President Zapatero outlined a plan to increase the total budget to make exisiting buildings more environmentally friendly to nine billion euros if the socialists win a second term in office, predicting that the scheme will enable half a million homes to be converted to minimise energy consumption over the next four years (2008-2012).

The total budget for direct grants to help homeowners save or use energy more efficiently will rise by 20% from €800 million to €1,000 million, and a further two billion euros a year will be made available in low interest loans. 

Speaking at a political rally in Cádiz yesterday, Mr Zapatero estimated that the conversions could lead to a reduction of between "35-60%" in domestic energy bills, and homeowners will be given certification that will add value to the property when they come to sell and move on.

Mr Zapatero also explained that a further €200 million euros would be set aside to convert schools and other public buildings in towns with populations over 50,000 inhabitants.

Blaming the previous PP administration (1996-2004) for "putting the brakes on" climate control initiatives in the expectation that the Kyoto Protocol would not be ratified, Mr Zaptero announced that Spanish CO2 emissions fell for the first time ever last year (-4%), pointing out that the Spanish economy grew by 4% over the same period, and predicted that "everything seems to indicate that the trend will continue in 2007."