Climate Change Regulation 2026

PORTUGAL Law and Practice Contributed by: Assunção Cristas, Catarina Pinto Correia and Carolina Vaza, VdA

climate policy and governance, which is particularly generous in providing litigation rights. 2.2 Constitutional Framework for the National Legal Regime for Climate Change In Portugal, there is no separate constitutional provi - sion specifically protecting the climate. Instead, it is covered and protected by the environmental consti - tutional framework, which grants everyone the right to a healthy and ecologically balanced environment in which to live, in accordance with Article 66 of the Portuguese Constitution. 2.3 National Legal Regime The Climate Framework Law (Law 98/2021), in force since 1 February 2022, establishes the principles of climate policy, targets, and requirements for the design of public policies across economic sectors and levels of governance. It also states a subjective right to the climate balance, and the law is applicable both to public and private entities and citizens. This legal instrument is essential to align Portuguese policies on climate change with the targets and objectives of the Paris Agreement. Indeed, the Climate Framework Law is the result of the Paris Agreement, the Euro - pean Green Deal and the European Climate Law. In this context, the main purpose of the Climate Frame - work Law is to achieve carbon neutrality by 2050, as already established in the Roadmap for Carbon Neutrality (2050). Nevertheless, the law anticipates the possibility of achieving carbon neutrality by 2045 by imposing an obligation to conduct studies until 2025. The major objectives on climate policy foreseen in the law are the following: • promoting a quick and socially balanced transition towards a sustainable economy and greenhouse gas neutrality; • guaranteeing climate justice, ensuring the protec - tion of communities most vulnerable to climate crisis, respect for human rights, equality and col - lective rights; • ensuring a sustainable and irreversible trajectory of reduction of greenhouse gas emissions; • promoting the use of renewable energy as well as its integration into the national energy system;

• promoting a circular economy and improving energy and resource efficiency; • promoting climate security; • fighting against energy poverty, namely through the improvement of living conditions; and • establishing a rigorous and ambitious basis for the definition and fulfilment of climate objectives, targets and policies. The Climate Framework Law also establishes climate policies and targets, namely the following: • A timeline for greenhouse gas reduction tar - gets, setting reductions of at least 55% by 2030, 65–75% by 2040, and 90% by 2050. Note that these targets included in Portuguese law must always take into consideration the EU and interna - tional commitments. The national targets will there - fore be updated in accordance with the recently approved EU intermediate target for 2040 under the European Climate Law. The framework also establishes a target for the equivalent net CO₂ sink from the land use and forestry sector of at least 13 megatonnes on average between 2040 and 2050, and a target for marine and coastal ecosystems. • Sectoral targets for the reduction of GHG emis - sions relative to 2005 values and compulsory approval of sectoral plans for mitigation and adap - tation to climate change. Moreover, the law sets up a budget and tax policies, such as the creation of a new tax deduction category – Imposto sobre o Rendimento das Pessoas Singulares- Verde (Green Personal Income Tax) – which will ben - efit national taxpayers who acquire, use, or consume environmentally sustainable goods and services. This law also states a clear obligation for subnational level political actors (the Autonomous Regions of the Azores and Madeira, and municipalities all across the coun - try, autonomous regions included) to develop regional/ local climate policies and strategies aligned with the law. This means that the regional and local authorities are expected to develop their own strategies in line with the goals stated in the law. The municipalities, the Regional Spatial Planning Commissions (CCDR), the Inter-municipal Commissions, and the Metropolitan Areas of Lisbon and Oporto, are expected to approve local climate change plans. The municipalities and the

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