Portugal has a small, service-based economy that grew steadily between 2013 and 2019. The country was strongly hit by the pandemic but has been recovering fast since mid-2021. Yet the pace of the recovery is easing. Although Portugal has few direct trade links with these countries, Russia’s war against Ukraine is driving up energy and food prices.
Over the past decade, Portugal managed to decouple energy consumption and major air pollutant emissions from economic growth. The energy mix has shifted from oil and coal to natural gas and renewables, and air quality generally improved. However, material consumption, municipal waste generation and freshwater abstractions have grown at the same rate or faster than gross domestic product (GDP). Portugal is one of the OECD countries with the highest landfilling rates. The status of habitats and species has deteriorated, and agriculture exerts significant pressures on water bodies.
Portugal has made progress towards Sustainable Development Goals (SDGs),
Overall, the country increased access to clean energy (SDG 7), and clean water and sanitation (SDG 6). Nevertheless, major challenges remain to ensure sustainable consumption and production patterns (SDG 12) and protect, restore and promote sustainable use of marine and terrestrial ecosystems (SDGs 14 and 15).
Portugal has stepped up its effort to adapt to climate change
Portugal’s territory faces multiple threats related to climate change, including coastal erosion, heavy precipitation events and extreme heat days. Droughts also undermine agricultural yield and hydropower generation. Forests are particularly exposed to fire danger.
Portugal has strengthened wildfire risk prevention but faces the challenge of improving forest management practices in abandoned rural areas where land ownership is private and fragmented. Completing the land cadastre and extending payments for ecosystem services can help reduce the risks of forest fires.
Assessment and recommendations
The Assessment and Recommendations present the main findings of the OECD Environmental Performance Review of Portugal. They identify 26 recommendations to help the country make further progress towards its environmental objectives and international commitments. The OECD Working Party on Environmental Performance discussed and approved the Assessment and Recommendations at its meeting on 6 December 2022.
- Portugal has missed most of its 2020 waste targets
- Progress towards biodiversity targets has been insufficient
- Agriculture puts significant pressures on water bodies
- Upgrading environmental infrastructure requires better pricing of services
Data: 14 Mar 2023
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