PORTUGAL Law and Practice Contributed by: Andreia Candeias Mousinho, Diogo Duarte Campos, João Marques Mendes and Raquel Freitas, PLMJ
• adaptation to expected climate change impacts. Planning Instruments There are several important planning instruments to achieve these goals, of which the following stand out: • at the European level, the European Climate Law (Regulation (EU) No 2021/1119) establishing the framework for achieving climate neutrality in the EU by 2050, which entails a zero balance between GHG emissions and their removal; and • at the national level, the National Energy and Climate Plan 2030 (PNEC2030) (Council of Min- isters Resolution 53/2020), which is under review and establishes policies for decarbonisation of the economy, energy efficiency and energy transition, as well as goals for sectors to reduce GHG emis- sions, among others. Legislation There is legislation that addresses GHG emissions and seeks to achieve the established goals, namely: • Decree Law 12/2020 (transposing Directive 2003/87/EC), which establishes the framework for the trading of licences for the emission of GHG, along with Decree Law 93/2010, which provides such a framework for the scheme; and • Decree Law 145/2017 incorporating Regulation (EU) 517/2014 into Portuguese law, which aims to reduce GHG emissions. The Climate Law sets forth an ambitious approach to climate change. Several instruments are provided to prevent and adapt to climate change, including tax and monitoring by specific bodies. This law also intro- duces some significant measures, such as: • climate change impact assessment of parliamen- tary or government laws; • identification and quantification of avoided GHG emissions in the State’s general accounts, with a breakdown of the information for each climate protection measure implemented; • progressive elimination of public funds for fossil fuel usage until 2030; • a ban on prospection or exploitation of oil;
• a ban on using coal for electricity generation from 2021 onwards; and • a ban on using fossil natural gas for electricity gen- eration from 2040 onwards, effective only if energy safety is considered safeguarded. Portuguese climate change legislation was revised to transpose Directive (EU) 2023/959 amending Directive 2003/87/EC. Furthermore, aligned with the European Commission’s strategy, the Portuguese government enacted a law to establish and regulate a VCM. This market lets companies buy carbon offsets voluntarily, supporting their internal climate goals beyond mandatory regula- tions. The act also sets standards, project eligibility and mechanisms for issuing, transferring and using carbon credits in a State-managed market. 13.2 Targets to Reduce Greenhouse Gas Emissions The European Climate Law provides that climate neu- trality should be reached by 2050. To achieve this, a goal has been set to reduce GHG emissions at the EU level by at least 55% (compared to 1990 levels) by 2030. PNEC2030 PNEC2030 governs the main climate action goals, pursuant to and in compliance with Regulation (EU) 2018/1999 of 11 December 2018 on the Governance of the Energy Union and Climate Action. The first ver- sion of PNEC2030 was approved before the enact- ment of the new European Climate Law and estab- lishes that the reduction of GHG emissions must be between 45% and 55% (compared to 2005 levels). It also defined the following goals by sector for the reduction of GHG emissions, for 2030 in comparison to 2005: • 70% for services; • 35% for the residential sector; • 40% for transport; • 11% for agriculture; and • 30% for the waste and industrial waste water sec- tor.
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