Portugal noted renewable power as a strategic factor to boost European competitiveness and protect the industry’s decarbonisation.

This position was shared by the Minister of Environment and Energy Maria da Graça Carvalho on 12 May, following the bilateral meeting with the European Commissioner for Climate Wopke Hoekstra on the main challenges of European climate and energy policy.

“We are not going to steer paths over certain sectors. We need to help them and that is what we are doing”, the Minister claimed, advocating specific measures for electricity-intensive industries and sectors highly dependent on gas, such as glass and stoneware.

During the meeting, the following were discussed: the future of the European Emissions Trading System, the European climate framework post-2030, the Social Climate Fund, the preparations for the upcoming United Nations Climate Change Conference (COP31), and the adaptation and resilience policy given the extreme weather events.

Maria da Graça Carvalho noted that Portugal currently produces around 80% of electricity from renewable sources, indicating clean energy, regulatory stability, and the predictability of public policy as decisive factors to attract investment and boost competitiveness.

The European Commissioner praised the Portuguese path to reduce dependence on fossil fuels and investment in renewables. “Portugal is currently doing a phenomenal job”, Wopke Hoekstra claimed, advocating for more European investment in solar, wind, and geothermal power, grids, and interconnections.

At the meeting, taxation on windfall profits for energy companies was also discussed. The subject arises following a letter sent in April by Portugal, Germany, Spain, Italy and Austria to the European Commission upholding the creation on a European level of a tax on windfall profits for energy companies, similar to those decided on to contain the 2022 energy crisis.

Wopke Hoekstra acknowledged the public discomfort with regard to “excessive gains” in a crisis, yet he considered that these measures must continue to be decided on a national level due to the legal and coordination difficulties in the European space.

The Minister also presented the Portuguese Environmental Fund model and its role in supporting the energy transition, climate adaptation, and reconstruction after the storms and fires.

Maria da Graça Carvalho indicated the complementarity between the Environmental Fund and the Social Climate Fund to support industrial decarbonisation, protect the most vulnerable households and boosting climate resilience.

On climate adaptation, the Minister explained that there are interventions under way i the coastline, dykes, rivers, and natural parks from the north to the south of the country, funded by the Environmental Fund and European funds to increase the territory’s safety and protection.

The European Commissioner also stressed the importance of European coordination in the climate transition, economic competitiveness, and the response to extreme weather events, upholding a greater exchange of good practice and boosting prevention capabilities and resilient reconstruction.

The visit also included the Navigator Company LK2BM project in Setúbal, funded by the EU Innovation Fund, which is an innovative solution in the paper pulp sector by replacing fossil fuels with biomass to fuel the kiln.

This initiative is an important contribution to industrial decarbonisation, fostering the use of more sustainable energy sources and reducing the emissions associated with the production process.

Portugal and the European Commission likewise addressed the role of European climate diplomacy in international negotiations, with a focus on the preparation of COP31, to be held in Turkey.