This chapter examines green skills, green jobs, and the adoption of green technologies in Portugal. After a short conceptual introduction, the first section presents a statistical overview of green jobs in Portugal. The second section takes a deep dive on three energy-intensive sectors where there is a strong presence of SMEs – textile, ceramics, and plastics – looking at current green technology challenges and implications for the labour force. The third, fourth and fifth sections present an assessment of Portugal’s policy programmes in support of green skills development, the adoption of green technologies and of the circular economy. Conclusions and policy recommendations complete the chapter.
The Green Transition of SMEs and Entrepreneurship in Portugal
4. Green skills development and green technology adoption in Portuguese SMEs
Copy link to 4. Green skills development and green technology adoption in Portuguese SMEsAbstract
Box 4.1. Key messages
Copy link to Box 4.1. Key messagesThe green transition comes with a growing demand for green jobs, which are defined in this chapter as jobs that align with environmental goals or that necessitate green skills. For the green transition to have a positive impact on the labour market, workers in polluting industries need to transition towards more environmentally sustainable industries and tasks. Furthermore, there must be a steady supply of workers with green skills. This has implications for SMEs, which typically find it difficult to retrain workers or attract new talent.
In the past decade, Portugal has experienced regular growth in the number of green jobs. However, the proportion of non-green jobs in the regions North and Centre is still relatively high. By sector, manufacturing has the lowest proportion of green jobs, which reflects the energy intensity of this sector. From a firm-size perspective, the percentage gap between green and non-green jobs is positive for micro-enterprises (i.e., these companies have higher shares of green jobs than non-green jobs) and negative for mid-sized enterprises, which reflects the large presence of micro-enterprises in the services sector, notably retail trade, and the overrepresentation of mid-sized companies in manufacturing.
Three relevant industrial sectors for the green transition of SMEs in Portugal are textile, plastics, and ceramics, all of which face important environmental challenges. The textile sector needs to further improve water use and water treatment, strengthen recycling, foster re-use of material and use of bio-materials in the production process, and increase product transparency due to new EU legislation (i.e., the digital product passport). The plastics sector is under pressure to improve waste management and recycling performance, as well as to comply with regulations on single-use plastics. Ceramics, which is heavily dependent on natural gas in its production process, must focus on the reduction of carbon emissions through energy efficiency measures and a switch towards cleaner energy sources.
Portugal is taking important steps to strengthen the green skills of its labour force. The main government programme in this area is the “Green Skills and Jobs” programme, which primarily targets low-skilled unemployed and employees in energy-related activities and/or at risk of losing their jobs due to the green transition. The catalogue of national qualifications is also being updated to offer more relevant training in green skills, including through short-term courses. Finally, new training centres have been launched in the regions most affected by the green transition and/or where the share of “brown jobs” (i.e., jobs in polluting industries) is still relatively high, with a view to easing the transition of workers towards greener tasks and industries. All these measures mostly target the unemployed and low/mid-skilled workers through technical training, whereas the provision of green-relevant skills for high-skilled workers is comparatively less developed.
Together with green skills programmes, the government of Portugal has initiated many programmes to encourage the uptake of green technologies by SMEs, taking advantage of the funding opportunities of the national Recovery and Resilience Plan (RRP). Two flagship programmes in this area are the “Sectoral Decarbonisation Roadmaps” and the “Mobilising Agendas,” both of which adopt a collaborative approach to the upgrading of green technologies and green skills in industrial sectors. Technology and research centres, which have long supported the technology upgrading of Portuguese SMEs, play a key role in the rollout of both initiatives.
The Portuguese government is also active in the promotion of the circular economy. By early 2024, the national environmental agency (APA) was developing the "National Plan for Biodiversity and the Circular Economy: 2025-2030," which focuses on the textile, footwear, and natural resin sectors and promotes the replacement of fossil fibres with bio fibres, the reduction of waste in production, and higher recycling rates. The Plan also includes specific actions for SMEs, such as a circularity accelerator programme and the CIRCO training programme. Other relevant circular initiatives for SMEs include the “eCircular” assessment and ranking system of the Portuguese energy agency (ADENE), and the “Vale Economia Circular” voucher scheme of the SME agency (IAPMEI). On the downside, the non-municipal waste strategy, which covers industrial waste, has lacked inputs from SME stakeholders, potentially hindering its effectiveness, while some current waste-management regulations may make the achievement of higher recycling rates difficult, although they have the ultimate goal of consumer protection.
4.1. Introduction: The implications of the green transition for skills and jobs
Copy link to 4.1. Introduction: The implications of the green transition for skills and jobsStrong political commitments to achieve carbon neutrality, together with a surge in customer demand for environmentally-friendly products, have led to an upsurge in green jobs worldwide. According to data provided by LinkedIn, the growth rate of green jobs has exceeded the average job growth rate every year since 2019. However, the demand for green skills has outpaced their supply in recent years, thus increasing the risk of skills shortages. Between 2022 and 2023 alone, the share of green skills in the workforce rose by a median of 12.3% across a sample of 48 countries, whereas the share of job postings requiring at least one green skill grew nearly twice as rapidly, at a median rate of 22.4% (LinkedIn, 2023[1]). This evolution in job markets poses a challenge for SMEs, which find it more difficult than larger companies to upskill their workers and attract new talent. For example, only one-quarter of SMEs and one-half of medium-sized firms provide ICT training, compared with 90% of larger companies (OECD, 2021[2]).
Economic and job opportunities linked to the green transition are strongly place-based, as the green transition is set to generate job losses in carbon-intensive sectors, which are often concentrated in specific regions. Similarly, there is evidence that regions with higher GDP per capita tend to have the highest share of green-task jobs due to a more skilled labour force, better access to capital, and advanced infrastructure (see section 4.2.1) (OECD, 2023[3])
Recent research by the OECD also suggests that new green jobs mostly materialise at higher-skill levels, whereas low-skilled occupations mainly require environmental awareness or relatively simple changes in the production process (OECD Forthcoming, 2024[4]). This may require the development of new university specialisations for high-skilled jobs (e.g., energy auditors, carbon trading analysts) and more on-the-job training and reskilling for low-to-medium skilled workers (e.g., solar panel installers, heating/cooling/ventilation technicians, etc.).
One notional challenge in the analysis of green skills and green jobs is the lack of a common definition. Based on different sources (OECD, 2023[5]) (International Labour Organization (ILO), 2019[6]) (Vona et al., 2018[7]), this chapter considers green skills as a set of technical and transversal skills which include the ability to implement a sustainable business strategy and monitor environmental practices; engineering or technical/scientific skills to implement green solutions; and transversal/managerial “soft skills” to think, strategize and implement environmental solutions. Furthermore, the OECD and the ILO define “green jobs,” as jobs with tasks that align with environmental goals or that necessitate green skills. This “task-based” approach differs from the “sector-based approach, which defines green jobs as those in specific sectors or industries classified as green. While the task-based approach requires more data and information to determine which jobs are green, it can offer a more granular picture of the distribution of green jobs across different sectors (OECD, 2023[3]).
The rest of the chapter provides an overview of green and non-green jobs in Portugal, followed by a more detailed analysis of green technology challenges in three SME-driven industrial sectors: textile, plastic components, and ceramics. The last two sections of the chapter discuss and assess current policy programmes in Portugal to encourage green skills development and the adoption of green technologies by SMEs.
4.2. Green jobs and non-green jobs in Portugal
Copy link to 4.2. Green jobs and non-green jobs in Portugal4.2.1. The number of green jobs is on the rise nationwide
In the past decade, the government of Portugal has made important efforts both to cut brown jobs (i.e., jobs in polluting industries) and to foster green jobs, including by closing its last two coal-fired plants in 2021, ahead of the initial schedule, and by developing renewable energy power plants (solar and green hydrogen) (see Box 4.3). The number of green jobs has also grown significantly countrywide. Contrary to other European countries such as Spain, France and the United Kingdom, Portugal has the largest number of green-task jobs outside the capital region, with the share of these jobs standing at 23% in the North, 21% in the Centre, and 22% in the metropolitan region of Lisbon (Figure 4.1) (OECD, 2023[3]). The concentration of green-task jobs in the North and Centre of Portugal can partly be ascribed to the high share of renewable energy production in these regions, accounting for 42.7% and 37.7% of the national total (Portugal Trade & Invest, 2024[8]).
Figure 4.1. Share of green and non-green jobs by region in Portugal, 2021 and 2011
Copy link to Figure 4.1. Share of green and non-green jobs by region in Portugal, 2021 and 2011
Note: The chart reflects the proportion of green jobs, which are occupations where at least 10% of tasks are green or contribute to sustainability goals, whereas non-green jobs entail no green tasks.
Source: OECD based on the OECD “Job Creation and Local Economic Development 2023: Bridging the Great Green Divide” database (OECD, 2023[3])
4.2.2. Green jobs are proportionally more common in micro-enterprises and less common in mid-sized firms
At firm level, SMEs account for 85% of green jobs and 84% of non-green jobs (Figure 4.2), which reflects the very large role of SMEs in the Portuguese economy. Nonetheless, within the broad category of SMEs, the distribution of green jobs varies significantly between micro-enterprises and mid-sized firms. In particular, a more disaggregated analysis shows that the percentage gap between green and non-green jobs is positive among micro-enterprises (i.e., these companies have higher shares of green jobs than non-green jobs), but negative among mid-sized companies, which reflects the disproportionate presence of micro-enterprises in the services sector and the comparatively stronger presence of mid-sized companies in manufacturing (OECD, 2023[3]).
Figure 4.2. Share of green tasks and non-green tasks by firm size in Portugal, 2021
Copy link to Figure 4.2. Share of green tasks and non-green tasks by firm size in Portugal, 2021
Source: OECD based on the OECD “Job Creation and Local Economic Development 2023: Bridging the Great Green Divide” database (OECD, 2023[3])
4.2.3. Green jobs are more common in services and energy distribution and less common in manufacturing
At industry level, construction, “electricity, gas and air conditioning supply”, water supply and waste management have the highest shares of green jobs in Portugal, above the EU average (Figure 4.3, Panel A). These changes reflect the country’s efforts to reduce dependency on fossil fuels for energy generation and to encourage recycling and better waste management. The share of green jobs has also increased in some service sectors, such as “financial and insurance” activities and “professional, scientific, and technical” activities, which are sectors with a large proportion of high-skilled workers, a category where the number of green jobs has increased above the average (OECD, forthcoming 2024[9]). On the other hand, manufacturing has a low proportion of green jobs, due to the more energy-intensive nature of this sector, slightly below the EU average both in 2011 and 2021(Figure 4.3, Panel A). Compared to other southern European countries, Portugal has a higher share of green manufacturing jobs than Greece and Italy, but a lower share than Spain. Furthermore, the proportion of green manufacturing jobs between 2011 and 2021 increased more in Portugal than in other southern European countries (Figure 4.3, Panel B), also thanks to sustainability advances in some key national industries such as ceramics, plastics, and textile, whose energy consumption patterns and decarbonisation strategies are further analysed in section 4.3 of this chapter.
Figure 4.3. Share of green jobs in selected industries in Portugal and the European Union
Copy link to Figure 4.3. Share of green jobs in selected industries in Portugal and the European Union
Note: Industries represented in the graph follow the NACE (Nomenclature of Economic Activities) classification, the European classification of economic activities. The chart reflects the proportion of green jobs (occupations where at least 10% of tasks are green, or contribute to sustainability goals, whereas non-green jobs entail no green tasks)
Source: OECD based on the OECD “Job Creation and Local Economic Development 2023: Bridging the Great Green Divide” database (OECD, 2023[3])
4.3. The green transition in three SME-driven industrial sectors: challenges and responses
Copy link to 4.3. The green transition in three SME-driven industrial sectors: challenges and responsesThis section examines green-relevant technology challenges in three industrial sectors of Portugal with a large population of SMEs (i.e., textile, plastics components, and ceramics), showing how EU legislation is playing a key role in setting new environmental standards across each of these three sectors.
4.3.1. The textile sector needs to innovate to adapt to new EU regulations, such as the digital product passport
The textile and clothing sector is one of the most prominent sectors in Portugal. As of 2021, it counted approximately 16 000 firms employing almost 180 000 workers, many of whom women, and exporting merchandise worth EUR 6.14 million (Directorate-General for Economic Activities, Portugal, 2021[10]). The sector consists almost exclusively of SMEs, especially in the subsectors of the manufacturing of textiles, wearing apparel, and leather-related products (equivalent to C13-15 NACE industrial sectors) (OECD, 2023[11]). As a result, SMEs also account for a large share of GHG emissions in these sectors. Based on estimates by the OECD pilot dashboard on SME greening indicators (Figure 4.4), the SME share of total GHG emissions in these sub-sectors was above 80%, although these sectors accounted for a relatively small share of total GHG emissions in manufacturing (5%). Nonetheless, the green transition of the textile sector transcends decarbonisation to also encompass the ability of the industry to improve recycling, use new bio-economy materials, reduce water consumption, and improve water treatment in the production process.
Figure 4.4. SME share of GHG emissions in the textile sector in EU Countries, 2018
Copy link to Figure 4.4. SME share of GHG emissions in the textile sector in EU Countries, 2018
Note: Based on the OECD pilot dashboard methodology, which uses SME value added at two-digit sector level to estimate the equivalent share of GHG emissions, the SME share of GHG emissions in textiles is given by SME share of value added across the combined NACE sectors C13, C14 and C15 (i.e., textile, wearing apparel, and leather).
Source: OECD Pilot dashboard of SME greening and green entrepreneurship indicators, with data collected from Eurostat, latest estimates of 2018
Energy consumption patterns within two textile subsectors point to scope for energy savings and lower GHG emissions through the adoption of renewable energy sources and energy efficiency measures, including the adoption of energy management systems (EMS) and heat retention in the production process (see Box 4.2).
Box 4.2. Energy consumption patterns and energy efficiency measures in two textile subsectors
Copy link to Box 4.2. Energy consumption patterns and energy efficiency measures in two textile subsectorsCotton-type fibres
A 2019 study by the Portuguese energy agency (ADENE) on the cotton-type fibres sub-sector pointed to its high energy intensity, with a total energy consumption of 30 846 tonnes of CO2‑eq. between 2010-2018. The sub-sector uses electricity as the primary energy source (96% of total consumption) for ventilation systems, production process, lighting, and pumping systems. The study further showed that the sector could achieve energy savings through the adoption of photovoltaic panels to supply up to 40% of the electricity needs, while transitioning to LED lighting could generate 8.2% of energy savings. The study estimated that these measures could lead to 3 933 tons of CO2 reductions (about 13% reduction of total emissions), as well as annual financial savings worth EUR 856 178. However, these measures would also require an investment of more than EUR 2.5 million, with the average payback period estimated at 5.8 years.
Tanning and finishing hairless skins
According to another study by ADENE, the tanning and finishing hairless skins sub-sector could reduce 1 163 tons of carbon emissions through energy efficiency measures, which would generate annual financial savings of nearly EUR 240 000. The sub-sector had a total energy consumption of 4 961 tons of oil equivalent (toe), thus resulting in 11 664 tons of carbon emissions between 2009-2016. The sector used electricity, natural gas, and fuel as primary energy sources (respectively 49%, 29% and 13% of total consumption) for steam production, stoking equipment used in the production process, lighting, and pumping systems. Proposed energy-efficiency measures included improving compression systems (eliminating compressed air leaks), better energy monitoring through the adoption of energy management systems, heat recovery, better insulation, and more efficient combustion systems.
A recent consultation process involving representatives of the textile, clothing, leather, and footwear industry revealed more about the sector’s challenges in terms of skills and technology development1. Stakeholders expressed concern about skills shortage and an ageing workforce, which could undermine the ability of domestic companies to innovate and produce in a more environmentally sustainable fashion. While industry stakeholders recognised the need for more analysis to better understand existing skills needs, they also stressed the importance of training and awareness-raising for a successful green transition. Additionally, they called for better immigration policies to compensate for the reduced interest of local youth in a career in the industry, along with promotional campaigns to attract the youth back in the sector. Stakeholders also called for more R&D to find solutions in the areas of natural fibres, automation, digitalisation, and water usage and treatment. Altogether, it was estimated that these measures would minimise costs, reduce critical dependence on imports of raw material from China, and reduce pollution.
Given that SMEs account for the bulk of employment in the textile industry, these concerns reflect those typical of SMEs. These firms typically lack in-house expertise to measure energy consumption or implement energy-efficient technologies and struggle to attract more qualified workers, as they offer less in-house training and career opportunities than their larger counterparts. SMEs also face barriers to adopting innovative research due to financial constraints, limited resources, and a lack of awareness or access to research networks (OECD, 2021[14])
Much of the existing skills and R&D needs in the sector originate from new EU regulations, such as the EU Strategy for Sustainable and Circular Textile, adopted in 2022, which aims to enhance circular-economy practices in the sector, or the introduction of the “digital product passport for textiles” (DPP). This last initiative aims to enhance product transparency by providing detailed information about the materials, the use of recycled components, and the environmental impact of a product, thus enabling consumers to make better-informed choices and facilitating the recycling process. This legislation also calls for a ban on destroying unsold textile stocks to compel companies to adopt more responsible inventory management practices. The Extended Producer Responsibility (EPR) is another cornerstone of this legislation, which will require manufacturers to finance the end-of-life treatment of their products, thus incentivising the design of eco-friendlier textile products (European Commission, 2022[15]).
Portugal’s textile sector is rapidly adapting to these regulatory changes and has introduced different innovations that have the potential to be scaled up and have a positive impact on the productivity and environmental sustainability of the industry. For example, Portugal’s textile companies are experimenting with the creation of eco-friendly materials by leveraging local natural resources, such as forestry byproducts, where cellulose from forests is used to produce biodegradable fibers, or algae-based textiles, where algae are used to create biodegradable fabrics and dyes, reducing reliance on petroleum-based products. Water management and water treatment have also been improved significantly in recent years, as water consumption and water pollution have been traditional concerns of the textile industry. Several companies have implemented closed-loop water systems that capture, treat, and recycle water used in the production process, significantly reducing water consumption and discharge.
4.3.2. New EU regulations also affect the plastics sector
The plastics sector is an integral part of Portugal’s manufacturing industry, notably as a supplier of the automotive industry. According to the Portuguese Plastics Industry Association (APIP), in 2020, the sector had more than 1 000 companies and was responsible for 43 000 direct jobs. Most of these companies (80%) are SMEs and located in the districts of Porto, Aveiro, Lisbon, Leiria and Braga. About 8% of plastic products were exported in 2020.
The sector currently faces significant environmental pressures, primarily due to concerns over plastic waste management, rather than carbon emissions associated with production. In 2020, the recycling rate for plastics packaging reached 42% in Portugal, compared with 48% of the EU average, whereas the European Commission’s Packaging and Packaging Waste Directive (PPWD) sets a recycling target of 55% by 2025 (Plastics Europe, 2022[16])2. As a result, the industry is under pressure to reduce its environmental footprint through innovations for re-use, the use of biodegradable materials, and the use of different feedstock than oil and gas in the production process.
Many Portuguese companies still need to adjust to new regulatory requirements3. According to a survey conducted by APIP in 2022, 14% of the 1 000 surveyed companies expressed concerns about new environmental legislation, and another 14% reported technical and professional training as their main concern (APIP, 2022[17]). Companies also reported a gap in recycling, as legislation on biodegradable plastics is still nascent and the plastics industry is facing more hurdles than other industries, such as paper, in the capacity to recycle and use recycled inputs. Subsectors such as packaging and automotive, for example, are struggling to incorporate more recycled plastics in their products, as they lack both the materials and capacity to do so. In particular, the packaging sector struggles with limited recycling infrastructure, limited technology, and growing compliance costs with the PPWD directive. The automotive sector in Portugal and across Europe also faces challenges in sourcing high-quality recycled plastics and adapting material for re-use, as plastic is often not recovered after cars are scrapped (Joint Research Centre, 2023[18]). This situation underscores the urgent need for technological innovation and infrastructure development (e.g., recycling centres) to support sustainable business practices in the plastics industry.
4.3.3. Local research centres support innovation in the ceramics sectors
Ceramics has multiple industrial applications, from construction to the health sector (optical and dental devices), from 3D printing to nanotechnology. Driven by its ubiquitous use, the global ceramics market has experienced strong growth in the last years, with a compound annual growth rate of 8.6% between 2019 and 2022 (Furszyfer Del Rio et al., 2022[19]). Ceramics is a high energy-intensive sector (Ruivo et al., 2021[20]): the energy consumed in the production process on average accounts for 30% of total production costs at industry level, with most emissions deriving from the drying and firing stages of the process4.
The Portuguese ceramics industry mostly consists of SMEs and can be segmented into the following subsectors: structural ceramics, floor and coating, sanitary ware, households, and other applications. Companies in the ceramics sector are facing increased pressures to introduce energy efficiency measures, both to improve their environmental performance and to reduce their operational costs. However, due to their size, they often lack the resources and technical expertise available to larger firms.
A study of energy consumption of three Portuguese factories (focused on household ceramics, floor tiles and sanitary ware) shows that the main source of energy in the industry is natural gas, which accounts for between 68% and 81% of energy consumption (Ruivo et al., 2021[20]). The study also shows that energy efficiency measures should focus on reducing carbon emissions at the drying and firing stages, which could be achieved by enhancing the energy performance of kilns. This can be attained by optimising the ceramics loads in kilns, improving the natural gas combustion of these ovens, and capturing heat generated in the production process for re-use5.
Another recent study by ADENE on energy consumption in manufacturing stoneware porcelain and earthenware for domestic use also points to similar energy-efficiency measures. The study by ADENE shows that for 22 installations (19 firms), the total energy consumption was 38 496 tons of oil equivalent6 (toe), leading to 98 025 tons of carbon emissions between 2010-2018. Ceramics firms mostly relied on natural gas (71.5%) and electricity (27.9%) as their main energy sources. The analysis of 108 proposed measures across 22 installations revealed potential energy savings worth 6 613 tons of carbon emissions, which would result in an aggregate drop in the energy bill of nearly EUR 1.2 million. The top energy-saving measures included heat recovery from kilns, furnace replacement, installation of energy management systems, and switching to LED lighting. However, these measures required an initial investment of EUR 1.8 million, with an average payback period of 32 months (Portuguese Energy Agency (ADENE), 2019[16]).
The results of this research indicate that SMEs in the ceramics sector need to upgrade their equipment and technologies to become more energy-efficient and thereby reduce energy-related expenses. For example, although actual energy savings depend on many factors (e.g., the baseline energy consumption levels, the type of new machines introduced and the extent to which these machines also change other aspects of the production process), it is generally argued that switching to more energy-efficient kilns (just one type of the possible technology improvements) can generate energy gains in the range of 20-40%, as reported in the official EC document “Best Available Techniques (BAT) Reference Document for the Ceramic Industry”.
Technology improvements also generally require upgrading workforce skills, for instance through targeted training programmes that focus on the use of more energy-efficient kilns, advanced temperature control systems (to reduce energy waste), and heat recovery in the kiln set-up. Some of these skills might require formal, longer training courses, but others could more easily be developed through shorter training formats, such as micro-credentials7.
The CICECO Aveiro Institute of Materials, formerly known as CICECO-Centre for Research in Ceramics and Composite Materials, has a significant role to play to achieve this objective. This centre, created in 2002 at the University of Aveiro, has the mission of developing the scientific and technological knowledge necessary for the innovative production and transformation of ceramics. The centre leads different research projects and has patented different technologies and inventions useful to the ceramics sector. For instance, in 2016, CICECO researchers patented an innovation that transforms ash from burned household waste into construction materials (tiles for floors and walls) (CICECO, 2023[21]).
The following sections describe the main policy initiatives of the government of Portugal in the areas of green skills development and the adoption of green technologies, which are two dimensions closely interlinked.
4.4. Portugal’s green skills programmes
Copy link to 4.4. Portugal’s green skills programmes4.4.1. The Green Skills and Jobs programme focuses on low and mid-skilled workers
As part of its decarbonisation strategy, the government of Portugal has adopted a series of measures to help the workforce prepare for the green transition. The National Energy and Climate Action Plan (NECP) 2021-2030 is the main strategic energy policy document and covers five priority areas: decarbonisation; energy efficiency; security of energy supply; internal energy market; and research, innovation, and competitiveness. Action 8.3 within the NCEP covers capacity-building for green jobs.
Under this action, in 2024, the Portuguese energy agency (ADENE) and the National Institute for Employment and Professional Training (Instituto do Emprego e Formação Profissional, IEFP) were implementing a vocational education and training (VET) initiative for workers in companies affected by the rise of energy costs, following the 2022 energy crisis, and for the unemployed (Green Skills and Jobs programme). This measure aims to prevent job losses via upskilling and reskilling measures and to create new jobs that favour the professional re-integration of the unemployed. The measure prioritises the unemployed who have not completed secondary education, as well as workers who could lose their job because of the green transition. Training courses are provided by the network of IEFP regional offices, entities certified by the General Directorate of Employment and Working Relations (DGERT) at the Ministry of Labour, Solidarity and Social Security, or directly by beneficiary firms, alone or in partnership with training institutions. Training courses typically focus on energy efficiency, water efficiency, sustainable mobility, and circular economy, the adoption of green technologies, and compliance with environmental standards. Each trainee receives a stipend of EUR 250 for the duration of the training course. As of 2023, the government had received 158 applications from companies and training institutions and had approved 121 of them. Overall, the government aims to train 35 000 workers. In 2023 alone, the programme trained 12 100 people8.
The Green Skills and Jobs programme has several strengths. First, the programme has an ambitious target in terms of trained workers, which the involvement of IEFP regional offices should help achieve. Second, the active participation of firms in training design ensures that courses are tailored to business needs. Third, the programme is linked to job creation and job retention. If a company offers training to an unemployed individual, it is required to employ him/her within 12 months after completion of the training. Similarly, if a company trains an existing employee, it must ensure that the position is maintained for at least 12 months. Fourth, every beneficiary company receives financial compensation for the time off that trainees need to take from other tasks, which is an important incentive for companies, especially SMEs, to upgrade the skills of their workers. Finally, the provision of a stipend to the trainees is a significant advantage and a quite unique feature of the programme compared to other similar initiatives elsewhere.
As of December 2023, the Green Skills and Jobs programme had reached 12 100 workers out of the expected 35 000. Going forward, some aspects worth consideration would be the following. First, the level of financial compensation for companies and workers could be spelled out on the programme’s webpage, as this information is only available in the law decree that establishes the programme (Diário da República, 1.ª série, 2023[22]). This change would make companies better aware of the scheme’s benefits. Second, the Green Skills and Jobs programme only targets low-to medium skilled workers, while there is currently no similar government policy for high-skilled workers. While the responsibility for the training of high-skilled workers lies with the national Ministry of Education, Science and Innovation, there is evidence that high-skilled workers can also benefit from green-related training, for example through the offer of university micro-certificates delivered by higher education institutions in partnership with private companies.
4.4.2. The Qualifica Industria programme is especially relevant for the green transition of manufacturing SMEs
In September 2023, IEFP also launched Qualifica Industria (Industry Qualification), a training programme targeting industrial companies, especially SMEs, to implement energy efficiency measures and requalify their workers. The programme supports companies that are facing a slump in production due to unexpected market conditions, notably the increase in energy prices, through the delivery of training. Although the programme primarily targets SMEs, it is also open to larger industrial companies, which can apply to train up to 100 workers (IEFP, 2023[23]). Applicants receive financial compensation in the form of a non-refundable subsidy that covers up to 70% of staff and training costs (Diário da República, 1.ª série, 2023[24]). Under this initiative, a call has been extended to companies in textile and footwear, which are strategic export-oriented sectors for Portugal. The programme establishes a maximum of 200 hours of training per worker, based on the national catalogue of qualifications or other training provisions (up to 75% of the total training hours). The training providers may be the training centres of the public employment services, business associations, companies, or private training providers, all of which need to be certified by the DGERT of the Ministry of Labour, Solidarity and Social Economy.
4.4.3. The catalogue of national qualifications is being updated to reflect the green transition, including through shorter-term courses targeting mid-skilled workers
As of 2023, the National Agency for Qualification and Vocational Education and Training (Agência Nacional para a Qualificação e o Ensino Profissional, ANQEP) has been updating its National Qualifications Catalogue to include more training programmes in green skills, with a special focus on the energy sector. New training programmes cover areas such as the installation of photovoltaic panels and wind turbines, energy management and control, water treatment, and comprehensive waste management solutions. In addition to these qualifications, the catalogue offers many short to medium-term training courses that focus on renewable energy sources, including hydrogen, photovoltaic, and wind energy.
The updated catalogue will benefit especially low-to-mid-skilled workers by helping them better address the increasing demand for green skills. This approach can facilitate both the transition to new jobs and the adaptation to the evolving requirements of existing jobs. Furthermore, the National Qualification System is also reviewing the format of training courses to create more flexible and shorter modules, with the aim of increasing the training uptake of active workers, who often lack the time to engage in training.
4.4.4. The government has launched new training centres to develop green skills in places negatively affected by the green transition
Within the scope of the national RRP, ANQEP is also coordinating the establishment of a network of 30 specialised technology centres in the field of renewable energies by 2025. These centres are housed and managed by upper-secondary education institutions and will deliver education and training for both young people and adults, as well as formal recognition of prior learning.
In addition, the government of Portugal launched a new Training Centre for Energy Transition in 2023. Managed by IEFP, ADENE, and the Portuguese Renewable Energies Association (Associação Portuguesa de Energias Renováveis, APREN), this initiative offers training in key areas such as renewable energy, green hydrogen, synthetic non-biological fuels, energy efficiency, water efficiency, and sustainable mobility. The centre is located closed to the town of Sines, in the region of Alentejo, where one of the last two coal-fired power plants was closed in 2021. Through this initiative, the government aims to equip individuals with relevant green skills, notably in a region where there is still a high share of polluting jobs (see section 4.2). This effort complements other IEFP initiatives undertaken in collaboration with the private sector and universities to provide green skills in local labour markets that face challenges due to the green transition (Box 4.3).
Box 4.3. IEFP and EDP join forces to transform the Sines coal-fired power plant into a centre of excellence for green hydrogen
Copy link to Box 4.3. IEFP and EDP join forces to transform the Sines coal-fired power plant into a centre of excellence for green hydrogenThe last two coal-fired energy plants of Portugal, in Pego (Centre Region) and Sines (Alentejo), closed in 2021 after thirty years of operations. In the case of Sines, the main energy company of Portugal, EDP (Energias de Portugal), which is today a fully privately-owned company, had operated one of Portugal’s largest coal-fired power plant since 1985. The company will dismantle the thermoelectric power plant and create a green hydrogen plant to produce renewable electricity by 2025. The Sines power plant will also house a centre of excellence offering training and incubation programmes in partnership with local higher education institutions (University of Evora and Superior Technical Institute). Finally, EDP has established the programme Futuro Ativo for workers and their families in Sines, comprising a training programme in partnership with the Institute for Employment and Vocational training (IEFP) and an entrepreneurship incubation programme. EDP also opened in partnership with the Municipality of Sines and the IEFP a local social referral office to support workers in this transition. The office catered to the different needs of the local population including psychological support, social funding, and support for employment and training. Through Futuro Ativo, as of 2023, 77% of the workers at the old power station had found a new job; 12% were in training and 11% had retired or were on sick leave. In 2023, the entrepreneurship programme had reached 45 entrepreneurs and supported 36 start-up projects that had created 22 jobs. As to the social referral office, it had attended 117 demands and supported 22 requests for social and psychological support.
Source: (EDP, 2022[25]); (EDP, 2023[26])
4.4.5. Overall, Portugal is committed to the provision of green skills to low and mid-skilled workers, but there should be more efforts to reach high-skilled workers
Current initiatives show the commitment of the government of Portugal to prepare the labour force for the green transition, especially low and mid-skilled workers. Many of these initiatives are also sufficiently tailored to assist critical sectors, such as the textile industry, or regions with higher-than-average shares of brown jobs (i.e., jobs in polluting industries). Furthermore, most programmes include meaningful financial incentives for companies and workers, which support a strong take-up.
However, as noted earlier, the government of Portugal should also pay more attention to the development of green skills in high-skilled workers. There is, indeed, a growing consensus on the importance of engineering and entrepreneurial skills, which are generally held by high-skilled individuals, for the green transition to be successful. Examples include engineering skills for product eco-design9 and managerial/entrepreneurial skills for the implementation of environmental organisational practices (Vona et al., 2018[27]) (OECD, 2023[3]). This highlights the growing importance of integrated “skill bundles” that combine specific technical skills with more transversal managerial skills. Universities, in partnership with the business sector, would be the most suited entities to deliver such skills through the offer of both specialised courses and micro-credentials.
4.5. Portugal’s green technology adoption programmes
Copy link to 4.5. Portugal’s green technology adoption programmesPortugal’s green technology adoption policies are mostly financed through the national RRP, which is structured around three pillars: resilience (e.g., innovation capacity, skills, and education), green and digital transition. Similar to the RRPs of other EU countries, Portugal’s RRP was updated in 2022 to integrate measures from the “RePowerEU” initiative, which intended to reduce the dependence of the EU on Russian oil and gas through improved energy efficiency and diversification of energy sources. The updated RRP of Portugal includes 44 regulatory reforms and 123 investment programmes under 21 components. About 40% of RRP funding is estimated to support green investments (Recuperar Portugal, 2023[28]).
4.5.1. The sectoral decarbonisation roadmaps support green technology upgrades and green skills through a collaborative approach
The most relevant component of Portugal’s RRP for the green transition of the industrial sector is Component 11 (C11): “industry decarbonisation”. Within the framework of C11, government and industry representatives, based on a consultative process, have designed several sectoral decarbonisation roadmaps which map out the main expected policy initiatives to encourage industry decarbonisation. The rest of this section details the cases of textile/clothing and plastics, which are two environmentally relevant sectors in which SMEs are heavily represented10.
The textile and clothing industry’s decarbonisation roadmap
The decarbonisation roadmap of the textile and clothing sector, called the RDC@ITV and launched in October 2023, is the result of a collaborative process between CITEVE (the national technology centre for the clothing and textile industry), the Textile and Clothing Association of Portugal (ATP), and the National Association of the Clothing and Apparel Industries (ANIVEC/APIV). The roadmap has a strong focus on measuring emissions, technology adoption and skills development, which reflects the main concerns of industry stakeholders (see section 4.3). More specifically, three main components comprise the roadmap (CITEVE, 2023[29]):
A cost-benefit analysis of the most relevant decarbonisation technologies, with a special focus on digitalisation, circular economy, and water usage.
The development of a toolkit to enable companies to measure their carbon footprint and provide suggestions on the best technologies and strategies to reduce emissions.
Training and capacity-building to support the adoption of green technologies.
The development of a toolkit, by enabling the measurement of energy consumption, should facilitate the identification of appropriate energy-saving measures, as shown by the energy-audit work of the Portuguese energy agency (Portuguese Energy Agency (ADENE), 2019[10]).
On the downside, little information is currently available on the implementation of the roadmap, including, for example, on the specifics of the toolkit, the costs and benefits of the recommended decarbonisation technologies, or the expected training programmes. Furthermore, based on information from the fact-finding mission, there appears to be a need to upskill and reskill workers with digital skills. The expected implementation of the EU digital passport for the textile sector will require companies to provide data on the environmental characteristics of their products, including their geographical origins, carbon emissions and share of plastic microfibers. In France, a legislation introduced in 2023 that required textile companies to reveal their “eco-score” (a score calculating the environmental footprint of their products) already caused controversy due to a lack of clarity on the methodology and the reporting burden for SMEs (Le Monde, 2023[30]). In this regard, some countries have implemented initiatives that provide SMEs with green and digital skills at the same time, something that the government of Portugal could consider (see Box 4.4).
Box 4.4. Examples of national programmes combining green and digital skills
Copy link to Box 4.4. Examples of national programmes combining green and digital skillsThe Netherlands supports life-long learning activities for SMEs in several critical fields
The MKB!dee is an initiative of the Dutch ministry of Economic Affairs to promote the development of lifelong learning experimental approaches in SMEs. Launched in 2018, the programme is implemented by the Dutch national STEM platform (PTvT) in cooperation with the Dutch Enterprise Agency (RVO). Training focus is on the following areas: climate and energy transition, digitalisation, and lifelong learning in small firms with less than 50 employees. Applications for this training programme are submitted directly by companies. Between 2018 and 2021,169 projects were approved for a budget of EUR 26.8 million.
Canada’s Digital Skills for Youth Program supports SMEs in their digital and green uptake
Canada’s Digital Skills for Youth Programme is designed for post-secondary graduates. It offers the possibility to undertake an internship (from 3 to 12 months) in an SME (under 500 employees) or in a not-for-profit company to help graduates develop their digital competencies. The programme provides funding for employers to cover wages up to CAD 18 000. Eligible roles include digital marketers, developers, data analysts or IT specialists with a focus on the environment (e.g., sustainable data storage).
Ireland’s “Skills to Advance” is a training programme specifically conceived for SMEs
SOLAS, an agency of the Irish Department of Further and Higher Education, Research, Innovation and Sciences, coordinates the “Skills to Advance” programme. The programme provides subsidised training for SMEs aimed at upskilling and reskilling employees in sectors that are undergoing structural changes. Training is provided across several areas, including dedicated modules and courses on digital and green skills, with a focus on strengthening the environmental awareness of employees.
The plastics industry’s decarbonisation roadmap
Under Component 11 of the RRP, Portugal’s Plastics Industry Association (APIP) and consulting company EY-Parthenon, received approval for the Roadmap for the Decarbonisation of the Plastics Industry (RDIP) in May 2023. The roadmap aims to decarbonise the plastics industry and promote a paradigm shift in the use of resources. The plastics industry roadmap hinges on four axes: demand management, energy efficiency, decarbonisation of production, and decarbonisation of raw materials.
Over the 2023-2025 period, several thematic workshops and webinars are expected to be organised to inform and train stakeholders. Like for the textile and clothing industry roadmap, a digital self-diagnosis tool will be developed, which will allow companies to measure their emissions and identify the most cost-effective decarbonisation strategies.
The plastics industry’s roadmap consists of four sequential phases:
Diagnostic evaluation and information collection.
Development and definition of decarbonisation models.
Forecasting scenarios up to 2050.
Mobilisation of industry stakeholders towards achieving the most cost-effective scenarios.
This initiative targets a critical sector that is under significant regulatory pressure to decarbonise, improve recycling and move away from single-use plastics (see section 4.3). Industry stakeholders, such as APIP, raised some concerns during the fact-finding mission of the project about the ability of local SMEs to calculate their emissions, as large buyers start to ask for this information due to their future obligations to report on indirect emissions, and about the need to harmonise reporting requirements across the whole industry (see also chapter 3 on the issue of sustainability reporting requirements).
4.5.2. The Mobilising Agendas connect research with business to accelerate industry decarbonisation
Within the context of the national RRP, the government of Portugal has also launched 53 “Mobilising Agendas”, whose goal is to enhance collaboration between research and industry. Twenty of these agendas focus on green-related R&D. The Mobilising Agendas are a major undertaking of the government, involving almost 1 250 entities, including 941 companies (60% of which are SMEs), 119 research institutes, 87 business associations and 41 government bodies. Each Agenda takes the form of a consortium and is funded by the SME agency of Portugal, IAPMEI. At the end of 2024, 13 green-related agendas had started, with an initial investment of EUR 145 million (Government of Portugal, 2023[34]).
One example is the Mobilising Agenda for Sustainable Plastics, whose objective is to improve resource efficiency and reduce the carbon footprint of the sector, while creating new job opportunities in the industry. More specifically, the project aims to encourage the use of recycled or reused materials in the production process, support the use of alternative raw materials, and incorporate the use of biodegradable or compostable plastics. The Mobilising Agenda for Sustainable Plastics is divided into eight work packages, with each package addressing specific research and innovation challenges (e.g., development of new raw materials through the recycling of contaminated materials).
The Mobilising Agendas are a promising industry-university collaboration programme, whose ambition is to support the so-called “third mission” of research institutions, encourage research commercialisation and foster knowledge spillovers from research to the business sector. However, industry stakeholders have also raised some concerns, such as difficult coordination between public and private actors, notably due to the lack of a collaborative culture between universities and the business sector and delays in the disbursement of government funding. The lack of collaboration between universities and the business sector often arises from mismatched objectives and goals, as well as cultural and operational differences. Universities tend to privilege long-term research and strategies, whereas the private sector pursues more immediate commercialisation objectives. Another common problem relates to the lack of incentives for universities to engage with the business sector (Marques et al., 2024[35]). In the case of Portugal, an additional obstacle, as mentioned by stakeholders during the fact-finding mission of the project, is that R&D funding is fragmented and sometimes follows different logics and objectives depending on the funding source, which can make it difficult for companies to navigate the existing available options, find options aligned with their needs, and ensure consistent innovation funding over time. Possible solutions to improve industry-university collaboration include dedicated programmes like knowledge transfer partnerships (KTPs), stronger career incentives for academic staff to engage in applied R&D, and closer involvement of the private sector in the offer of academic programmes, for example through sponsored degree and nondegree programmes or industrial Ph.D. programmes (i.e., Ph.D. programmes jointly developed by universities and companies).
With respect to delays in government funding, one solution would be to hire an external contractor to assess project applications and process the disbursal of funding, based on clear guidelines set by the government which would also maintain an overall oversight role.
4.5.3. Technology and research centres support the adoption of green technologies in SMEs
Portugal has several industry-specialised technology and research centres which have been involved in the implementation of both the Mobilising Agendas and the Sectoral Decarbonisation Roadmaps. These centres are currently playing a key enabling role in the green transition of manufacturing, especially for SMEs which often lack internal resources to undertake research projects on their own.
The Technological Centre for the Textile and Clothing Industry (CITEVE)
The Technological Centre for the Textile and Clothing Industry (CITEVE) is engaged in a broad spectrum of initiatives aimed at advancing technology, enhancing sustainability, and fostering entrepreneurship. For instance, CITEVE leads the “Bioeconomy at Textiles” (BE@T) project in collaboration with 54 entities including companies, universities, and technological institutes, with a total funding of EUR 138 million (including EUR 71 million from the national RRP). The project started in 2022 and runs until December 2025. It includes different bio-economy components, such as the use of natural bio products for the production of fibres (e.g. cork and waste from the fishing industry) and for the dyeing process (e.g., mushrooms), supports the recycling of old cotton garments, and collaborates with retailers to promote sustainable consumption.
Other programmes operated by CITEVE are the Blue Bioeconomy Pact, which explores the use of algae as a source of fibre, and the Green Auto initiative, which focuses on the development of green textile material, for example based on recycled fibres, for the automotive industry. CITEVE is also working on water management through the development of smart monitoring systems for water usage, textile being a sector which makes an intensive use of water.
CITEVE also runs the Innovation Pact for Digitalisation, which covers the development of 26 digital solutions, including data sharing and digital skills for the adoption of the so-called EU digital passport, which is meant to enhance the traceability and transparency of textile products. The Pact also includes an acceleration programme, the Take-Off Project, to support technology-based ventures in high-tech textile materials. The acceleration programme has so far spun out six new companies, engaged with 46 entrepreneurs, and developed 17 prototypes (CITEVE, 2023[36]).
These projects put CITEVE at the core of the ongoing efforts to build a more sustainable and resilient textile sector. The research conducted by the Be@T project, for example, will help the sector develop more bio-based raw material, while the Innovation Pact for Digitalisation will support compliance with the digital product passport regulation. As noted earlier, the offer of digital skills could be matched with soft skills (e.g., problem-solving, communication and managerial skills) to support the better integration of technical knowledge into business processes.
The Leather Technology Centre (CITIC)
CITIC is the technology centre of the leather industry and provides similar services to CITEVE (testing, R&D and advisory services). CITIC is also working to support the transformation of the leather sector, notably its transition to more sustainable material that can be re-used or re-introduced in the production process. There is, indeed, an estimated 10 million tons of animal skin per year globally that goes to landfill if not re-used. CITIC collaborates regularly with leather companies on collaborative research projects (such as 3D printing done with leather residues) and conducts regular training courses, including in collaboration with the Polytechnic of Tomar (level 5 qualification, equivalent to two-year post-secondary education). Training programmes typically include modules on environmental sustainability.
These projects contribute to making the leather sector more sustainable, including through better use of water in the production process. However, training programmes in the leather industry receive little attention (i.e., 10 people trained on average every year), mostly because the sector is small and finds it difficult to attract young people. In this regard, awareness-raising campaigns and mobility programmes could be undertaken to attract younger generations in the industry. A recent initiative undertaken by Nova University in Lisbon, alongside the Portuguese Employers Confederation (Confederação Empresarial de Portugal, CIP11), shows that universities are progressively opening courses in this field (see Box 4.5).
Box 4.5. Management courses for SMEs at the Nova University Lisbon
Copy link to Box 4.5. Management courses for SMEs at the Nova University LisbonThe University of Nova’s School of Business and Economics and the Portuguese Employers Confederation (CIP) launched the first edition of the "Voice Leadership for SMEs" management programme in 2023. This programme includes several modules, including finance, technology, and sustainability. Designed to be accessible to SME owners and employees, it offers an affordable executive education programme in a simplified format. The programme encompasses classes, mentoring, and numerous events, providing participants with a comprehensive learning experience. It currently has over 40 professionals engaged in the Mentoring Certification Programme and aims to collaborate with 500 companies.
The Centre for Innovation in Polymer Engineering (PIEP) of the plastics sector
In the plastics sector, the Centre for Innovation in Polymer Engineering (PIEP), a private association led by industry stakeholders together with the Department of Polymer Engineering of the University of Minho (DEP-UM) and IAPMEI, provides research, technical advice, technology transfer, and product development services to companies in the plastics and related sectors. The Centre primarily focuses on developing and testing sustainable products, such as bio-based plastics and biodegradable polymers. The Centre is also working on raw materials through an R&D project which intends to reduce dependency on imports and import-related emissions. The Centre serves 300 companies per year, most of which are SMEs. Most funding has traditionally come from IAPMEI, although many recent projects on sustainable plastics are funded by the national RRP.
PIEP has many projects in the field of environmental sustainability, such as the abovementioned “Blue Bioeconomy Pact,” which is promoting the application of marine bioresources to multiple industries and in which CITEVE is also a partner. Bioshoes4All is another project that supports innovation and training in the footwear sector. PIEP is leading this initiative, which includes almost 70 organisations from different sectors and aims to promote the development of new biomaterials and components, footwear and leather eco-products, and technologies to minimise waste in the production process.
Finally, PIEP also has a dedicated project on green and digital skills with mould-specialised companies, which has developed, among other things, a toolkit to assess environmental sustainability and introduced the use of AI at the firm level. This last initiative is part of a larger project that gathers around 16 companies and universities to leverage digital technologies to optimise the manufacturing process.
These projects are steering Portugal’s plastics sector towards greater sustainability, including through the creation of new products (biopolymers), decarbonisation of production and waste minimisation. Led by a research centre, and carried out often in consortia, these initiatives are generally an effective way of helping companies, including SMEs, gain access to strategic resources, such as knowledge, skills, and technologies. Nevertheless, during the fact-finding mission of the project, industry stakeholders reported that there is often a communication gap in consortia between policymakers and the business community, especially SMEs, which often find it challenging to voice their needs and views. In addition, industry stakeholders reported that R&D funding is fragmented and sometimes follows different logics and objectives depending on the funding sources, which can make it difficult for SMEs to navigate the existing available options.
4.6. Portugal’s circular-economy programmes
Copy link to 4.6. Portugal’s circular-economy programmes4.6.1. The government of Portugal is also experimenting with small-scale circular economy and bioeconomy programmes
The Portuguese government is also implementing some smaller programmes to help businesses adopt the principles of the circular economy. Portugal’s Environmental Agency (Agência Portuguesa do Ambiente, APA) is the main institutional player in this field. As of early 2024, it was working on the “National Plan for Biodiversity and the Circular Economy: 2025-2030”, which will target three sectors: textile and clothing, footwear, and natural resin. The Plan, which was released at the end of 2024 and is partly funded by the national RRP, aims to strengthen the bioeconomy and the circular economy through R&D, education, and skills development. For each of the three sectors, it has set specific targets. For instance, in the textile and clothing sector, the Plan aims to replace 40% of fossil fibres with bio-based fibres and increase circularity in used textiles by 40% by 2030. In the footwear and leather sector, the Plan targets the incorporation of biomaterials in the manufacture of end products and a 90% recycling rate of production waste. The Plan also has specific actions for SMEs, such as the development of partnerships with private financial institutions, the standardisation of sustainability reporting, and the establishment of a circularity accelerator. APA also has training initiatives for SMEs, such as the CIRCO Hub (Creating Business through Circular Design), which is jointly implemented with IAPMEI. This project is inspired from a similar project conducted in the Netherlands and includes different circular-economy training modules for SMEs (CIRCO Hub Portugal, 2024[38]). Finally, APA has launched a non-municipal waste strategy, which include awareness-raising measures and R&D support in the field of industrial waste management.
APA and IAPMEI are not the only agencies involved in the promotion of the circular economy in Portugal. ADENE, the Portuguese energy agency, has created a voluntary ranking system, called “eCircular”, which allows SMEs to assess their use of water, energy, and materials through a questionnaire (ADENE, 2024[39]). Upon its completion, companies receive a score from F to A+, together with a set of recommendations to improve performance. The implementation of this methodology has been tested through a pilot project involving 40 companies, with an additional 30 companies subsequently joining the initiative. In the pilot phase, the initiative was for free, but in early 2024 a fee between EUR 450-1 450 was being charged, depending on firm size.
This initiative has the merit of showing not only areas for improvement, but also SMEs’ ongoing sustainability efforts. In this respect, the ranking can be a powerful tool to help SMEs gain access to new markets through a label that witnesses their superior environmental performance. The tiered pricing structure of the initiative should also make it more accessible for SMEs, despite many of them still being reluctant to spend on instruments and labels which are not strictly demanded by the government or larger buyers. In this respect, the government could consider covering part of the assessment costs, at least for the smallest SMEs, to ensure a larger take-up of this initiative.
Finally, “Vale Economia Circular” is a voucher programme of IAPMEI that helps SMEs to adopt circular business models. The programme offers grants of EUR 7 500 that SMEs can use for advisory services in the following areas over the course of a year: product and process eco-design, eco-efficiency and eco-innovation, energy efficiency, and product lifecycle extension (IAPMEI, 2021[40]). Other countries are introducing similar initiatives in the EU, as shown by the example of Slovenia (see Box 4.6).
Box 4.6. Slovenia’s SME Agency’s programme for the circular economy
Copy link to Box 4.6. Slovenia’s SME Agency’s programme for the circular economyIn Slovenia, the Ministry of Economy Tourism and Sports, through its SME dedicated agency, SPIRIT, is helping SMEs to achieve more sustainable business models. Through one of the agency’s programmes, an expert is assigned to each participating company to provide customised advice. The first phase of the project focuses on the integration of circular-economy principles into the company’s operations and preparation of a long-term sustainable business strategy. In the second phase, the company is eligible for a grant between EUR 10 000 to EUR 90 000 to implement some of the measures envisaged in the strategy.
Source: (Spirit Slovenia, 2024[41])
All these policies are expected to help SMEs improve their environmental sustainability. Nevertheless, some initiatives, such as the draft of the non-municipal waste strategy, have not seen the participation of SME associations in the consultation phase. This might reduce the extent to which environmental regulations reflect the specificities of SMEs, which often need a more gradual and proportional approach to the implementation of new regulations, in line with the EU “Think Small First” principle12. Going forward, SMEs could be better involved by being invited to the early phase of the legislative process to gather their views before the first draft of the law and by being given the opportunity to comment on following drafts of the law.
Some waste-management regulations also make the objective of increasing the rate of recycling difficult to achieve, although the ultimate objective of these regulations is to protect consumers. For example, under the National Waste Directive, currently under revision, there is an obligation for companies to ensure that the reintroduction of waste materials into the production cycle does not adversely affect the quality of new end products (Diário da República,Portugal, 2020[42]). Businesses have expressed concerns that demonstrating compliance with this requirement is difficult, suggesting the need for clearer guidelines and more accessible tests to prove the overall quality of the recycled material.
4.7. Conclusions and policy recommendations
Copy link to 4.7. Conclusions and policy recommendationsThe green transition is at the same time both an opportunity and a challenge for firms and regions. Companies in energy-intensive industries are more exposed than others to the growing demand from society and policy makers to decarbonise the economy. Many of these companies are SMEs, like those in sectors like textile, plastics and ceramics, which have been more closely analysed in this chapter. Places are also not equally affected by the green transition, as regions have unique geographical assets and industrial legacies that make their prospects in the face of the green transition different. Regions with high proportions of brown jobs need to adapt quickly and find new specialisations, whereas services-driven capital regions and regions that enjoy climate-relevant natural assets, such as long hours of sunlight, are set to benefit the most in terms of new green job creation. The green transition, therefore, requires significant upskilling and reskilling of the labour force, as well as the uptake of new green technologies at the firm level, to ensure that such transition is also socially inclusive. This is especially true for SMEs, which have fewer human and financial resources than larger companies to invest in workforce training and technology upgrading.
This chapter has shown that there is an increasing number of green jobs in Portugal, including outside the capital region of Lisbon. However, some regions, such as the North or Alentejo in the south, still have a high number of non-green jobs. Non-green jobs are also mostly found in manufacturing and mid-sized firms, the two categories presenting some overlaps (i.e., most mid-sized firms with polluting jobs are in manufacturing). Manufacturing is also the industry that is faced more than any other industry with new environmental technology requirements, many of which are driven by EU regulations (e.g., digital product passport in textile, single-use plastic, etc.)
The government of Portugal is actively supporting green skills development and the adoption of green technologies in SMEs. The two main green skills programmes are the Green Skills and Jobs programme and Qualifica Industria, both of which target the unemployed and low- and mid-skilled workers at risk of job loss due to the green transition. In addition, the government of Portugal is updating its national qualification system to offer more green skills training programmes and has launched new training centres in the regions that have been negatively affected by the green transition.
In the field of green technologies, the two most relevant initiatives are the Decarbonisation Roadmaps and the Mobilising Agendas, both of which are funded by the national RRP and adopt a consultative approach to the promotion of the most relevant environmental technologies in targeted sectors. Technology centres, which have long existed in Portugal, are actively involved in the delivery of these measures, which has made it possible their swift implementation. Nonetheless, especially with respect to the Mobilising Agendas, industry stakeholders have raised some concerns, such as a limited collaborative culture between universities and the business sector, a lack of regular and consistent funding for industrial research programmes, and delays in the disbursement of public funding.
Finally, the government of Portugal has initiated small pilot programmes that encourage the adoption of circular-economy practices at the firm level. These programmes are noteworthy, but they need to be expanded to have a better impact on SMEs.
Against this backdrop, the following policy suggestions are put forward to support the development of green skills and the uptake of green technologies in Portuguese SMEs, with the Action Plan that provides further details on some of these measures.
4.7.1. Policy recommendations
Increase the number of green-relevant education and training programmes that target high-skilled workers, who are currently less covered in national green skills policies. Examples of high-level green skills include engineering skills for product eco-design and management skills for the adoption of environmental management practices at the firm level.
Introduce labour mobility schemes to facilitate the take-up of new green jobs, including by workers previously employed in brown industries, for example through the preparation of toolkits giving information on career transition pathways.
Set up an Observatory of Green Jobs to follow the evolution of green jobs and anticipate the demand for green skills across different industries and regions, with a view to supporting the development of new national qualifications and education/training curricula.
Further strengthen collaboration between universities and the business sector in the context of the Mobilising Agendas, for example through financial incentives for university professors and researchers to engage with the business sector and by further leveraging the role of the existing technology centres, some of which are already attached to or have close relationships with universities.
Ensure continued funding for green skills development and green technology adoption in SMEs after the end of the national Recovery and Resilience Plan, for example by earmarking a fraction of environmental tax revenues for this purpose.
Involve business associations, including SME representatives, in consultations concerning waste management and circular-economy regulations to ensure that they take into due considerations the compliance needs of SMEs, for example through the adoption of a gradual and/or proportional approach in the implementation of new regulations.
Undertake an evaluation of the main green skills and green technology programmes to better understand the impact of funding and advisory services on the environmental and economic performance of SMEs.
Annex 4.A. Action Plan: Green skills development and green technology adoption in Portuguese SMEs
Copy link to Annex 4.A. Action Plan: Green skills development and green technology adoption in Portuguese SMEsAction 1. Establish a National Observatory for Green jobs
Copy link to Action 1. Establish a National Observatory for Green jobsRationale and description of the initiative
This chapter has shown that green jobs are unevenly distributed across regions. From a policy perspective, monitoring the evolution of these trends can help policy makers design better training policies. The creation of a National Observatory of Green Jobs would enable a systematic analysis of jobs and skills gaps from a green transition perspective. By tracking the demand for green skills, the Observatory would also help education and vocational training institutions to adapt their curricula. Finally, the Observatory could also monitor the impact of training programmes on local labour markets, for example in terms of increased green jobs and decreased brown jobs and wage trends associated with this change.
Expected results
This initiative should result in a better understanding the distribution of green jobs in Portugal across sectors and regions, thus supporting the offer of more relevant training in green skills. Such an initiative could also support the transition of high-emission sectors by better anticipating new skills and job requirements in light of recent technological changes and propose transition pathways and related support measures for workers in “brown” industries which are negatively affected by the green transition. Overall, the main expected outcome of the Observatory would be the design of better evidence-based green skills policies, including by suggesting how government funding should be allocated to different sectors and regions.
Key performance/monitoring indicators
Performance indicators for this initiative could include:
Formulation of a standard definition of green jobs and skills.
Annual report on green skills and green jobs by region and sector.
Creation of a website with live statistical information on these indicators.
Impact evaluation studies of green skills programmes.
Key authorities
This initiative should be led by the Ministry of Employment, in collaboration with the national statistical office of Portugal, the Ministry of Education and the Institute for Employment and Professional Training (“IEFP”). The last two institutions would also be the main beneficiary of the information coming from the Observatory, as they would be in charge of the design of new relevant education and training courses. The Ministry of Economy, IAPMEI as well as industry associations and technology centres could also be involved in the initiative to bring their own perspectives to the table.
International policy example: the National Observatory for Jobs and Occupations of the Green Economy in France
Description of the approach
In 2010, the French government set up a National Observatory for Jobs and Occupations of the Green Economy called ONEMEV (French acronym) to understand the impact of the green transition on the labour market and anticipate future job profiles. Established as an autonomous institution, ONEMEV originates from a cross-government effort bringing together the French Agency for the Environmental Transition (ADEME), the Centre for Studies and Research on Employment and Skills (CEREQ), the French Office of Statistics and Economic Studies (INSEE), the Directorate General for Employment and Professional Training at the Ministry of Employment, the Finance Secretariat and several professional associations and regional employment and training observatories.
A frontrunner in this area, one of the first activities of ONEMEV has been creating a standard definition of green jobs and “greening jobs” (jobs indirectly contributing to the green transition, such as architects who design thermally isolated buildings). The Observatory has then been mandated to create a methodology to measure the uptake of both types of jobs and provides yearly statistics, forecasts, and analyses to improve knowledge on the type of jobs and professions that the green transition creates. Finally, the Observatory also assesses the impact of the green transition on skills and trainings.
Factors of success
ONEMEV has succeeded in providing key data on green jobs and green sectors in France on an annual basis. The success of this initiative stems from its rigorous statistical and analytical approach, as the Observatory has sought to understand not only the evolution of employment in green activities, such as renewable energy or environmental protection, but also the evolution of green-tasked occupations. This approach bridges the two different definitions of green jobs (“sectoral” versus “task” approach) and offers a comprehensive perspective, which enables policy makers to capture changes in sectors and occupations and adjust the training offer accordingly. Many diplomas now include a focus on awareness-raising or sensitisation to green issues. Advanced technical degrees for green occupations have also been launched.
The success of the Observatory also lies in its governance model, bringing together national and regional actors, which enables effective collaboration and coordination across different levels of government. In fact, the Observatory relies on the networks of its constituting organisations and partners to achieve its missions and mandates.
Obstacles and responses
Despite the success of its collaborative approach, in its latest activity report the French Observatory, identified that more coordination is needed between policy makers from the respective policy fields of training and environment. The activity report also highlighted the need for more comprehensive data and analysis on the impact of the green transition on employment, job profiles, skills sets, and training opportunities at a regional level. As a result, in 2023, the National Observatory conducted, in partnership with regional Observatories, studies in three different regions, which have been summarised into a final report.
Another challenge for the Observatory has been to stay up to date on definitions and statistical trends of green jobs and skills, as the green transition increasingly affects the labour market. As a result, the Observatory continues to refine its methodological approach to ensure that new professions are added to the list of green and “greening jobs” and others are deleted. This is an important task which affects the identification and provision of vocational education and training courses.
Relevance to Portugal
In Portugal, there are strong regional differences in the distribution of green jobs, pointing to the importance of monitoring these trends more closely at regional level, in partnership with local authorities. A National Observatory could play this role and help economic and employment policy makers to design new education and training initiatives, for instance for high-skilled workers, currently an underserved target group in Portugal.
For further information
Website of the Observatory: https://www.ecologie.gouv.fr/lobservatoire-national-des-emplois-et-metiers-leconomie-verte#scroll-nav__1
National Observatory for Jobs and Professions for the Green Economy (2023), 2022 Activity Report, https://www.statistiques.developpement-durable.gouv.fr/media/6535/download?inline.
Ministry of Environmental Transition and Territorial Cohesion France (2023), National Observatory for Jobs and Occupations of the Green Economy, https://www.ecologie.gouv.fr/lobservatoire-national-des-emplois-et-metiers-leconomie-verte.
CEDEFOP (2018), Skills for green jobs: an update, https://www.cedefop.europa.eu/files/france_green_jobs_2018.pdf
Ministry of Environmental Transition and Territorial Cohesion France (2025), Ressources sur l'emploi et la transition écologique (Digital database that centralises more than 160 resources on the theme of employment and the green transition – including events, studies, initiatives, tools – undertaken at the European, national, territorial, and sectoral level), https://ssm-ecologie.shinyapps.io/onemev/
Action 2. Develop career transition pathways for displaced workers
Copy link to Action 2. Develop career transition pathways for displaced workersRationale and description of the initiative
Helping workers and companies adapt to the green transition requires not only training but also career transition pathways that allow workers to move swiftly from polluting sectors to non-polluting sectors. Developing a toolkit to support workers in critical, energy-intensive industries can help them upskill, integrate into new jobs, and mitigate the negative employment impacts of the green transition. A toolkit could support local stakeholders, such as local governments, social partners, and sectoral associations, to assist workers in impacted industries and job seekers affected by the industrial transition to move into new jobs and careers. Such a toolkit would provide a methodological framework to identify sectors and companies which could benefit from targeted support.
Expected Results
The policy should yield several positive outcomes:
Preventing a rise in unemployment rates by ensuring that displaced workers find jobs in new industries, including green sectors, especially in regions with a high number of polluting jobs.
Ensuring that the green transition is also a just transition, by preventing social and territorial inequities in the distribution of green jobs.
Providing tailored training to workers in industries that are going through a reconversion process.
Enhancing workforce resilience and helping firms remain competitive during the transition.
Key Performance/Monitoring Indicators
To assess this policy, possible key performance/monitoring indicators would be:
Unemployment rate in regions negatively affected by the green transition.
Number of displaced workers actively engaged in a transition pathway, for example by undertaking relevant training.
Number of displaced workers finding a new job or actively looking for one.
Number of workers retaining their new job after one or two years.
Key authorities
This initiative should be led by the Ministry of Employment and the Institute for Employment and Vocational Training (IEFP), with support from the Ministry of Economy and the Ministry of Environment as knowledge partners, for example with respect to emerging technologies which could have an impact on green skills requirements. The involvement of local authorities from regions negatively affected by the green transition could also benefit the initiative.
International policy example: France’s career transition toolkit
Description of the Approach
The French Ministry of Labour launched a toolkit to support career transitions in 2015. This toolkit was designed to help local stakeholders, such as social partners and sectoral associations, to assist workers in impacted industries and job seekers affected by the industrial transition to move into a new job and career. The toolkit was developed after pilot experiments in three areas with a high concentration of both traditional and emerging industries: Strasbourg, Étang de Berre, and Le Havre.
More specifically, the toolkit provides a methodological framework that enables:
The identification of local stakeholders who could participate in the development of career transition projects.
The identification of companies going through structural change due to the green transition.
The identification of skills similarities between jobs in sectors undergoing structural change and jobs in emerging green sectors.
The support of employment and secure career paths for employees and jobseekers.
Factors of Success
Collaboration between governments, social partners and civil society organisations has been behind the successful implementation of this measure at regional level. For example, in Alsace, the House of Employment and Training of Mulhouse (Maison de l’Emploi de la Formation) created a working group which included regional authorities, social partners, networks of companies and local employment centres to identify sectors and jobs affected by the green transition. This working group met twice a year and led to the creation of the internet website “monmetierdedemain.com” which identifies career transition bridges between sectors in transition in South Alsace. In Le Havre, Le Havre Développement, the local development authority, collaborated closely with companies to assist workers in transition in securing a new job in the offshore wind sector. The strong engagement of local stakeholders has often been essential in designing training programmes that would meet the needs of local emerging sectors.
Obstacles and responses
A report evaluating this initiative suggested that the policy should have engaged employers more proactively to raise their awareness about the impacts of the green transition. This is especially true for SMEs, which often lack sufficient human resources, making it difficult for them to engage in this type of initiative without adequate awareness campaigns. The report also emphasised the need to secure better financial incentives for companies and individuals to participate in the training programmes. Despite these issues, the evaluation report was overall positive, suggesting that the career transition pathways have been crucial to support local development.
Relevance to Portugal
Portugal is already implementing several programmes to help workers upskill and reskill, such as the Green Skills and Jobs programme or the new Training Centre for the Green Transition. Developing a toolkit to help workers transition to new sectors, including in green-tasked jobs, could be another option to support workers in regions where there is still a high proportion of brown jobs, notably by allowing the identification of new job opportunities.
For further information
Ministry of Environmental transition and Territorial Cohesion France (2023), Supporting career transitions, https://www.ecologie.gouv.fr/laccompagnement-des-transitions-professionnelles.
France Strategie (2023), Rising collectively to the challenge of professional transitions, https://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/atoms/files/fs-2023-rapport-rec-transitions_professionnelles-juin.pdf.
MEF Mulhouse Sud Alsace, Mon métier de demain, https://www.monmetierdedemain.com/
Action 3. Introduce labour mobility schemes to attract high-skilled workers
Copy link to Action 3. Introduce labour mobility schemes to attract high-skilled workersRationale and description of the initiative
Labour mobility schemes can complement training programmes to attract the high-skilled workers needed for the green transition. In particular, the introduction of employment permits specifically designed for high-skilled workers in green sectors could support the achievement of the country’s environmental objectives, particularly in energy-intensive sectors which are at the core of the green transition.
Expected results
This initiative would accelerate the implementation of green-transition projects by bringing in foreign technical expertise, especially in sectors where Portugal has a skills gap. Furthermore, high-skilled workers often bring new perspectives and methodologies, fostering innovation, technology transfer and the adoption of new green technologies. Finally, the presence of skilled professionals can facilitate knowledge spillovers and skills transfer to the local workforce, thereby raising the overall skill levels of Portugal’s industry.
Key performance/monitoring indicators
Key performance/monitoring indicators for this measure would include:
Number of “green” employment permits.
Number of days needed to provide a “green” employment permit.
Sectoral and regional distribution of green employment permits.
Retention rate (e.g., after 3-5 years) of workers who had received a green employment permit.
Key authorities
This initiative would involve close collaboration between the Ministry of Labour, Solidarity and Social Insurance, which has a better understanding of the skills gaps in the national labour market, with the Ministry of Interior and the Ministry of Foreign Affairs, which have shared responsibilities in immigration policies. Inputs from the Ministry of Economy, for example on the sectors where green skills are most needed, would also contribute to the success of the initiative.
International policy example: Critical skills employment permit in Ireland
Rationale and description of the approach
Ireland operates a Critical Skills Employment Permit (CSEP) programme for occupations in short supply in the local labour market, such as ICT professionals, engineers, and natural science professionals (biochemists, medical laboratory scientists). The Department of Enterprise, Trade and Employment oversees this initiative, including eligibility criteria, such as minimum annual renumeration, relevant higher degree qualification, professional experience, and a minimum 2-year job offer from the prospective employer. The application needs to be received 12 weeks before the start of the employment and costs EUR 1 000 (90% of the fees are reimbursed if the application is rejected). Once candidates apply for the employment permit, they can also apply for a visa, if required. One distinctive feature of this initiative is that once the employment permit expires, permit holders can apply for naturalisation to become an Irish citizen (with the support of the Department of Enterprise, Trade and Employment) in order to continue to live in the country.
Factors of success
The permit has several benefits for applicants, including the ability to apply for Irish naturalisation upon completion of the permit (two years). In addition, because the permit is intended for applicants with skills in short supply, the government has decided to exempt candidates from taking a test (the “Labour Market Needs Test”), which is required for all other employment permits. Candidates just need to go through the normal recruitment procedures. Finally, spouses can join the CSEP applicant and apply for a job in Ireland, which also makes this programme appealing to high-qualified candidates.
Obstacles and responses
An employment permit designed to attract high-skilled workers could encounter some obstacles such as legislative or bureaucratic hurdles and resistance from local workers. In addition, it would be important for a similar scheme to regularly update the list of eligible occupations. In 2018, following a review of the scheme, the Irish government decided to add a number of occupations to the list of critical skills which were in short supply in the Irish labour market. This list included professions such as resource modelling (earth and data analyst), meteorologist, chemical engineer, and professional forester.
Relevance to Portugal
As the chapter has shown, the green transition will create new jobs and require workers to upskill and reskill. The government of Portugal has implemented several programmes to train the workforce such as the Green Skills and Jobs initiative and Qualifica Industria. However, these programmes mostly target low to medium-skilled workers, rather than high-skilled workers. Labour mobility programmes such as the one described in this action, together with higher education programmes, can support the attraction and development of high-level green skills in the Portuguese labour market.
For further information
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Action 4. Set up Knowledge transfer partnerships (KTPs)
Copy link to Action 4. Set up Knowledge transfer partnerships (KTPs)Rationale and description of the initiative
In Portugal, as in other EU Member States, linkages between universities and the business sector are undeveloped. Although collaborative initiatives such as the “Mobilising Agendas” are trying to address this problem, participants in the fact-finding mission of the project reported that a lack of collaborative culture between universities and the business sector is a hindrance to the success of this programme. Furthermore, it was also signalled that a stronger policy dialogue with SMEs, for example through their business associations, would have allowed the views of SMEs to be better reflected in this initiative.
Knowledge Transfer Partnerships (KTPs), as in the case of the United Kingdom or Sweden, could address this problem by building stronger linkages between universities and industry, notably SMEs. KTPs are tripartite partnerships that gather companies, knowledge providers (universities, research organisations) and graduates or PhD students. Companies that wish to lead an innovation or applied research project can apply to the programme and hire a graduate or PhD student (known as “KTP associate”) for a period of 12-36 months to manage the project.
Expected results
KTPs benefit all three parties involved in the partnership. Companies, which are often SMEs, can conduct industrial research and develop new products with a relatively low-cost investment, i.e. the stipend of the associate. Furthermore, other employees of the company benefit from knowledge spillovers thanks to the presence of the KTP associate. As for the KTP associates, they develop on-the-job skills, such as project management and teamwork, as well as new industry contacts, which will increase their career development opportunities in the future. Finally, these partnerships are also important for academic institutions to better align their research and education with industry needs and can be a source of additional funding opportunities in the future as new companies discover the value of industrial research undertaken in collaboration with universities.
Key performance/monitoring indicators
Key performance indicators for KTPs focusing on green technologies could include:
Number of KTPs established focusing on green technologies and/or companies in green-relevant sectors.
Number of publications, patents, new products, or processes developed by the KTP.
Improvements in energy efficiency, waste management and/or re-use of material for companies participating in the KTP.
Career progression/employment outcomes of “KTP associates.”
Follow-up industry-university collaborations of companies and universities participating in KTPs (through new KTPs or not).
Key authorities
This initiative could be led by the Ministry of Science, Technology and Higher Education of Portugal, or the National Innovation Agency under the Ministry, with the close involvement of the Ministry of Economy and the SME agency (IAPMEI). The national employer’s confederation and sectoral associations should also be involved to provide guidance and ensure business participation.
International policy example: Knowledge transfer partnership in the United Kingdom
Description of the approach
Knowledge Transfer Partnerships were first established in the United Kingdom over 50 years ago. Coordinated by the UK National Innovation Agency (Innovate UK), KTPs are tripartite collaborations (a university or research institution, a post-graduate “associate” and the business) focused on a strategic innovation project with a commercial focus and lasting between 12 and 36 months. To operate this initiative, Innovate UK provides a grant to the partners and hires Knowledge Transfer Advisers who support the research organisations with setting up the partnership and delivering the research project at its core.
A recent evaluation of this initiative finds that the KTP scheme has effectively achieved its mission of helping businesses to innovate and grow. Between 2010 and 2020, the UK government invested between GBP 80 000-100 000 for each KTP project, which generated an estimated GBP 1.7-2.3 billion in net gross value added for the economy. In other words, for every GBP invested, the scheme generated returns of GBP 4 in net economic benefits. In the 86 KTPs covered by the evaluation, 87% of companies reported improving their technical knowledge and skills, 70% reported improving existing products or services, and 79% reported giving greater value to academic expertise as a result of participation in the programme (SQW Group, 2023[43]).
Factors of success
The evaluation report of this initiative identified several success factors. Firstly, the availability of a dedicated resource (the KTP associate) that joins the business to complete the project has been key to the success of the initiative. The motivation and capability of the associate, as well as the alignment between his/her expertise and the needs of the company, have also played into the success of the KTP. In addition, having a well-structured project, including a realistic plan with clear goals agreed at the outset by all partners, has supported the smooth implementation of the partnership. The study also finds that factors such as the geographic location of partners participating in the initiative, the size of the KTP grant, and the sector of the business did not play a role in the completion of the KTP, nor did they influence business growth. KTP has thus been effective across different sectors, geographies, and business types.
Obstacles and responses
A few barriers to the implementation of this initiative have been identified. On the side of academia, institutions with less experience in engaging with the private sector may require additional support. When surveyed, many academic institutions participating in the KTP scheme for the first time reported that they faced problems such as communication issues (lack of knowledge of business needs), lack of incentives and networks (no contacts in the industry), and a lack of clear understanding of how research could benefit the private sector. Repeated engagement with the private sector through the KTP scheme has been beneficial in overcoming these barriers.
Another challenge that the UK government is trying to address is the alignment of the KTP scheme with the wider innovation support landscape, including with the UK Research Councils, which provide funding for academic research. Stronger alignment between the funding priorities of the Research Councils and the KTP programme could help re-orient public research in a more strategic manner, at least from an industry perspective.
Finally, in the evaluation of the programme, the government found that better synergies and stronger knowledge spillovers between partners occurred when partners were located close to each other. A place-based approach which pays attention to the geographical proximity of the partners could therefore maximise the impact of similar partnerships.
Relevance to Portugal
KTPs could complement the efforts that Portugal is undertaking under C11 (Industry Decarbonisation) of the national RRP, notably through the Mobilising Agendas. While the partnership element is already present in this programme, the KTP programme could take the country one step further as it would provide employment opportunities for young graduates, help them acquire practical skills, and gain awareness on issues related to the green transition. For companies, especially SMEs, this would be a valuable service that can help them improve their products or launch new ones and stay competitive ahead of the green transition. The evaluation of the KTP scheme in the United Kingdom shows that SMEs benefitted from the KTP grant, which played a role in de-risking business investment in R&D for the first time.
For further information
Website of this initiative: https://www.ktp-uk.org/
SQW Group (2023), Final report: Knowledge Transfer Partnerships, https://beta.ukri.org/wp-content/uploads/2023/10/IUK-23102023-KTP-Evaluation-Final-Report-FINAL-Aug-23.pdf. (recent evaluation report of the UK KTP scheme).
Examples of other KTPs undertaken by other countries such as Sweden: https://www.du.se/ktp
References
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Notes
Copy link to Notes← 1. Targeted stakeholder consultation based on the Staff Working Document: “Scenarios towards co-creation of a transition pathway for a more resilient, digital and sustainable textile ecosystem". (Directorate General of Economic Affairs).
← 2. The PPWD also requires EU member states to report on their progress to meet recycling targets, which means that companies need to report and monitor their packaging waste, recycling, and broader sustainability efforts.
← 3. These includes the Packaging and Packaging Waste Directive, the Single-Use plastics Directive of 2019 transposed into national legislation through the new State Budget Law for 2024 which extended the economic contribution of single-use packaging used in ready-to-eat meals (contribution is now of 0.10 euros for economic agents in the commercial chain and 0.20 euros for the final consumer) (WTS global, 2024[44]).
← 4. Drying stage: after being moulded, water from the clay is removed through heated air. Firing stage: dry ceramics is heated in a kiln up to 850 °C and 1350 °C, to harden it and give it porosity (Furszyfer Del Rio et al., 2022[19]).
← 5. A cost-effective way to achieve this is by using warms air from the ovens to help dry the ceramics.
← 6. The ton of oil equivalent (toe) represents the quantity of energy contained in a ton of crude oil, that is gigajoules 41.868. This unit is used to express and compare energies from different sources. According to the international conventions, one ton of oil equivalent amounts for example to 1 616 kg of coal, 1 069 m³ of gas or 954 kg of gasoline. For electricity, 1 toe is worth 11.6 MWh.
← 7. Micro-credentials are already foreseen in the law decree no.27/2021 that adjusts and modernises the incentive scheme for higher education institutions to cooperate with the public administration and companies and to support the diversification of the training offer and lifelong learning. According to this law decree, the Directorate-General for Higher Education develops an annual report on the supply of and demand for short vocational training programmes.
← 8. Information from: https://www.iefp.pt/programa-trabalhos-competencias-verdes-green-skills-jobs.
← 9. Product eco-design considers environmental aspects at all stages of the product development process, striving for products which make the lowest possible environmental impact throughout the product life cycle.
← 10. During the fact-finding mission of the project, the OECD met with stakeholders, such as business associations and technology centres, from these two industries.
← 11. The confederation still uses its first acronym, CIP, which used to stand for Confederação da Indústria Portuguesa.
← 12. Part of the European Union's Small Business Act (SBA), a package of principles designed by the EU in 2008 to assist small businesses.