Law 7/2021 and the Carbon Footprint in Madrid

In the Community of Madrid, Law 7/2021 on Climate Change and Energy Transition requires large companies to measure, register, and reduce their carbon footprint starting from January 1, 2025. This regulation is complemented by regional strategies such as Madrid 360, the creation of Low Emission Zones (ZBE), and specific tools for urban sustainability.

Who is obligated in Madrid?

• Large companies
• Criterion: More than 250 employees or turnover exceeding 50 million €
• Obligation: Annual measurement and registration of the carbon footprint, and development of a reduction plan
• Examples: industries, large retail chains, logistics companies
  
  
• SMEs
• Not currently obligated
• Recommended to anticipate future regulations and improve their sustainable positioning
• Examples: startups, local businesses, tech companies
  
  

Notable initiatives in the Community of Madrid:

• ZBE in Centro District and Plaza Elíptica
• Madrid 360: urban mobility and sustainability plan
• Carbon footprint calculation tool for local urban planning
  
  

Current situation and legal challenges:
Although Law 7/2021 is in force, some Madrid municipalities have not yet implemented the ZBEs, despite their mandatory nature. The Ombudsman (Defensor del Pueblo) has urged several city councils to act, and the High Court of Justice of Madrid (TSJM) annulled the ZBE ordinance of Madrid capital, creating legal uncertainty, but this does not exempt from state compliance.

Steps to comply with the law:

1. Calculate the carbon footprint
2. Register emissions in the National Carbon Footprint Registry
3. Develop a CO₂ reduction plan
4. Apply for available sustainability subsidies
   
   

Benefits of compliance:

• Access to public aid and tax benefits
• Improved business reputation
• Prevention of sanctions and proactive adaptation to future regulations
  
  

What happens if you don't comply?

• Economic sanctions from 2025
• Loss of competitiveness with clients, investors, and in tenders
• Disadvantage compared to companies that have already adapted to the energy transition
  
  

Complying with Law 7/2021 in Madrid positions your company as prepared, sustainable, and aligned with European and national standards.

If you want to know more, consult our blog here.

Is your company affected by this law? At airCO2 we help you manage it step by step.