Repsol Board of Directors has cleared an investment worth €800 million for the Ecoplant. It is the company’s next-generation plant setup in Tarragona, Spain. Ecoplant will transform municipal waste into renewable fuels and circular products. It marks a crucial milestone for CO2 reduction in transport and forward for a circular economy.

Enerkem, Repsol’s partner has developed advanced gasification technology to transform, in this case, what otherwise would end up either in a landfill or as waste in a garbage burner into commodities of value. The plant will process 400,000 tons of waste a year, with 240,000 tons being renewable fuels and circular products. Organic waste will be transformed into renewable methanol, whereas non-recyclable plastics and other non-organic waste will become circular products.

Economic and Job Creation Impact

The Ecoplant, set to start operations in 2029, will create 340 direct, indirect, and induced jobs, plus 2,800 during construction. Repsol will integrate the Ecoplant into its Tarragona complex, optimizing infrastructure and accelerating the area’s shift to a multi-energy hub. This move supports Repsol’s commitment to preserving industrial jobs in Spain and generating local economic growth.

The European Union has selected the Ecoplant for funding from its Innovation Fund program. The project was selected from more than 300 submissions. High potential to reduce emissions and innovation were key factors in the selection of the project. According to the European Commission, the Ecoplant will cut the equivalent of 3.4 million tons of CO2 in greenhouse gas emissions during its first decade of operation.

Also read: Repsol Halts Renewable Hydrogen Investments in Spain Amid Regulatory Challenges

Supporting the Decarbonization of Transport

This will further decarbonize maritime transport as well as road transport with renewable methanol from the Ecoplant. It aligns with the EU’s ambitions of reducing maritime fuel carbon intensity by 40% by 2030 and 75% by 2050. Renewable methanol and renewable diesel from Repsol is available now, while other alternative technologies such as renewable hydrogen and ammonia will take more investment and infrastructure and time to be deployed.

Renewable methanol will further energize road transport to provide renewable gasoline, diesel, and SAF. It is a chemical which has versatility, therefore having it in automotive and construction all the way up to healthcare, food, and electronics sectors will give value for use of resources in all cases.

Repsol aims to be the leader in renewable fuel production in the Iberian Peninsula, targeting 1.5–1.7 million tons annually by 2027. The company will produce renewable hydrogen and biomethane and circular products, such as 105,000 tons annually by 2027, increasing it to 200,000 tons in 2030. The company is also considering replicating the Ecoplant’s waste valorization model globally for sustainable growth.

The African Development Bank’s (AfDB) Adaptation Benefits Mechanism (ABM), will be the first and the non-market approach registered on the United Nations Framework Convention on Climate Change’s (UNFCCC) Non-Market Approaches (NMA) Platform. This innovative mechanism creates a new way to mobilize public and private finance, boosting climate adaptation in developing nations.

ABM: A Groundbreaking Mechanism for Climate Adaptation

The ABM certifies the value of resilience using rigorous methods, offering clear data on resilience improvements, co-benefits, and costs. It helps host countries show the financial value of adaptation projects, making adaptation costs clearer and more transparent. It would also be the mechanism to avail crucial information towards tracking climate-related progress under Paris Agreement, the SDGs and ESG Frameworks.

Finally, by incorporating ABSAs under ABM, it enables a project developer in monetizing the certified adaptation benefit and access for capital markets by further accelerating needed funding for climatic resilient projects.

A Milestone for Africa’s Climate Contribution

The ABM’s registration on the UNFCCC’s NMA platform establishes it as a pioneering tool for global climate adaptation under the Paris Agreement. It represents Africa’s contribution to finding innovative climate solutions and sets a model for other regions to follow.

Prof. Anthony Nyong, Director for Climate Change and Green Growth at AfDB, said, “It is time for adaptation finance to benefit from incentive mechanisms such as the ABM”

He added, “Tapping into new funding sources and engaging new actors through the ABM will accelerate and scale-up the dissemination of the myriad of new and already existing adaptation technologies and solutions that are not otherwise affordable, especially to those who need them most.”

Also read: African Development Bank Approves €28 Million for Solar Power Plants in Chad

Africa’s Role in Global Climate Action

The ABM was formally submitted to the UNFCCC by Uganda during the COP29 climate conference in Baku in 2024. This submission came with strong support from several African nations, including Nigeria, Kenya, Madagascar, Benin, Gambia, and Guinea, as well as international organizations, governments, and corporations. Notable supporters include the West African Development Bank, CIFOR-ICRAF, Senegal’s Waste Management Authority, and other key organizations.

The ABM will gain further momentum with additional countries and organizations joining the mechanism soon. The African Development Bank continues to play a key role in the NMA platform, supporting and developing the ABM.