Green growth has been at the core of EU policies in recent years. The European Green Deal, launched in 2020, set the goal of achieving net-zero carbon emissions in the EU by 2050, supported by a comprehensive policy package covering energy, transport, agriculture and biodiversity. The subsequent European Climate Law (2021) committed to a 55% reduction in carbon emissions by 2030 compared to 1990 and was in turn supported by the “Fit-for-55” package (2023), and its proposals to strengthen the EU Emissions Trading System, enforce a Carbon Border Adjustment Mechanism, and revise relevant EU directives (e.g., renewable energy and energy efficiency). In this context, the OECD has fostered policy dialogue on effective climate policies through multiple initiatives such as the Inclusive Forum on Carbon Mitigation Approaches (IFCMA) and the International Programme for Action on Climate (IPAC).
At industry level, climate policies have traditionally focused on large emitting sectors, such as steelmaking, cement and chemicals. While these industries continue to be a primary focus, there is a growing recognition that meeting net-zero targets requires the involvement of all parts of the economy and society, including light manufacturing and services where small and medium-sized enterprises (SMEs) account for comparatively larger shares of employment and value added. Among other things, this requires new and emerging regulations and disclosure and reporting requirements and standards, such as those in the environmental, social and governance (ESG) space, to better reflect SME reporting capacities, as they typically do not have the same compliance capacity of larger companies. The European Financial Reporting Advisory Group (EFRAG), through the development of voluntary sustainability reporting standards for non-listed SMEs (i.e., VSME) is one such example. The energy efficiency directive (EED) of the European Commission also recognises the particular challenges of SMEs. Whilst it makes energy audits compulsory for a larger number of companies, it also encourages member states to set up support mechanisms – such as energy audit centres and energy efficiency networks – that should facilitate SME compliance with the new directive.
Against this backdrop, the OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) has advanced several workstreams to support policies for SME greening and green entrepreneurship, such as the development of new indicators on the environmental footprint of SMEs, the establishment of the OECD Platform on Financing SMEs for Sustainability, and various publications on sustainability-related topics such as SME policy responses to the energy crisis, green entrepreneurship, and SME compliance with new environmental regulations, such as the digital product passport and the corporate social responsibility directive.
This report is the first OECD in-depth country review of SME greening and green entrepreneurship policy and covers thematic areas such as green finance, green skills, green technology adoption, and energy policies from an SME perspective. It provides an overview of the environmental performance of Portuguese SMEs, assesses existing policies facilitating the green transition of SMEs and green entrepreneurship in Portugal, and concludes with an Action Plan of specific measures that the government of Portugal could introduce to further enhance the environmental sustainability of its SMEs.
The report was discussed at the 7th session of the OECD Committee on SMEs and Entrepreneurship (Paris, 5-6 November 2024) and was formally approved by the same Committee on 13 June 2025.