Carbon dioxide market in Spain

Earlier Report Observations

The Spanish carbon dioxide market contracted between 2018 and 2020, with market size falling from 89.7 million US dollars to 76.0 million US dollars. This sharp decline was driven by the approval and transposition of the fourth phase of the EU Emissions Trading System (EU ETS) for 2021-2030, which set stricter common rules and intensified emission reduction targets for industrial facilities, leading to decreased production of carbon dioxide as a by-product.

From 2022 onwards, the market rebounded strongly, reaching 109.3 million US dollars in 2022 and 122.0 million US dollars in 2024. This growth was fueled by the increased regulation and application of the EU ETS, covering nearly 970 installations, which incentivized investments in low-carbon technologies and boosted production. The market expansion continued with the approval of a law in Galicia creating Spain's first voluntary carbon credit market in 2024 and the progressive implementation of the Carbon Border Adjustment Mechanism (CBAM), which set a carbon price for imports and phased out free allowances, further stimulating market activity.

Production carbon dioxide in Spain

In value, 2017-2020, K $ US

Carbon dioxide production in Spain declined for the second consecutive year. In 2020, output was valued at 82,091 thousand US dollars, marking a 13.0% decrease compared to 2019. Between 2017 and 2020, production fell by 9.3%, which translates to an annualized decline of 3.2%. The highest value was recorded in 2018 at 96,203 thousand US dollars, with the largest increase of 6.3% also occurring that year.

Annual dynamics of production in Spain in value, 2017-2020, K $ US

In kind, 2017-2020, K t

Carbon dioxide production in Spain declined for the second consecutive year. In 2020, 435.0 thousand tonnes were produced, showing a modest 6.4% decrease compared to 2019. From 2017 to 2020, production dropped by 7.5%, equivalent to an annualized rate of 2.6%. The peak was in 2018 at 488.4 thousand tonnes, with the largest increase of 3.9% also recorded that year.

Annual dynamics of production in Spain in kind, 2017-2020, K t

Exports carbon dioxide from Spain

Exports in kind, t

Cross-border shipments of carbon dioxide from Spain declined for the second consecutive year. In 2020, exports stood at 34,277 tonnes, reflecting a 10.5% reduction compared to the previous year. Between 2017 and 2020, exports increased by 5.5%, equating to an annualized growth rate of 1.8%. The maximum value was recorded in 2018 at 39,657 tonnes, with the largest increase of 22.0% also occurring that year.

Annual dynamics of product's exports from Spain in kind, 2017-2020, t

From 2017 to 2020, Portugal, Morocco, and France were the leading destinations for Spain's carbon dioxide exports in kind. Portugal accounted for 41.1% of exports, Morocco for 29.7%, and France for 20.2%, collectively representing 91.1% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Spain in kind, 2017-2020

Exports in value, K $ US

In 2020, carbon dioxide shipments from Spain abroad totaled 7,682 thousand US dollars, showing a 2.9% uptick compared to the previous year. Between 2017 and 2020, exports increased by 30.4%, which translates to an annualized growth rate of 9.2%. The highest value was recorded in 2018 at 8,840 thousand US dollars, with the largest increase of 50.0% also occurring that year. The largest decline was in 2019 at 15.5%.

Annual dynamics of product's exports from Spain in value, 2017-2020, K $ US

From 2017 to 2020, Portugal, Morocco, and France formed the key group of partners for Spain's carbon dioxide exports in value terms. Portugal accounted for 32.9% of exports, Morocco for 30.0%, and France for 13.3%, jointly representing 76.2% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Spain in value, 2017-2020

Imports carbon dioxide to Spain

Imports in kind, t

There were noticeable fluctuations in market performance during the period. Import volumes dropped to their lowest point in 2019 at 1,369 tonnes and peaked in 2017, with a 4.6-fold difference between these years. In 2020, Spain's carbon dioxide imports amounted to 3,946 tonnes, representing a dramatic 188.2% rise compared to the previous year. The largest decline was recorded in 2019 at 67.6%.

Annual dynamics of product's imports to Spain in kind, 2017-2020, t

Throughout 2017–2020, two countries—Portugal and France—concentrated most of Spain's carbon dioxide imports in kind, while other markets were less significant individually.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Spain in kind, 2017-2020

Imports in value, K $ US

In 2020, Spain's carbon dioxide import volume amounted to 1,579 thousand US dollars, showing only a marginal fluctuation compared to the previous year. Over the period 2017–2020, imports decreased by 29.4%, with a compound annual growth rate of -11.0%. The minimum value was recorded in 2019 at 1,575 thousand US dollars, and the maximum was in 2018 at 2,360 thousand US dollars. The largest decline occurred in 2019 at 33.3%, while the largest increase was in 2018 at 5.5%.

Annual dynamics of product's imports to Spain in value, 2017-2020, K $ US

From 2017 to 2020, Portugal, France, and Hungary were the main sources for Spain's carbon dioxide imports in value terms. Portugal accounted for 30.0% of imports, France for 18.1%, and Hungary for 9.2%, together absorbing 57.3% of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Spain in value, 2017-2020