Public transport in Spain has experienced a historic increase in state funding in recent years, going from 360 million euros in 2022 to 2.1 billion today. However, according to the Ministry of Transport, these figures will be insufficient to achieve the decarbonization and modal transfer objectives established in the National Integrated Energy and Climate Plan (PNIEC). According to the Ministry’s own projections, The state contribution must be between 4,000 and 11,900 million euros by 2030, which implies an unprecedented budgetary effort.
Within the framework of the Global Mobility Call, held in Madrid, these challenges and the need to consolidate stable financing mechanisms were discussed in a round table organized by Alsa that brought together experts and policy makers. The session included the participation of Álvaro Fernández Heredia, general secretary of Sustainable Mobility; Lucía Blanco, Deputy Director General of Energy Foresight and Statistics; and Alfonso Gil, senator and former deputy mayor of Bilbao.
Fernández Heredia highlighted the growth in state financing for public transportation, calling it “the most important commitment ever seen by the central government.” This effort has allowed, according to INE data, that 2023 would be the year with the highest use of public transport in Spain, with an annual increase of 10% in 2024.
Despite these advances, Fernández Heredia stressed that the current financing is not enough to address the objectives set by the PNIEC, which requires a modal transfer of 40% of the private car to public transportation in urban and metropolitan areas. According to the secretary general, meeting these goals will require a significantly greater offer, with affordable prices, high frequencies and competitive travel times.
The State Fund for the Contribution to Sustainable Mobility, contemplated in the new Sustainable Mobility Law, aims to address this lack, establishing a long-term financing framework that facilitates investment planning by operators and administrations.
The ambitious objectives of the PNIEC
The PNIEC establishes ambitious goals for reducing greenhouse gas (GHG) emissions by 2030, with a specific objective of 16% for the transportation sector. According to Fernández, achieving these commitments will require that state financing be increased significantly, standing between 1,680 and 5,000 million euros in 2025, and reaching between 4,000 and 11,900 million by 2030.
Lucía Blanco stressed the importance of integrated governance between administrations and operators to guarantee sustainable financing. He highlighted that Operators, depending mainly on tariff revenues, face difficulties in financing investments. In addition, he pointed out that public transportation will be a key element in decarbonization policies, which will imply technological transformations, such as the electrification of fleets and the use of renewable fuels, in addition to promoting modal change and improving the interoperability of services.
The Social Climate Fund, which will be financed with revenues from the new Emissions Trading Regime, will come into force in 2027. Blanco explained that this mechanism aims to compensate vulnerable households and users for the impact of the increase in the costs of fossil fuels. Spain will receive 6.8 billion euros from this fund between 2026 and 2032, 10.5% of the total allocated by the European Union.
Support for sustainable mobility
Álvaro Fernández addressed the policy of public transport bonuses, pointing out that they were initially designed to support the recovery of the sector after the pandemic. Now, the focus will be directed towards improving public transport, with new subsidized tickets aimed at young people and families, as well as incentives to increase frequencies and expand services. Heredia highlighted that the State Fund for Contribution to Sustainable Mobility will be expanded to include financing for services such as public bikes and cycling routes.
For his part, Alfonso Gil insisted in the need for close collaboration between administrations and the private sector to develop robust and sustainable transport systems. According to the senator, it is essential to guarantee equitable financing that allows all regions to access efficient mobility solutions. Gil defended bonus policies as a means to encourage the use of public transport and promote a culture of sustainable mobility. Likewise, he highlighted the need to create more livable and healthy urban ecosystems through investments in decarbonized public transportation.
Future prospects
The participants agreed that the financing of public transport must adapt to new climatic and social demands. The Sustainable Mobility Law and the Social Climate Fund will play a key role in this process, allowing Spain to move towards more sustainable and accessible mobility for all citizens.
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