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Factsheet for measure PT-2021-53/2971 – measures in Portugal

Industry Decarbonisation

Descarbonização da Indústria

Country Portugal , applies nationwide
Time period Open ended, started on 29 December 2021
Context Green Transition, Restructuring Support Instruments, European Semester
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for spending, stimulus packages
Author Paula carrilho (CESIS)
Measure added 02 November 2022 (updated 07 November 2024)

Background information

Under the Recovery and Resilience Programme [Programa de Recuperação e Resiliência - PRR), a set of investments and reforms aimed at restoring sustained economic growth after the pandemic was defined with several components: resilience, climate transition and digital transition.

The Ordinance 325-A/2021 of 29 December approves the regulation of the incentive system for the decarbonisation of industry.

In October 2023, as part of the reformulation of the PRR, the industry decarbonisation component was boosted by a further €122 million.

Content of measure

As part of the climate transition dimension, the industry decarbonisation component is intended to leverage the decarbonisation of the industrial and business sector and bring about a paradigm shift in the use of resources by implementing measures of the 2030 National Energy and Climate Plan (Plano Nacional Energia e Clima 2021 -2030 - PNEC 2030) and helping accelerate the transition to a carbon-neutral economy.

The decarbonisation of industry has an investment of €737 million and is led by the Agency for Competitiveness and Innovation (Agência para a Competitividade e Inovação, IAPMEI, I.P.).

It is applicable to all activities from 'Mining and Quarring' and 'Manufacturing' sectors that comply with the criteria defined in article 7 of the Ordinance 325-A/2021 of 29 December. The support threshold is €15 million per company and per project, with financial support rate that vary depending on the company size (small, medium and large companies).

The programme is structured for the development of projects in four areas:

  1. Low-carbon processes and technologies in industry, through the introduction of new product processes and business models and the modification of processes to lead to their decarbonisation;
  2. Adoption of energy efficiency measures in industry, allowing for the simultaneous reduction of energy consumption and greenhouse gas emissions;
  3. Incorporation of energy from renewable sources and energy storage.
  4. Supporting capacity building for enterprises and the development of information and support tools, such as sectoral roadmaps for carbon neutrality in industry.

In 2023, as part of the reformulation of the PRR, the industry decarbonisation component was boosted by a further €122 million.

Use of measure

According to the Government Press Release webpage (7 July 2023) the evaluation process of the applications to the call for tenders for Support for the Decarbonisation of industry, launched in 2022, resulted in the selection of 179 applications, involving an eligible investment of more than €1,1 billion and support of €500 million from PRR funds.

Under this component, IAPMEI received 1886 applications and 1608 were selected. In July 2023, 1,360 projects have been contractualised and payments totalling €29.1 million have been made.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
EU (Council, EC, EP)
Public support service providers
European Funds
National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement of social partners.

Views and reactions

Unknown

Sectors and occupations

This case is not occupation-specific.

Sources

Citation

Eurofound (2022), Industry Decarbonisation, measure PT-2021-53/2971 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2021-53_2971.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.