- This expert analyzes the impact that the decisions adopted within the framework of COP29 may have on Spanish companies.
In recent years, sustainability has gone from being an aspirational concept to becoming one of the top global priorities. A few days ago, during the 29th United Nations Climate Change Conference (COP29), countries agreed to allocate 290 billion euros to help developing economies reduce their emissions and join the collective effort against climate change.
Although the approved budget has been criticized -some countries consider it to be too little for its intended purpose-, its momentum responds, to a large extent, to the objective of limiting the increase in global temperature to 1.5 °C, a goal established in the Paris Agreement and set as a priority by the European Union in its commitment to climate neutrality. However, this commitment creates an uncertain scenario for many companies that, despite their proven ability to generate wealth, base their business model on a practice that is still far from this goal.
The continental body announced investments of 4.8 billion euros through its Innovation Fund to promote a hundred projects aimed at reducing emissions in the region. These projects are expected to be completed by 2030 and, during their first decade, to reduce up to 476 million tons of CO2.
Within this framework, and apart from the stimulus plans, the EU plans to go further and implement economic sanctions for companies that do not comply with the established regulatory frameworks. The Carbon Border Adjustment Mechanism (CBAM), approved in 2023, requires organizations, regardless of their size, to declare their CO2 emissions from the production of imported goods.
These declarations will be translated into a certificate with the tons of CO2 registered, on the basis of which companies will have to pay according to the average value of the weekly auction of emission allowances.
It is undeniable that the European industrial fabric is taking steps to adapt to the Brussels green model. However, there are also a handful of questions arising in the scenario that point directly to the economic side of the issue: how can organizations transform productive dynamics that have been consolidated over decades without losing profitability?
For many business players, the answer may not be so obvious. For some, the sustainability-benefit binomial may even seem like a chimera.
This fact, in the specific case of Spain, invites many companies to accelerate the process of adopting sustainable dynamics in order to avoid penalties. Because the data is a clear indicator that we are lagging behind other countries in our environment.
The latest SME Eurobarometer report, for example, reveals that 59% of the country’s small and medium-sized companies -predominant in our fabric- lack strategies to reduce their carbon footprint and do not even plan to implement them.
Although it may seem excessively complex, adapting to the new framework does not require major upheavals. The first step has to do with knowing where you stand. Here, measurement emerges as the keystone of any efficient business strategy.
In order to accurately determine the CO2 generated by an organization, it will be useful to rely on accredited actors to assess emissions in three areas: direct emissions generated by fuel consumption; indirect emissions from purchased energy; and a compendium of indirect emissions along the value chain.
In the case of some sectors, such as agriculture – responsible for 1.7% of the EU’s GDP – until recently there were no tools capable of accurate measurement.
This need gave rise to innovative technological alternatives such as Arima ESG Tech, recently certified by Aenor as the world’s first carbon footprint calculator designed specifically for the sector. The tool also makes it possible to maximize environmental offsets, which reinforces its pioneering nature.
The transition to a green corporate culture, however, should not depend exclusively on private initiative. Institutions have a key role to play in this process, providing incentives to companies within the framework of the new plans. Some countries, such as Spain, have been able to detect the opportunity, taking an active role in attracting projects.
The latest example of this is embodied by the Council of Ministers, which this year announced aid of 794 million euros for seven renewable hydrogen projects in Aragon, Andalusia, Asturias, Castilla-La Mancha, Murcia and the Basque Country.
These types of cases show that, regardless of the regulatory constraints that may arise, sustainability emerges as a strategic goal in itself: it is an investment in a future that can bring multiple benefits. The circular economy is gaining ground as a viable business model and companies that adapt to its logic are in a privileged position. In market terms, doing so means starting to compete for tomorrow’s bottom line.