OECD Policy Coherence Scan of Portugal

1. Overview

Abstract

This introductory chapter provides an overview of Portugal’s progress towards sustainable development, presenting the rationale, structure, and scope of the analysis. Underpinned by the OECD Recommendation on Policy Coherence for Sustainable Development (PCSD), it introduces the eight guiding principles of the review. The chapter offers a diagnostic foundation for understanding Portugal’s alignment with international sustainability standards, and introduces the key actors, institutional shifts, and policy tools that define Portugal’s commitment to the 2030 Agenda.

This Policy Coherence Scan provides the diagnostic foundation for the EU-funded project “Building Policy Coherence for Sustainable Development (PCSD) across national and local government in Portugal”. It assesses Portugal’s progress against the OECD Recommendation on Policy Coherence for Sustainable Development (hereafter “the PCSD Recommendation”) (OECD, 2019[1]). The PCSD Recommendation provides a comprehensive standard to help countries equip policymakers and key stakeholders with the necessary institutional mechanisms and policy tools to enhance policy coherence, address integrated economic, social and environmental goals, and accelerate progress on the United Nations’ Sustainable Development Goals (SDGs).

The PCSD Recommendation consists of eight guiding principles organised into three main pillars:

• Pillar 1. A strategic vision for implementing the 2030 Agenda, emphasising political commitment and leadership for enhancing PCSD. This involves building inclusive political support, defining priority areas and key performance indicators, and ensuring that commitment to PCSD is sustained across governmental changes.

• Pillar 2. Effective and inclusive institutional mechanisms for addressing policy interactions across sectors and aligning actions between levels of government. This includes whole-of-government co-ordination, capacity building for PCSD within public administrations and engaging sub-national levels of government in policy co-ordination for sustainable development.

• Pillar 3. Responsive and adaptive tools to anticipate, assess and address domestic, transboundary and long-term impacts of policies. Adherents are encouraged to introduce regular assessments, strengthen monitoring and evaluation systems and integrate policy coherence dimensions in evaluation systems to inform decision-making.

The eight guiding principles (Figure 1.1) that form the foundation of these pillars offer a structured way for governments to approach the complexity of sustainable development. They encourage an integrated approach to policymaking that transcends sectoral and territorial boundaries, aiming for a coherent approach that facilitates the achievement of the SDGs.

Figure 1.1. The OECD Council Recommendation on Policy Coherence for Sustainable Development

Source: OECD (2019[1]) Recommendation of the Council on Policy Coherence for Sustainable Development, https://legalinstruments.oecd.org/en/instruments/oecd-legal-0381.

This report’s assessment is underpinned by desk research and data acquisition from national and local governmental sources, as well as an analysis of existing policies, strategies, and institutional frameworks aimed at identifying gaps and inconsistencies in alignment with the SDGs. This includes identifying policy interactions, both synergies and trade-offs, across different sectors, as well as policy impacts “here and now”, “elsewhere”, and “in the future”.

The assessment is also informed by fact-finding interviews with government officials and other key stakeholders, including civil society, academia and the private sector, aiming to gather a wide range of perspectives and ensure inclusive participation that reflects a broad spectrum of views and needs.

Subsequently, the report presents policy options, and recommendations are proposed to address the identified gaps and challenges as well as to suggest steps for future action.

Table 1.1 provides an overview of the main findings and recommendations, organised by the three pillars of the PCSD Recommendation.

Table 1.1. Main findings and possible ways ahead

Main findings	Possible ways ahead
Political commitment and long-term vision
There is a strong commitment to the SDGs, and the Centre for Planning and Evaluation of Public Policies (PLANAPP) seeks to drive PCSD in practice from the centre of government.	Provide PLANAPP with clear authority, mandates and resources to oversee and implement PCSD commitments.
National laws such as the Major Options Law and strategies such as Portugal 2030 foster sustainable development in the short and medium term, but not beyond 2030.	Use PLANAPPs studies of megatrends (Introdução às Megatendências 2050), REPLAN's first collaborative exercise, which is based on the practical application of long-term thinking through strategic foresight methodologies. Consider developing a long-term vision for sustainable development in Portugal, including through multi-stakeholder engagement and consultations.
Chapters in the 2024 and 2025 State Budgets included budget allocations by SDG. Yet, pending the use of performance budgeting for sustainable development, the government’s ability to track spending on the SDGs is limited.	Take steps to implement DL 54/2023, amending Orçamento de Estado (OE) rules to allow in-depth monitoring and aligning budget execution with the 2030 Agenda, e.g. through the ongoing partnership between PLANAPP and DGO to improve the methodology for imputing the SDGs within the scope of the budgetary process.
The proposed Roadmap for Sustainable Development 2030 provides a key opportunity to advance PCSD.	Adopt the National Roadmap for Sustainable Development 2030, including its proposed Action Plan for Policy Coherence and develop specific, measurable, achievable, relevant, and time-bound (SMART) targets and indicators to monitor its implementation and contribution to PCSD.
Mechanisms to address policy interactions
High-level co-ordination mechanisms are identified in Resolution 5/2023, driving efforts to align national policies and instruments with the SDGs.	Clarify and codify the mandates and roles for enhancing PCSD within and between key co-ordinating entities and networks, e.g. PLANAPP, the Network of Planning and Foresight Services of Public Administration (REPLAN), and the High-Level Monitoring Committee (HLMC).
Training programmes (e.g. the Integrated Training Programme for Sustainability in Public Administration [PICSAP] and the National Institute of Administration [INA]) (INA, 2024[2]) build capacity for sustainable development. Still, there is limited expertise among civil servants to effectively enhance PCSD, e.g. through the identification of synergies and trade-offs.	Ensure consistent and regular availability of existing training programmes across the government and expand their content to include PCSD principles.
Strategies and plans for local-level and vertical coherence exist, yet a more systematic and structured approach for sub-national engagement is lacking.	Promote integrated planning processes that systematically involve all levels of government from the outset; leverage the role and function of the CCDRs. Continue working with the Section of Municipalities for the SDGs of the National Association of Portuguese Municipalities, the LocalSDG - Municipal Platform on Sustainable Development Goals, and the Municipal Sustainability Index (ISM). Consider developing standardised templates for local and regional sustainable performance data generation, in line with the proposed Roadmap for Sustainable Development 2030.
Tools to anticipate, address and monitor policy impacts
Portugal employs a wide range of regulatory impact assessments in the legislative process, but their use is inconsistent across sectors.	Create a comprehensive framework with guidelines for conducting and integrating various impact assessments, ensuring all relevant sustainability dimensions are considered. Promote and incorporate the 2030 Agenda and PCSD into the legislative impact assessment and public policy evaluation process, as per the draft Roadmap for Sustainable Development 2030.
Portugal is committed to global frameworks for sustainable development, but there is no systematic consideration of transboundary impacts.	Introduce mandatory requirements to consider economic, social, gender and environmental impacts on other countries, in particular developing countries, as per the draft Roadmap for Sustainable Development 2030.
Existing monitoring frameworks are aligned with the SDGs and the European Semester process.	Consider developing Portuguese-specific targets and indicators for monitoring national SDG progress.

Source: Authors’ elaboration.

References

[2] INA (2024), Programa de Formação em Políticas Públicas, https://www.ina.pt/programa-de-formacao-em-politicas-publicas/.

[1] OECD (2019), Recommendation of the Council on Policy Coherence for Sustainable Development, https://legalinstruments.oecd.org/en/instruments/oecd-legal-0381, https://legalinstruments.oecd.org/en/instruments/oecd-legal-0381.