The Basque Government today presented its methodology for incorporating the energy transition and climate change perspective into the Basque Country’s General Budget at COP31 in Antalya. The Regional Minister for Industry, Energy Transition and Sustainability, Mikel Jauregi, shared this experience during the Subnational Investment Forum, organised by the Under2 Coalition and Regions4, in collaboration with the Sustainable Finance Observatory, at a meeting that brought together subnational governments, investors and financial institutions with the aim of speeding up the funding of climate projects being undertaken by states and regions.

The model developed by the Basque Government makes it possible to identify, classify and assess the budget items that make a positive contribution to decarbonisation, energy efficiency and adaptation to the effects of climate change.  

Regional Minister Mikel Jauregi presented the Basque experience at the Subnational Investment Forum of the Climate Summit, which brought together regional governments, investors and financial institutions in the Turkish city of Antalya 

In his speech, Regional Minister Jauregi demonstrated how a budgetary framework aligned with energy and climate objectives can help to direct public resources, strengthen project preparation and facilitate the mobilisation of funding.

The Basque Country has a clear, traceable, replicable methodology for identifying and classifying public expenditure relating to decarbonisation and adaptation to climate change 

1.9% of the 2026 budget

The methodological guide for incorporating the energy and climate perspective into the Basque Country’s General Budget was drawn up by the Department of Industry, Energy Transition and Sustainability, through the public body Ihobe, in collaboration with the Basque Energy Agency and the Directorate of Budgets of the Basque Government's Department of Finance and Taxation

When the model is applied, it concluded that 1.9% of the Basque Country’s 2026 General Budget makes a positive contribution to the energy and climate transition, which is the same percentage as in 2025. This figure has been rising since 2023, which was the first year analysed using this model.  

1.9% of the Basque Country’s 2026 General Budget is allocated to making a positive contribution to the energy and climate transition 

Energy and climate budgets are becoming established as a tool for integrating energy efficiency, climate change mitigation and adaptation into public expenditure planning. This means that budgetary decision-making takes both economic criteria and contributions to environmental and climate objectives into account.

From financial planning to specific projects

Following his speech at the Subnational Investment Forum, Mikel Jauregi took part in the round-table debate entitled SDG Localization: From climate commitments to territorial delivery, organised by the United Nations and Local2030 and held at the UN-Habitat Pavilion in the Blue Zone at COP31.

The event looked at how to translate global commitments to sustainable development and climate action into concrete policies and actions at a local level, while strengthening the role of regional and local governments. The session was also attended by the COP31 Presidency.   

Climate finance and the mobilisation of investment are the central themes of the events in which the Basque delegation will take part on 9 November at COP31 

For the Basque Country, this debate ties in directly with the model it is presenting in Antalya. Incorporating energy and climate targets into budgetary planning is one of the ways to turn global commitments into public decisions and concrete actions within the region.  

Taking part in Local2030 also gave Regional Minister Mikel Jauregi the chance to present the publication “Euskadi Climate Change Adaptation Living Lab” to the COP31 Presidency, thereby bringing the Basque Country’s commitment to turning the region into a showcase for innovative solutions to the impacts of climate change to the attention of the summit’s leadership group.

Event on climate finance organised by the Basque Country

Later this afternoon, Regional Minister Jauregi will chair the session entitled ‘Transformative climate adaptation: how to mobilise the necessary funding?’, organised by the Basque Country in the Spanish Pavilion in the Blue Zone at COP31.

The Basque Country will present its initiative Euskadi Climate Change Adaptation Living Lab, at this event, one of the transformative projects included in the Basque Country Industry Plan 2030. The project is based on a partnership between the Basque Government, public bodies and local councils to test climate adaptation solutions under real-world conditions and turn the region’s risks into innovation and new opportunities for Basque industry.

Basque participation in these forums takes on the same approach: it is not enough simply to set climate targets. They need to be incorporated into budget planning, sound projects need to be drawn up, and public and private funding needs to be mobilised to bring them to fruition.