Global clean energy investment is expected to reach a record $3 trillion in 2024, but still falls far short of the $6.5 trillion needed annually by 2030 to meet international climate goals, according to recent data.
Experts warn that achieving the Paris Agreement’s 1.5°C target will require more than doubling current investment levels, eventually reaching $7-8 trillion yearly by 2035.
Spain has emerged as a European leader in this transition, setting an aggressive target to generate 81% of its electricity from renewable sources by 2030. The country’s National Integrated Energy and Climate Plan outlines substantial investments to achieve this goal.
“Spain’s geographical position and abundant renewable resources create unique advantages,” said a spokesperson from the Spanish Ministry for Ecological Transition. “We’re committed to becoming a hub for cleantech innovation.”
The country already hosts 20% of announced EU green hydrogen projects, positioning itself at the center of Europe’s clean energy transformation.
Despite progress, cleantech projects face significant hurdles. High upfront capital requirements, market uncertainties, technological risks and shifting regulatory environments create barriers to investment, particularly for first-of-a-kind initiatives.
Industrial clusters have become a focal point in Spain’s strategy. The Basque region is developing what officials call an industrial “super cluster,” bringing together the government, energy companies like Iberdrola and Petronor, and 16 industrial groups to accelerate decarbonization.
Similarly, the Andalusian Green Hydrogen Valley aims to establish Spain as a European energy powerhouse with export capacity.
Experts identify five critical actions needed to realize Spain’s potential:
First, creating stronger market signals and incentives for low-carbon products. Second, building more robust public-private partnerships to secure long-term investments. Third, deploying innovative financing tools while simplifying permitting processes.
Fourth, leveraging Spain’s strategic position to influence global cleantech standards. Finally, redirecting at least 25% of EU Emissions Trading System revenues toward cleantech manufacturing.
“The new Spanish Industry Act represents a historic opportunity,” said an economist familiar with the legislation. “But success requires coordinated effort across the entire value chain.”
Spain’s approach to industrial clusters parallels initiatives in France with its “50 Industrial Sites” program and Portugal’s “hydrogen valleys,” reflecting a broader European movement toward integrated energy hubs.
The World Economic Forum’s recent report “Accelerating the Energy Transition” emphasizes that successful transitions depend on governments and businesses developing new collaborative frameworks.
With the proper structures in place, Spain could serve as a global model for industrial transformation while delivering both economic growth and environmental benefits, according to the report