en.Wedoany.com Reported - The Spanish government has extended the deadline for municipalities in just transition areas to execute environmental, social, and digital infrastructure projects by two years, until June 30, 2028. Published this Thursday in the Spanish Official State Gazette (BOE), the measure aims to prevent approximately 60 initiatives worth a total of €70 million from stalling due to an inability to meet the original timeline. These projects are funded by the Recovery, Transformation and Resilience Plan (PRTR).
The order from the Ministry for Ecological Transition and the Demographic Challenge (MITECO) modifies the basic rules of the aid tenders approved in 2021 and 2023 to adapt to the execution difficulties identified by the department in the beneficiary municipalities. Previously, the deadline to complete these projects was June 30, 2026, a date many municipalities considered unattainable due to the administrative and technical complexity of the projects.
According to MITECO sources, the extension particularly benefits small municipalities affected by the closure of mining, coal-fired power plants, and other energy facilities, which have limited capacity to manage large-scale investments. The Institute for Just Transition estimates that the extension will prevent municipalities from having to refund advances already received and will allow them to complete projects that would otherwise be left unfinished.
The first aid tender was completed in July 2023, allocating €89 million to 107 infrastructure projects in just transition areas. Given the high number of applications received, the government launched a second tender, allocating an additional €25 million for another 19 initiatives, which was approved in May 2025. In total, these two tenders, along with specific agreements adjusted under the PRTR, have raised €125.5 million for 149 projects, far exceeding the target committed to the European Commission of launching at least 130 initiatives with a minimum funding amount of €102 million.
The government justifies this regulatory modification based on the public interest and ensuring the full utilization of EU funds. The BOE notes that rescheduling the deadlines avoids serious and irreparable harm to local entities while ensuring the efficiency of public resource use, without compromising the milestones already completed under the Recovery and Resilience Mechanism. The order stipulates that municipalities anticipating non-compliance with the initial timeline must formally apply for an extension from the Institute for Just Transition before the current deadline expires. The extension must not lead to an increase in the approved subsidy amount, and municipalities must demonstrate that the project objectives remain unchanged and that third-party rights are not harmed. Additionally, the deadline for certifying completed projects is set for August 31, 2028.
This regulatory modification also responds to requests from municipalities and the Spanish Federation of Municipalities and Provinces (FEMP) itself, which had warned of the risk of losing EU funds in areas particularly affected by the energy transition and demographic challenges. These aids are part of the government's just transition strategy, aimed at mitigating the economic and social impacts of closing high-carbon energy facilities, strengthening public infrastructure and basic services in these areas to promote economic activity, combat depopulation, and drive the transition towards a climate-neutral economy.
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