Long-term decarbonisation strategy: what it is and how to apply it in your company

A long-term decarbonisation strategy is the roadmap that sets out how an organisation, or a country, will sustainably reduce its greenhouse gas emissions until it reaches climate neutrality. It is not a one-off action, but a gradual process that combines emissions reduction, efficiency, electrification and renewable energy.

In this article we explain what a long-term decarbonisation strategy is, the Spanish framework around it (the ELP 2050 and the updated PNIEC) and how to translate it to a company.

What does a long-term decarbonisation strategy involve?

At country level, the long-term decarbonisation strategy is part of the Strategic Energy and Climate Framework and acts as a roadmap towards climate neutrality, that is, towards a scenario of net-zero emissions by 2050.

In Spain, the Long-Term Decarbonisation Strategy (ELP 2050), approved by the Council of Ministers in November 2020, aims to reduce greenhouse gas emissions by 90% by 2050 compared with 1990 levels. The remaining 10% is expected to be offset through carbon sinks, such as forests, which remove CO₂ from the atmosphere.

This strategy does not focus only on cutting emissions: it also aims for fully renewable final energy consumption by mid-century and links the transition to opportunities for competitiveness, employment and improvements in public health and biodiversity.

The PNIEC: the intermediate 2030 horizon

The intermediate milestone of that trajectory is the National Integrated Energy and Climate Plan (PNIEC). In its update approved in 2024, Spain raised its ambition: the target became a 32% reduction in greenhouse gas emissions by 2030 compared with 1990 (up from 23% in the previous PNIEC), with 48% renewables in final energy consumption and 81% renewable electricity generation. It is the reference timeframe for any company designing its own strategy today.

Opportunities from the transition to a low-carbon economy

The green transition driven by the decarbonisation strategy creates opportunities across all sectors, by decoupling economic growth from fossil energy consumption and environmental impact. Among the most relevant:

• Jobs and investment. The ELP 2050 estimates cumulative investment of around 500 billion euros over the 2031-2050 period, a significant part of which is directly associated with the decarbonisation strategy. The renewable energy, efficiency, sustainable mobility and circular economy sectors are emerging as engines of job creation.
• Competitiveness. A more efficient energy system that is less dependent on fossil fuels reduces costs and exposure to price volatility.
• Health and biodiversity. Reducing the burning of fossil fuels improves air quality, and climate change mitigation protects ecosystems.

The role of carbon sinks

The strategy recognises the role of natural capital, and of carbon sinks in particular. Forests, soils and oceans absorb CO₂ from the atmosphere, so the ELP 2050 includes reforestation and ecosystem-restoration measures to reinforce that absorption capacity, which is essential to neutralise the residual emissions that cannot be eliminated.

How to translate the decarbonisation strategy to your company

A company does not need to wait for regulation to define its own strategy. In essence, the process follows these steps:

1. Measure the carbon footprint. The starting point is to calculate Scope 1, 2 and 3 emissions following the GHG Protocol and the ISO 14064 standard.
2. Set credible targets. Define reduction goals aligned with science, ideally through science-based targets (SBTi).
3. Build an action plan. Prioritise energy efficiency, electrification and renewables measures, with owners and deadlines. You can see how to structure it in our guide to the decarbonisation plan.
4. Measure, report and review. Track the indicators, generate auditable sustainability reports and adjust the plan continuously.

Frequently asked questions about the long-term decarbonisation strategy

What is the difference between the ELP 2050 and the PNIEC?

The ELP 2050 sets the 2050 vision (climate neutrality and a 90% emissions reduction), while the PNIEC specifies the intermediate targets for 2030. Both are part of the Strategic Energy and Climate Framework.

Are decarbonisation and climate neutrality the same thing?

Not exactly. Decarbonisation is the process of reducing emissions; climate neutrality is the state in which residual emissions are offset by removals, so that the net balance is zero.

Where does a company start?

By measuring its carbon footprint. Without a reliable emissions inventory it is not possible to set targets or prioritise reduction measures.

If you want to translate the decarbonisation strategy to your organisation, you can start by measuring and managing your emissions with Manglai's carbon footprint platform.