EU backs net-zero Portugal

Lisbon: The European Commission has approved a EUR 350 million scheme to support the transition towards a net-zero economy in Portugal.

The commission has been approved under the Temporary Crisis and Transition Framework, introduced after the Russian invasion of Ukraine to support member states affected by the crisis. It was amended in November 2023 to support measures to accelerate the green transition and reduce fuel dependencies.

Portugal proposed the EUR 350 million package to support investments to produce equipment necessary to foster the transition to a net-zero economy. Under the measure, which will be fully financed through the Recovery and Resilience Facility, the aid will take the form of direct grants.

The cash will fund companies producing relevant equipment such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and equipment for carbon capture usage and storage.

It also includes key components designed and primarily used for the production of such equipment or related critical raw materials necessary for their production.