These initiatives will be developed in sectors such as agriculture, small industry, transport, residential, commercial and institutional sectors, the fluorinated gases sector and the waste sector.
The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has selected 33 projects aimed at reducing nearly two million tonnes of CO2 equivalent in the coming years in sectors such as agriculture, small industry, transport, the residential, commercial and institutional sector, the fluorinated gases sector and the waste sector.
This was decided by the Executive Committee of the Carbon Fund in the resolution of the 2021 Call for Emission Reduction Projects on the national territory of the FES-CO2, to promote the reduction of greenhouse gas emissions in our country. Likewise, the Fund will purchase the verified emission reductions achieved by the projects, thus contributing to their viability.
In order to respond to the challenge of the fight against climate change and its growing impacts, it is essential to provide the appropriate instruments to mobilise resources, both public and private, to promote a transformation of the current production and consumption models towards a solidarity-based and decarbonised economy. The FES-CO2 Carbon Fund, operational since 2011, creates an effective climate finance instrument based, to date, on the purchase of carbon credits.
After 10 years of activity, the Carbon Fund has received around 1,100 applications and approved the signing of around 500 contracts for the purchase and sale of verified emission reductions that will prevent the emission of more than 17 million tonnes of CO2 into the atmosphere.
For its part, the 2021 Call of the Fund incorporates relevant novelties with respect to the previous line of activity of the Fund, the Climate Projects, to adapt and respond to a context of urgent transition towards a decarbonised and fair model.
This new context of greater climate ambition and coherence of sectoral and economic policies with the new European regulations to achieve a 55% reduction in greenhouse gases by 2030, has led to the revision of the objectives and scope of action of the Fund, with the aim of maximising the benefits and making efficient use of its resources.
The 2021 Call for Proposals seeks to optimise the management of the Fund, make more efficient use of its resources, and expand the portfolio of projects supported to date, incorporating new technologies and promoting innovation. In this regard, one of the main novelties has been the creation of a specific modality for innovative projects with high mitigation potential, in addition to the traditional modality for small and medium-scale projects.
Among the innovative technologies of the approved projects are solar thermal energy accumulation systems using low-temperature fusion salts; pilot plants for CO2 capture and use or hybrid district networks based on renewable thermal energy generation using biomass, hydrogen and solar photovoltaic energy.
FES-CO2 in the future
Royal Decree-Law 36/2020, of 30 December, approving urgent measures for the modernisation of the Public Administration and for the implementation of the Recovery, Transformation and Resilience Plan, amends Law 2/2011, of 4 March, on Sustainable Economy, which created the Fund, extending its purpose and scope of action.
Specifically, it provides for the Fund to be dedicated to promoting the development of actions to adapt to the effects of climate change, reduce greenhouse gas emissions, increase carbon sinks, emblematic technological development projects in the electricity generation sector or industry; as well as the acquisition, on a complimentary basis, of carbon credits from the instruments of the United Nations Framework Convention on Climate Change and its Paris Agreement.
This amendment represents the first step in the reformulation of the Fund, which will continue with the adaptation of its implementing regulations in the coming months.