COMMISSION STAFF WORKING DOCUMENT The EU Environmental Implementation Review Country Report - PORTUGAL Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions The EU Environmental Implementation Review: Common Challenges and how to combine efforts to deliver better results

Council of the European Union

Brussels, 6 February 2017 (OR. en)

5967/17 ADD 23

ENV 103 ECOFIN 70 SOC 68 COMPET 74 POLGEN 9 CONSOM 37

COVER NOTE

From: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 6 February 2017

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union

No. Cion doc.: SWD(2017) 54 final

Subject: COMMISSION STAFF WORKING DOCUMENT

The EU Environmental Implementation Review

Country Report - PORTUGAL

Accompanying the document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

The EU Environmental Implementation Review: Common Challenges and

how to combine efforts to deliver better results

Delegations will find attached document SWD(2017) 54 final.

Encl.: SWD(2017) 54 final

EUROPEAN COMMISSION

Brussels, 3.2.2017 SWD(2017) 54 final

COMMISSION STAFF WORKING DOCUMENT

The EU Environmental Implementation Review

Country Report - PORTUGAL

Accompanying the document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

The EU Environmental Implementation Review: Common Challenges and how to

combine efforts to deliver better results

{COM(2017) 63 final i}

{SWD(2017) 33 - 53 final}

{SWD(2017) 55 - 60 final}

Portugal 2

This report has been written by the staff of the Directorate-General for Environment, European

Commission. Any comments are welcome to the following e-mail address: ENV-EIR@ec.europa.eu

More information on the European Union is available on the internet (http://europa.eu).

Photographs: p.9 – ©LIFE05 ENV/P/000369; p.13 – ©saiko3p/iStock; p.21 – ©jmorse2000/iStock; p.28 – ©Sergey Kelin/iStock

For reproduction or use of these photos, permission must be sought directly from the copyright holder.

©European Union, 2017

Reproduction is authorised provided the source is acknowledged.

Portugal 3

Table of Content

EXECUTIVE SUMMARY .................................................................................................................................... 4

PART I: THEMATIC AREAS ............................................................................................................................... 6

• 1. 

  TURNING THE EU INTO A CIRCULAR, RESOURCE-EFFICIENT, GREEN AND COMPETITIVE LOW-

  CARBON ECONOMY ............................................................................................................................... 6

  Developing a circular economy and improving resource efficiency ..................................................... 6

  Waste management .............................................................................................................................. 8

• 2. 

  PROTECTING, CONSERVING AND ENHANCING NATURAL CAPITAL ..................................................... 11

  Nature and Biodiversity ....................................................................................................................... 11

  Green Infrastructure ........................................................................................................................... 13

  Soil protection ..................................................................................................................................... 14

  Marine protection ............................................................................................................................... 15

• 3. 

  ENSURING CITIZENS' HEALTH AND QUALITY OF LIFE .......................................................................... 17

  Air quality ............................................................................................................................................ 17

  Noise ................................................................................................................................................. 18

  Water quality and management ......................................................................................................... 18

  Enhancing the sustainability of cities .................................................................................................. 21

  International agreements ................................................................................................................... 22

PART II: ENABLING FRAMEWORK: IMPLEMENTATION TOOLS ..................................................................... 23

• 4. 

  MARKET BASED INSTRUMENTS AND INVESTMENT ............................................................................ 23

  Green taxation and environmentally harmful subsidies ..................................................................... 23

  Green Public Procurement .................................................................................................................. 24

  Investments: the contribution of EU funds ......................................................................................... 25

• 5. 

  EFFECTIVE GOVERNANCE AND KNOWLEDGE ...................................................................................... 28

  Effective governance within central, regional and local government ................................................. 28

  Compliance assurance ......................................................................................................................... 29

  Public participation and access to justice ........................................................................................... 31

  Access to information, knowledge and evidence ................................................................................ 32

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Executive summary

About the Environmental Implementation Review

In May 2016, the Commission launched the

Environmental Implementation Review (EIR), a two-year General profile

cycle of analysis, dialogue and collaboration to improve During the last decades, the implementation of the EU the implementation of existing EU environmental policy environmental law and policy has contributed to

and legislation 1 . As a first step, the Commission drafted preserve and to improve the environment in Portugal,

28 reports describing the main challenges and thanks also to the significant assistance from EU funding. opportunities on environmental implementation for each Nevertheless, Portugal still faces considerable challenges Member State. These reports are meant to stimulate a in the areas of water and waste management, air quality positive debate both on shared environmental challenges and nature conservation. Furthermore, environmental for the EU, as well as on the most effective ways to implementation and enforcement represent overall a address the key implementation gaps. The reports rely on challenge for Portugal. the detailed sectoral implementation reports collected or issued by the Commission under specific environmental legislation as well as the 2015 State of the Environment

Report and other reports by the European Environment Main Challenges

Agency. These reports will not replace the specific The three main challenges with regard to instruments to ensure compliance with the EU legal implementation of EU environmental policy and law in obligations. Portugal are:

The reports will broadly follow the outline of the 7th  Improving waste management and developing the

Environmental Action Programme 2 and refer to the 2030 potential of the circular economy.

Agenda for Sustainable development and related  Enhancing the effective protection of the Natura

Sustainable Development Goals (SDGs) 3 to the extent to 2000 network.

which they reflect the existing obligations and policy  Following up on the implementation of marine

objectives of EU environmental law 4 . strategies to meet a good environmental status of

The main challenges have been selected by taking into marine waters.

account factors such as the importance or the gravity of

the environmental implementation issue in the light of Main Opportunities

the impact on the quality of life of the citizens, the

distance to target, and financial implications. Portugal could perform better on topics where there is

The reports accompany the Communication "The EU already a good knowledge base and good practices. This

Environmental Implementation Review 2016: Common applies in particular to:

challenges and how to combine efforts to deliver better  Using the experience already gained over the past results", which identifies challenges that are common to few years to improve compliance with the Air Quality several Member States, provides preliminary conclusions Directive, in particular for NO2. on possible root causes of implementation gaps and  Improving efficiency, effectiveness and coordination proposes joint actions to deliver better results. It also in the public environmental sector implementing groups in its Annex the actions proposed in each country recent initiatives such as the Single Environment report to improve implementation at national level. Permit (SEP) scheme, the Unique Platform for

Inspection and Monitoring in the areas of agriculture, sea and environment and the National Network for the Implementation and Enforcement of Environmental Law (IMPEL).

1 Communication "Delivering the benefits of EU environmental policies 

  Taking advantage of the opportunities for greening

through a regular Environmental Implementation Review" the first pillar of the Common Agricultural Policy

( COM/2016/ 316 final ) (CAP) and making further use of the rural

2 Decision No. 1386/2013/EU of 20 November 2013 on a General Union development measures under the second pillar.

Environmental Action Programme to 2020 " Living well, within the limits of our planet ".

3 United Nations, 2015. The Sustainable Development Goals

4 This EIR report does not cover climate change, chemicals and energy.

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Points of Excellence

Where Portugal leads in environmental implementation, it could share its innovative approaches more widely among other countries. Good examples are:

 The creation of a "Commission for Green Tax

Reform" in 2014 and the subsequent reform of the Portuguese tax system in 2015 in order to foster environmental taxation.

 The national strategy "Commitment for Green

Growth" adopted by the Portuguese government in 2015.

 The improvements in the quality of the drinking water supply systems experienced over the last decade.

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Part I: Thematic Areas

• 1. 

  Turning the EU into a circular, resource-efficient, green and

  competitive low-carbon economy

Developing a circular economy and improving increased overall since 2007, it is slightly decreasing in

resource efficiency 2015 compared to 2014. Therefore, there is clear room for improvement in this field.

The 2015 Circular Economy Package emphasizes the need Figure 1: Resource productivity 2003-15 8

to move towards a lifecycle-driven ‘circular’ economy, with a cascading use of resources and residual waste that is close to zero. This can be facilitated by the development of, and access to, innovative financial instruments and funding for eco-innovation.

SDG 8 invites countries to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. SDG 9 highlights the need to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. SDG 12 encourages countries to achieve the sustainable management and efficient use of natural resources by 2030.

From 2013 to 2015 several national plans were revised

Measures towards a circular economy (waste, water), placing strong emphasis on efficiency and meeting EU targets in the most cost-effective way, and

Transforming our economies from linear to circular offers new types of policies were introduced (e.g. Green an opportunity to reinvent them and make them more Taxation Reform). It can be specially highlighted the sustainable and competitive. This will stimulate Green Growth Commitment, a national strategy adopted investments and bring both short and long-term benefits with the purpose of reorienting the country's economic

for the economy, environment and citizens alike 5 . development which is now focusing on the circular economy. These initiatives will be developed in next

A number of studies have shown at European level the sections of this EIR country report.

positive link between environmental performance and

job creation 6 . SMEs and resource efficiency

Pressure on material resources is one of the long-term Portuguese SMEs account for more than two thirds of trends affecting job creation and growth in the EU. total value added (compared with an average of 57 % in

In terms of resource productivity (how efficiently the the EU) and nearly four out of five jobs (against two out economy uses material resources to produce wealth), of three jobs in the EU on average). Despite a more Portugal has the 17 th place in the EU (according to the positive outlook since 2013, the recession period of 2008 resource productivity indicator) with 1.10 EUR/kg (EU continues to have an impact

9 .

average is 2.0 EUR/kg) in 2015 7 . The performance of Portuguese SMEs is above EU

Figure 1 shows that while the resource productivity has average on several indicators on resource efficiency and green markets. 58% of Portugal's SMEs have invested up

to 5% of their annual turnover in their resource efficiency

5 European Commission, 2015. Proposed Circular Economy Package

6 http://ec.europa.eu/environment/enveco/studies.htm

7 Resource productivity is defined as the ratio between gross domestic 8 Eurostat, Resource productivity , accessed October 2016. product (GDP) and domestic material consumption (DMC). 9 European Commission, SMEs country sheets 2016

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actions (EU28 average 50%), 26 % of them are currently technologies, sharing of best practices and providing a offering green products and services, 74% took measures platform to raise awareness on circular economy and the to save energy (EU28 average 59%), 62% to minimise future of the industry. Three such initiatives were

waste (EU28 average 60%), 66% to save water (EU28 streamlined by the Portuguese Companies Association 14 : average 44%), and 74% to save materials (EU28 average the Efinerg 15 project, aimed at energy efficiency practices 54%). From a circular economy perspective, 63% took and technologies in industry; Ecoprodutin 16 , aimed at measures to recycle by reusing material or waste within material and water efficiency; and Interambinerg 17 ,

the company, 51% to design products that are easier to aiming to support the internationalisation of the maintain, repair or reuse and 30% were able to sell their Portuguese sector for environmental and energy goods

scrap material to another company 10 . and services.

The EU Roadmap on Resource Efficiency outlines how we

can transform Europe's economy into a sustainable one Eco-innovation

by 2050 11 . In a 2013 eco-innovation scoreboard, Portugal ranked

Investments in innovative, cost-saving measures by SMEs below the EU-28 average (14 th place) with an overall to reduce resource- and energy use have the potential to score of 79 (EU-28 average is 100) as shown in Figure 2. 18 result in high cost savings. Thus, according to a study, for The following two years saw Portugal strengthening its only four SME sectors (food & beverages; energy, power position in the compound EIO score in comparison to

• & 

  utilities; environmental technologies; construction) the previous years, improving to 101.6 and the 12 th place in savings that would strengthen their competitiveness the EU ranking. These results are supported by other

could already amount to EUR 882 million in Portugal 12 . indicators and reports, such as the Innovation

Another recent study offers a detailed analysis of the Scoreboard (EC, 2015) index, which shows an level of application of business support measures to improvement from 0.396 in 2013 to 0.4 in 2014 and improve resource efficiency applied in the EU Member 0.403 in 2015.

States 13 . This study shows that Portugal has implemented

a few resource efficiency measures for businesses. In this Figure 2: Eco-Innovation Index 2015 (EU=100)

19

sense, it appears that measures supporting Industrial

Symbiosis have been more successful as there is an electronic negotiation platform promoting the interaction between supply and demand of waste.

Further measures identified, reflect the concentrated efforts in supporting voluntary agreements, providing targeted resource efficiency information and building resource efficiency skills within business.

Initiatives such as the Ecopol project are fundamental to kick start the necessary network and interaction among different stakeholders to identify the eco-innovation champions, initiatives, products and services, and to demonstrate the benefits for business and the society.

This 2014 project brought together public institutions and the private sector in the sustainable habitat cluster, to propose policy instruments and tools specifically aimed at improving the use of sustainable construction materials by public institutions and the community.

At the industry level, several initiatives were launched in

2015 specifically targeting resource efficiency through eco-innovation in industry, serving as “living labs” to pilot

10 European Commission, 2015. Flash 426 Eurobarometer "SMEs, resource efficiency and green markets 14 AEP: Associação Empresarial de Portugal.

11 Communication COM(2011) 571 i. The Resource Efficiency Roadmap is 15 Efinerg project http://efinerg.aeportugal.pt/Projeto.aspx part of the Resource Efficiency Flagship of the Europe 2020 Strategy. 16 Ecoprodutin project

12 RPA, 2015. Assessing the Potential Cost Savings and Resource Savings http://ecoprodutin.aeportugal.pt/Projeto.aspx of Investments in 4 SME sectors , study for the European Commission. 17 Interambinerg project

13 Ecologic Institute, IEEP, BIO by Deloitte, 2015. A framework for http://interambinerg.aeportugal.pt/Projeto.aspx

Member States to support business in improving its resource 18 Eco-Innovation Observatory, Country Brief 2013 Portugal, efficiency . Study for the European Commission. 19 Eco-innovation Observatory : Eco-Innovation scoreboard 2015

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• Implement a better monitoring of the circular economy policy tools in order to assess their effectiveness and be able to revise them.

Waste management

Turning waste into a resource requires: − Full implementation of Union waste legislation, which includes the waste hierarchy; the need to ensure separate collection of waste; the landfill diversion targets etc. − Reducing per capita waste generation and waste generation in absolute terms. − Limiting energy recovery to non-recyclable materials and phasing out landfilling of recyclable or recoverable waste. SDG 12 invites countries to substantially reduce waste generation through prevention, reduction, recycling and reuse by 2030.

The EU's approach to waste management is based on the "waste hierarchy" which sets out an order of priority when shaping waste policy and managing waste at the operational level: prevention, (preparing for) reuse, recycling, recovery and, as the least preferred option,

Portugal has a number of clusters in which strategies are disposal (which includes landfilling and incineration being developed and that are very committed to ecowithout energy recovery). innovation as a differentiation factor: “HABITAT”: the The progress towards reaching recycling targets and the Portuguese Sustainable Habitat Cluster, “Energy IN”: the adoption of adequate WMP/WPP 20 are key tools to Portuguese Energy Cluster and “PRODUTECH”: the assess the performance of Member States. This section Portuguese Production Technologies Cluster. focuses on management of municipal waste for which EU Nevertheless, resource efficiency targets and innovation law sets mandatory recycling targets. policies in Portugal have not been well connected, The generation of municipal waste 21 in Portugal has missing a cross-cutting integration and incentives for decreased in the recent years to 453 kg/year/inhabitant synergies. To remediate this, the Portuguese and is below the EU average (475 kg/year/inhabitant) as Government adopted in June 2016 the "Commitment to shown in Figure 3.

Knowledge and Science: Commitment with the Future".

This is a new Agenda for the period 2016-2020, calling for Figure 3 depicts the municipal waste by treatment in coherence and coordination between different policy Portugal in terms of kg per capita, which shows a slight areas, promoting a new policy framework for the role of increase in recycling and composting and a small shift knowledge in the development of the country, based on away from incineration and landfilling. Incineration (with different strategic dimensions, namely in the promotion energy recovery) represents 21%; while landfilling of thematic research and innovation agendas and of represents 49% (much higher than the EU average of territorial dimension stimulating the development of 28%). In this context, managing waste efficiently remains cities/regions. a challenge in Portugal.

As of May 2016, Portugal has 56 EMAS registered

organisations, which is a low compared to the total of Figure 3: Municipal waste by treatment in Portugal 4034 organisations that hold a registration in the EU. The 2007-14

22

number of EU Ecolabel licenses in Portugal is also low.

20 Waste Management Plans/Waste Prevention Programmes

Suggested actions 21 Municipal waste consists of waste collected by or on behalf of

municipal authorities, or directly by the private sector (business or private non-profit institutions) not on behalf of municipalities.

22 Eurostat, Municipal waste and treatment, by type of treatment method, accessed October 2016

Portugal 9

years in order to reach the EU 2020 recycling target 24 .

Portugal approved in 2014 the National Waste

Management Plan 2014-2020 25 , as well as the Strategic

Plan for Municipal Solid Waste for the mainland (PERSU

2020) 26 The main objective of the PERSU 2020 is to set

the roadmap to meet the 2020 EU targets for municipal waste, namely the 50% objective for preparation for reuse and recycling. To help meet the targets, PERSU 2020 proposes a large set of measures aligned with eight strategic objectives.

At present, the opportunities for waste prevention and recycling are not yet fully developed in Portugal, and a still high proportion of incinerated and landfilled municipal waste is preventing transition to a circular economy. In order to help bridge the implementation gap in Portugal, the Commission has delivered a roadmap

with recommendations for compliance 27 .

Portugal achieved the 2006 target for diversion of The underlying causes for the current distance to EU biodegradable waste from landfill (75%). However, the waste targets are:

biodegradable municipal waste landfilled has increased − Lack of incentives to manage waste according to the

since then. Portugal has benefited from a four year

derogation targets for 2009 (50%) and 2016 (35%), waste hierarchy; deferring these to 2013 and 2020 respectively. Portugal − Lack of co-ordination between the different reported meeting the deferred 50% landfill target in administrative levels;

2015. − Insufficient (door-to-door) separate collection of waste;

− Insufficient extended producer responsibility (EPR) systems.

Figure 4: Recycling rate of municipal waste 2007-14 23

In order to face these gaps, Portugal has been actively developing the following initiatives:

− has recently reviewed its landfill tax establishing a gradual increase untill 2020;

− is channelling EU funds from operational programs to coordinate efforts between agents in the waste management chain. Projects are positively valued if they integrate measures and organisations aiming at the compliance of targets.

− is enhancing all efforts aiming at the separate collection of waste. Also operational programs are financing dedicated projects on door to door and PAYT collection.

− has 12 EPR systems and as of September 2016 will soon licence one more on packaging waste. All country is covered by these schemes in ELV,

Portugal has made progress in terms of increases of

24

recycling rate and diversion of municipal waste from Member States may choose a different method than the one used by

landfilling in the course of the past decade. However, the ESTAT (and referred to in this report) to calculate their recycling rates and track compliance with the 2020 target of 50% recycling of

recycling rate for municipal waste in 2014 was at 30% (of municipal waste.

which 16% recycling and 14% composting), markedly 25 Plano Nacional de Gestao de Residuos para o horizonte 2014-2020. below the EU average of 44%. Figure 4 shows that Diário da República 16.03.2015. 26

Portugal must further invest in recycling in the coming Plano Estratégico para os Residuos Urbanos (PERSU 2020) para o Portugal continental. Diário da República 17.09.2014.

27 European Commission, 2016. Support to Implementation – The

Commission helps 8 Member States to improve their municipal waste

23 Eurostat, Recycling rate of municipal waste , accessed October 2016 management . Fact sheet for Portugal.

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packaging waste, WEEE, batteries and accumulators, away from incineration (e.g. increasing landfill and mineral oils and tyres. Portugal is complying with the incineration charges, consider introduction of a targets established for these waste streams. A new residual waste tax). set of EPR licences are now being established already • Focus on implementation of the separate collection having in mind new challenges arising as well as the obligation to increase recycling rates (e.g. expand doorincrease of transparency in the management of to-door collection systems, through PAYT systems). these schemes. • Undertake a review of treatment infrastructure

requirements, taking into account the changes in waste

Still, there is clear scope to develop specific policy collection. instruments that support the transition to a more circular • Extend and improve the cost-effectiveness, monitoring economic model, which would improve resilience and and transparency of existing EPR schemes, eliminate competitiveness of the Portuguese economy, based in free-riding and promote competition in order to

resource efficiency and productivity. increase efficiency of national waste management systems.

As a consequence of the green taxation reform, a tax on plastic bags has been approved in Portugal, in force from

January 2015.

The implementation of the measures foreseen in the

PERSU 2020 is crucial to improve the current situation on waste management.

Full implementation of EU waste legislation could create more than 14,900 jobs in Portugal and increase annual turnover of the waste sector by over EUR 1,560 million.

Moving towards the targets of the Roadmap on resource efficiency could create over 18,200 additional jobs and increase the annual turnover of the waste sector by over

EUR 1,910 million 28 .

Suggested action

• Provide the right economic incentives to implement further the waste hierarchy: i.e. promote prevention, make reuse and recycling more economically attractive, and shift reusable and recyclable waste

28 Bio Intelligence service, 2011. Implementing EU Waste legislation for

Green Growth , study for European Commission. The breakdown per country on job creation was made by the consultant on Commission demand but was not included in the published document.

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• 2. 

  Protecting, conserving and enhancing natural capital

Nature and Biodiversity Natura 2000 network shows that there are insufficiencies

in designation, especially for the marine components of

The EU Biodiversity Strategy aims to halt the loss of the network 30 , as shown in Figure 5 31 .

biodiversity in the EU by 2020, restore ecosystems and

their services in so far as feasible, and step up efforts to Figure 5: Sufficiency assessment of SCI networks in avert global biodiversity loss. The EU Birds and Habitats Portugal based on the situation until December 2013

Directives aim at achieving favourable conservation (%) 32

status of protected species and habitats.

SDG 14 requires countries to conserve and sustainably use the oceans, seas and marine resources, while SDG 15 requires countries to protect, restore and promote the sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

The 1992 EU Habitats Directive and the 1979 Birds

Directive are the cornerstone of the European legislation aimed at the conservation of the EU's wildlife. Natura

2000, the largest coordinated network of protected areas in the world, is the key instrument to achieve and implement the Directives' objectives to ensure the longterm protection, conservation and survival of Europe's most valuable and threatened species and habitats and the ecosystems they underpin.

The 6-year deadline set by the Habitats Directive to

The adequate designation of protected sites as Special designate SAC and establish appropriate conservation

Ares of Conservation (SAC) under the Habitats Directive objectives and measures has expired. Portugal has and as Special Protection Areas (SPA) under the Birds already designated the Macaronesian Biogeographical Directive is a key milestone towards meeting the region SCIs as SACs. Nevertheless, no SACs have yet been objectives of the Directives. The results of Habitats designated for the SCIs of the Atlantic and Mediterranean Directive Article 17 and Birds Directive Article 12 reports Biogeographical regions, and it has defined management and the progress towards adequate Sites of Community plans only for 3 SCIs.

Importance (SCI)-SPA and SAC designation 29 both in land and at sea, should be the key items to measure the According to the latest report on the conservation

performance of Member States. status 33 of habitats and species covered by the Habitats

Portugal hosts 99 habitat types and 325 species covered

by the Habitats Directive. The country also hosts 30 For each Member State, the Commission assesses whether the

populations of 80 bird species listed in the Birds Directive species and habitat types on Annexes I and II of the Habitats Directive, are sufficiently represented by the sites designated to date. This is

Annex I. expressed as a percentage of species and habitats for which further

By early 2016, 20.6% of the national land area of Portugal areas need to be designated in order to complete the network in that country. The current data , which were assessed in 2014-2015, reflect

was covered by Natura 2000 (EU average 18.1%), with the situation up until December 2013.

Birds Directive SPAs covering 10% (EU average 12.3%) 31 The percentages in Figure 5 refer to percentages of the total number

and Habitats Directive SCIs covering 17 % (EU average of assessments (one assessment covering 1 species or 1 habitat in a

13.8%). The latest assessment of the SCI part of the given biographical region with the Member State); if a habitat type or a species occurs in more than 1 Biogeographic region within a given

Member State, there will be as many individual assessments as there are Biogeographic regions with an occurrence of that species or

29 Sites of Community Importance (SCIs) are designated pursuant to the habitat in this Member State.

Habitats Directive whereas Special Areas of Protection (SPAs) are 32 European Commission, internal assessment. designated pursuant to the Birds Directive; figures of coverage do not 33 Conservation status is assessed using a standard methodology as

add up due to the fact that some SCIs and SPAs overlap. Special Areas being either ‘favourable’, ‘unfavourable-inadequate’ and of Conservation (SACs) means a SCI designated by the Member States. ‘unfavourable-bad’, based on four parameters as defined in Article 1 of

Portugal 12

Directive 34 , 29% of the habitats biogeographic the fact that most of the forest land is privately owned,

assessments were favourable in 2013 (EU 27: 16%). the intensive agriculture, the spreading of the pine wood

Furthermore, 58% are considered to be unfavourable– nematode, the intensive and the forest fire risk. inadequate (EU27: 47%) and 8% are unfavourable – bad

(EU27: 30%). During the last years, CAP and particularly the Rural Development pillar has been the most important

Figure 6: Conservation status of habitats and species in financial instrument available for managing nature and

Portugal in 2007/2013 (%) 35 biodiversity farmland and forest areas.

Figure 7: Short-term population trend of breeding and

wintering bird species in Portugal in 2012 (%) 37

At the same time, consistent policies were adopted to promote sustainable forest management to face small scale land property and the abandonment of rural communities, namely in Northern and Central Portugal. It has also aimed at providing a better response to the need

As for the species, 19% of the assessments were for ongoing and active forest (and environmental) favourable in 2013 (EU 27: 23%), 31% at unfavourablemanagement, which is also essential for preventing the inadequate (EU27: 42%) and 10% unfavourable-bad high pressure posed by forest fires risk and the status (EU27: 18%). This is depicted in Figure 6 36 . 8% and establishment and spread of harmful biotic agents.

5.7% of the unfavourable assessments respectively for

species and habitats were showing a positive trend in Suggested action

2013. However, the conservation status between 2007

and 2013 does not seem to be on a positive trend. • Complete the Natura 2000 designation process, in land and at sea, and put in place clearly defined

Figure 7 shows that as far as birds are concerned, 43% of conservation objectives and the necessary the breeding species showed short-term increasing or conservation measures for the sites and provide stable population trends (for wintering species this figure adequate resources for their implementation in order was 57%). to maintain/restore species and habitats of community

As regards forests, Portugal faces challenges related to interest to a favourable conservation status across their natural range.

• Continue to develop and promote smart and

the Habitats Directive.

34 The core of the ‘Article 17’ report is the assessment of conservation streamlined implementation approaches, in particular

status of the habitats and species targeted by the Habitats Directive. as regards site and species permitting procedures, 35 These figures show the percentage of biogeographical assessments in ensuring the necessary knowledge and data

each category of conservation status for habitats and species (one

assessment covering 1 species or 1 habitat in a given biographical availability. Strengthen communication with

region with the Member State), respectively. The information is based stakeholders.

on Article 17 of the Habitats Directive reporting - national summary of • Strengthen capacity building in order to improve Portugal management of Natura 2000 sites and species

36 Please note that a direct comparison between 2007 and 2013 data is

complicated by the fact that Bulgaria and Romania were not covered

by the 2007 reporting cycle, that the ‘unknown’ assessments have 37 These figures show the percentage of biogeographical assessments in

strongly diminished particularly for species, and that some reported each category of conservation status for habitats and species, changes are not genuine as they result from improved data / respectively. The information is based on Article 12 of the Birds monitoring methods. Directive reporting - national summary of Portugal

Portugal 13

protection regimes and to ensure full integration with OpenNESS, OPERA, ESMERALDA and within IPBES global other policies and their associated funds. and regional assessments.

• Continue the efforts to improve the mainstreaming of nature targets, namely Natura 2000 implementation, in The importance of ecosystem services and natural capital cross-cutting and sectoral policies, programmes and for growth and jobs has been addressed in government strategies, particularly in the areas of agriculture, initiatives on the green economy, green tax reforms, forestry, fisheries, energy, climate, land and marine TEEB approaches and ecosystem services assessments, spatial planning. and included in the programming of ESIF 2014-2020.

A kick-off MAES conference was held in Portugal in

Estimating Natural Capital December 2015 to debate with the scientific community,

decision-makers and private stakeholders on the views

The EU Biodiversity Strategy to 2020 calls on the Member and perspectives of a national MAES Portugal and the

States to map and asses the state of ecosystems and foreseen outcomes for policy making up to 2020. their services in their national territory by 2014, assess Portugal is now preparing a long term process, aiming at the economic value of such services, and promote the covering the mainland Portugal territory.

integration of these values into accounting and reporting

systems at EU and national level by 2020. Portugal co-led the MAES EU pilot study on forest ecosystems in 2014 and participates in the MAES EU pilot

Portugal completed in 2009 a national ecosystem study on marine ecosystems. It has also taken part in the assessment following the conceptual framework of the EU MAES pilot study on urban ecosystem services Millennium Ecosystem Assessment. Several local scale (involving the municipalities of Lisbon, Oeiras and and thematic (montado ecosystems) assessments have Cascais) launched in 2015.

been developed in last years. In 2014 a short term pilot

MAES 38 was carried out in the south of Portugal which Suggested action

tested, at a regional level (NUTS II Alentejo),

methodologies and indicators for mapping ecosystems, • Continue supporting the mapping and assessment of assessing their condition and mapping ecosystem ecosystems and their services, and the valuation and services 39 , particularly those connected to agriculture development of natural capital accounting systems, and forest ecosystems. The project provided highlights through appropriate indicators for monitoring on the added value of the ecosystem services within the economic progress and further developing ecosystem broader economy of the region. accounts.

Green Infrastructure

The EU strategy on green infrastructure 40 promotes the

incorporation of green infrastructure into related plans and programmes to help overcome fragmentation of habitats and preserve or restore ecological connectivity, enhance ecosystem resilience and thereby ensure the continued provision of ecosystem services.

Green Infrastructure provides ecological, economic and social benefits through natural solutions. It helps to understand the value of the benefits that nature provides to human society and to mobilise investments to sustain and enhance them.

A process is planned for the development of a MAES Portugal has incorporated ecological systems in spatial networking platform for relevant scientific projects, data land planning since 1999, namely at municipality (Master and information sources and for engaging other relevant Plans) and regional scales, and also at sector scale (forest stakeholders and public authorities. Portuguese research management plans). An inter-ministerial coordination teams are involved in various research projects mechanism is in charge of promoting the integration of

conservation and sustainable use of biodiversity into

38 Mapping and assessment of ecosystems and their services.

39 Ecosystem services are benefits provided by nature such as food, 40 European Union, Green Infrastructure — Enhancing Europe’s Natural clean water and pollination on which human society depends. Capital, COM/2013/0249

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various sectoral policies 41 , including considerations in available (e.g. REN, spatial plans, assessments) and new

ecological network planning. and innovative solutions on nature-based approaches.

Since 1983, the most sensitive biophysical areas across the country's territory have been identified and mapped

according to structural and functional criteria defined by Soil protection

the National Ecological Reserve Act (REN) integrated into the national network for the conservation of nature in

2008. The EU Soil Thematic Strategy highlights the need to ensure a sustainable use of soils. This requires the

The REN supports inter alia biodiversity objectives at prevention of further soil degradation and the landscape level and the establishment of a functional preservation of its functions, as well as the restoration of network of core areas for nature conservation and degraded soils. The 2011 Road Map for Resourcebiodiversity. Efficient Europe, part of Europe 2020 Strategy provides

A review of this regime is ongoing in order to further that by 2020, EU policies take into account their direct develop the services pillar of REN (e.g. risk management, and indirect impact on land use in the EU and globally, soil erosion, landslides, coastal erosion, climate and the rate of land take is on track with an aim to adaptation). achieve no net land take by 2050.

In the REN, various Green Infrastructure elements are SDG 15 requires countries to combat desertification, planned, including protected areas, sustainable use areas restore degraded land and soil, including land affected by and natural connectivity features, risk mitigation and desertification, drought and floods, and strive to achieve management areas. The Portuguese land use planning a land-degradation-neutral world by 2030.

policy is based on a hierarchical system of territorial

management, which operates at national, regional and Soil is an important resource for life and the economy. It municipal level. At the national level, the REN aims to: 1) provides key ecosystem services including the provision Protect water and soil resources and ensure of food, fibre and biomass for renewable energy, carbon environmental goods and services essential to the sequestration, water purification and flood regulation, development of human activities; 2) Prevent and reduce the provision of raw and building material. Soil is a finite the effects of degradation of groundwater recharge, and extremely fragile resource and increasingly flood risk maritime, drought, soil erosion and mass degrading in the EU. Land taken by urban development movements on slopes contributing to the adaptation of and infrastructure is highly unlikely to be reverted to its the effects of climate changes ensuring environmental natural state; it consumes mostly agricultural land and sustainability; and 3) Contribute to the connectivity and increases fragmentation of habitats. Soil protection is ecological coherence of areas and natural connectivity indirectly addressed in existing EU policies in areas such features. The REN thereby also relates to policies on as agriculture, water, waste, chemicals, and prevention water (including the EU Water Framework Directive), of industrial pollution.

agriculture and adaptation to climate change.

Examples of good operational approaches to Green Artificial land cover is used for settlements, production

Infrastructure in Portugal include the Green Corridor in systems and infrastructure. It may itself be split between

Lisbon 42 ; the green roof of the waste water treatment built-up areas (buildings) and non-built-up areas (such as plant in Alcântara, Lisbon 43 ; or the Ecological Restoration linear transport networks and associated areas).

and Conservation of Praia da Vitória Coastal Wetland

Green Infrastructure (Azores) 44 . The annual land take rate (growth of artificial areas) as provided by CORINE Land Cover was 0.52% in Portugal

There is scope for demonstrating the socio-economic over the period 2006-12, just above the EU average growth benefits of GI, in urban, peri-urban, coastal and (0.41%). It represented 1853 hectares per year and rural context while promoting territorial cohesion. mainly driven by housing, services and recreation as well

A good focus would be to develop a Green Infrastructure as transport and infrastructures

45 .

approach at national, regional and local level (including in The percentage of built up land in 2009 was 2.83%, below urban areas), coordinated with ecosystem and ecosystem the EU average (3.23%) 46 .

services assessments and ecosystem restoration

planning, taking into account the elements already The soil water erosion rate in 2010 was 2.31 tonnes per

45 European Environment Agency Draft results of CORINE Land Cover 41 Council of Ministers Resolution Nº 41/99 of 17 May 1999. (CLC) inventory 2012; mean annual land take 2006-12 as a % of 2006 42 http://www.lisboadiariodebordo.com/#!corredor-verde-lisboa/cg9d artificial land.

43 http://www.adp.pt/pt//?id=61&img=39&bl=6 46 European Environment Agency, 2016. Imperviousness and

44 http://cmpv.pt/minisites/life/index.php?op=textos&codtexto=5 imperviousness change

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ha per year, close to EU-28 average (2.46 tonnes) 47 . specific objectives, lines of action and indicators.

Figure 8 shows the different land cover types in Portugal There are still not EU-wide datasets enabling the in 2012. provision of benchmark indicators for soil organic matter

decline, contaminated sites, pressures on soil biology and

Figure 8: Land Cover types in Portugal 2012 48 diffuse pollution. An updated inventory and assessment

of soil protection policy instruments in Portugal and other EU Member States is being performed by the EU Expert Group on Soil Protection.

Marine protection

The EU Coastal and Marine Policy and legislation require that by 2020 the impact of pressures on marine waters is reduced to achieve or maintain good environmental status and coastal zones are managed sustainably.

SDG 14 requires countries to conserve and sustainably use the oceans, seas and marine resources for sustainable development.

The Marine Strategy Framework Directive (MSFD) 50 aims

to achieve Good Environmental Status (GES) of the EU's marine waters by 2020 by providing an ecosystem approach to the management of human activities with impact on the marine environment. The Directive requires Member States to develop and implement a marine strategy for their marine waters, and cooperate with Member States sharing the same marine region or subregion.

In 2014, the National Action Program to Combat As part of their marine strategies, Member States had to

Desertification (PANCD) 49 was updated (building on a make an initial assessment of their marine waters, previous version of 1999). PANCD is fully aligned with the determine GES

51 and establish environmental targets by

vision, the mission, and the strategic and operational July 2012. They also had to establish monitoring objectives and goals of the 10 Year Strategy of the programmes for the on-going assessment of their marine

UnitedNations Convention to Combat Desertification. waters by July 2014. The next element of their marine strategy is to establish a Programme of Measures (2016).

PANCD is a cornerstone Strategy for the protection and The Commission assesses whether these elements recovery of affected soil in Portugal defining the constitute an appropriate framework to meet the institutional framework responsible for ensuring requirements of the MSFD. implementation and establishing a desertification

monitoring system to assess its effects and trends. It Portuguese marine waters are part of the North-East defines a strategic vision, setting four strategic Atlantic Ocean marine region and are divided into four objectives: 1) To promote the improvement of living subdivisions: the continental subdivision, the Acores and conditions of the populations of susceptible areas; 2) To Madeira subdivisions and the 'extended continental promote the sustainable management of ecosystems of shelf'. Portugal is party to the Convention for the susceptible areas and the recovery of affected areas; 3) protection of the marine environment of the North-East Generate global benefits and potential synergies with the Atlantic (OSPAR Convention). In the open ocean areas of processes of climate change and biodiversity in sensitive the Atlantic the main threats to biodiversity are areas; 4) To promote and mobilize resources to potentially: overfishing, bottom-trawling (note that implement the UNCCD and PANCD) and associated Portugal decided to ban bottom-trawling for its national

47 Eurostat, Soil water erosion rate , Figure 2, accessed November 2016 50 European Union, Marine Strategy Framework Directive 2008/56/EC

48 European Environment Agency, Land cover 2006 and changes country 51 The MSFD defines Good Environmental Status (GES) in Article 3 as:

analysis [publication forthcoming] “The environmental status of marine waters where these provide 49 Resolution of the Council of Ministers No. 78/2014 ecologically diverse and dynamic oceans and seas which are clean, https://dre.pt/application/file/65985917 healthy and productive”

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fleet and is seeking to ban it for all EU fleet), discards, required under other EU legislation and to implement and pollution resulting from accidents (e.g. oil spills). joint monitoring programmes, where they exist,

In 2014 Portugal reported only for its continental subdeveloped at (sub) regional level. division (mainland waters) and partially for its extended • Enhance comparability and consistency of monitoring continental shelf area beyond 200 nm and completed the methods within the Portuguese marine region. reporting exercise in 2015 for Macaronesia. Portugal did • Ensure that its monitoring programme is implemented not provide a clear determination of GES. Portugal also without delay, addresses all descriptors and is provided insufficient details to evaluate if and when GES appropriate to monitor progress towards its GES.

was achieved 52 .

It is therefore too early to say whether Portugal's waters are in good status as there were weaknesses in determining what GES is the in first place.

Portugal also established a monitoring programme of its marine waters in 2014 for all descriptors, except for eutrophication and hydrographic changes. It seems that its monitoring programmes for all descriptors except commercial fisheries need further refinement and development to constitute an appropriate framework to monitor progress towards GES. It is also not clear from

Portugal's reporting whether its monitoring programme is already being implemented or whether it will come

into force at a later date 53 .

In 2016 Portuguese marine protected areas (both Natura

2000 sites and national designations) covered 113 107 km² of which 536 km² were designated in the continental subdivision, 112 334 km² were designated around the

Azores and 237 km² around Madeira.

The Commission's reports on the implementation of the

MSFD 54 provide guidance to assist Portugal in its

implementation of the MSFD.

Suggested action

• Continue work to improve the definitions of Good

Environmental Status (GES) in particular for biodiversity descriptors, including through regional cooperation by using the work of the relevant Regional Sea Convention.

• Address knowledge gaps.

• Continue to integrate existing monitoring programmes

52 Commission Staff Working Document Accompanying the Commission

Report on "The first phase of implementation of the Marine Strategy Framework Directive (2008/56/EC) - The European Commission's assessment and guidance" ( SWD(21014) 049 final and COM(2014)097 final )

53 Commission Staff Working Document Accompanying the Commission

Report on "The first phase of implementation of the Marine Strategy Framework Directive (2008/56/EC) - The European Commission's assessment and guidance" ( SWD(21014) 049 final and COM(2014)097 final )

54 Report from the Commission "The first phase of implementation of

the Marine Strategy Framework Directive (2008/56/EC) - The European Commission's assessment and guidance" COM(2014)097 & Commission Staff Working Document Accompanying the Commission Report assessing Member States' monitoring programmes under the Marine Strategy Framework Directive (COM(2017)3 i and SWD(2017)1 final).

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• 3. 

  Ensuring citizens' health and quality of life

Air quality within the currently applicable national emission

ceilings 57 .

EU Clean Air Policy and legislation require that air quality At the same time, air quality in Portugal continues to give

in the Union is significantly improved, moving closer to

the WHO recommended levels. Air pollution and its cause for concern. For the year 2013, the European Environment Agency estimated that about 6 070

impacts on ecosystems and biodiversity should be further premature deaths were attributable to fine particulate

reduced with the long-term aim of not exceeding critical

loads and levels. This requires strengthening efforts to matter concentrations

58 , 420 to ozone concentration and 150 to nitrogen dioxide 59 concentrations 60 . This is due

reach full compliance with Union air quality legislation also to exceedances above the EU air quality standards and defining strategic targets and actions beyond 2020. such as shown in Figure 9 61 .

The EU has developed an extensive body of legislation 55 , For 2014, exceedances above the EU air quality standards

which establishes health based standards and objectives have been registered for nitrogen dioxide (NO

2 ) in three Figure 9: Attainment situation for PM10, NO2 and O3 in 2014

for a number of pollutants in air. Member States are required to ensure that up-to-date information on

57

ambient concentrations of the different pollutants is The current national emission ceilings apply since 2010 ( Directive

routinely made available to the public. The National 2001/81/EC ); revised ceilings for 2020 and 2030 have been set by Directive (EU) 2016/2284 on the reduction of national emissions of

Emission Ceilings Directive provides for emission certain atmospheric pollutants, amending Directive 2003/35/EC i and

reductions at national level that should be achieved for repealing Directive 2001/81/EC i. 58

six main pollutants. Particulate matter (PM) is a mixture of aerosol particles (solid and liquid) covering a wide range of sizes and chemical compositions.

The emission of several air pollutants has decreased PM10 (PM2.5) refers to particles with a diameter of 10 (2.5)

significantly in Portugal 56 . Reductions between 1990 and micrometres or less. PM is emitted from many human sources, including combustion.

2014 for sulphur oxides (-89%), nitrogen oxides (-33%), 59 NOx is emitted during fuel combustion e.g. from industrial facilities ammonia (-31%) as well as volatile organic compounds and the road transport sector. NOx is a group of gases comprising

(-37%) ensure air emissions for these pollutants are nitrogen monoxide (NO) and nitrogen dioxide (NO2). 60 European Environment Agency, 2016. Air Quality in Europe – 2016

Report . (Table 10.2, please see details in this report as regards the

55 European Commission, 2016. Air Quality Standards underpinning methodology)

56 See EIONET Central Data Repository and Air pollutant emissions data 61 Based on European Environment Agency, 2016. Air Quality in Europe viewer (NEC Directive) – 2016 Report . (Figures 4.1, 5.1 and 6.1)

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air quality zones (Porto, Braga and Lisbon). Furthermore, for several air quality zones the target values and longterm

objectives regarding ozone 62 concentration are not Noise

being met. 63

The persistent breaches of air quality requirements (for

PM The Environmental Noise Directive provides for a 10 and NO 2 ), which have severe negative effects on health and environment, are being followed up by the common approach for the avoidance, prevention and European Commission through infringement procedures reduction of harmful effects due to exposure to covering all the Member States concerned, including environmental noise.

Portugal. The aim is that adequate measures are put in

place to bring all zones into compliance. Excessive noise is one of the main causes of health issues 67 . To alleviate this, the EU acquis sets out several

To address the air quality problems Portugal has recently requirements, including assessing the exposure to

approved the National Strategy for Air (ENAR 2020 64 ), environmental noise through noise mapping, ensuring

which proposes actions concerning transport, industrial, that information on environmental noise and its effects is agricultural and domestic heating to reduce air emissions made available to the public, and adopting action plans and should be applied at local, regional and national with a view to preventing and reducing environmental level. It remains to be seen how these actions will be noise where necessary and to preserving the acoustic implemented in practice. environment quality where it is good.

It is estimated that the health-related external costs from Portugal's implementation of the Environmental Noise air pollution in Portugal are above EUR 4 billion/year Directive 68 is significantly delayed. The noise mapping for (income adjusted, 2010), which include not only the the most recent reporting round, for the reference year intrinsic value of living a full health life but also direct 2011, is only 33% complete for agglomerations, 68% for costs to the economy. These direct economic costs relate major roads and 47% for major railways. Noise mapping to 1.7 million workdays lost each year due to sickness for major airports is 100% complete. Action plans for related to air pollution, with associated costs for noise management in the current period have been employers of EUR 159 million/year (income adjusted, adopted for only 17% of agglomerations, 5% of major 2010), for healthcare of above EUR 14 million/year roads and 0% of major railways. For airports, the (income adjusted, 2010), and for agriculture (crop losses) Portuguese authorities have fulfilled all their obligations.

of EUR 46 million/year (2010) 65 . The European Commission has contacted the Portuguese

authorities with regard to the missing noise maps and

Suggested action action plans, and continues to follow up on the situation.

• Maintain downward emissions trends of air pollutants

in order to achieve full compliance with air quality limit Suggested action

values - and reduce adverse air pollution impacts on • Complete noise mapping and action plans for noise

health, environment and economy. management in urban areas. • Reduce nitrogen oxide (NO x ) emissions to comply with

currently applicable national emission ceilings 66 and/or

to reduce nitrogen dioxide (NO 2 ) (and ozone Water quality and management

concentrations), inter alia, by reducing transport related emissions - in particular in urban areas. The EU water policy and legislation require that the impact of pressures on transitional, coastal and fresh waters (including surface and ground waters) is significantly reduced to achieve, maintain or enhance

62 good status of water bodies, as defined by the Water Low level ozone is produced by photochemical action on pollution

and it is also a greenhouse gas. Framework Directive; that citizens throughout the Union

63 See The EEA/Eionet Air Quality Portal and the related Central Data benefit from high standards for safe drinking and bathing

Repository

64 Resolução do Conselho de Ministros n.º 46/2016, de 26 de Agosto de

2016 67 WHO/JRC, 2011, Burden of disease from environmental noise,

65 These figures are based on the Impact Assessment for the European Fritschi, L., Brown, A.L., Kim, R., Schwela, D., Kephalopoulos, S. (eds),

Commission Integrated Clean Air Package (2013). World Health Organization, Regional Office for Europe , Copenhagen,

66 Under the provisions of the revised National Emission Ceilings Denmark

Directive, Member States now may apply for emission inventory 68 The Noise Directive requires Member States to prepare and publish,

adjustments. Pending evaluation of any adjustment application, every 5 years, noise maps and noise management action plans for Member States should keep emissions under close control with a view agglomerations with more than 100,000 inhabitants, and for major to further reductions. roads, railways and airports.

Portugal 19

water; and that the nutrient cycle (nitrogen and by flow regulation and morphological alterations that phosphorus) is managed in a more sustainable and affect 26%. There are some regional differences, e.g. resource-efficient way. diffuse sources of pollution affect all water bodies in the

SDG 6 encourages countries to ensure availability and Guadiana river basin district but only 27% in the Douro sustainable management of water and sanitation for all. river basin district.

The Portuguese RBMPs Plans have some deficiencies that

The main overall objective of EU water policy and result in uncertainties about the status and effectiveness legislation is to ensure access to good quality water in of Programmes of Measures. In particular there are sufficient quantity for all Europeans. The EU water weaknesses in monitoring, methodologies for status acquis 69 seeks to ensure good status of all water bodies assessment and the link between pressures and across Europe by addressing pollution sources (from e.g. Programmes of Measures. The planned measures are agriculture, urban areas and industrial activities), physical expected to result in improvement of ecological and and hydrological modifications to water bodies) and the chemical status of surface water bodies by 7% and 31%

management of risks of flooding. respectively. The measures should also bring improvement of ecological potential of artificial and

River Basin Management Plans (RBMPs) are a heavily modified water bodies 73 by 14% and chemical requirement of the Water Framework Directive and a status by 11%. The chemical status of groundwater means of achieving the protection, improvement and should improve by 2% 74 .

sustainable use of the water environment across Europe.

This includes surface freshwaters such as lakes and rivers, The Commission is assessing on a regular basis the groundwater, estuaries and coastal waters up to one implementation of the Water Framework Directive by the nautical mile. Member States

75 .

Portugal has provided information to the Commission As regards drinking water, Portugal reaches now very from its second generation of RBMPs. However, as the high compliance rates of 99-100% for microbiological, Commission has not yet been able to validate this chemical and indicator parameters laid down in the information for all Member States, it is not reported Drinking Water Directive

76 .

here. As shown in Figure 10, in 2015, in Portugal, out of 569

In its first generation of RBMPs Portugal reported the bathing waters, 84.5 % were of excellent quality, 9.7 % of status of 1705 rivers, 122 lakes (of which 97 are good quality, 2.1 % of sufficient quality (548 in total, all reservoirs), 53 transitional, 65 coastal and 149 coastal bathing waters). 3 bathing waters were of poor groundwater bodies. 57% of natural surface water bodies quality or non-compliant while it was not possible to achieve a good or high ecological status 70 and only 28% assess the remaining 18 bathing waters. This was mainly of heavily modified or artificial water bodies achieve a due to the fact that the 2014-2015 season registered good or high ecological potential. Only 27% of surface precipitation values below average, thereby causing water bodies (while the status of 72% is unknown), 30% dryness in some bathing sites (inland bathing waters).

of heavily modified and artificial water bodies (70% Since 1993 the quality of bathing water has improved unknown) and 83% of groundwater bodies achieve good mainly due to the control of faecal pollution sources

chemical status 71 . 98% of groundwater bodies are in existing in the areas of influence, as a result of

good quantitative status. considerable investments in the implementation of waste

The main pressure on the Portuguese surface waters is water treatment infrastructure and the approval of diffuse pollution 72 that affects 46% of water bodies. Point several instruments for territorial management. In inland

sources of pollution affect 27% of water bodies followed waters the percentage rose from 69% in 2000 to 83% in 2015 and in coastal transition waters from 92% to 97%.

69 More concretely in 2015, the last available year, the rate This includes the Bathing Waters Directive (2006/7/EC); the Urban

Waste Water Treatment Directive (91/271/EEC) concerning discharges of bathing waters with at least sufficient quality

of municipal and some industrial waste waters; the Drinking Water

Directive (98/83/EC) concerning potable water quality; the Water 73 Many European river basins and waters have been altered by human

Framework Directive (2000/60/EC) concerning water resources activities, such as land drainage, flood protection and building of dams management; the Nitrates Directive (91/676/EEC) and the Floods to create reservoirs.

Directive (2007/60/EC) 74 For groundwater, a precautionary approach has been taken that 70 Good ecological status is defined in the Water Framework Directive, comprises a prohibition on direct discharges to groundwater, and a in terms of the quality of the biological community, the hydrological requirement to monitor groundwater bodies.

characteristics and the chemical characteristics. 75 More information on the implementation status of the Water 71 Good chemical status is defined in the Water Framework Directive in Framework Directive can be found here terms of compliance with all the quality standards established for 76 Commission's Synthesis Report on the Quality of Drinking Water in

chemical substances at European level. the Union examining Member States' reports for the 2011-2013 72 Diffuse pollution comes from widespread activities with no one period, foreseen under Article 13(5) of Directive 98/83/EC i; discrete source. COM(2016)666 i

Portugal 20

increased from 94.3 % to 96.3% since bathing season years, for which the use of EU funding has been

2014 77 . fundamental, the incomplete implementation of the

Figure 10: Bathing water quality 2012 – 2015 78 Directive has led to several rulings of the Court of Justice of the EU against Portugal, including financial sanctions,

which execution is closely followed-up by the European Commission. Therefore, further efforts are needed.

It should be noted that Portugal is the only EU Member

State which has identified "less sensitive" areas 79 , or

areas in principle not adversely affected by waste water

discharges due to their intrinsic features 80 .

The estimated investment needs (reported under article 17 of the Urban Waste Water Treatment Directive) to reach full compliance with the Directive in Portugal are of

EUR 183 million 81 .

Finally, natural water retention measures for flood prevention are often disregarded, despite being sometimes more cost-effective than hard infrastructure for flood prevention, as well as being cheaper than the

costs of flood recovery 82 .

Nitrate pollution in Portugal is an issue especially in

livestock intensive areas. According to the last report on Suggested action

the implementation of the Nitrates Directive, referring to • Portugal should improve its water policy in line with the period 2008-2011, nitrate levels in groundwater have the intervention logic of the Water Framework remained steady over the last years, with high levels in Directive (WFD), i.e. a detailed assessment of pressures around 20% of monitoring stations. to design effective Programmes of Measures

Several measures of the nitrates action programmes addressing these pressures and the implementation were reinforced through the different revisions in the gaps. The assessment methods should improve to past years. As regards controls, the most challenging provide more certainty about the water status and the measures in terms of compliance related to storage Programmes of Measures should be adequately capacity and balanced fertilisation, including the respect funded.

of 170 Kg/ha/year obligation. • New physical modifications of water bodies should be assessed in line with Article 4(7) of the WFD. In these

In Portugal, around 80% of the overall water assessments alternative options and adequate consumption is used by agriculture and livestock farming. mitigation measures have to be considered.

Although the amount of water used in the agricultural • Agricultural developments should be duly taken into sector has been reduced in the last years, there is still an account in the implementation of the nitrates action important water saving potential, related to a better programmes. Address the issues of compliance on the water pricing policy. The potential for innovation leading ground, especially with reference to the measures on to water savings is also big. balanced fertilisation and storage capacity.

Regarding the implementation of the Urban Waste Water • Efforts should be done to improve the coordinated

Treatment Directive (reported in 2014), in Portugal, implementation between water, marine and nature

99.8% of the waste water load is collected, 88.6% is policies. submitted to secondary treatment of which 77.3% is • Complete implementation of the Urban Waste Water compliant with the requirements of the Directive (the Treatment Directive for all agglomerations, by building target is 92.5%) and 73% of the waste water load up the necessary infrastructure.

receives treatment more stringent than secondary. It

must also be highlighted the difference in compliance 79 E.g.: open bays, estuaries and other coastal waters with a good water

rates at regional level, especially regarding treatment exchange

(e.g. "Norte", with higher values than "Alentejo" or 80 Portugal reports regularly to the Commission on its areas identified as

"Madeira"). "less sensitive areas" : "Cabo da Roca/Estoril” and “Madeira

(vertentesul)”.

Despite the improvement in compliance throughout the 81 European Commission, 2016 . Urban waste water, 8th implementation

reports .

82 RPA, 2014. Study on Economic and Social Benefits of Environmental 77 State of bathing waters 2015-National Report Portugal Protection and Resource Efficiency Related to the European Semester. 78 European Environment Agency, State of bathing water , 2016 Study for the European Commission, Annex 1: Country fiches

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until 2020. This document outlines a set of non-binding strategic guidelines to be adopted by the Portuguese cities, laying the foundations for its effective application,

Enhancing the sustainability of cities through the launch of a range of tools that promote its implementation 87 .

The EU Policy on the urban environment encourages This strategy seeks to reinforce the strategic dimension cities to implement policies for sustainable urban of the role of cities in various areas, namely urban planning and design, including innovative approaches for regeneration and restoration, urban environment, low urban public transport and mobility, sustainable carbon, climate change and risks, anchored on the buildings, energy efficiency and urban biodiversity paradigm of sustainable urban development, for which conservation. the involvement and commitment of a multiplicity of

SDG11 aims at making cities and human settlements agents is a fundamental condition for the focus of

inclusive, safe, resilient and sustainable. interventions not to be limited to the physical dimension of the urban space, but rather, seek to achieve purposes

such as economic development, social inclusion,

Europe is a Union of cities and towns; around 75% of the education, participation and environmental protection.

EU population are living in urban areas. 83 The urban

environment poses particular challenges for the environment and human health, whilst also providing opportunities and efficiency gains in the use of resources.

The Member States, European institutions, cities and stakeholders have prepared a new Urban Agenda for the

EU (incorporating the Smart Cities initiative) to tackle these issues in a comprehensive way, including their connections with social and economic challenges. At the heart of this Urban Agenda will be the development of twelve partnerships on the identified urban challenges,

including air quality and housing 84 .

The European Commission will launch a new EU

benchmark system in 2017 85 .

The EU stimulates green cities through awards and funding, such as the EU Green Capital Award aimed at cities with more than 100,000 inhabitants and the EU

Green Leaf initiative aimed at cities and towns, with between 20,000 and 100,000 inhabitants.

In the case of Portugal, it should be highlighted that the city of Torres Vedras was one of the two cities winning

the inaugural EU Green Leaf in 2015 86 .

Oriented towards the promotion of a sustainable urban development and in line with the European mainstream strategies and programmes, Portugal approved in 2015 the ‘Sustainable Cities 2020’ strategy, a guiding document offering the municipalities, the inter-municipal entities and other urban stakeholders a roadmap on urban sustainability for the next European funding cycle,

Personal transport exacerbates seasonal problems with

83 European Environment Agency, Urban environment air quality and traffic congestion 88 in the major

84 http://urbanagendaforthe.eu/ metropolitan areas in Portugal, namely Lisbon and Porto,

85 The Commission is developing an Urban Benchmarking and

Monitoring ('UBaM') tool to be launched in 2017. Best practices leading to health and economic costs. A comprehensive

emerge and these will be better disseminated via the app featuring the approach is needed to tackle this matter, bringing

UBaM tool, and increasingly via e.g. EUROCITIES, ICLEI, CEMR, Committee of the Regions, Covenant of Mayors and others.

86 European Commission Press Release, 18th June 2015, Torres Vedras 87 Council of Ministers Resolution No. 61/2015, August 11 wins inaugural European Green Leaf 2015 88 INRIX, 2015. Key Findings: INRIX 2015 Traffic Scoreboard

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environmental as well as economic and social benefits. could be spread across the country.

The "Green Growth Commitment" defines a target to increase the use of public transport and points out several paths to meet this target, such as the

modernization of public transport, including rail International agreements

transport, the development of mobility plans for major

large public and private employers, the promotion of less The EU Treaties require that the Union policy on the pollutant vehicles (including electric vehicles and the use environment promotes measures at the international

of biofuels) and the promotion of soft transport modes. level to deal with regional or worldwide environmental problems.

It is also important to consider the development of new

solutions for urban logistics that have the potential to Most environmental problems have a transboundary allow the reduction of the number of trucks in urban nature and often a global scope and they can only be centers, and on this matter it is important to point out addressed effectively through international co-operation. the participation of the Lisbon & Tagus Valley region on International environmental agreements concluded by

Project Dorothy 89 that aims “to enhance the distribution the Union are binding upon the institutions of the Union

process of urban goods by reducing the number of and on its Member States. This requires the EU and the vehicles and enhancing environmental standards”. Member States to sign, ratify and effectively implement

Another relevant issue is the decentralization all relevant multilateral environmental agreements implemented by the new legal framework for public (MEAs) in a timely manner. This will also be an important transport services 90 which has the potential to promote a contribution towards the achievement of the SDGs, better planning and management of these services, at which Member States committed to in 2015 and include regional and local level, allowing higher efficiency levels many commitments contained already in legally binding that are expected to reduce the environmental impacts agreements.

of public transport. The fact that some Member States did not sign and/or

The 'Green corridor Lisbon' initiative should be ratify a number of MEAs compromises environmental commended in this context as an example of green implementation, including within the Union, as well as infrastructure benefitting a metropolitan area. The the Union’s credibility in related negotiations and Lisbon Strategy for 2010-2024 identified three main international meetings where supporting the objectives for the city: (1) City regeneration – participation of third countries to such agreements is an rehabilitation of vacant buildings and degraded city established EU policy objective. In agreements where districts and green spaces, to reverse the depopulation voting takes place it has a direct impact on the number of process; (2) Climate change adaptation – focus on the votes to be cast by the EU.

challenges of climate change and the consequent natural Currently, Portugal has signed but not yet ratified two vulnerabilities (such as flooding), as well as on energy agreements under the Convention on Long-range efficiency, reducing the number of vehicles in circulation Transboundary Air Pollution: the Persistent Organic and increasing the area of green spaces; and (3) Pollutions Protocol and the Heavy Metals Protocol. The Connectivity of green spaces – implementation of a same applies to the Nagoya Protocol 91 .

network of green spaces and corridors for recreational activities and protection, appreciation and promotion of biodiversity and of natural and cultural landscapes. As a result of the strategy, the size, quality and connectivity of green spaces in Lisbon increased. Elements include bicycle lanes, bicycle-friendly streets, ecological corridors and allotment gardens. The Green corridor networks and informal open spaces such as allotment gardens provide wider accessibility to urban residents, workers and tourists. Other benefits are a positive impact on health by promoting active transport (walking/cycling), environmental impact gains and additional income (and jobs) from an increased number of visitors.

The good practices of sustainable urban development

89 http://www.clusterdorothy.com 91 Protocol on Access to Genetic Resources and the Fair and Equitable

90 http://www.imtt.pt/sites/IMTT/Portugues/RJSPTP/Paginas/RJSPTP.as Sharing of Benefits Arising from their Utilization to the Convention on px Biological Diversity.

Portugal 23 Portugal

24

Part II: Enabling Framework: Implementation Tools

• 4. 

  Market based instruments and investment

Green taxation and environmentally harmful 2013 and 2.14% in 2012. However, the 2012–2014 levels

subsidies are below the 2002–2005 values (2.9% of GDP). In fact, revenues from environmental taxes have significantly

The Circular Economy Action Plan encourages the use of decreased in Portugal during the last decade. Although financial incentives and economic instruments, such as the effects of the recent green taxation reform have still taxation to ensure that product prices better reflect to be perceived, there is still clear scope to increase environmental costs. The phasing out of environmentally environmental taxes and alleviate the burden on labour.

harmful subsidies is monitored in the context of the Portugal with 6.59% of GDP is around the EU average

European Semester and in national reform programmes (6.35%) regarding the share of environmental taxation in submitted by Member States. revenues from taxes and social contributions, as shown

below.

Taxing pollution and resource use can generate increased Figure 11: Environmental tax revenues as a share of total revenue and brings important social and environmental revenues from taxes and social contributions (excluding benefits. Moreover, environmentally-related taxation is imputed social contributions) in 2014 94

one of the few taxes that are generally not detrimental to growth.

Shifting taxation away from labour towards taxes less harmful to growth remains a key challenge in Portugal.

Following the work carried-out during 2014 by the

"Commission for Green Tax Reform" and some of its recommendations, Portugal adopted in 2015 a green taxation reform, aiming to promote a more sustainable economic development model, which is a positive step.

The additional revenue raised by this green taxation reform is to be allocated to reduce the tax burden on labour, assuming a revenue-neutrality. The effects of this reform have still to be assessed.

There is still scope for considering further measures that were not assumed in this green taxation reform. A more stable and growth-friendly tax system would help foster confidence and encourage private investment.

The 2016 Annual Growth Survey highlights the need to shift taxes away from labour to create efficient and growth-friendly tax systems contributing significantly to increasing employment and adaptability of the labour

market 92 .

Environmental tax reform can play an important part in sustaining economic growth. Taxing pollution and resource use would bring in additional revenues, and at the same time it would help discouraging activities that will bring additional cost in the future in terms of clean up, health costs, etc. This additional revenue could also

substitute for cuts in spending, therefore help achieving a As recognized in 2014

95 , the Commission for Green Tax

similar net budgetary outcome. Reform created by the Portuguese Government has been

a positive initiative in order to improve environmental

At 2.25% of GDP in 2014, Portugal's level of taxation in Portugal and the work of this committee of environmental taxes is below the EU-28 average of independent experts should be commended. Its objective

2.46% 93 . This rate has slightly increased from 2.19% in was to review environmental and energy taxation

92 Annual Growth Survey 2016, p. 14. 94 Eurostat, Environmental tax revenues , accessed October 2016

Portugal 25

regimes with a view to promoting a new green fiscal improved competitiveness and support budget

framework which incentivises eco-innovation and the consolidation 101 . It is important to ensure that energy tax

efficient use of resources, as well as mechanism for the rates become more consistent across fuels and uses, and internalisation of environmental externalities. It also that the tax system does not unduly favour fossil-based included the potential contribution to reducing external solutions. energy dependence and to inducing more sustainable

production and consumption patterns. Furthermore, according to OECD, Portugal has a considerable potential for reducing a wide range of tax

The final report of this Commission, issued in September exemptions and reductions and phasing out EHS 102 .

2014, includes an in-depth analysis on this matter, with

interesting findings and a series of recommendations on There is scope to address the preferential treatment of different sectors: energy, transport, water, waste, land diesel compared with petrol. The diesel-petrol planning, forests, biodiversity, etc. It also proposes global differential is not justified from an environmental tax neutrality, aiming at ensuring tax progressivity, perspective: diesel emits higher levels of a number of air developing green accounting, boosting environmental pollutants and should be taxed higher. The diesel information, developing helpful tools for the decision differential in Portugal is 53% (a figure of 0% means the making process, enhancing environmental policies and same level of taxation for petrol and diesel cars, i.e. no streamlining environmental funding 96 . diesel differential)

103 . Lower diesel tax led to

"dieselisation" of the fleet in Europe. A limited number of these recommendations were taken

on board by the Portuguese Government in its The Report of the Commission for Green Tax Reform also subsequent legislative proposal to the Portuguese identifies many EHS that need to be phased out.

Parliament. However, the pressure from the different interest groups benefiting from these EHS makes more difficult taking

In this respect, a 2016 study suggests that there is effective measures in this regard, and therefore the considerable potential for additional revenue from effects of such a reform need to be duly considered

environmental taxes in Portugal 97 . Under a good practice together with suitable alternatives for the disadvantaged scenario 98 these taxes could generate an additional EUR categories.

1.39 billion in 2018, rising to EUR 2.24 billion in 2030

(both in real 2015 terms). This is equivalent to 0.73% and In 2016, the Ministry of the Environment has created a

0.96% of GDP in 2018 and 2030, respectively. working group to further develop the green taxation reform approved in 2014. This work should aim to deliver

The reduction of environmentally harmful subsidies (EHS) more incentives to green behaviour from 2017 onwards is another key challenge. Portugal is still subsidising fossil as well as to increase the share of environmental taxes, fuels, company cars, or diesel compared to petrol when namely in fossil fuels. the policy objectives could be achieved in a less

environmentally harmful way. Therefore, there is scope to continue the implementation of the "Green Tax Reform" and further develop the

The European Commission has highlighted the different potential for environmental taxation and the reduction of challenges that Member States, including Portugal, face EHS in Portugal.

in relation to environmentally-related taxation 99 .

In 2013 all Member States agreed to phase out EHS Green Public Procurement

'without delay' 100 . Moving away from EHS can deliver economic, social and environmental benefits, allow for The EU green public procurement policies encourage

Member States to take further steps to reach the target

96 Final Report "Projeto de Reforma da Fiscalidade Verde" , 15.09.2014. of applying green procurement criteria to at least 50% of

97 Eunomia Research and Consulting, IEEP, Aarhus University, ENT, public tenders.

2016. Study on Assessing the Environmental Fiscal Reform Potential for the EU28 . N.B. National governments are responsible for setting tax

rates within the EU Single Market rules and this report is not Green Public Procurement (GPP) is a process whereby

suggesting concrete changes as to the level of environmental taxation. public authorities seek to procure goods, services and

It merely presents the findings of the 2016 study by Eunomia et al on works with a reduced environmental impact throughout the potential benefits various environmental taxes could bring. It is their life-cycle when compared to goods, services and

then for the national authorities to assess this study and their concrete

impacts in the national context. A first step in this respect, already works with the same primary function that would

done by a number of Member States, is to set up expert groups to

assess these and make specific proposals. 101 See 2020 Milestone on phasing out EHS in the Roadmap to a 98 The good practice scenario means benchmarking to a successful Resource Efficient Europe (COM(2011) 571 final i). taxation practice in another Member State. 102 OECD Companion to the Inventory of Support Measures for Fossil 99 European Commission, 2015. Tax Reforms in EU Member States 2015 , Fuels 2015

Institutional Paper 008 Sept. 2015. 103 European Environment Agency 2016, Environmental taxation and EU 100 7 th EU Environmental Action Programme. environmental policies , Table 4.3, p.24.

Portugal 26

otherwise be procured. Investments: the contribution of EU funds

The purchasing power of public procurement equals to

approximately 14% of GDP 104 . A substantial part of this European Structural and Investment Funds Regulations money is spent on sectors with high environmental provide that Member States promote environment and impact such as construction or transport, so GPP can help climate objectives in their funding strategies and to significantly lower the impact of public spending and programmes for economic, social and territorial foster sustainable innovative businesses.The Commission cohesion, rural development and maritime policy, and has proposed EU GPP criteria 105 . reinforce the capacity of implementing bodies to deliver

cost-effective and sustainable investments in these areas. In Portugal GPP policy has been institutionalised since the introduction of the National Strategy for Green Public

Procurement 2008-2010, which was adopted by the Making good use of the European Structural and

Council of Ministers in 2007. Investment Funds (ESIF)

107 is essential to achieve the

environmental goals and integrate these into other policy

A new national strategy for GPP (ENCPE 2020) has been areas. Other instruments such as the Horizon 2020, the

approved by the Portuguese Government in July 2016 106 . LIFE programme and the EFSI 108 may also support

This strategy defines more precisely its scope, intending implementation and spread of best practice.

to have a broader and effective impact from the previous

strategy, covering more acquisition procedures and thus Portugal is traditionally an important beneficiary of the potentiating its effect. EU Cohesion Policy.

GPP criteria will be progressively developed at the Current data suggest that the EU funds for the 2007-2013 national level on the basis of national and European period were almost fully spent

109 .

studies on GPP criteria and products, taking into account For the 2014-2020 programming period Portugal will also

Portugal’s environmental objectives such as reducing receive an important contribution from the 5 ESI Funds greenhouse gas emissions. (see Figure 12, current prices):

The environmental criteria for 21 priority product groups − From the ERDF: EUR 10 773 million. constitute the main tools for the purposes of meeting the − From the Cohesion Fund: EUR 2 862 million. objectives of the strategy, and include these product − From the ESF: EUR 7 546 million. groups: office buildings, electricity, imaging equipment, − From the EARDF: EUR 4 058 million.

electrical and electronic equipment used in the health

care sector, office IT equipment, indoor lighting, street − From the EMFF: EUR 392 million.

lighting and traffic signals, waste water infrastructure,

road design, construction and maintenance, furniture, The support of the EU funding has significantly wall panels, copying and graphic paper, combined heat contributed to improve the implementation of the EU and power (CHP), food and catering services, gardening environmental law and policy and Portugal.

products and services, cleaning products and services, The environmental investments have a similar weight water-based heaters, toilets and urinals, textiles, sanitary within the EU Cohesion Policy in the current tapware and transport. programming period compared to the previous one.

The 2020 National Strategy establishes targets applicable There is a national OP dedicated to environment: to the National System for Public Procurement, "Sustainability and Efficiency in the Use of Resources"

concerning most of the public bodies. For this group a (POSEUR), amounting to EUR 2.6 billion 110 and

target was set out, of integrating by 2020 environmental concentrating environmental investments through the criteria in 60% of contracts as well as 60% of Cohesion Fund in Portugal. This OP aims to anticipate and procurement value. In addition, the same targets are also adapt to the global changes in the field of energy, climate established for the state owned companies, at a level of change and more efficient use of resources along a 40%. dynamic perspective that links competitiveness to

sustainability, in accordance with the Europe 2020

107 ESIF comprises five funds – the European Regional Development

Funds (ERDF), the Cohesion Fund (CF), the European Social Fund (ESF), 104 European Commission, 2015. Public procurement the European Agricultural Fund for Rural Development (EAFRD), and 105 In the Communication “Public procurement for a better the European Maritime and Fisheries Fund (EMFF). The ERDF, the CF

environment” (COM (2008)400) the Commission recommended the and the ESF together form the Cohesion Policy funds. creation of a process for setting common GPP criteria. The basic 108 European Investment Bank, 2016 European Fund for Strategic concept of GPP relies on having clear, verifiable, justifiable and Investments

ambitious environmental criteria for products and services, based on a 109 Final data for the period 2007-2013 will only be available at the end

life-cycle approach and scientific evidence base. of 2017.

106 Resolution of the Council of Ministers No. 38/2016 of 29 July. 110 Including the national co-financing part.

Portugal 27

strategy. (SEA) Directive and by other means.

Figure 12: European Structural and Investment Funds

2014-2020: Budget Portugal by theme, EUR billion 111 The two thematic environmental ex ante conditionalities (EAC) on Water and Waste were only partially fulfilled by

Portugal at the moment of adoption of the Partnership Agreement 2014-2020 and therefore Action Plans were agreed with the Portuguese authorities in order to

comply with all the criteria by end-2016 112 .

The general environmental EAC on EIA/SEA (looking into the legal framework and the effective arrangements to comply with the environmental impact assessment rules) was considered as fulfilled by Portugal.

Portugal should take advantage of the ESIF available for the programming period 2014-2020 in order to improve the compliance with the EU environmental law and policy, as well as to use the potential of the green economy for competitiveness and job creation.

It is too early to draw conclusions as regards the use and results of ESIF for the period 2014-2020, as the relevant programmes are still in an early stage of their implementation.

With regard to the integration of environmental concerns into the Common Agricultural Policy (CAP), the two key areas are, first, using Rural Development funds to pay for environmental land management and other environmental measures, while avoiding financing measures which could damage the environment; and second, to, ensuring an effective implementation of the first pillar of the CAP with regard to cross compliance and 1st pillar 'greening'. 30 % of direct payment envelope is

There are also two other national OPs on allocated to greening practices beneficial for the

"Competitiveness and Internationalisation" and on environment. An environmentally ambitious "Technical Assistance". Moreover, there are seven implementation of 1st pillar greening would clearly help regional OPs, which in this period are multi-funding, to improve the environmental situation in areas not covering both ERDF and ESF, where environmental covered by rural development, including intensive area.

actions are also envisaged. For the Rural Development Programme of Mainland

Moreover, it should be highlighted the various territorial Portugal, the total EAFRD budget is some EUR 3584 cooperation ERDF OPs (transnational and cross-border million, with around 11.7% of budget allocated to the cooperation) with the participation of Portugal where the agri-environment-climate measure, much less than for environmental investments have a considerable weight. the less environmentally focused Natural Constraints

measure (20%). Natura 2000 land areas management In terms of environmental sectors, the main priorities in relies largely on traditional and low intensive Portugal for ERDF 2014-2020 are: water (EUR 628 management either in agriculture, grazing or forestry, the million), adaptation to climate change (EUR 415 million), comprehensive application of sound, effective and waste (EUR 313 million), and rehabilitation of industrial targeted support to specific farming and forestry sites and contaminated land (EUR 152 million). practices is required and there is a potential risk to

The environmental integration has been ensured in the nature and biodiversity from afforestation, and from the

Partnership Agreement 2014-2020 and the different large budgetary allocation for farm investments.

Operational Programmes for the five ESIF through the Therefore this programme could be much better targeted application of the Strategic Environmental Assessment on the environment.

111 European Commission, European Structural and Investment Funds

Data By Country 112 The EAC Waste has already been fulfilled by Portugal.

Portugal 28

For the Rural Development Programme of Madeira, the total EAFRD budget is EUR 180 million of which only 4.8% is allocated to the agri-environment-climate measure.

Very low uptake for this measure on small farms was a problem from the past which does not appear to have been overcome; and problems with pesticides appear to remain. Afforestation using non-native species may be also a cause for environmental concern.

As to the Rural Development Program of Azores, its

EARDF part, amounts to around EUR 295 million, out of which agri-environmental-climate measures represent

19.6%. Though having a higher proportion in the EARDF than for the rest of Portugal, the problems of invasive species are still of concern with prevalence of large areas of invasive flora in Natura 2000 areas putting pressure in their conservation objectives to achieve the favourable conservation status of protected species and habitats.

Yet, the support under the main forestry measure aims at supporting well established industries of Cryptomeria and Eucalyptus species and other non-native species

(Sequioadendron, Sequoia etc). Contribution of RDP towards environmental objectives is non-targeted, nonambitious, very limited and does not follow the intervention logic based on threats and weaknesses in environmental sphere. The forestry measure might represent, based on its implementation, environmentally harmful investments.

Portugal also benefits from the EU LIFE Programme, with numerous and interesting projects. It should be noted that Portugal has currently a LIFE capacity building project aiming to improve the overall Portuguese capacity for participation and use of the LIFE Programme, by increasing the number and quality of projects that are yearly presented to the Calls for Proposals.

Portugal 29

• 5. 

  Effective governance and knowledge

SDG 16 aims at providing access to justice and building improve the delivery of benefits from that legislation, effective, accountable and inclusive institutions at all and the governance of the enforcement process. levels. SDG 17 aims at better implementation, improving

policy coordination and policy coherence, stimulating Capacity to implement rules

science, technology and innovation, establishing It is crucial that central, regional and local partnerships and developing measurements of progress. administrations have the necessary capacities and skills

and training to carry out their own tasks and co-operate

Effective governance of EU environmental legislation and and co-ordinate effectively with each other, within a policies requires having an appropriate institutional system of multi-level governance.

framework, policy coherence and coordination, applying The 2013 European Quality of Government Index puts legal and non-legal instruments, engaging with non Portugal in 16 th place out of the 28 Member States. 114

governmental stakeholders, and having adequate levels

of knowledge and skills 113 . Successful implementation

depends, to a large extent, on central, regional and local government fulfilling key legislative and administrative tasks, notably adoption of sound implementing legislation, co-ordinated action to meet environmental objectives correct decision-making on matters such as industrial permits. Beyond fulfilment of these tasks, government must intervene to ensure day-to-day compliance by economic operators, utilities and individuals ("compliance assurance"). Civil society also has a role to play, including through legal action. To underpin the roles of all actors, it is crucial to collect and share knowledge and evidence on the state of the environment and on environmental pressures, drivers

and impacts. Environmental policy developments in Portugal are

Equally, effective governance of EU environmental mainly driven by EU Directives and Regulations, and the legislation and policies benefits from a dialogue within relevant EU rules are generally transposed in time. The Member States and between Member States and the number of complaints and infringements in the Commission on whether the current EU environmental environmental field can be considered in the EU average.

legislation is fit for purpose. Legislation can only be

properly implemented when it takes into account Overall, during the last decade an improvement in the experiences at Member State level with putting EU implementation of EU environmental law in the different commitments into effect. The Make it Work initiative, a sectors can be observed. For instance, there has been Member State driven project, established in 2014, progress regarding the implementation of the organizes a discussion on how the clarity, coherence and environmental assessments. However a recent package structure of EU environmental legislation can be of legislation aimed at speeding-up the licencing of the so

improved without lowering existing protection standards. called projects of national interest needs to be tested, mainly because it provides very tight deadlines for the

carrying out of the assessment and the possibility of tacit

Effective governance within central, regional approval of some procedural acts.

and local government

Coordination and integration

Those involved in implementing environment legislation

at Union, national, regional and local levels need to be The Portuguese Government adopted in April 2015 the

equipped with the knowledge, tools and capacity to "Green Growth Commitment" (GGC). This strategy has its origin in the "Coalition for Green Growth" launched in

February 2014. With a broad social support, the GGC

113 The Commission has work ongoing to improve the country-specific

knowledge about quality and functioning of the administrative systems

of Member States. 114 Charron N., 2013. European Quality of Government Index (EQI)

Portugal 30

encompasses the entire scope of components pertaining regarding the setting up of coordinated and/or joint to green growth (16 sectors), underpinned by procedures that are simultaneously subject to quantitative targets for 2020 and 2030, and an extensive assessments under the EIA Directive, Habitats Directive, range of measures (111 measures). Water Framework Directive, and the Industrial Emissions

The GGC initiated the discussion on the need to achieve a Directive.

new national development model, aiming to comply with Portugal has recently created the Single Environment

three major objectives by 2020: 1) to position Portugal as Permit (SEP) scheme 119 , which covers all main permits on

a global benchmark for green growth; 2) to promote a the environment domain. The SEP aims to integrate, low-carbon economy, highly efficient in resource use; harmonise and simplify processes and procedures in and 3) to produce more wealth and jobs by investing in order to facilitate their interpretation and application by sustainability of industries and territories. interested parties and the administration itself, thus

The GGC brings stakeholders together in encouraging a helping to minimise the impact of the dispersion of transition to a more resource efficient and low-carbon legislation and also to reduce bureaucracy related costs. economy. It is now essential to implement the numerous It is also aims to strengthen cooperation between various

measures it includes 115 . bodies and services of the public administration which are legally competent in environmental matters. In any

An evolution of the GGC was recently undertaken, case, this new scheme must ensure high standards of bringing stakeholders to focus on the core of green environmental protection. growth: the Circular Economy. In this context, a new

orientation was issued to the Coalition, to work on 5 Suggested action

sectors (industry, agriculture & forestry, built

environment, transport and procurement) and on 5 • The experience obtained on the definition and strategies (dematerialization, eco-design and lifecycle implementation of the mitigation and compensation extension, resource efficiency, symbiosis and measures regarding the dam projects should be recovery/recycling). Stakeholders were called to interact extended to other infrastructure likely to have and build collaborative projects, intended to significant impacts on the Natura 2000 network. The demonstrate the advantages and barriers in pursuing composition of follow-up commissions for these these initiatives. Coalition members welcomed this projects should be as broad as possible and include

approach and the first results are expected by end-2017. representative NGOs. • Effectively implementing and making use of the

Regarding the implementation of EU environmental law, recently created initiatives in order to improve the competences are shared between the national efficiency, effectiveness and coordination of the public administration and the regional and local sector in the environmental domain, namely improving administrations. The insular regions of Azores and information sharing and documentation exchange Madeira have a special autonomy also in this field. between public entities that are responsible for

Impact assessments are important tools to ensure inspection and monitoring in the areas of Agriculture, environmental integration in all government policies 116 . Sea and Environment, with an operational platform.

In the last years, Portugal has taken various measures to streamline the EIA process. The transposition of the

revised EIA Directive 117 will be also an opportunity to Compliance assurance

streamline the regulatory framework on environmental assessments. The Commission encourages the

streamlining of the environmental assessments to avoid EU law generally and specific provisions on inspections, other checks, penalties and environmental liability help

overlaps in environmental assessments and accelerate

decision-making, without compromising the quality of lay the basis for the systems Member States need to

the environmental assessment procedure. The have in place to secure compliance with EU environmental rules.

Commission has issued a guidance document in 2016 118

Public authorities help ensure accountability of duty

115 holders by monitoring and promoting compliance and by European Semester 2016 Portugal Country Report , p. 58.

116 Article 11 of the TFEU provides that "Environmental protection taking credible follow-up action (i.e. enforcement) when

requirements must be integrated into the definition and breaches occur or liabilities arise. Compliance monitoring implementation of the Union's policies and activities, in particular with can be done both on the initiative of authorities

a view to promoting sustainable development."

117 The transposition of Directive 2014/52 i/EU is due in May 2017.

118 European Commission, 2016. Commission notice — Commission Directive (D irective 2011/92/EU of the European Parliament and of the

guidance document on streamlining environmental assessments Council, as amended by Directive 2014/52 i/EU).

conducted under Article 2(3) of the Environmental Impact Assessment 119 Decree-Law 75/2015

Portugal 31

themselves and in response to citizen complaints. It can There is also publically available information giving involve using various kinds of checks, including insights into existing strengths and weaknesses in each inspections for permitted activities, surveillance for Member State. possible illegal activities, investigations for crimes and

audits for systemic weaknesses. Similarly, there is a range For each Member State, the following were therefore of means to promote compliance, including awarenessreviewed: use of risk-based compliance assurance; raising campaigns and use of guidance documents and coordination and co-operation between authorities and online information tools. Follow-up to breaches and participation in pan-European networks; and key aspects liabilities can include administrative action (e.g. of implementation of the ELD based on the Commission's withdrawal of a permit), use of criminal law 120 and action recently published implementation report and REFIT 126 under liability law (e.g. required remediation after evaluation .

damage from an accident using liability rules) and Over the last decade, Portugal has improved the contractual law (e.g. measures to require compliance effectiveness of environmental compliance assurance, in with nature conservation contracts). Taken together, all particular inspections. The implementation of the of these interventions represent "compliance assurance" Portugal's administrative simplification programme has as shown in Figure 13. led to a greater use of risk-based approaches and more

Figure 13: Environmental compliance assurance systematic data collection

127 . The IMPEL IRAM risk assessment methodology is widely used 128 . Some

compliance promotion campaigns have been organized. The General Inspection for Agriculture, Sea, Environment

and Spatial Planning (IGAMAOT) 129 established a

database on regulated industrial installations and relevant inspection activities that include also other sectors that have to comply with environmental obligations such as animal farms (intensive livestock), infrastructures and constructions, hospitals, waste management sites and transportation, wastewater

treatment plants, agriculture 130 and uses a geographic

information system for analyzing, planning and

prioritizing inspections 131 . There is a system for

performance evaluation which uses not only input and output indicators but also some outcome indicators

Best practice has moved towards a risk-based approach related to state of the environment parameters 132 .

at strategic and operational levels in which the best mix of compliance monitoring, promotion and enforcement is

126

directed at the most serious problems. Best practice also COM(2016)204 final and COM(2016)121 final of 14.4.2016. This

recognises the need for coordination and cooperation highlighted the need for better evidence on how the directive is used in practice; for tools to support its implementation, such as guidance,

between different authorities to ensure consistency, training and ELD registers; and for financial security to be available in avoid duplication of work and reduce administrative case events or incidents generate remediation costs.

127

burden. Active participation in established pan-European OECD Environmental Performance Report Portugal 2011, p. 64. 128

networks of inspectors, police, prosecutors and judges, Portugal indicated that risk assessment is applied in sectors such as wastewater treatment plants (taking into account water quality),

such as IMPEL 121 , EUFJE 122 , ENPE 123 and EnviCrimeNet 124 , Seveso and IPPC installations (taking into account its location in or is a valuable tool for sharing experience and good nearby sensitive areas, which includes nature protected sites) and that

practices. IGAMAOT is currently expanding its use to other areas such as transboundary shipments of wastes.

Currently, there exist a number of sectoral obligations on 129 Together with the Service for Nature and Environmental Protection

inspections and the EU directive on environmental (SEPNA) which is part of the Internal Administration Ministry, IGAMAOT is the main authority in charge of assuring compliance with

liability (ELD) 125 provides a means of ensuring that the environmental obligations.

"polluter-pays principle" is applied when there are 130 This database (GESTIGAOT) includes inter alia inspections reports

accidents and incidents that harm the environment. which are available for internal consultation but in general not to the wider public. A compilation of the main findings of inspections to

sectors are available on the Annual Activity reports but also specific reports, available to the public at

120 European Union, Environmental Crime Directive 2008/99/EC https://www.igamaot.gov.pt/relatorios/. IGAMAOT transferred this

121 European Union Network for the Implementation and Enforcement information to a new database named SGI. According to the type of

of Environmental Law installations the inspection reports are sent to public authorities that

122 European Union Forum of judges for the environment have competences on assuring compliance with environmental

123 The European Network of Prosecutors for the Environment obligations or its permitting..

124 EnviCrimeNet 131 IMPEL IRI Portugal, p. 33.

125 European Union, Environmental Liability Directive 2004/35/CE 132 IMPEL IRI Portugal, p. 31.

Portugal 32

Some reports have shown that there are shortcomings in under the Environmental Liability Directive, and several relation to: cases where preventive measures were applied. It has

− data-collection arrangements to track the use and established several support mechanisms, including

effectiveness of different compliance assurance guidance, a consultative council and a standing

interventions outside the area of industrial committee. It is actively promoting the Directive via

installations; awareness-raising and information campaigns for

− the extent to which risk-based methods are used to stakeholders and training for competent authorities (it

direct compliance assurance at the strategic level participates extensively in the Commission's training

and in relation to critical activities outside of programme for the Directive). Portugal has established

industrial installations 133 , in particular in specific mandatory financial security and the country reports that

problem-areas highlighted elsewhere in this Country the Directive contributes to operators being more aware

Report, i.e. the threats to protected habitat types of environmental risks and of the importance of reducing

and species, poor air quality and the pressures on them.

water quality from diffuse and point sources of

pollution; Suggested action

− how the Portuguese authorities ensure a targeted • Improve transparency on the organisation and and proportionate response to different types of functioning of compliance assurance and on how non-compliant behaviour, given evidence of the significant risks are addressed.

limited effectiveness of sanctions 134 . • Encourage greater participation of competent

authorities in the activities of ENPE, EUFJE and To remediate the above-mentioned gaps, the IGAMEOT is EnviCrimeNet. putting in place different measures, like a new data-base,

new units and various publications. Public participation and access to justice

Portugal is active within IMPEL and has undergone an

IMPEL peer review. The Aarhus Convention, related EU legislation on public

Although the added value of cooperation and participation and environmental impact assessment, and coordination with other authorities with relevant the case-law of the Court of Justice require that citizens functions is recognized and some formal cooperation and their associations should be able to participate in agreements are in place, there is a perception of need for decision-making on projects and plans and should enjoy more systematic use of joint inspections and for effective environmental access to justice.

measures to ensure effective inter-action between

environmental inspectors and prosecutors 135 . In this Citizens can more effectively protect the environment if

context, Portuguese authorities namely the Portuguese they can rely on the three "pillars" of the Convention on

Environment Agency, the Institute of Nature Access to Information, Public Participation in Decision

Conservation and Forests, the IGAMAOT, the Secretarymaking and Access to Justice in Environmental Matters

General of the Environment Ministry, the Public ("the Aarhus Convention"). Public participation in the

Prosecutor’s Office, the Regional Direction of administrative decision making process is an important

Environment and Spatial Planning of the Madeira and the element to ensure that the authority takes its decision on

Regional Inspection for Environment of the Azores, have the best possible basis. The Commission intends to created a Portuguese IMPEL Network, with the aim to examine compliance with mandatory public participation contribute to the improvement of implementation of requirements more systematically at a later stage.

environmental law.

Access to justice in environmental matters is a set of

For the period 2007-2013, Portugal reported two guarantees that allows citizens and their associations to confirmed cases of environmental damage dealt with challenge acts or omissions of the public administration

before a court. It is a tool for decentralised

133 implementation of EU environmental law. Portugal's progress on risk-based compliance assurance focuses

primarily on industrial inspections; risk assessment is not always For each Member State, two crucial elements for

aligned with strategic environmental objectives and does not cover all effective access to justice have been systematically

relevant environmental policy subject-areas, see IMPEL IRI Portugal, p.

36 and 38. reviewed: the legal standing for the public, including

134 In terms of response to detected non-compliance, the focus is mainly NGOs and the extent to which prohibitive costs represent on administrative procedures and sanctions in respect of which a barrier.

problems with collection of imposed fines and lack of sufficient

resources has been observed see OECD Environmental Performance Portugal grants the public, notably individuals and NGOs, Report Portugal 2011, p. 66-67. a very broad access to justice in environmental cases. The

135 OECD Environmental Performance Report Portugal 2011, p. 65 and

IMPEL IRI Portugal, p. 37. costs for bringing a case to a court are also not

Portugal 33

prohibitively high. This guarantees that members of the disseminate environmental information to the public public are provided with good conditions for asking for a leaves room for improvement. Portugal has indicated in

judicial review in environmental matters. However, the the 3-yearly INSPIRE implementation report 141 that the

court procedures, including environmental cases in necessary data-sharing policies allowing access and use

Portugal are rather long 136 . of spatial data by national administrations, other

Member States' administrations and EU institutions without procedural obstacles are available but not fully

Access to information, knowledge and implemented. Portugal has no common data-sharing

evidence policy and several licenses are being used to regulate the

access and use to spatial information. In many cases fees

The Aarhus Convention and related EU legislation on are applied. Portugal has expressed the ambition to work access to information and the sharing of spatial data on a simplified data-sharing policy promoting the free require that the public has access to clear information on access to and use of public sector spatial data. The need the environment, including on how Union environmental for recoverability of investments in data acquisition and

law is being implemented. management in many public administrations is the biggest bottleneck to address on the way to open data.

It is of crucial importance to public authorities, the public Assessments of monitoring reports

142 issued by Portugal

and business that environmental information is shared in and the spatial information that Portugal has published an efficient and effective way. This covers reporting by on the INSPIRE geoportal

143 indicate that not all spatial

businesses and public authorities and active information needed for the evaluation and dissemination to the public, increasingly through implementation of EU environmental law has been made electronic means. available or is accessible. The larger part of this missing

spatial information consists of the environmental data

The Aarhus Convention 137 , the Access to Environmental required to be made available under the existing

Information Directive 138 and the INSPIRE Directive 139 reporting and monitoring regulations of EU together create a legal foundation for the sharing of environmental law.

environmental information between public authorities

and with the public. They also represent the green part of Moreover, the new Single Environment Permit (SEP) the ongoing EU e-Government Action Plan 140 . The first scheme could help to strengthen the transparency and two instruments create obligations to provide responsibility of business owners and other intervening information to the public, both on request and actively. bodies by organising and standardising all the The INSPIRE Directive is a pioneering instrument for environmental information applicable to an electronic data-sharing between public authorities who establishment or activity.

can vary in their data-sharing policies, e.g. on whether

access to data is for free. The INSPIRE Directive sets up a Suggested action geoportal which indicates the level of shared spatial data • Critically review the effectiveness of its data policies in each Member State – i.e. data related to specific and amend them, taking 'best practices' into locations, such as air quality monitoring data. Amongst consideration. other benefits it facilitates the public authorities' • Identify and document all spatial data sets required for reporting obligations. the implementation of environmental law, and make

For each Member State, the accessibility of the data and documentation at least accessible 'as is' environmental data (based on what the INSPIRE Directive to other public authorities and the public through the envisages) as well as data-sharing policies ('open data') digital services foreseen in the INSPIRE Directive.

have been systematically reviewed.

Portugal's performance on the implementation of the

INSPIRE Directive as enabling framework to actively

136 See Study on access to justice in environmental matters 2012/2013

137 UNECE, 1998. Convention on Access to Information, Public

Participation in Decision-Making and Access to Justice in Environmental Matters

138 European Union, Directive 2003/4/EC on public access to

environmental information

139 European Union, INSPIRE Directive 2007/2/EC

140 European Union, EU eGovernment Action Plan 2016-2020 - 141 European Commission, INSPIRE reports

Accelerating the digital transformation of government COM(2016) 179 142 Inspire indicator trends final 143 Inspire Resources Summary Report