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Environmental performance: Key trends Towards sustainable development

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Carbon neutrality

Carbon neutrality

The economy is more carbon efficient. Portugal closed its last two coal power plants in 2021. Fossil fuels continue to make up the bulk of energy supply, but the share of renewable sources in the energy mix has grown and is higher than in most European countries (Figure 1). Energy demand in the transport sector increased over

2013-19. However, this increase was offset by lower demand in industry thanks to improved efficiency and a structural shift to less energy-intensive activities. Portugal met its 2020 targets under the EU directives on energy efficiency and renewable energy, progressing towards Sustainable Development Goal (SDG) 7.

Air quality has improved, and efforts must be continued. Emissions of major air pollutants have decreased thanks to the shift in the electricity mix, the implementation of desulphurisation systems in large energy plants and stricter vehicle emissions standards. Portugal achieved its 2020 targets set by the EU Directive on the reduction of national emissions of certain atmospheric pollutants. It missed the target for ammonia, whose emissions have grown with the number of poultry. People are less exposed to air pollution in Portugal than in other OECD countries. However, it remains a heath concern. Since 2011, Lisbon has introduced a low emission zone banning the most polluting vehicles from the city centre during working hours. Despite air quality improvement, this has not reduced NO x and PM2.5 concentrations significantly.

Portugal is lagging on the circular economy. Since 2013, Portugal’s material productivity (GDP generated per unit of materials used) has remained broadly constant as domestic material consumption has varied in line with GDP. Municipal waste generation has grown at a faster rate than the economy. In 2020, Portugal generated more municipal waste per capita than the European average. It was also among the countries with the highest landfilling rates (Figure 2). Major challenges remain to ensure sustainable consumption and production patterns (SDG 12). The country has missed most of its 2020 waste targets.

The status of habitats and species has deteriorated. Agriculture, infrastructure development, invasive species, erosion, climate change and fires are exerting major pressures on biodiversity. Over half the Rural Development Programme 2014-22 budget has been allocated to farmers for adopting environment-friendly land management practices.

Despite increased areas under contract to preserve biodiversity, improve water and soil management, the impact of the agri-environmental measures could not be assessed due to lack of appropriate indicators. Portugal met the 2020 Aichi target of protecting land area (25% against the target of 17%) but missed the target of protecting coastal and marine areas (8.9% vs. 10%).

In 2010-21, it created Europe’s largest marine protected area, a significant step towards the goal of protecting at least 30% of EU sea area by 2030. However, few protected areas have management plans. Protecting, restoring and promoting sustainable use of marine and terrestrial ecosystems (SDGs 14 and 15) are challenges.

Efforts are needed to use water efficiently and achieve good status of water bodies. Portugal has made progress towards SDG 6, increasing access to clean water and sanitation. In 2018, 92% of the urban wastewater was treated according to the EU Urban Waste Water Treatment Directive, above the EU average of 76%. Drinking water is of excellent quality. However, agricultural abstractions, the main source of freshwater abstractions, have increased by about 25% since the mid-2010s, particularly in water-stressed southern regions. In 2021, less than half of surface water bodies and two-thirds of groundwater bodies achieved good global (ecological and chemical) status. The most significant pressures on these bodies are diffuse agricultural sources. The ease of licensing new water abstractions in water-stressed areas, the limited capacity to monitor and fine illegal abstractions and low water abstraction charges for non-potable uses, notably irrigation, have kept levels of water reuse low (about 1%).

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