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Portugal

€16.643.000.000
Total Funding
19%
Green Spending Share EU
Green Spending Share Total
Total Funding Bar Chart

Portugal presented a first draft of its national recovery and resilience plan (RRP), alongside a broader 2030 National Investment Plan, already in October 2020. Our analysis covers an updated version of the draft RRP that was presented for public consultation in February 2021, with a total spending of €16.6bn, or 8% of Portugal’s GDP. Overall, Portugal’s recovery measures have the potential to make a positive contribution to the green transition depending on their implementation.

Positive measures include investments into industrial decarbonization, public transport, and energy efficiency. At the same time, the plan includes some problematic investments, especially in road infrastructure, and has been criticized for this by the European Commission. Lastly, it includes many measures whose climate mitigation effect cannot yet be assessed and depends on their implementation, such as investments into new housing projects and industrial development. Notably, the draft RRP does not offer many concrete links between its projects and the broader agenda of the 2030 National Investment Plan or wider climate policy goals.

Green Spending Share

We find that Portugal’s draft recovery plan (RRP) achieves a green spending share of 19%, below the EU’s 37% climate spending benchmark. In contrast, 4% of all measures have a negative impact. Furthermore, we find that 40% may have a positive or negative impact on the green transition depending on the implementation of the relevant measures, illustrating the importance of further scrutiny during the further planning, review and implementation of the recovery measures.

*Our analysis covers the updated draft Recovery and Resilience Plan (RRP) that was released in February 2021. The report was written by Felix Heilmann, Artur Patuleia and Alexander Reitzenstein (all E3G) as well as Jacqueline Klingen (Wuppertal Institute). We are grateful to Bárbara Maurício (ZERO) as well as Helena Mölter and Timon Wehnert (Wuppertal Institute) for their support.

Our Highlights

Good Practice

Investments in nature-based solutions

Portugal’s RRP includes a total of €665m of investments into forest management and cultivation. This measure, which will be implemented by the Environment and Climate Ministry, is presented as an important resilience measure for rural territories, combining climate change mitigation and long-term resilience, even though its overall funding falls short of the overall investment needs previously identified for this area.

Bad Practice

Road investments

Portugal’s Recovery Plan includes significant investments into the country’s road infrastructure, with many of these measures aiming to expand the national road network. These include the expansion of cross-border road links with Spain although there are already six cross-border highways, as opposed to only two poorly served cross-border rail connections for passengers. In March 2021, the European Commission has criticized the inclusion of these projects.

To Our Surprise

Pushing the decarbonization of the industrial sector

Portugal included a program for industry decarbonization in its Recovery Plan, the first time the government referred explicitly to industry decarbonization in an investment plan.

Sectoral Analysis

This dashboard provides a detailed overview of the allocation and assessment of measures by sector for:

Portugal

Using the drop-down option, you can compare results with other countries.


Sector Analysis DE

Sector Analysis Select

Policy Measures

This list provides a full overview of all recovery measures. Our detailed report contains a deep dive on the most important recovery measures and how we assess them. The report can be downloaded below.

Measure List

Knowledge Hub

The website provides an overview of the economic management of the coronavirus pandemic in Portugal and shows the timeline of policy actions.

Policy Responses to COVID-19
2020
Scope:
Portugal

The article "Brussels wants dams, roads and bridges outside the RRP", reports on the Commission's doubts about several investments included in the Portuguese recovery plan.

Bruxelas quer barragens, estradas e pontes fora do PRR
2021
Scope:
Portugal

The report "Opinion on the Strategic Vision for the Portuguese Economic Recovery Plan 2020-2030" considers the Recovery plan as a key element to define Portugals future.

Parecer sobre a “Visão Estratégica para o Plano de Recuperação Económica de Portugal 2020-2030”
2020
Scope:
Portugal

The article: "PSD presents 'strategic programme' for European funds for the next decade", gives an short evaluation of the measurements.

PSD apresenta "programa estratégico" para fundos europeus da próxima década
2020
Scope:
Portugal

The article "CIP praises the Recovery Plan's focus on improving the Civil Service because it helps companies", describes the focus of the recovery program: The improvement of public services.

CIP elogia aposta do Plano de Recuperação em melhorar a Função Pública porque isso ajuda as empresas
2020
Scope:
Portugal