Iberian Peninsula Needs €250 Billion Boost in Cleantech Investment by 2030
The Iberian Peninsula must increase annual investments in clean technologies by €50 billion through 2030, totalling an additional €250 billion, to meet Paris Agreement climate goals. This is the core message of a new report by Cleantech for Iberia, titled “Capital Cleantech in Iberia: Mapping the Landscape, Mobilising the Investments.”
The report emphasises that both public and private sectors in Spain and Portugal must ramp up funding for clean technology (cleantech) projects, spanning everything from renewable power generation to grid infrastructure. Without this, the region risks slowing its green transition.
Venture Capital and Financing Gaps
Cleantech for Iberia highlights a pressing shortfall in venture capital investment. To align with benchmarks seen in countries like Germany and the U.S., the Iberian region needs an additional €4 billion in venture capital between 2025 and 2030. Bianca Dragomir, Head of Cleantech for Iberia, explains that securing €250 billion to scale cleantech innovation is Iberia’s ticket to leadership in green innovation, competitiveness, and employment,
While early-stage cleantech projects have gained support through grants and subsidies, growth-stage financing remains inadequate—especially for First-of-a-Kind (FOAK) projects and industrial-scale deployment. This poses a risk of innovation moving out of the region and could delay industrial decarbonisation.
A European Challenge
The report’s findings align with a joint study from BBVA Research and BeAble Capital, which also underscores the need to support "deep science", disruptive innovation in areas like nanotechnology, biotechnology, and photonics in order to reach Europe’s sustainability goals.
Julián Cubero, economist at BBVA Research believes that Europe is leading in research, but struggles to transfer this knowledge into scalable and marketable startups. A lack of public funding in early and mid-stage development remains a key barrier, he noted.
Investment Barriers in Spain and Portugal
Despite strong innovation potential, several challenges continue to hinder cleantech investment in the Iberian Peninsula:
Bureaucratic delays that slow fund deployment and discourage investors.
Lack of targeted financial instruments for FOAK and innovative projects.
Fragmented funding mechanisms and poor coordination between public and private sources.
Restrictive public aid criteria that exclude companies with prior private investment.
Policy uncertainty and absence of long-term frameworks.
No blended finance tools to de-risk investments.
Shortage of patient capital from institutional investors willing to support high-risk, long-term cleantech ventures.
Five Strategic Recommendations
To close the cleantech investment gap, the report outlines five key priorities:
Establish clear and compelling policy signals to create demand and attract private capital.
Simplify financing processes, including a centralised platform for cleantech support.
Coordinate policy and funding tools across national and EU levels under a unified decarbonisation strategy.
Expand public finance instruments, using a mix of grants, equity, guarantees, concessional loans, and blended finance models.
Unlock private investment, especially for growth-stage companies and FOAK projects, and strengthen collaboration between innovators, investors, and industry players.
Cleantech Beyond Renewables
While renewables are central to Iberia’s energy transition, the report calls for broader investment in complementary technologies, such as green hydrogen, smart grids, and energy storage. BBVA’s Dorian de Kermadec noted growing financial sector interest in hydrogen, underscoring its potential in the region’s clean energy future.
A key infrastructure challenge remains in Spain’s saturated electricity grid. According to the Spanish Electricity Companies Association (Aelec), over 83% of the distribution grid is currently saturated. A major overhaul is needed to support increased electricity demand from transport, industry, and data centres.
Cleantech for Iberia advocates for a “Grid Deal” to modernise the system—transforming it from passive and capital-intensive to dynamic, flexible, and digitally managed.