Environment at a Glance: Portugal
Table of contents
The OECD Environment at a Glance Country Notes are designed to support transparent, evidence-based information. They provide concise and descriptive overview of progress across major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity conservation. They feature selected environmental indicators, building on harmonised datasets available on OECD Data Explorer. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The text of this country profile is complementary to and has benefited from the OECD Environmental Performance Review of Portugal 2023. See the Reader’s guide to the Environment at a Glance Country Notes for more information.
Portugal is the westernmost country of mainland Europe. It also includes the Azores and Madeira archipelagos in the Atlantic Ocean. Agricultural land and forests each cover about 40% of its land area. The Portuguese economy is small and open. Economic activity grew steadily since 2013, except during the COVID-19 pandemic. The services sector, in particular tourism, is the country’s largest employer, having overtaken the traditionally predominant manufacturing and agriculture sectors.
Population density is similar to the OECD-Europe average but distribution across regions is uneven. Density is higher along the western and south coastlines, as well as in the urban areas of Lisbon and Porto, where it can exceed 1 000 inhabitants/km2. The demographic decline in rural areas and the fragmentation of private land ownership is a challenge for sustainable forest management, fire prevention and biodiversity protection.
Portugal possesses a diverse natural heritage thanks to its geographical location and geophysical conditions. The Azores and Madeira archipelagos are home to unique habitats. On the mainland, the dune habitats, rocky cliffs, marshes in estuary and lagoon systems are all important for biodiversity. Numerous bird populations shelter in estuaries. The Madeira Archipelago hosts some of the most significant seabird colonies in the North Atlantic.
Portugal’s mineral resources include significant deposits of zinc, copper, lead, tin and tungsten, as well as lithium. The country relies entirely on imports for fossil fuels. Domestic energy production comes primarily from bioenergy, mainly wind and hydro power.
Portugal managed to decouple economic growth from energy supply and production-based (i.e. produced within the territory) carbon dioxide (CO2) emissions since the mid-2000s. The per person production-based and demand-based (or footprint, i.e. including emissions incorporated in imported goods) greenhouse gas (GHG) emissions remain well below the OECD averages and have been decreasing since 1995.
Portugal’s economy is less CO2 intensive than the OECD-Europe average, reflecting a service-oriented economy and a high share of renewable energy. However, emissions of methane (from agriculture and waste) and fluorinated gas (hydrofluorocarbons from refrigeration and air conditioning equipment) make its economy more GHG intensive than the OECD-Europe average. The transport sector is the largest GHG emitter (35.2% in 2024), followed by agriculture (13.5%), manufacturing industries and construction (11.3%) and waste (10.9%).
In the early 2000s, the growth of emissions has been more moderate and started to stagnate, registering a decrease thereafter, in particular after 2005. This reduction is the result of the implementation of several measures, such as the replacement of polluting energy sources, such as fuel oil with natural gas, the implementation of combined cycle power plants to natural gas, the progressive installation of cogeneration units, the improvement of energy and technological efficiency of industrial processes, improvements in automobile efficiency (fleet renewal), and the improvement of fuels quality, among others. These measures were accompanied by a continuous decline in energy consumption and a slowdown of industrial activity. In 2014 there was an inversion of this pattern. The evolution of the primary, and particularly, the final energy consumption trend increased, following economic growth. The level of emissions shows significant inter-annual variations, mostly in the energy sector, due to pronounced fluctuations of hydroelectric power generation, which is highly affected by annual variations in precipitation. The land use, land-use change and forestry (LULUCF) sector is a modest net sink. It was a net emitter in 2003, 2005, 2017 and 2022 because of severe forest fires (APA, 2026).
Portugal achieved a major milestone in its energy transition by phasing out coal in 2021, nine years ahead of its 2030 target. However, the energy mix remains dominated by fossil fuel, all of which is imported – 61.9% of total energy supply (TES) in 2025. On the other hand, renewables account for a higher share than in most OECD countries, 37.2% of TES and 80.4% of electricity output. Over the past decade, there has been a shift from oil and coal to natural gas and renewables. The share of renewables has increased steadily over the last two decades, mainly driven by the expansion of wind generation and more recently solar photovoltaic. Biomass used in industry and residential building heating remains the largest source of renewable energy. The renewable energy supply experiences important annual variations in hydropower generation.
Portugal met its 2020 emission reduction objectives under the Gothenburg Protocol for sulphur oxides (SOx), nitrogen oxides (NOx), non-methane volatile organic compounds (NMVOC) and fine particulate matter (PM2.5), but not for ammonia (NH3).
Combustion for domestic heating is a major source of PM2.5 emissions while combustion in manufacturing industries dominates SOx emissions. Road transport is the main emitter of NOx, while NMVOC emissions mainly come from solvent use. Emissions of major air pollutants have decreased due to the shift in electricity production from coal to natural gas and renewable energy, the implementation of new desulphurisation systems in large energy plants and stricter vehicle emissions standards. However, reductions slowed down in the years preceding the COVID-19 crisis. Ammonia (NH3) emissions increased again following the size of poultry.
Emission reductions went on par with air quality improvements. The average population exposure to PM2.5 is well below the OECD average and substantial progress has been made, with total anthropogenic PM2.5 emissions felling by 26.4% during 2005-24. In all regions but Madeira, it is nevertheless above the 2021 guideline value of 5 µ/m3 recommended by the World Health Organization. Air quality remains a concern because of concentrations of nitrogen dioxide and particulate matter in urban areas and tropospheric ozone in rural areas.
Portugal’s freshwater resources are above the European average, resulting in low water stress at the national level, as also estimated by the European Environmental Agency “water exploitation index” (water use as a percentage of renewable freshwater resources), at less than 10%.1 However, seasonal and spatial distribution of freshwater resources and use varies widely. Agriculture accounts for the bulk of freshwater abstractions, having increased by about 25% since the mid-2010s, particularly in the southern regions, where water scarcity is a concern. Per person water abstraction for public supply peaked in 2005 but has since stabilised. (OECD, Environmental Performance Reviews: Portugal, 2023).
Connection rates to public wastewater treatment plants have increased significantly in the past decades. The population connected to public sewerage is 85.1%. The level of treatment is unknown, due to a lack of data.
Portugal is one of the few OECD countries where the per person generation of municipal waste has been increasing. At 532 kg per person in 2024, it is now above the OECD average.
Recycling and composting have significantly increased thanks to the implementation of the European Union (EU) Waste Framework Directive and the various national policy instruments and strategic plans for the management of municipal waste, which have guided and defined related production and management targets. However, landfilling remains the main treatment method, with one of the highest rates among OECD countries.
Material productivity has improved and is equal to the OECD average but remains lower than OECD-Europe level. Domestic material consumption (DMC) decreased significantly in the aftermath of the 2008 economic crisis and has remained relatively stable since. The material footprint has steadily decreased, though peaking up in recent years.
As in many OECD countries, non-metallic minerals account for the largest share of DMC, driven by construction materials. The share of metals, non-metallic minerals and fossil energy materials has decreased while that of biomass has remained relatively stable since 2000. Fossil energy materials account for a smaller share of DMC than in most other OECD countries as Portugal makes greater use of renewable energy.
In contrast to the previous decade, agricultural land has increased slightly since 2010, with a decline in grassland offset by an increase in cropland (INE, 2022). Forest area remained stable, while artificial land continued to grow, albeit at a slower rate than before.
About 3 600 species of plants exist in Portugal, as well as 69 taxa of terrestrial mammals, a total of 313 bird species, and 17 amphibian and 34 reptile species. Agriculture, infrastructure development, invasive species, natural processes (such as erosion), climate change and fires are exerting major pressures on biodiversity. About 30% of fish and birds and 20% of mammals and reptiles are threatened.
According to the Court of Audit, in 2020, protected areas covered 25% of Portugal’s territory and 8.9% of marine areas under its jurisdiction. The country thus met the 2020 Aichi target of protecting at least 17% of land area but missed the target of protecting 10% of coastal and marine areas. Management plans have been developed only for a few Sites of Community Importance in the Natura 2000 network. However, only a limited number of marine sites have strict management objectives (International Union for the Conservation of Nature -IUCN - categories I and II) and none have had management effectiveness assessments.2 More efforts are needed to reach the 2030 Global Biodiversity Framework (GBF) target of protecting 30% of terrestrial and inland water areas, and of marine and coastal areas.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
In real terms, revenues from environmentally related taxes decreased in the early 2010’s alongside declining economic activity. They then rose during 2013-19 due to higher consumption and taxes on diesel, before falling with the COVID-19 crisis, which led to a decline in the purchase and use of cars (OECD, Environmental Performance Reviews: Portugal, 2023). They remain however above the OECD and OECD-Europe averages. As in many countries, most receipts come from taxes on energy products and, to a lower extent, on motor vehicles’ purchase and use. Taxes on pollution and resource management, such as the tax on effluent discharges and fees for hunting and fishery license, raise little revenue.
In total, 68.7% of GHG emissions in Portugal were subject to a positive Net Effective Carbon Rate3 (ECR) in 2023. Explicit carbon prices in Portugal consist of ETS permit prices and carbon taxes, which cover 66.7% of GHG emissions in CO2 equivalent. With roughly 40.8% of total GHG emissions, coverage is largest for carbon taxes. Fuel excise taxes, an implicit form of carbon pricing, covered 58.1% of emissions in 2023. Direct fossil fuel subsidies cover 34% of emissions. About 57% of GHG emissions have a Net ECR above EUR 60 per tonne of CO2 equivalent, a mid-range estimate of current carbon costs. Net Effective Carbon Rates are highest in the road transport sector, which accounts for 27% of the country’s total GHG emissions. The Net ECR is on average positive in all sectors (OECD, Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, 2024).
The country is considered as a “moderate innovator” in the European Eco-Innovation Scoreboard. This is due to low government spending on research and development (R&D) in environmental and energy fields and limited patenting activity, although Portugal holds a relative advantage in terms of technologies for climate adaptation. Public budget on energy research, development and demonstration (RD&D) is mostly allocated to energy efficiency, renewable energy and cross-cutting technologies.
The share of environment-related inventions in total inventions has fluctuated but generally decreased since the 2009 economic crisis. It is now close to the OECD and OECD-Europe averages.
Portugal’s development co-operation is focused on providing expertise to Portuguese-speaking countries in Africa and Timor-Leste. Portugal’s official development assistance (ODA) is provided as a core contribution to multilateral organisations, with the largest share going to EU institutions. Climate and the environment figure among the country’s development programme priorities. The multilateral nature of Portugal’s ODA is reflected in the low shares of its bilateral ODA targeting climate and biodiversity, 5.5% and 3.6% in 2023-24, respectively (OECD, 2026).
References
APA. (2026). National Inventory Document on Greenhouse Gases, 1990-2024. Portuguese Environment Agency. Retrieved from https://unfccc.int/documents/656434
Hockings, M., & al, e. (2006). Evaluating Effectiveness. A framework for assessing management effectiveness of protected areas. 2nd Edition. IUCN. Retrieved from https://portals.iucn.org/library/efiles/documents/PAG-014.pdf
INE. (2022). Environmentally related taxes and fees. Retrieved from www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=539419621&DESTAQUESmodo=2
OECD. (2023). Environmental Performance Reviews: Portugal. OECD Publishing, Paris. doi:10.1787/d9783cbf-en
OECD. (2024). Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down. OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris. doi:10.1787/b44c74e6-en
OECD. (2026). Development Co-operation Profiles. OECD Publishing. Retrieved from https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/portugal_3b225e0a-en.html
Further readings
Agência Portuguesa do Ambiente (APA) (2022), National Informative Inventory Report 2022, Submitted under the NEC Directive (EU) 2016/2284 and the UNECE Convention on Long-range Transboundary Air Pollution, 15 April, Portuguese Environmental Agency, Amadora, https://cdr.eionet.europa.eu/pt/eu/nec_revised/iir/envyk8r3a/IIR2022_15april.pdf.
APA (2022), provisional version of the third RBMPs 2022-27, https://participa.pt/.
APA (2021), State of the Environment Report 2020/21, Portuguese Environmental Agency, Amadora, https://sniambgeoviewer.apambiente.pt/GeoDocs/geoportaldocs/rea/REA2020/REA2020.pdf.
ICNF (2020), Sixth National Report for the Convention on Biological Diversity - Portugal, The Clearing-House Mechanism of the Convention on Biological Diversity, https://chm.cbd.int/database/record?documentID=253132.
IEA (2021), Portugal 2021 Energy Policy Review, International Energy Agency, Paris, http://dx.doi.org/10.1787/3b485e25-en.
INE (2020), Land use land cover statistics, https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=435669204&DESTAQUESmodo=2
Tribunal de Contas (2022), Auditoria às Áreas Protegidas [Audit of Protected Areas], Tribunal de Contas, Lisbon, www.tcontas.pt/pt-pt/MenuSecundario/Noticias/Pages/n20220811-1.aspx.
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← 1. Total freshwater abstraction data is not available for Portugal
← 2. Protected Area Management Effectiveness evaluations, can be defined as: “the assessment of how well protected areas are being managed – primarily the extent to which management is protecting values and achieving goals and objectives" (Hockings & al, 2006).
← 3. Effective Carbon Rate (ECR) is the sum of fuel excise taxes, carbon taxes and tradeable permits that effectively put a price on carbon emissions. The Net ECR equals the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.