OE2027: Decarbonization and Electrification Are Priorities for 2027

November 3, 2026

The Minister of Environment and Energy has chosen the decarbonization of public transport, buildings and industry as one of the major investment priorities for 2027, and pointed to the need to “electrify as much as possible.”

Maria da Graça Carvalho, who spoke at the Assembly of the Republic as part of the detailed examination of the State Budget Proposal for 2027, began by reminding the deputies that, not counting funds from the Recovery and Resilience Plan (PRR), the budget of the Ministry of Environment and Energy (MAEN) rises by 15.4%, to 1.7 million euros.

She explained that the Climate Social Plan, the PRR (continues for two more years in areas such as renewable gases and batteries), the Modernization Fund and the Sustainable 2030 program are the main financing instruments for energy poverty and the decarbonization of transport (financing, for example, investments in the metro and part of the railway), buildings and industry.

The minister has said that decarbonization is one of MAEN’s priorities and that reducing dependence on fossil fuels in industry and in heavy transport will be priorities in 2027.

In funding, the Environmental Fund, the Blue Fund (for protected marine areas, for example), the Sustainable 2030 program and the EEAGrants (funded by Iceland, Liechtenstein and Norway) support climate action, water resources, coastal protection, biodiversity, environmental protection and waste management.

Maria de Graça Carvalho said that the budget for the coming year includes more support for climate action beyond the energy transition, water resources, waste and the circular economy, biodiversity and the protection of people.

In statements before the deputies the minister gave an assessment of what has been done in each area and said that in climate action there will be emphasis on the decarbonization of aviation. In the document she presented there is reference to the “Climate Passport of the Cities,” to reinforce the role of the municipalities in complying with the Climate Bases Law.

Maria da Graça Carvalho highlighted the new incentives for the purchase of electric vehicles and, more generally, measures to reduce dependence on fossil fuels, electrifying as much as possible, and what cannot be electrified to be replaced by renewable fuels, natural gas by biomethane and hydrogen, for example.

In the energy transition the minister highlighted the auctions for energy storage at hydroelectric facilities, pumped-storage at dams, a technique that ensures the stability of the electric grid and a way to “store” energy.

“And it is extremely important to use our dams for storage,” she told the deputies.

And in water resources she recalled desalination plants at Albufeira and Sines, the dams that are planned, referring then to flood prevention interventions in places such as Alportel, Oeiras or Albufeira and Faro. She also highlighted the “Estrela+Natural” program, for ecological restoration of Serra da Estrela.

This, she explained, involves at the end of the concessions for 22 Serra da Estrela dams preparing a new concession model so that there are revenues to invest in the Serra’s ecological restoration.

In biodiversity, besides the already announced conservation plans the minister referred to the creation of pilot nature restoration projects in the major parks (such as Peneda-Gerês or Serra da Estrela, among others) but also in urban environments, one of them in Braga.

In Waste and the Circular Economy Maria da Graça Carvalho pointed to investments in the valorization of waste and highlighted the undertaking of a study for the valorization of waste in the Algarve, which brings together three universities.

The Algarve, she said, has more than 85% of its waste in landfills and the Government wants the best locations and technologies to solve the problem.

“We must have science-based solutions,” said Maria da Graça Carvalho, insisting that Portugal cannot again be a “dumping ground.”

Thomas Berger
Thomas Berger
I am a senior reporter at PlusNews, focusing on humanitarian crises and human rights. My work takes me from Geneva to the field, where I seek to highlight the stories of resilience often overlooked in mainstream media. I believe that journalism should not only inform but also inspire solidarity and action.