A new report by the International Energy Agency finds that Portugal’s equitable and well-balanced plans for reaching a carbon-neutral economy in 2050 should support the country’s economic growth and energy security.
Portugal’s energy and climate policies aim to reach carbon neutrality primarily through broad electrification of energy demand and a rapid expansion of renewable electricity generation, along with increased energy efficiency. These measures are backed by a strong focus on reducing dependency on energy imports and maintaining affordable access to energy. In the longer term, the country is aiming for hydrogen to play a major role in achieving carbon neutrality.
“Portugal was among the first countries in the world to set a target for carbon neutrality by 2050, and its Roadmap for Carbon Neutrality shows a strong commitment to electrifying its economy and ensuring a secure and affordable energy transition,” Fatih Birol, executive director of IEA, said. “We look forward to supporting the Portuguese government as it works on a fair and inclusive transition to a carbon-neutral economy.”
The country’s climate and energy goals still face notable challenges with an economy that remains heavily reliant on imported fossil fuels today however the report acknowledges the steps the government is taking to address these challenges.
The country is also pushing to reduce oil demand and associated emissions through transport decarbonisation, with over 10 billion Euros of investments in electrified rail and public transport, favourable tax treatment for electric vehicles and support for charging infrastructure. They are also taking major steps towards lowering emissions and reducing energy import dependency by phasing out coal-fired electricity generation. Portugal sees a key role for hydrogen produced from renewable energy in hard-to-decarbonise sectors and for achieving carbon neutrality.