of construction for the transport of renewable and low-carbon gases. Selection criteria shall ensure that at least EUR 63 500 000 contribute to the climate change objectives with a 100 % climate coefficient and at least EUR 210 000 000 with a 40 % climate coefficient, in accordance with Annex VI to the Recovery and Resilience Facility Regulation (EU) 2021/241.
100	C6.I4	M	Sustainable and digital transport: start of works	Official notification of start of works				Q4	2024	Start of works in all projects awarded in Q4 2022 (Milestone 99) to promote sustainable and digital transport. Works are in areas defined in the selection criteria of project award of Q4 2022 (Milestone 99).
101	C6.I4	M	Sustainable and digital transport: completion of works	Official notification of work completion				Q2	2026	Completion of all projects awarded in Q4 2022 (Milestone 99) to promote sustainable and digital transport. Works are in areas defined in the selection criteria of project award of Q4 2022. For measures 10 and 12, selection criteria shall comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), ensuring that the infrastructure is enabled at the time of construction for the transport of renewable and low-carbon gases.

G. COMPONENT 07: Deployment and Integration of Renewable Energy Sources

The National Energy and Climate Plan (NECP) of Spain for 2021-2030 projects a significant growth in renewable energy penetration in Spain, reaching 74 % in the electricity sector and 42 % in final use in 2030. In this context, the objective of this component of the Spanish recovery and resilience plan is to increase the use of renewable energy through the following elements:

a)the development of a clear and predictable regulatory framework that promotes investment in renewables;

b)the establishment and consolidation of the industrial value chain in the field of renewables;

c)the support of innovative sources of renewable generation technologies, including their integration into end uses; and

d)the development of green skills.

In addition, the component specifically seeks to promote the deployment of renewable energies on the Spanish islands, as well as the participation of citizens through renewable energy communities.

The component is related to the promotion of investments in innovation and in energy efficiency (Country Specific Recommendation 3 2019). It also promotes public and private investment and fosters the green transition (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

G.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C7.R1) – Regulatory framework for the promotion of renewable generation

The objective of this measure is to strengthen the regulatory framework for the promotion of renewable generation, in order to increase certainty and encourage private investment in renewable energy, to remove barriers to the deployment of renewables and to improve their integration in the environment, the electrical system and into different sectors.

The measure shall include a number of legislative and regulatory steps including:

-the adoption of Royal Decree Law 23/2020 in June 2020, which sets up a new auction system for renewable generation and improves the mechanism for access of renewable generation to the electricity grid;

-the adoption of Royal Decree 960/2020 in November 2020, which enhances the predictability of the revenues to be obtained by renewable generation in the new auctions;

-Royal Decree 1183/2020 in December 2020, which regulates the access and connection conditions for renewable generation, in line with the provisions of Royal Decree Law 23/2020; and

-The Law on Climate Change and Energy Transition, envisaged for adoption in the first half of 2021, which will establish into law the renewable targets for 2030 and the objective of climate neutrality by 2050 (including a 100 % renewable electricity system). This law also includes elements that are relevant to other components in the plan (such as the reduction of administrative barriers and requirements for the installation of public recharging points).

The implementation of the measure shall be completed by 31 December 2023.

Reform 2 (C7.R2) – National self-consumption strategy

The objective of this measure is to boost self-consumption as an alternative form of renewable generation, to set targets in this area for the period 2021-2030 and to identify and develop measures to mitigate the main barriers to their deployment. Self-consumption contributes to the integration of renewable generation in buildings and urban environments, and it boosts local employment.

The measure shall include the adoption by the Spanish government of a National self-consumption Strategy during the second half of 2021 in order to reduce administrative barriers to self-consumption. The strategy shall diagnose the current and potential situation in Spain, and identify measures aimed at: (a) better coordination between administrations; (b) the dissemination of information to consumers and awareness-raising; (c) identifying existing relevant skills, as well as further training opportunities connected to the deployment of self-consumption.

The measure shall address the implementation of key elements of the National Self-Consumption Strategy, including the publication of guidance on how to foster self-consumption and the completion of trainings aimed at improving required skills.

The implementation of the measure shall be completed by 30 June 2023.

Reform 3 (C7.R3) - Development of energy communities

This measure has the objective of developing energy communities to boost citizens’ participation in the energy transition, through renewable energy communities and citizen energy communities. The measure will support training, participatory and community building processes, and support to specific projects.

The measure shall award a first pilot project for energy communities on the basis of a competitive call for tender, in order to demonstrate the viability of this model. It shall implement 37 pilot projects with participation from the local community by the end of 2023, with a roadmap of actions carried out and identification of appropriate future steps. These projects shall be based on renewable energy.

The implementation of the measure shall be completed by 31 December 2023.

Reform 4 (C7.R4) - Framework for innovation and technological development in renewable energy

This measure shall strengthen the framework for innovation and technological development of a number of renewable energy sources, and contribute to progress towards the goal of 100 % of renewable sources in energy demand. The renewable sources covered in this measure shall include offshore wind energy and biogas. The measure shall also facilitate R&D in renewable technologies.

The measure shall include the publication of a roadmap for offshore wind and other marine energy. The aim of this roadmap is to reduce administrative barriers for the development of this source of renewable energy. Specifically, the roadmap shall seek to: (a) promote research, development and innovation through a more agile regulatory framework, and by strengthening technology centres and testing platforms for new prototypes; (b) identify opportunities and synergies with key industrial sectors; (c) develop an appropriate regulatory framework for the deployment in Spain (especially of floating technology); and (d) identify measures to minimise environmental effects (whilst at the same time seeking to simplify administrative procedures). The measure shall implement the key regulatory measures identified in the road map to promote offshore wind farms, boost research and development and support the deployment of floating technologies.

The second element of this measure is the publication of a roadmap for biogas, which shall analyse the appropriate regulatory and sectoral tools to promote biogas, with a focus on the efficient use of this energy source (such as in agro-industrial applications, and for heavy-duty vehicles where electrification is not yet an alternative). This part of the reform shall address the implementation of key activities from the biogas roadmap, including: (a) the establishment of a system of guarantees of origin for renewable gases, aimed at fostering investment in biogas and at decarbonising sectors such as industry and transport; (b) the development of a tool to compute the contribution of biogas to decarbonisation; and (c) pre-feasibility studies to promote the implementation of biogas production facilities.

The implementation of the measure shall be completed by 31 December 2023.

Investment 1 (C7.I1) - Development of innovative renewable energies, integrated into buildings and production processes

The objective of this measure is to foster the development of innovative renewable energies, and those to be integrated into buildings and into production processes. It shall support renewable self-consumption and technologies that are not yet fully competitive, including electric and thermal renewables sources in the agricultural sector, renewable sources aimed at cooling/heating requirements of the residential and service sector, thermal energy from renewable sources for industrial processes, bioenergy, and marine renewables. Support will take the form of investment aid, to be awarded via tenders ensuring a cost-efficient outcome, or direct equity support to renewable projects. The investment would also support reskilling and upskilling in the area of renewable generation.

At least 3 800 MW of innovative or value-added renewable generation shall be installed under this investment by the first half of 2026.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C7.I2) – Sustainable energy in islands

This investment shall support sustainable energy in the Spanish islands (the Canary and Balearic islands) as part of a broader strategy to support the energy transition in the islands, in particular through the support for projects for the penetration and integration of renewable energy into islands and non-peninsular systems. This is in line with Spain’s National Energy and Climate Plan, which includes actions to decarbonise the islands and reduce their dependency on oil.

Specific investments to be supported shall include renewable electricity sources, storage solutions, and smart projects (as part of the program ‘Smart Islands’). Part of the activities under this investment will rely on the knowledge acquired through the program “Clean Energy for EU Islands”.

At least 200 MW of innovative renewable generation shall be installed under this investment, as well approximately 200 interventions under the “Smart Islands” and “Clean Energy for EU Islands” programmes, and approximately 400 storage projects.

The implementation of the reform shall be completed by 30 June 2026.

G.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020, unless indicated differently in the description of the action. Amounts in the table do not include VAT.

H. COMPONENT 08: Electricity Infrastructure, Smart Grids and Deployment of Flexibility and Storage

The National Energy and Climate Plan (NECP) of Spain aims to have a 42 % share of renewable energy in final energy consumption by 2030. The integration of a growing amount of renewable electricity generation (projected to reach 74 % of demand in 2030 and 100 % by 2050), requires a number of complementary investments in grid digitalisation, storage and demand management. In particular, the intermittency and partial predictability of renewable technologies means that energy storage has an important role to play, to provide system flexibility and to ensure grid stability.

In this context, this component of the Spanish recovery and resilience plan shall pursue the following objectives:

a)The development of a more flexible, decentralised and dynamic energy system capable of efficiently and safely absorbing higher levels of renewable generation;

b)The development of new innovative business models; and

c)The involvement of new actors in the electricity system (producers, suppliers and consumers, in addition to storage operators and aggregators), and a more flexible regulatory framework capable of adapting to new needs, through regulatory sandboxes.

The component shall promote investments in innovation and in energy efficiency, and encourage the adoption of efficient policies to encourage innovation (Country Specific Recommendation 3 2019). It shall also promote public and private investment, and foster the green transition (Country Specific Recommendation 3 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

H.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C8.R1) - Enabling framework for the integration of renewables into the energy system: networks, storage and infrastructure

The objective of this measure is to enable a transparent and stable regulatory framework that creates certainty and allows for increased integration of renewables into the energy system, through investments in networks, storage and infrastructure.

The reform shall include the long-term decarbonisation strategy for 2050 (“ELP 2050”). The objective of this strategy is to set the basis for a strategic and regulatory framework for the effective integration of renewable energies in a flexible and intelligent energy system. Among the objectives of the ELP 2050 are: (a) the reduction of GHG emissions by 90 % compared to 1990 (climate neutrality); (b) the achievement of 97 % of renewables on final energy consumption; and (c) a 100 % renewable electricity system.

The implementation of the measure shall be completed by 31 March 2021.

Reform 2 (C8.R2) - Energy storage strategy and adaptation of the regulatory framework for the deployment of energy storage

This measure aims to develop, approve and deploy a regulatory and strategic framework to foster energy storage. The reform shall provide the necessary framework for the planned investments under C8.I1 and C8.I3, relating to the deployment of energy storage and new business models in energy transition, respectively.

The reform shall include the approval by the Spanish government of the Energy Storage Strategy. The objective of this strategy is to have 20 GW of energy storage available in 2030 and 30 GW in 2050.

The reform shall include three legislative and regulatory acts: (i) Royal Decree 1183/2020 to regulate access to the grid for storage facilities; (ii) Comisión Nacional de los Mercados y la Competencia Circular 1/2021 to establish the methodology and conditions for access and connection to the transmission and distribution networks of electricity generation facilities; (iii) the Comisión Nacional de los Mercados y la Competencia Resolution of 10 December 2020, regulating the participation of energy storage facilities in the provision of ancillary services.

The implementation of the measure shall be completed by 30 June 2022.

Reform 3 (C8.R3) - Development of the regulatory framework for aggregation, demand management and flexibility services

This measure has the objective to develop the regulatory framework necessary for developing a smart and dynamic energy system, including: (i) the regulation of demand-side management and flexibility services in the national regulatory framework, (ii) the development of the regulatory framework to capture the different flexibility services and (iii) the development of a framework to ensure consumers’ access to their energy consumption data.

The reform shall be in line with the National Energy Climate Plan, which explicitly recognizes the need to determine the technical requirements for participation in existing and developing markets of participants offering energy from renewable sources, energy storage operators and those providing demand response services.

The National Energy Climate Plan also highlights the need to develop the status of aggregators, in particular the independent aggregators, to facilitate their participation in the market. To this end, the reform shall envisage the creation of the status of independent demand aggregator through Royal Decree Law 23/2020, in order to allow for the entry of new players in the retail market.

In addition to supporting the National Energy Climate Plan, the reform shall transpose Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity, which lays down the obligation to ensure consumer participation in markets including through demand response, to promote consumer participation on an individual or aggregated basis or through independent aggregators, and to allow for the use of flexibility in distribution networks.

The implementation of the measure shall be completed by 31 December 2023.

Reform 4 (C8.R4) - Regulatory sandboxes or test-beds 

This measure aims to develop regulatory test-beds (sandboxes) in the national regulatory framework, allowing for the introduction of new products or technological solutions, exceptions or regulatory safeguards to help facilitate research and innovation in the energy sector. The reform is directly linked to reform C8.R3 and investment C8.I3.

The regulatory sandboxes shall enable the industry to test new technologies, systems and services related to flexibility, demand response and energy storage in a safe environment where interested parties can experience innovative solutions without being subject to preventing regulatory requirements. In addition, the sandboxes shall provide for a two-way regulatory dialogue between the Administration and the regulator, which shall accelerate and facilitate the review of existing regulations and adjust them to the entry of new agents to the market. This is expected to facilitate the creation of technological start-ups by giving them an opportunity to test their business models.

The reform shall include the adoption of a Royal Decree on the development of regulatory sandboxes to enable the development of new pilot projects, with the aim of fostering research and innovation in the electricity sector.

The implementation of the measure shall be completed by 30 June 2023.

Investment 1 (C8.I1) – Deployment of energy storage

The objective of this measure is to deploy energy storage through the launch of support and investment initiatives in three main areas:

a)The development of large-scale storage. Large-scale storage is necessary to integrate greater amounts of renewable generation and to provide services to the system, from frequency regulation, ramp support (flexibility) or black start;

b)The promotion of storage behind the meter and integrated on a sectoral level. Technologies behind the meter may include own consumption facilities, lithium batteries, and heat storage systems; and

c)A public initiative to create an open green cluster for the technological and industrial development of storage in Spain, in order to mobilize and integrate different companies in the energy sector and other industrial sectors around storage, boosting the country’s industrial and technological capacities.

The proposed investment shall be supported within the framework defined by the reforms of this component, in particular reforms C8.R1 and C8.R2, which provide the legal and strategic basis for an effective deployment of energy storage.

The measure shall be implemented through innovative storage projects which contribute to the energy transition, specifically to provide new flexibility to the energy sector, including the integration of renewable energy sources. At least five innovative storage projects shall be operational, or an aggregate capacity of at least 600 MW (or equivalent total energy supply (MWh)) shall be installed.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2 (C8.I2) - Digitalisation of networks

This measure shall provide support for investments relating to the digitalisation of distribution networks, aiming to bring them into line with the requirements needed to implement the energy transition. The need for the digitalisation of electricity networks is part of Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity, which states that Member States should encourage the modernisation of networks, for example through the introduction of smart grids. The digitalisation of networks is necessary to advance the transformation of the energy system with a greater presence of renewable energies, in order to have a secure and resilient electricity system. It is of particular importance in non-peninsular territories characterised by greater vulnerability and energy dependence.

The overall objective of the measure is to increase the competitiveness of electricity, accelerating the electrification of the economy. To this end, the measure shall provide for an initial support mechanism to maximise the potential offered by the digitalisation of networks by: (i) reducing losses and spills of renewable generation (ii) favouring the participation of demand in electricity system management and (iii) optimising network configuration.

The measure shall include the award of at least 35 innovative digitisation projects (for smart electricity distribution) to distribution companies.

The implementation of the investment shall be completed by 31 December 2023.

Investment 3 (C8.I3) - New business models in the energy transition

This measure shall comprise of investments and support mechanisms aimed at boosting new business models for the transition related to the deployment of energy storage, as well as its second-life management and recycling, demand management, aggregators, flexibility services, data access and sandboxes. In particular, the measure shall include:

a)Support for the deployment of aggregators in the national electricity market, with a particular focus on independent aggregators via the installation of real-time measuring equipment (sub-metering) and control and communication centres as well as the promotion of aggregation platforms;

b)The deployment of storage along the entire value chain;

c)Support for demand management projects in different consumer profiles (large industry, SMEs, renewable energy communities/citizen energy communities, aggregators, etc.);

d)Calls for applications to carry out regulatory test-beds, in the form of direct, competitive aid, or collaboration agreements; and

e)Support for start-ups or innovative initiatives in the field of energy.

The investment is closely linked to reform C8.R4, which aims to develop regulatory sandboxes for innovative projects. It also builds on the strategic and regulatory framework defined by the other reforms, most notably reform C8.R3.

It is expected that approximately 20 projects shall be awarded for the promotion of new business models for the energy transition, including smart metering, storage, demand-side response, flexibility services and data.

The implementation of the investment shall be completed by 31 December 2023.

H.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020, unless indicated differently in the description of the action. Amounts in the table do not include VAT.

Number	Measure	Milestone / Target	Name	Qualitative indicator for milestones	Quantitative indicator for target			Time		Description of each milestone and target
					Unit	Base-line	Goal	Q	Year
121	C8.R1	M	Approval of the long-term decarbonisation strategy (“ELP2050”).	Approval by Council of Ministers				Q1	2021	Approval of the long-term decarbonisation strategy (“ELP2050”). ELP50 sets the basis for the definition of the strategic and regulatory framework for the effective integration of renewable energies in a flexible and intelligent energy system, to be read in the context of the broader approach set out in the NECP.
122	C8.R2	M	Entry into force of planning, legislative and regulatory reforms to promote the development of energy storage solution.	Provisions in the legislative and regulatory measures on entry into force				Q2	2021	Adoption and entry into force of the following planning, legislative and regulatory reforms to promote the development of energy storage solutions: a) Approval in the Council of Ministers of Energy Storage Strategy, with the objectives of fostering the deployment of energy storage through 66 specific measures grouped in the 10 lines of action included in the Strategy. The goal is to have 20 GW of energy storage available in 2030 and 30 GW in 2050; b) Publication in the OJ of the Royal Decree 1183/2020, to regulate access to the grid for storage facilities. c) Publication in the OJ of Circular 1/2021 by the Comisión Nacional de los Mercados y la Competencia to establish the methodology and conditions for access to and connection to the transmission and distribution networks of electricity generation facilities. d) Publication in the OJ of the Resolution of 10 December 2020 regulating participation of energy storage facilities in the provision of ancillary services
123	C8.R3	M	Entry into force of regulatory measures for the integration of flexibility and demand-side response.	Provisions in the legislative and regulatory measures on entry into force				Q4	2023	Development of the regulatory framework for the integration of flexibility and demand-side response, through the following actions. a) Publication of the Resolution of December 10, 2020, by the Comisión Nacional de los Mercados y la Competencia adapting certain Operating Procedures for participation in balance services. b) Adoption of legislation fully transposing Directive 2019/944 c) Adoption of RDL23/2020 to create the status of independent aggregator
124	C8.R4	M	Entry into force of measures to promote regulatory sandboxes to foster the research and innovation in the electricity sector.	Provisions in the Royal Decree on entry into force				Q2	2022	Publication and entry into force of Royal Decree on the developments of regulatory sandboxes to enable the development of new pilot projects, with the aim of fostering the research and innovation in the electricity sector. The legislation shall enable the industry to test new technologies, systems and services related to flexibility, demand response and energy storage, in a safe and conducive space where interested parties can experience with innovative solutions without being subject to prevailing regulatory requirements. Additionally, this shall provide a two-way regulatory dialogue between the Administration and the regulator, which shall accelerate and facilitate the review of existing regulations and adequate them to the entry of new agents to the market, encouraging the creation of technological start-ups by giving them an opportunity to test their business models.
125	C8.I1	T	Innovative storage projects awarded	-	Number	0	5	Q4	2023	At least five innovative storage projects awarded, equivalent to an aggregate installed capacity of at least 600 MW or equivalent total energy supply (MWh).
126	C8.I1	T	Innovative storage projects operational	-	Number	0	5	Q2	2026	At least five innovative storage projects operational, equivalent to an aggregate installed capacity of at least 600 MW or equivalent total energy supply (MWh).
127	C8.I2	T	Innovative digitalisation projects for electricity distribution	-	Number	0	35	Q4	2023	At least 35 innovative digitalisation projects (including automation of network) awarded to distribution companies, in line with the characteristics and definitions set out in the Circular 6/2019 of the Comisión Nacional de los Mercados y la Competencia.
128	C8.I3	T	Projects to promote new business models for the energy transition	-	Number	0	18	Q4	2023	At least 18 projects awarded promoting new business models for the energy transition, including smart metering, storage, demand-side response, flexibility services and data.

I. COMPONENT 09: Renewable Hydrogen

Spain’s National Energy and Climate Plan for 2021-2030 seeks to reduce greenhouse gas emissions by 23 % compared to 1990. In this context, the main objective of component 9 of the Spanish recovery and resilience plan is to develop renewable energy hydrogen technologies:

a.As a means to store energy to manage differences between the supply and demand of electricity, providing flexibility to the electricity system.

b.By promoting their development and consolidation along the industrial value chain, given that these technologies are currently not ready to operate on market terms;

c.By supporting their integration in end uses, including to replace fossil-based hydrogen in industry; and

d.By developing green skills.

This component of the Spanish recovery and resilience plan addresses the Country Specific Recommendations to promote investments in innovation and in energy efficiency (Country Specific Recommendation 3 2019), and to foster the green transition (Country Specific Recommendation 3 2020).

The component is part of the renewable energy strategy underpinning component 1 and component 6 (use of hydrogen for mobility & transportation purposes), component 7 (renewable energy generation), and component 8 (storage and smart grids) of the Spanish recovery and resilience plan.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

I.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C9.R1) – Hydrogen roadmap

This measure shall provide a framework to develop renewable hydrogen in Spain (the ‘Hydrogen roadmap’). To this end, it identifies the objectives to be achieved by 2030 in terms of installed capacity by sector (industry and transport). The Hydrogen roadmap was approved by the Council of Ministers in October 2020. The measure also establishes a concrete means to support implementation of the roadmap by ensuring hydrogen electrolysers are supplied with renewable energy. The related regulatory actions shall include i) establishing a regulatory instrument which includes the appointment and governance of the national bodies issuing guarantees of origin for renewable gases, including renewable hydrogen; and ii) a regulatory mechanism setting out how the renewable origin of hydrogen is verified.

This reform shall be completed by 30 June 2022.

Investment 1 (C9.I1) – Renewable hydrogen, a country project

This measure aims to contribute to implement the Hydrogen roadmap along four lines of action.

The first is to boost Spain’s knowledge and innovative value chain, with particular reference to SMEs. Due to the early technological readiness level of this technology, this measure envisages a need to support at least ten SMEs to strengthen and reinforce the existing Spanish value chain by enhancing one or several of the following activities: production capabilities, skills, competitiveness, knowledge and technology transfer, and/or international dimension. The measure shall also target five technological developments or prototypes (such as electrolysers, compressors, storage vessels, fuel cells and H2-based transport systems), including “first of a kind” to support the validation of new upscaled designs or prototypes associated to either the production, distribution logistics or consumption of hydrogen. In addition, the measure shall include at least ten interventions targeting the improvement of test facilities or implementing new manufacturing lines of key enabling technologies or systems within the hydrogen supply chain, such as electrolysers or fuel cells. These shall either: i) improve R&D&I test facilities or laboratories and/or related equipment; or ii) improve facilities and/or procurement of new equipment (such as machine tools) to manufacture hydrogen and fuel cell related systems, equipment or components.

The second line of action aims to establish two renewable hydrogen clusters integrating large-scale production, processing and consumption. The objective of at least one of these clusters is to integrate a high-capacity renewable hydrogen electrolyser that directly supplies hydrogen to local industrial consumers. The electrolyser shall be sourced with renewable electricity. The resulting generated hydrogen shall be integrated into industrial processes and supply chains of firms (including adaptation and shifting of business models away from fossil-based hydrogen consumption) to replace at least 5 % of their annual fossil-based hydrogen consumption. The total production capacity of all electrolysers shall amount at least to 500MW.

The third line of action expects supporting the deployment of hydrogen across a number (at least ten) of other pioneering projects with a smaller size than the cluster. These shall introduce renewable hydrogen beyond a single industrial hub to isolated energy systems that permit integrating renewable hydrogen into fields such as transport. These interventions are expected to encompass the production, distribution and consumption of renewable hydrogen, furthering coverage across different sectors and parts of the Spanish territory.

Finally, the measure aims to promote hydrogen as part of a wider EU strategy to develop a Union value chain. As a result, some of the firms supported through the measure may become part of a planned hydrogen IPCEI, together with firms from other Member States, relying on proper framework to collaborate within the Union to integrate national value chains to boost competitiveness.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the integration of renewable hydrogen shall promote the electrification of industrial processes.

The actions under this investment shall be completed by 30 June 2026.

I.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.

J. COMPONENT 10: Just Transition

This component of the Spanish recovery and resilience plan addresses the economic and social impact in the geographical areas affected by the closing coalmines and coal-fired/nuclear power plants, which has been further exacerbated by the impact of the Covid-pandemic and the closure of thermal power stations. An additional aim is to change the production model and drive transformation in support of a more resilient economic and social model of the territories for the future. The strategy is designed in parallel to the Spanish territorial plan of the Just Transition Fund (JTF), the latter which is intended to have a wider scope, a longer duration and a more strategic focus on business development and support.

The component contributes to addressing the Country Specific Recommendations related to support employment through measures to preserve jobs, effective incentives for recruitment and skills development (Country Specific Recommendation 2 2020); to promote public and private investment fostering the green transition (Country Specific Recommendation 3 2020); and to strengthen cooperation across level of government (Country Specific Recommendation 4 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

J.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C10.R1) - Just Transition Protocols

In February 2020 the government approved the Just Transition Strategy as reflected in the National Energy and Climate Plan (NECP). In the context of this Strategy and under the Spanish recovery and resilience plan, this reform shall establish 12 Just Transition Protocols covering each area affected by the closing of coalmines and coal fired power plants. Each of the Just Transition Funds protocols shall cover at least an area affected by the closure of a coal-fired power plant. The Protocols shall lay out comprehensive and detailed territorial action plans as tools for environmental, economic and social sustainability of the territories affected. The focus shall be on inter alia sustaining and creating jobs, promoting diversification and specialisation, increasing the attractiveness of the areas to combat depopulation, and environmental restoration of land. These protocols shall incorporate the cooperation of relevant local actors (public and private, including businesses, social partners, education sector, NGOs etc.).

This reform shall include also the establishment of the Just Transition Institute. The goal of the Institute shall be to identify and adopt actions that guarantee equitable treatment of workers and territories affected by the transition towards a low carbon economy, minimisation the negative impacts on employment and the population of these territories and optimising the opportunities of the transformation process. The Institute’s main functions are to promote the design of industrial policies, research and development, promotion of economic activity, employment and professional training.

The measure shall also include the set-up of an Advisory Council made up of representatives from ministerial departments and representatives from local and regional authorities that shall provide advice and assess the impact of just transition policies.

The implementation of the measure shall be completed by 30 June 2023.

Investment 1 (C10.I1) - Investment in Just Transition

The Just Transition Protocols shall be accompanied by investments in the territories in order to:

a)create jobs and support short-term activity;

b)accelerate change by focusing on smaller scale pilot projects that – if considered successful – would be scaled up in the context of the JTF; and

c)boost economic development, contributing to social and territorial cohesion.

The projects shall target four specific areas:

I.Environmental restoration plans (e.g. reforestation or revegetation) for closed or abandoned mining sites and deteriorated land adjacent to thermal or nuclear power stations, covering at least 2 000 hectares of rehabilitated land. As part of these plans, plant and mining facilities are to be dismantled, and soil is to be rehabilitated and subject to reforestation or revegetation processes, renewable energy installations or eco-alternative economic development;

II.At least 100 environmental, digital and social infrastructure projects in municipalities and territories in transition to low carbon economy, for a total financial investment of at least EUR 91 000 000. The projects shall cover a number of areas including: rehabilitation of infrastructure and public buildings; innovative projects for communication between municipalities or isolated population areas based on sustainable mobility solutions and the recovery and alternative use of existing transport infrastructure; rehabilitation of public infrastructure supporting the circular economy, including community composing plants, waste management centres; environmental projects for the rehabilitation and enhancement of publicly owned areas (such as reserves, river walkways or quays and nature-interpretation areas); digital infrastructure and services for the development of cooperatives of ecological products or community schemes for joint purchases and sales over the internet.

III.Support to two RDI projects in the area of energy storage and green hydrogen. The projects shall adapt the installations and laboratories of CIUDEN (Ciudad de la Energía) – a Government RDI foundation set up in Bierzo (Leon) attached to the Just Transition Institute and depending on the Ministry of Ecological Transition and Demographic Change located – for two RDI projects on green hydrogen production and energy storage; and

IV.Support for the reskilling and improving employability of workers and people affected by transition to low carbon economy, with at least 4 000 individuals receiving personalised job search assistance and reskilling pathways. The requalification assistance should cover at least the following areas: the installation and mailing of renewable energy (wind and photovoltaic), restoration and environmental management, and/or integrated and energy rehabilitation of housing.

The implementation of the investment shall be completed by 30 June 2026.

J.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

See table below. The date of the baseline for all indicators is 1 February 2020 unless indicated differently in the description of the action. Amounts in the table do not include VAT.