Framework climate law no 98/2021

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Laws and Policies

CCLW

CCLW national policies

Entry into force

Approved

Portugal's framework climate law sets the following objectives for the country's climate policy in article 3:

Promote a rapid and socially balanced transition towards a sustainable economy and society that are neutral in greenhouse gases;
Guarantee climate justice, ensuring the protection of communities most vulnerable to the climate crisis, respect for human rights, equality and collective rights over the commons; c) Ensure a sustainable and irreversible trajectory of reduction of greenhouse gas emissions; greenhouse effect;
Promote the use of energy from renewable sources and their integration into the system national energy;
Promoting the circular economy, improving energy and resource efficiency;
Develop and reinforce current sinks and other carbon sequestration services; g) Strengthen national resilience and capacity to adapt to climate change;
Promoting climate security;
Stimulating education, innovation, research, knowledge and development and adopt and disseminate technologies that contribute to these ends;
Combat energy poverty, namely through the improvement of living conditions; livability and citizens' fair access to energy use;
Foster prosperity, green growth and social justice, fighting inequalities ties and generating more wealth and employment;
Protect and promote the regeneration of biodiversity, ecosystems and services;
Stimulating sustainable financing and promoting information on climate risks by economic and financial agents;
Ensuring committed, ambitious and leading participation in international negotiations and international cooperation;
Establish a rigorous and ambitious basis for the definition and fulfilment of climate objectives, targets and policies;
Reinforce the transparency, accessibility and effectiveness of information, the legal framework and information, reporting and monitoring systems;
Ensuring that all major legislative measures and public investments are strategically evaluated in relation to their contribution to fulfilling the stated assumptions, integrating the risks associated with climate change in national and sectoral planning and economic investment decisions.

Art 2 recognises the situation of climate emergency.Chapter II on climate rights and duties notably lists in article 8 the public and private entities concerned by climate-related actions that lie under the legal umbrella of this law. These entities are the state, public institutes, autonomous regions, local authorities, the Climate Action Council, independent administrative entities with regulatory functions for the economic activity, civil society entities including non-governmental organisations and investment groups, and citizens, private companies and other entities governed by private law. Art 9 states that citizens have the right to participate in the processes of drafting and reviewing climate policy instruments.Chapter III focuses on climate policy governance. The Council for Climate Action (CAC) is created (art 12). The CAC collaborates with the legislative and executive branches to prepare studies, assessments and opinions on climate action and related legislation. The CAC also must issue an opinion, in an advisory capacity, on the planning, execution and effectiveness of climate policy and to contribute to the public discussion on its conduct. Article 13 details the further attributions of the CAC. Article 15 notably states that the government must actively defend, including in its foreign policy, the definition of the climate refugee concept, its status and its recognition by the Portuguese State. Article 16 on public health and environmental health stipulates that the State must promote the "assessment of global and national risks and the preparation of action, prevention and contingency plans in the face of extreme climatic phenomena, the emergence of new diseases or the worsening of the incidence of diseases as a result of climate change". Article 17 further charges the government to promote climate security, identify risks and prevent the adverse effects of climate change "on public order, security and tranquility, on the integrity of people and goods and on the regular exercise of rights, freedoms and guarantees".Under Chapter IV on planning and evaluation tools, Portugal notably commits to achieve climate neutrality by 2050 (art 18) and charges the Assembly to approve, on a governmental proposal, national targets for the reduction of greenhouse gas emissions on a five-year basis and within a 30-year horizon (Art 19). Chapter IV also charges the government to develop/update a range of mitigation and adaptation policies and defines dedicated accountability relationships. Art 25 charges the State to prepare a national inventory of anthropogenic emissions by sources and removal by sinks of atmospheric pollutants (INERPA) ensuring public disclosure .Chapter V on economic and financial instruments notably 1) details green fiscal principles (art 28) that include fossil-fuel curbing measures, 2) mandates the budget allocation for climate policy purposes to be consolidated in a State Budget account (art 29), 3) charges the government to create and implement a category of tax deductions — IRS Verde — under the Corporate Income Tax Code that benefits taxpayers who purchase, consume or use environmentally sustainable goods and services (art 30), 4) subjects petroleum and energy products to a carbon price to be "determined in accordance with good international practices and with a view to achieving climate goals", and 5) defines guiding principles on climate matters that public and private entities must adopt in their financial policies, financial management, support for capitalisation and borrowing (art 34). Public and private agents and institutions must also take the climate risk and the climate impact into account in their financing decisions (art 35).Chapter VI defines sectoral climate policy instruments. Further clauses in this document include:

eco-design must be mainstreamed for products, packaging, buildings and infrastructure
reduce food waste and promote healthy diets
A ban on coal use by 2021 and natural gas by 2040 to generate electricity (art 40). The natural gas ban will only be met provided the security of supply is guaranteed.
by 2030, the State will have to respect the EU taxonomy in public investment and procurement.

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Actions or measures to adapt terrestrial systems to climate change.

Aligning the skills of the workforce with the requirements of the just transition.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Actions to adapt human health, healthcare systems and well-being to climate change.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

Activities that relate to the production of goods and services from forests.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Actions or measures to adapt freshwater systems to climate change.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves the distribution, treatment, and conservation of water resources.

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

Coastal zone and marine-related actions and measures to adapt and increase resilience to climate change

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

This sector provides communication services, software development, and IT solutions.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

This sector involves activities to move goods and people, alongside the storage of products.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

This sector involves the wholesale and retail selling of goods.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

Activities involving the management, development, and sale of property assets.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

People who have left their homes, whether through force, voluntarily, or a mixture of both

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Zoning and spatial planning are both methods for guiding the distribution of people and activities in a space, and are regulatory restriction.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

Framework climate law no 98/2021

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance