Portugal

Portugal remains a high performer in the CCPI, up three spots to rank 12th. The country receives a high rating in GHG Emissions, and medium in Energy Use, Renewable Energy, and Climate Policy.

Under the National Climate Law, Portugal aims to reduce its greenhouse gas (GHG) emissions by at least 55% by 2030 compared with 2005, not including land use, land use change, and forestry (LULUCF). The National Energy and Climate Plan (NECP), finalised in 2024, aims for net zero by 2045 instead of 2050. At the same time, the Long-Term Strategy (LTS) is under revision to be aligned with the updated net-zero target. Both these targets are relatively ambitious compared with the country’s capacity and with other EU member states, yet they are not yet aligned with the Paris Agreement’s 1.5°C goal.

GHG emissions falling overall, but rising in transport, as sustainable urban mobility plans are needed

The CCPI country experts report an overall GHG emissions reduction. However, they point out consistently increasing emissions in the transport sector: a 7% year-on-year increase in 2023. In 2022, transport was the sector with the highest contribution to GHG emissions, at 29%, followed by industry (24%) and energy (14%). As in previous years, the experts call on Portugal to increase its efforts in the transport sector, as its emissions trends jeopardise the achievement of national targets. Few cities have sustainable urban mobility plans (for example, Lisbon lacks one), and automobiles remain the dominant mode of urban and extra-urban transport. The experts indicate that train and public transport use in Portugal generally remain extremely low.

The carbon price signal for oil products was weakened by a downward adjustment in January 2025, when the rate dropped from EUR 81 to EUR 67.4 per tonne. This move was done to offset increases in the Tax on Petroleum Products (ISP) and mitigate the impact on fuel prices. Though the tax has been gradually unfrozen since its introduction, with the stated aim of encouraging the energy transition and decarbonisation, this adjustment reduces its effectiveness as a decarbonisation driver.

The experts assess that fossil fuel industries, especially oil refining and cement production, remain the largest emitters and continue to grow in relative weight in Portugal’s emissions profile. Fossil fuel subsidies and tax exemptions further undermine the framework. The Portuguese NECP indicates the need to phase out fossil fuel subsidies in line with international commitments and mentions the intent to phase out fiscal advantages related to the use of fossil fuels by 2030. However, it does not provide a clear plan, calendar, or specific measures for that. Overall, the carbon price signal remains inconsistent, partial in coverage, and insufficient for aligning with Portugal’s long-term climate goals.

RE projects may have socio-environmental impacts, while Portugal is a leading, though small, international participant

The updated NECP includes two new renewable energy targets for 2030. The first is the aim of increasing the renewable energy share in total final energy consumption to 51%, which is four percentage points higher than in the 2019 version. The second is for 93% of electricity consumption, with a goal of 86% by 2025.

The experts are concerned about the socio-environmental impacts caused by the accelerated expansion of large-scale inland renewable energy projects. They report a lack of territorial planning and weak environmental impact assessment (EIA) procedures by the government. This shortcoming results in large projects being placed in sensitive areas, such as biodiverse regions at risk and small villages surrounded by solar panels. Although the National Laboratory of Energy and Geology (LNEG) released a map of the least sensitive areas, most project implementation areas are still outside of these, as the mapping is not being taken into consideration. The experts see the proper implementation of the revised EU Renewable Energy Directive (RED III) as a potential tool for addressing this issue. However, Renewable Energy Acceleration Areas (RAAs) for onshore and offshore wind and solar photovoltaic energy have yet to be established.

Internationally, Portugal is usually a frontrunner in multilateral affairs, advocating globally for the nexus between marine conservation and biodiversity protection. Despite this, the country’s ability to influence other EU member states is limited, given its low economic weight.

The experts’ main demand is that Portugal address the ongoing need for improved public policies to decarbonise the transport and agriculture sectors and fully enforce the National Climate Law. They also request thoughtful acceleration of renewable energy sources, with energy efficiency always being prioritised. And they call for better integration of just transition aspects; namely, by developing and implementing an appropriate social climate plan to mitigate impacts on the most vulnerable groups.

Key Outcomes

CCPI experts

The following national experts agreed to be mentioned as contributors for this year’s CCPI:

• Pedro Nunes (ZERO – Association for the Earth System Sustainability)