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Portugal has a small, service-based economy that grew steadily between 2013 and 2019. The country was strongly hit by the pandemic but has been recovering fast since mid-2021. Yet the pace of the recovery is easing. Although Portugal has few direct trade links with these countries, Russia’s war against Ukraine is driving up energy and food prices.
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The Assessment and Recommendations present the main findings of the OECD Environmental Performance Review of Portugal. They identify 26 recommendations to help the country make further progress towards its environmental objectives and international commitments. The OECD Working Party on Environmental Performance discussed and approved the Assessment and Recommendations at its meeting on 6 December 2022.
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This chapter provides a brief overview of key environmental trends in Portugal and progress towards the Sustainable Development Goals and environmental targets. It assesses the environmental effectiveness and economic efficiency of the environmental policy mix, including regulatory, fiscal and economic instruments, and public and private investment in environment-related infrastructure. It examines the interaction between the environment and other policy areas with a view to highlighting the opportunities and barriers to enhance policy coherence for sustainable development.
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Portugal has overachieved its 2020 climate mitigation goals thanks to a significant decrease in greenhouse gas (GHG) emissions over the past decade. It has stepped up its efforts to adapt to climate change. The country can be commended for its leading role in climate action under its Presidency of the Council of the European Union in 2021. This chapter reviews progress and identifies remaining challenges regarding climate change mitigation and adaptation. It also examines the effectiveness of sectoral and horizontal policies towards Portugal’s 2050 carbon neutrality goal.