OECD Environmental Performance Reviews

The Oecd

The Organisation for Economic Co-operation and Development (OECD) provides its 38 member countries with a forum to work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to help governments respond to new developments and concerns. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies.

WHAT ARE EPRs?

The OECD Environmental Performance Reviews (EPRs) provide evidence-based analysis and assessment of countries’ progress towards their environmental policy objectives. They promote peer learning, enhance government accountability and provide targeted recommendations to help countries improve their environmental performance. They are supported by a broad range of economic and environmental data. Over the last 30 years, the OECD has conducted over 100 EPRs of OECD members and selected non-member countries.

All reports, and more information, are available on the EPR website: http://oe.cd/epr.

The Fourth Epr Of Portugal

This fourth Environmental Performance Review (EPR) of Portugal follows previous reviews in 2011, 2001 and 1993. It reviews the country’s environmental performance in the last decade, a process that involved a constructive and mutually beneficial policy dialogue between Portugal and the countries participating in the OECD Working Party on Environmental Performance (WPEP). The OECD is grateful to the two examining countries: Costa Rica and Luxembourg.

The EPR provides 26 recommendations, approved by the WPEP on 6 December 2022. They aim to help Portugal enhance policy coherence to boost a green economic recovery and progress towards its goals of carbon neutrality and sustainable development. Particular emphasis is placed on carbon neutrality.

Key Environmental Indicators 2021

Energy intensity

Total energy supply per capita

1.9 toe per capita (OECD average is 3.8)

Renewables (% of total energy supply)

29% (OECD average is 12)

GHG intensity—GHG Emissions per capita

5.6 t CO2 eq. per capita (OECD average is 10.5)

Mean population exposure to PM2.5

8.2 μg/m3 (OECD average is 13.9)

Municipal waste per capita

518 kg per capita (OECD average is 534)

Material recovery of municipal waste

(% of composting and recycling in total treatment)

28% (OECD average is 34)

Material productivity (USD, 2015 PPPs/Domestic material consumption, kg)

1.9 USD/kg (OECD average is 2.5)

Wastewater treatment

(% of population connected to tertiary treatment)

38% (OECD average n.a.)

Intensity of use of forest resources (harvest or fellings over annual productive capacity)

0.71 (2005) (OECD average n.a.)

Environmental protection expenditure (% of GDP)

0.7% (OECD average is 0.5)

Share of CO2 emissions priced above

EUR 60/tCO2 (excluding emissions from biomass)

28% (OECD weighted average 15)

R&D budget for environment and energy

(% of total government R&D budget)

4.3% (OECD average is 6.4)

Road vehicle stock

60 vehicles/100 inhabitants (OECD average 67)

*Note: rounded figures.

Portugal is the westernmost country of mainland Europe. With the Azores and Madeira archipelagos in the Atlantic Ocean, it hosts a high diversity of habitats and unique species. Population and economic activity are concentrated on the coastline. Portugal’s small service-based economy, which is less energy intensive than the OECD Europe average, grew steadily between 2013 and 2019. It was strongly hit by the COVID-19 pandemic but has been recovering fast since mid-2021. Despite low energy imports from these countries, Russia’s war against Ukraine is driving up energy and food prices, reducing Portugal’s economic growth prospects for 2023 and 2024.

Over 2013-19, Portugal managed to decouple energy consumption and major air pollutant emissions from economic growth. The energy mix has shifted from oil and coal to natural gas and renewables, and air quality has generally improved. However, material consumption, municipal waste generation and freshwater abstractions have grown at the same rate or faster than gross domestic product (GDP). Portugal has made progress in wastewater treatment and expanded protected areas. However, efforts are needed to better manage water and waste and reverse the deterioration of habitats and species.

Portugal has a good record in reducing GHG emissions. It has made commendable progress in developing renewables and phasing out coal in 2021. However, it will need to tap the decarbonisation potential of all sectors to achieve carbon neutrality by 2050, as committed in the Climate Law. Portugal faces multiple threats related to climate change, including coastal erosion, heavy precipitation events and heat waves. Droughts undermine agricultural yield and hydropower generation, and forests are particularly exposed to fire danger. The country has stepped up its effort to adapt to climate change, including by strengthening wildfire risk prevention. However, more needs to be done to improve knowledge and track progress of adaptation policies, and enhance the value of rural lands for climate change mitigation and adaptation.