Carbon intensity in Portuguese economy at lowest level since 1995

Portugal has found a balance between economy and sustainability

Carbon intensity in the Portuguese economy is now at its lowest level since 1995, new data from the country’s national statistics office (INE) has found.

According to INE, more than four fifths (82.1%) of the carbon emissions in Portugal are concentrated in five economic sectors, which together account for 13.9% of the overall economy.

In 2022, Global Warming Potential (GWP) grew by 3.7% compared to the previous year, in an economic context marked by strong economic growth in which gross value added (GVA) increased by 6.9% in volume terms.

This led to a reduction in the carbon intensity in the national economy of 2.9%, the lowest level since 1995, when this data started to be measured.

GWP level in 2022

The GWP reached 60.2 million tonnes of CO2-e in 2022, increasing by 3.7% compared to the previous year. This evolution was mainly due to a 4.9% increase in CO2 emissions, which represented almost three-quarters of the emissions responsible for GWP.

Emissions of N2O and F-Gases also increased, by 1.8% and 0.4%, respectively. The exception was the evolution of CH4 emissions (-0.2%), mainly due to a 5.3% reduction in production in the agriculture, forestry, and fishing sector.

Return to normal

Following the pandemic period, which led to a general reduction in emissions due to decreased economic activity and social restrictions, 2022 marked a return to more normalised activity levels.

However, this period of recovery coincided with a global energy crisis that influenced the trend of GHG emissions. Several factors contributed to the change, including a resurgence in economic activity, the replacement of natural gas with more polluting liquid fuels due to energy shortages, and a severe drought that limited hydropower production, leading to increased reliance on fossil fuels.

CO2 remains the dominant greenhouse gas in Portugal, representing 74.2% of total emissions in 2022, primarily from the combustion of fossil fuels. Read more here.

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