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OECD Environmental Performance Reviews: Portugal 2011

image of OECD Environmental Performance Reviews: Portugal 2011

This report presents the OECD review of Portugal’s environmental policy performance for 2011. It finds that environmental policies have been consolidated and strengthened since the last review in 2001, but that meeting the post-Kyoto targets for reducing greenhouse gas emissions will be challenging. With energy and climate policies being closely related, the report points out that with less than 50% of hydro capacity currently being exploited, there is potential for further development in that area. It also describes the challenges regarding coastal zone and marine management.

Topics covered in the report include greening growth, implementation of environmental policies , international co-operation , climate change, waste management and the 3Rs (reduce, reuse, recycle), and nature and biodiversity.

Further information about the Environmental Performance Review programme is available on line via www.oecd.org/env/countryreviews

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Greening Growth

Following a period of modest economic growth, Portugal entered a sharp recession in 2008-09 and its public finances deteriorated significantly. The anti-crisis stimulus package included several environment-related measures, such as support for energy efficiency, renewable energy technologies, and investment in electricity and smart grids. Reforming the tax system, further expanding environmentally related taxes, and removing environmentally harmful tax concessions and subsidies could help fiscal consolidation without hampering economic recovery. Public funds, including those from EU sources, continue to account for about two-thirds of total environmental expenditure. Nonetheless, private environmental investment, ecoindustries and related employment have increased in recent years. Portugal needs to further promote eco-innovation and improve its workforce skills, with a view to enhancing productivity, international competitiveness, and the growth prospects of its economy.

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