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Eco-innovation in Portugal
EIO Country Profile
2016-2017
Eco-Innovation Observatory
The Eco-Innovation Observatory functions as a platform for the structured collection and analysis
of an extensive range of eco-innovation and circular economy information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development.
The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:
“Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”.
To find out more, visit www.eco-innovation.eu and ec.europa.eu/environment/ecoap
Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.
Eco-Innovation Observatory
Country Profile 2014-2015: Portugal
Author: António Lorena
Coordinator of the work package: Technopolis Group
Acknowledgments
The authors wish to acknowledge Ms. Inês Costa and Mr. Eduardo Santos for their valuable
contributions to the report.
A note to Readers
Any views or opinions expressed in this report are solely those of the authors and do not
necessarily reflect the position of the European Union.
A number of companies are presented as illustrative examples of eco-innovation in this report.
The EIO does not endorse these companies.
The report is based on an updated methodology for calculating the Eco-Innovation Index, which
has also been applied retroactively to all previous years, hence the outcome in the Eco-Innovation
Scoreboard (Eco-IS) for 2017 presented in this report can be compared with the analysis in the
previous reports to a limited extent.
Comments and suggestions on this document can be sent to Asel Doranova
This brief is available for download from https://ec.europa.eu/environment/ecoap/country_profiles_en
Table of contents
Summary ................................................................................................................... 1
Introduction ............................................................................................................... 2
1 | Eco-innovation performance .................................................................... 3
2 | Selected circular economy and eco-innovation areas and new trends ....... 5
3 | Barriers and drivers to circular economy and eco-innovation in Portugal. 10
4 | Policy landscape in Portugal ................................................................... 13
ANNEX: Policy measures addressing circular economy and eco-innovations in Portugal 17
1
Summary
The years 2016 and 2017 represent a breakthrough in the Portuguese circular economy
landscape. The Portuguese Government launched several instruments to support the transition
to the circular economy, namely open calls supported by the Fundo Ambiental and the Plano de
Ação para a Economia Circular em Portugal 2017-2020 (Action Plan for the Circular Economy in
Portugal 2014-2020). These, along with a comprehensive communication strategy, have helped
spur a wide interest for the circular economy in companies, public administration and civil society.
However, despite the strong commitment to the circular economy, the explicit support to eco-
innovation is still lacking.
In 2017, Portugal obtained a EcoI Index of 104, in relation to the EU average (=100), continuing its upward trend from previous years (96 in 2016, 92 in 2015 and 2014, 81 in 2013, 88 in 2012) and is currently ranked 10th among EU Member-states. This is also the first year that Portugal is above the EU-28 average score, i.e. has a EcoI Index above 100.
Decomposing the EcoI Index, Portugal shows good performance in public related indicators (e.g., Government budget appropriations or outlays on environmental and energy related R&D), but still lags in private sector involvement (e.g., Total value of green early stage investment). The figures shown in the country report support the findings that in Portugal there is strong public support towards eco-innovation in Portugal, but it is not matched yet by the private sector.
Going full circle, Portugal needs to continue to implement strong public policies to support eco-innovation and circular economy, tackling some of the identified barriers and improving private-sector involvement. It is particularly important to use public and publicly co-funded venture capital to improve the initial stages and the scale-up of eco-innovations and create more instruments within the tax system to nudge consumer behavior and public procurement.
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Introduction
According to the most recent studies from the European Commission, Portugal’s resource
productivity continues to be significantly smaller than most EU Member-states, standing at 1,1 €
of GVA per kg of material used (European Commission, 2016). This figure could be improved not
only by improving the resource efficiency of key sectors, such as the construction and agricultural
sectors, but also by shifting from high material intensity to low material intensity sectors. Both
objectives can be pursued through eco-innovation and circular economy strategies, which should
place this agenda at the core of the economic and environmental policy.
In the last few years, Portugal has made great efforts to align itself with the green growth and the
circular economy paradigms. Due to its relatively weak economic growth within the European
Union, Portuguese authorities have looked for new ways to improve its competitiveness and
economic standing. The environmental authorities have been particularly diligent in this regard,
looking for ways to boost the economy through resource efficiency and eco-innovation. More
recently, with a strong push towards the circular economy, the Portuguese Government and other
regional authorities have committed to tackle environmental and economic problems with a
coherent strategy. These efforts from public authorities are well represented in the Green Growth
Coalition and the recent Plano de Ação para a Economia Circular initiatives.
However, it is also important to stress that past experiences show that promising public-sector
initiatives, such as the Ecopol project, which ran from 2011 to 2014 (ANI, 2015), have not
translated to public policy as successfully as expected. This was signaled in the previous country
report and remains valid in 2016 and 2017.
Another major challenge is the private-sector involvement. There are some sectors where the
private-sector is particularly involved in innovation, such as the energy and the telecom sectors,
but others where eco-innovation is particularly relevant, such as waste management, there is little
improvement in recent years. In contrast, some traditional sectors, such as the textile, clothing
and footwear and the agricultural sectors, where SME are bringing new products and services to
the market supported by eco-innovation and a strong entrepreneurial ecosystem.
These new products and services can only thrive if the necessary conditions are met, namely the
financial capacity to support scale-up and internationalization. In that regard, the banking system
and venture capital funding are still not sufficient, despite the growing number of VC funds in
Portugal.
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1 | Eco-innovation performance
The analysis in this section is based on the EU 28 Eco-innovation Index (EcoI Index) for the year 2017. The Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. EcoI Index is a composite index that is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes.
Figure 2.1 EU27 Eco-innovation Index 2017, composite index
Source: EIO, 2018
In 2017, Portugal obtained a EcoI Index of 104, in relation to the EU average (=100), continuing its upward trend from previous years (96 in 2016, 92 in 2015 and 2014, 81 in 2013, 88 in 2012) and is currently ranked 10th among EU Member-states. This is also the first year that Portugal is above the EU-28 average score, i.e. has a EcoI Index above 100. This trend is at odds with other indicators, namely the EU Innovation Scoreboard (EC, 2017) index, which shows that Portugal has marginally but consistently decreased its Innovation Index from 2010 to 2016.
To understand the improvement witnessed in EcoI Index it is necessary to analyse its individual components. Figure 2.2 presents the breakdown in terms of eco-innovation inputs, activities, outputs and outcomes (resource efficiency and socio-economic). Portugal shows a particularly strong performance on the ‘Eco-innovation activities’, with a score of 134, but is lacking on the “Socio-economic outcomes”, scoring only 76. In the remaining indices Portugal shows a good performance, obtaining a score equal or better than EU average (=100).
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In the case of ‘Eco-Innovation Activities’, the high score is mostly due to a large share of enterprises that introduced an innovation with environmental benefits to the company or to the end-user. However, it should also be noted that the low number of ISO 14001 certified companies, when compared to other Member-states, brings the ‘Eco-Innovation Activities’ index value down.
Comparing to previous years, Portugal shows a significant improvement in the “Eco-innovation inputs”, increasing from 73 to 104 between 2015 and 2017, and in “Eco-innovation outputs”, increasing from 89 to 107 between 2015 and 2017. These results are linked to an improvement on the relative ranking in Government budget appropriations or outlays on environmental and energy related R&D and In the Eco-Innovation related media coverage. It is also important to stress the positive trend in the Total R&D personnel and researchers (% of total employment) indicator. Combined, these two values show that Portugal is looking to create the necessary pool of human resources and knowledge capital to unlock its eco-innovation potential. Unfortunately, as the indicator Total value of green early stage investment (USD/cap) suggests, this effort is undermined by the low capacity to attract and leverage private investment.
The ‘Socio-economic outcomes’ index has a below-average score due to the low value of exports of products from eco-industries (% of total exports). The value has dropped in absolute terms, from 197 to 152 million euros from 2015 to 2017, demonstrating the struggle of Portuguese eco-industries to gain critical scale and be competitive in international markets. In the medium term, this downward trend should be inverted as some of the eco-innovation and business-oriented policy instruments are put in place (see Chapter 4 for further information).
Figure 2.2 Components of the Eco-innovation index for Portugal, 2017
Source: EIO, 2017
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In conclusion, Portugal continues to show an improvement in its eco-Innovation performance, supported by Government environmental and energy R&D expenditure and increased publication and media coverage. However, Portugal continues to struggle in critical areas, namely those mostly related with private sector involvement (e.g., early stage investment, ISO 14001 certification, exports from eco-industries).
2 | Selected circular economy and eco-innovation areas and new trends
The recently launched Portuguese Plano de Ação para a Economia Circular (PAEC) establishes a
comprehensive set of key areas and priorities in the transition for the circular economy. At its
core, three functional areas aligned with the EU Action Plan for the Circular Economy – product,
consumption and secondary raw materials – as well as four economic sectors – construction, food
and agriculture, tourism and textile. The PAEC also establishes several regional-level strategies,
including highlights such as industrial symbiosis and circular cities.
It is important to stress that there is some departure from previous strategic priorities, namely
those originating from the Green Growth Coalition, as reviewed in the EIO Country Profile 2014-
2015 for Portugal. The conclusion is that the PAEC instrument is more focused, downplaying some
areas and sectors such as water and ecosystem services.
Among all the PAEC areas, the ones that have stood out the most during 2016-2017 are the
construction sector, the food and agriculture sector and the textile sector. These are traditional
sectors within the Portuguese economy, characterized by many SME enterprises and relatively
competitive markets, prone to disruption through eco-innovation.
Regarding the Construction sector, most eco-innovation and circular economy projects have
focused on prefabrication and modularity, deconstruction and reuse of building elements and use
of recycled materials as substitutes for raw materials. Most of these initiatives have spurred from
business and social entrepreneurs that found disruption opportunities in a risk-averse sector.
Examples include Jular with their TreeHouse product (Jular, 2018), APRUPP with their platform
for building elements reuse (APRUPP, 2017) or the EcoKalçada product by Eco Solutions, which
uses rubber from used tyres in a replica of the traditional Portuguese cobblestone (Eco Solutions,
2018).
There are also examples of eco-innovation projects in more traditional industries, such as the
installation of a low-temperature belt dryer in the Intercement Cimpor cement plant at Souselas
(Cimpor, 2018). This technology, typically used to dry biomass, is used to dry alternative fuels
using the heat from flues gases that would otherwise be wasted.
The food and agriculture sector has benefited from a renewed interest by a younger generation
of researchers and entrepreneurs that have found ways to introduce IT technologies but also bring
production to the urban spaces. Examples of such innovations include Coolfarm (Coolfarm, 2018),
Wisecrop (Wisecrop, 2018) and Noocity (Noocity, 2018). Another important trend is related to
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the prevention and recycling of food waste. In 2016-2017, projects such as the GoodAfter online
supermarket (Goodafter, 2016), pave the way for large-scale food waste prevention and recycling.
Finally, eco-innovation in the textile, clothing and footwear sectors is also a result from existing
expertise and the need for product differentiation in an increasing competitive global market.
Noteworthy examples include the footwear brand Jindo Burel by BERG Outdoor (Berg Outdoor,
2018), the incorporation of marine plastic waste in textile fabric by VILARTEX and the recycled
fabric brand Tenowa by Riopele (Portugal Têxtil, 2017).
Going beyond the sectorial vision, one can identify that the most important circular economy and
eco-innovation trends can be related to new business models (e.g., servitization) and product
design (e.g., improving reparability). However, most innovations are confined to niche markets
and struggle to scale up as other global innovations (e.g., digital on-demand transportation
services). Further financial support by both Portuguese and EU innovation instruments and a more
significant involvement of large companies in the innovation ecosystem would contribute
significantly to address scale-up barriers.
Waste recycling is another area that got special attention during the reviewed period of 2016-
2017, particularly under the circular economy concept. Several initiatives have looked at new
opportunities and strategies to close material cycles in economic sectors as diverse as wine
production, mineral resource extraction or the shipping industry. For example, the Fibrenamics
Green project by Universidade do Minho and CVR (Fibrenamics et al, 2016) looks at new ways to
recycle fibre waste into products that incorporate value through design, engineering and
creativity. Ecoslops, located in Sines, is another example of eco-innovation. This company
developed an innovate technology capable of upcyling oil residues from shipping (slops and
sludges) and transform them into valuable new fuels and light bitumen (Ecoslops, 2016).
There was also significant progress in some potentially disruptive areas, such as industrial
symbiosis and circular cities. In the first case, two initiatives stand out. The Horizon 2020 project
SCALER (SCALER, 2018), which includes ISQ as the Portuguese partner, aims to increase the uptake
of industrial symbiosis across Europe, and the EPR.COLAB project, which aims to develop and
standardise industrial symbiosis stimulation models using the Eco Parque do Relvão as a reference
case (AEPR, 2017).
The described trends in circular economy and eco-innovation show significant promise, namely
because they integrate not only global trends but also intrinsic characteristics of the Portuguese
economy and cultural heritage. However, there are important obstacles that must be overcome
to scale-up some of these initiatives and ensure a larger positive impact on the environment and
society.
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FOOD AND AGRICULTURE SECTOR - COOLFARM
CoolFarm is a Portuguese SME that provides solutions for the indoor farming needs. With their
in/store solution, Coolfarm can deliver robust systems with a clean and climatized environment
inside, suitable to grow premium seedlings, microgreens, leafy greens, herbs and flowers.
These systems also enable significant savings - according to Coolfarm, it uses 90% less water
than common agriculture and it does not need pesticides nor herbicides. It is modular, whereby
each module starts with approximately 100 square meters of production area.
Coolfarm also provides the in/control solution, which brings their all-in-one
greenhouse/warehouse control system to the farmer’s growing system.
CoolFarm has been recognized worldwide as an innovative technological company with an
inspired brand that tackles global concerns and challenges regarding farm sustainability, food
needs and transparency demands.
Precision agriculture | Hydroponic farming | Sensor
www.cool-farm.com
source: www.cool-farm.com
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TEXTILE, CLOTHING AND FOOTWEAR – JINDO BUREL BY BERG
The Jindo Burel sneakers by BERG are a prime example of ecodesign. Inspired by the landscapes
of Serra da Estrela, the sneakers are made with exclusively recyclable materials, from the
leather lining to cotton laces. They also incorporate cork and burel, two traditional materials
that have been repurposed by Portuguese designers for creative and thoughtful new
applications.
BERG is also looking to further its circular business model by returning the used sneakers once
they reach their end-of-life. This would allow designers to gain important insight about the
wear and tear of the Jindo Burel sneakers and recover the materials for new products.
In 2017, the Jindo Burel sneakers by BERG was awarded at the German International Fair
dedicated to IPSO Munich in the category of innovation in Outdoor - Footwear Lifestyle. The
design, "functionality, style and ecological characteristics" of this Portuguese product were
highlighted.
Footwear | Ecodesign | Cork | Burel
https://www.bergoutdoor.com/pt/jindo-burel
Source: https://www.bergoutdoor.com/pt/jindo-burel
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WASTE MANAGEMENT – SLOPS RECYCLING BY ECOSLOPS
Ecoslops has developed an innovative technology to recycle oil residues (slops and sludges) to
produce new fuels and light bitumen. Its first industrial-scale processing unit is in Sines,
Portugal, and has been operational since 2015.
The slops are first heated, decanted and centrifuged to separate the water, the hydrocarbons
and the sediments before the distillation process. The slops are heated to 400°C, which, under
vacuum conditions, causes most hydrocarbons to vaporize. At the end of the distillation, several
types of fuels are produced. This recycling process was made possible due to the specifically
developed engineering that makes these applicable to slops recycling.
With its innovative approach, Ecoslops offers port infrastructure, waste collectors and ship-
owners environmentally friendly solution that complies with international and European
regulations regarding the collection and processing of slops.
Shipping | Slops | Micro-refining
https://www.ecoslops.com/en/solutions-and-services/our-technology/ow2pl
source: https://noticiasdesines.com/2015/12/10/sines-produz-betao-leve-a-partir-de-oleos-
residuais/
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3 | Barriers and drivers to circular economy and eco-innovation in Portugal
In the previous EIO Country Report, the general conclusion was that not much had changed in
Portugal and that eco-innovation-oriented policies were still dispersed between resource
efficiency, waste strategy or energy efficiency plans, with no concerted actions. Despite
recognizing that the Ecopol initiative (ANI, 2015) was able to kick start the discussion on the
importance of eco-innovation-inducing policies, in the following years there was little information
was disseminated on if or how the results were being integrated into a consolidated eco-
innovation roadmap at national level.
However, there was significant progress in 2016 and 2017, particularly in the later year, regarding
eco-innovation and circular economy policies. The Plano de Ação para a Economia Circular, which
was launched in 2017, aims to address the identified barriers and foster the drivers to circular
economy. Some of these aspects are detailed below.
A thorough analysis of the barriers are drivers are presented in the following tables, organized by
type (Economic, Technological, Human Resources and Knowledge Capital, Natural Capital, Social
and Cultural Organizational Capital and Regulatory and Policy).
Unfortunately, most of the barriers from the previous country report are still valid, which
demonstrates that little has been done to address them. We highlight four of the most important:
1. Lack of private-sector leadership or investment in eco-innovation efforts, namely in the
key sectors waste management and water services.
2. In many areas, including R&D, Portugal still depends too much on public institutions;
traditionally, only large corporations have significant in-house R&D activities.
3. Portugal is a relatively rich country in terms of mineral resources, limiting the rationale
for resource efficiency in sectors such as construction.
4. There is no specific policy programme to promote eco-innovation and the concept itself
gets lumped with circular economy, green economy among others.
However, there are also drivers that contribute positively to the eco-innovation and the circular
economy agenda. The following four drivers were considered to be the most significant:
1) Significant private-sector leadership and investment in eco-innovation efforts in the
telecom and energy sectors.
2) Portugal has been able to establish international partnership programmes to improve
knowledge transfer.
3) Strong political support for eco-innovation and circular economy agendas by the
Government and by regional and local authorities.
4) Regulatory and financial mechanisms are in place to support eco-innovation and circular
economy.
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Type Barriers
Economic
- Lack of private-sector leadership or investment in eco-innovation efforts, namely in the key sectors waste management and water services. - Only 41% of the companies have found that resource efficiency measures contribute to lower production costs, according to recent Eurobarometer studies (EC, 2018b). - As a small and open economy, Portugal is very susceptible to external factors – such as changing commodity prices – increasing uncertainty and limiting investment in recovery processes. - Traditional funding schemes (e.g. bank loans) are not easily available for eco-industries since the financial system struggles to correctly value its economic impact.
Technological
- In the eco-industry sectors, particularly those related with water and waste management, Portugal does not have a strong track record in technological development and innovation. - Lack of specialization in some key areas (e.g., electronics) limits the capacity to effectively incorporate eco-innovation, particularly at the industrial scale.
Human resource and knowledge capital
- Portugal does not have a sufficient large pool of human resources to fully pursue the innovation pathway, as proved by the human resource and knowledge capital related indicators, when compared to other EU Member-states. - The existing knowledge capital is mostly at universities and research institutes, with companies lacking the necessary resources or scale to lead eco-innovation efforts. - Portugal lacks specific qualification programmes in resource efficiency.
Natural capital - Portugal has abundant non-metallic mineral resources, traded at low prices, which limits the rationale for innovative recovery and recycling processes (e.g. from aggregates from construction and demolition waste).
Social and cultural
- In many areas, including R&D, Portugal still depends too much on public institutions; traditionally, only large corporations have significant in-house R&D activities. - Low public awareness about scarcity of natural resources and implications for business competitiveness, as well as opportunities in the transition towards the circular economy. - The Portuguese are concerned with the environment, but do not reflect that concern in their consumption behaviour (European Commission, 2017).
Regulatory and policy framework
- There is no specific policy programme to promote eco-innovation and the concept itself gets lumped with circular economy, green economy among others. - Portugal has struggled to update its Green Public Procurement Strategy, but the biggest challenge is its practical implementation, as the number of tenders with environmental clauses is marginal. - Need for a more effective monitoring of eco-innovation to determine policy success. - Lack of product related and consumer side policies to support eco-innovation.
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Type Drivers
Economic
- Significant private-sector leadership and investment in eco-innovation efforts in areas such as the telecom and energy sectors. - There is a growing trend in private-led funding schemes (e.g. venture capital, business angels), despite still small when comparing with banking system - Outlook is positive as consumer and industry confidence indicators have grown since 2013. - Growing presence in global supply-chains of specific sectors (e.g. automotive industry).
Technological
- Strong adoption of state-of-the-art technologies in sectors such as waste management, water treatment, among others. - The Portuguese Competitiveness and Internationalization Operational Programme (Compete 2020), supported by EU funds, has focused on technological development and innovation, with many demonstration projects being funded.
Human resource and knowledge capital
- Portugal higher education and technological institutes rank highly in several international rankings. - Portugal has been able to establish international partnership programmes to improve knowledge transfer in areas such as energy, biotechnology, urban systems, manufacturing and information technologies. - Portuguese research institutions have been able to position themselves in European research networks and funding schemes (e.g., Horizon 2020), despite its peripheric status.
Natural capital
- Portugal has a promising mix of natural resources, which may enable further development and innovation in areas such as renewable energies, advanced materials, nature-based solutions, among others. - Portugal has significant reserves of key materials such as lithium and tungsten, which may help the country to establish promising economic activities (e.g., lithium battery production) which may also increase eco-innovation efforts.
Social and cultural
- Portugal has strong network capital, connecting not only to other European counterparts, but also to its Atlantic partners (Brazil, African countries, USA). - There is a growing entrepreneur ecosystem, supported not only by a wide set of public policies and EU programmes, but also by a welcoming cultural background, which can contribute to the capacity to attract qualified human resources.
Regulatory and policy framework
- There is growing political support for circular economy and eco-innovation policies, particularly outside the scope of EU Directives; the Plano de Ação para a Economia Circular, approved by the end of 2017, constitutes one of the best examples of this commitment. - Regulatory and financial mechanisms are in place to support eco-innovation and circular economy; the best example is the SIFIDE programme that provides fiscal incentives for companies that invest in R&D and in ecodesign. - There is also strong political support for increasing higher education and specialization in science, technology, engineering and science (STEM). - Portugal has a strong and efficient implementation of Extended Producer Responsibility schemes, which has allowed the country to meet most EU waste recovery and recycling targets.
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4 | Policy landscape in Portugal
During the period covered by the previous country report (2014-2015), Portugal’s focus was to prepare several sector-specific strategic plans, placing strong emphasis on efficiency and meeting EU targets in the most cost-effective way. Also, the EU-Portugal Partnership Agreement for 2014-2020 was put in place, with many operational programs already funding innovation-related projects. There were also significant efforts to design and implement cross-sector policy instruments focusing on green growth and circular economy, of which the Green Growth Commitment and the Green Tax Reform are the best examples.
However, the policy landscape was mostly of strategic nature and thus did not translate to practical implementation. It was only in 2016 and 2017 that Portugal was able to push a new set of policies to support eco-innovation and circular economy projects, in great part due to the efforts of the Portuguese Government and, to a smaller extent, regional and local authorities.
The significant progress in the policy landscape was mainly the result of three instruments: the Fundo Ambiental (Decree-Law n.º 42-A/2016), the Eco.nomia project (Ministry of Environment, 2017a) and the Plano de Ação para a Economia Circular (Ministry of Environment, 2017b).
The Portuguese Fundo Ambiental, which was created by the Decree Law n.º 42-A/2016, of August 12, replacing several other funding instruments, aims to support the implementation of environmental policies to pursue the sustainable development goals, to help achieve the national and international objectives, namely concerning climate change, water resources, waste management and nature and biodiversity conservation. The strategic coordination of the Fundo Ambiental falls on the Ministry of Environment, which determines by Ministerial Order the yearly allocation of available funds.
In 2017, the first year with the Fundo Ambiental was in full operation, several circular economy projects were supported (Ministry of Environment, 2018) through open calls in key areas. Unfortunately, in 2017 these calls have been mostly focused on circular economy and not in eco-innovation. In 2018, this situation has changed and more calls on eco-innovation (e.g., for industry decarbonization) have been launched.
The second instrument, the project Eco.nomia (Ministry of Environment, 2017a), was launched by the Portuguese Government to raise awareness and build a circular economy community. The Eco.nomia website specifically aims to be a one-stop shop for organizations looking for further information on circular economy. There were also several sector-specific workshops to highlight the best circular economy examples and foster replication among the business community.
Finally, the Plano de Ação para a Economia Circular (Ministry of Environment, 2017b), which was approved by the end of 2017, establishes a clear action plan to foster the transition towards the circular economy in Portugal. A detailed explanation of this Action Plan is outside the scope of the present country report, but it is important to stress that it is generally organized in i) seven macro actions, which include, for example, “Incentivizing a circular market” and “A new life for waste!”, ii) sectoral actions for two areas, built environment and public procurement, while three more are envisioned for the near future (tourism, textiles and footwear, retail and logistics), and iii) a call for regional agendas organized around industrial symbiosis, circular cities and circular businesses. The action plan has a relatively small time frame, covering the period 2017-2020, which may limit the application of the more demanding actions.
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Another noteworthy contribution to the policy landscape was the creation of the Fundo de Inovação, Tecnologia e Economia Circular (FITEC), which aims to support innovation policies, specifically regarding knowledge transfer, cooperation between higher education institutes and companies and capacitation for resource efficiency. Despite being created in 2016, there is little information on its practical application.
There are also some developments on green public procurement, namely the creation of the Estratégia Nacional de Compras Públicas Ecológicas 2020 (ENCPE 2020) in 2016. This policy aims to foster ecological criteria in public procurement, establishing priority goods and services (as defined at the EU level) and green procurement targets for public administration. Despite being approved in 2016, the first steps were only taken in 2018. The most recent assessment concluded that only 4% of public procurement included environmental criteria, far from the 35% and 55% 2017 targets for Public Administration and Public Enterprise Sector, respectively.
Focusing on product policy, there is little information to track Portugal’s progress in recent years. However, it is important to stress that there are some instruments to support product certification in Portugal 2020 Competitiveness and Internationalization Programme. In 2018, the Portugal 2020 Competitiveness and Internationalization Programme will be launching the ‘Vale Economia Circular’, a support mechanism to help companies find specialized consulting services for resource efficiency and product certification, among other measures.
There is little advance also on themes such as Environmental Technology Verification (ETV). There are no Portuguese examples of the European Commission’s ETV website or even online references of projects undergoing ETV (European Commission, 2018).
POLICY GOOD PRACTICE #1 – TAX INCENTIVES FOR ECODESIGN
The SIFIDE Program was first created in 1997 to increase R&D investment in companies through
tax incentives. Essentially, the SIFIDE program allows companies to consider for tax purposes
all R&D expenditure at a 132,5% rate, therefore constituting an effective tax cut for companies.
The latest iteration, approved by the end of 2017, allows companies to also consider
expenditure related to ecodesign at a 110% rate. Despite the relatively small benefit,
particularly when compared with standard R&D rate (32,5%), this is a promising combination
of tax and environmental policy and can pave the way for further joint efforts in the transition
towards the circular economy.
Ecodesign | Tax incentive | Circular Economy
http://sifide.adi.pt
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a/2016/08/12/p/dre/pt/html
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(Action plan for circular economy in Portugal: 2017-2020). Official version available at
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https://ec.europa.eu/environment/ecoap/etv_en
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the environment, Report. Available at:
http://data.europa.eu/euodp/en/data/dataset/S2156_88_1_468_ENG
European Commission, 2016. Resource Efficiency Scoreboard 2015. Available at:
http://ec.europa.eu/environment/resource_efficiency/targets_indicators/scoreboard/pdf/EU%2
0Resource%20Efficiency%20Scoreboard%202015.pdf
Jular, 2018. Treehouse modular houses. Available at https://www.jular.pt/en/produtos/casas-
pre-fabricadas/casas-modulares-treehouse
APRUPP, 2017. Repositório de Materiais. Available at: http://repositoriodemateriais.pt/
Eco Solutions, 2018. Eco-Kalçada. Available at: http://www.eco-
solutions.pt/1/shop_867671.html?product=51086
CIMPOR, 2018. Secador de CDR’s de Souselas. Available at: http://www.cimpor-
portugal.pt/artigo.aspx?lang=pt&id_object=1206&name=Sustentabilidade
Coolfarm, 2018. Coolfarm website. Available at: https://cool-farm.com/
Wisecrop, 2018. Wisecrop website. Available at: https://www.wisecrop.com/
Noocity, 2018. Noocity website. Available at: https://www.noocity.com/pt-pt/
Goodafter, 2016. Goodafter Supermercado Online. Available at: https://goodafter.com/pt/
Portugal Têxtil, 2017. Riopele joga na antecipação. Available at:
https://www.portugaltextil.com/riopele-joga-na-antecipacao/
16
Fibrenamics, Universidade do Minho and CVR, 2016. Green Fibrenamics. Available at:
http://green.fibrenamics.com/
Ecoslops, 2016. Ecoslops Technology. Available at: https://www.ecoslops.com/en/solutions-and-
services/our-technology/ow2p
AEPR – Associação Eco Parque do Relvão, 2017. EPR.COLAB website. Available at:
http://aepr.pt/epr-colab/noticias/
SCALER, 2018. SCALing European Resources with industrial symbiosis. Available at:
https://www.scalerproject.eu
17
ANNEX: Policy measures addressing circular economy and eco-innovations in Portugal
Group of policy
measures Type of policy measure
Specific measure Please provide reference to or brief summary of specific measures
(national, regional) add cells if necessary
Focus of policy measure (tick if relevant)
Circular economy
Generic focus on
eco-innovation
Resource efficiency
improvement
Energy efficiency improve
ment
Reduction of
emissions incl. CO2
Other relevant
areas (e.g. renewable
energy, etc)
SUP
PLY
SID
E FO
CU
S
Equity/business support
Publicly co-funded venture capital funds
Portugal Ventures is a venture capital firm publicly co-funded that invests in seed rounds of Portuguese Startups in tech, life sciences and tourism. The firm currently manages around 210 million € in assets through 19 venture capital funds.
X x
The Equity and Quasi-Equity Fund (FC&QC), managed by the IFD, has a funding line for Venture Capital Funds. A full list of venture capital funds with co-financing of Equity and Quasi-Equity Fund (FC&QC) is available at http://www.ifd.pt/en/list-venture-capital-funds/ Some of these funds have invested on eco-innovation, but as far it is known, no fund is specialized in environmental issues.
X x x
Public guarantee funds The FITEC fund main focus will be to provide a public guarantee to circular economy and eco-innovation related projects, helping these projects obtain lower financing costs.
X X X X
Support for R&D in public sector
and industry
R&D funding FCT – National Science Foundation supports the scientific community in Portugal through a range of funding schemes, tailored for individual scientists, research teams or R&D centres.
X X x X X x
Collaborative grants
COMPETE 2020, the Operational Competitiveness Programme within the Portugal 2020 framework has a specific funding for joint R&D projects based on the collaboration between the industry and R&D institutions (e.g., universities, research institutes). The end-goal is to increase the private investment in R&D activities. http://www.poci-compete2020.pt/eixos/eixo-i
x X X
R&D infrastructure
FCT supports research infrastructures of strategic interest that sustain scientific and technological advancements and strengthen the scientific R&D&I community in Portugal, thus stimulating their active participation in European and international projects. Towards this goal, a call for research infrastructures (RIs) to be included in the National Roadmap of Research Infrastructures of Strategic Relevance was launched in 2013. The next stages will consist on funding (2014-2020) of the research infrastructures included in the National Roadmap and the Periodic review of the National Roadmap of Research Infrastructures (first review expected for 2016).
X
18
Group of policy
measures Type of policy measure
Specific measure Please provide reference to or brief summary of specific measures
(national, regional) add cells if necessary
Focus of policy measure (tick if relevant)
Circular economy
Generic focus on
eco-innovation
Resource efficiency
improvement
Energy efficiency improve
ment
Reduction of
emissions incl. CO2
Other relevant
areas (e.g. renewable
energy, etc)
Fiscal measures
Tax incentives for R&D and start-ups
SIFIDE, the Fiscal incentive Scheme for R&D at corporate level, gives a tax incentive corresponding to 32,5% of R&D expenses borne in a specific year (tax credit to be deducted from the company income tax), which can be incremented by 50% of the increase in R&D expenses when compared to the last two fiscal years, up to a limit of €1.5 million.
X X
Tax incentives for R&D personnel
Under the SIFIDE framework, expenses with R&D personnel with PhD is considered at 120% of real value for tax purposes.
X X
Education, training and
mobility
Tailored training courses for companies, entrepreneurs
Nothing available X
Advise/consulting for start ups, companies, entrepreneurs
The Eco.nomia website is the one-stop shop for circular economy information and advice for companies and consumers. x X X
Placement schemes for students
Nothing available
Support for R&D workers recruitments
FCT has designed a comprehensive programme to support the recruitment of highly qualified workers, particularly in research institutions (Decree-Law 57/2016 and Law 57/2017).
X
Networks and partnerships
Competence centres, clusters, science-technology
parks
IAPMEI (Public Agency for Competitiveness and Innovation) has recognized several associations as sectoral clusters and provides them access to specific funding opportunities to increase competitiveness. More info available at: https://www.iapmei.pt/PRODUTOS-E-SERVICOS/Empreendedorismo-Inovacao/Eficiencia-Coletiva-e-Clusters.aspx
X X
Technology platforms and
innovation networks
FCT has launched the COLAB programme that aims to recognize formal collaborative R&D efforts that can contribute to create skilled and scientific jobs in Portugal, both directly and indirectly, by implementing research and innovation agendas geared at creating economic and social value. More info available at: https://www.fct.pt/apoios/CoLAB/index.phtml.en
X X
Foresight and common vision building
Green Growth Coalition and Green Growth Commitment has brought more than 80 organizations together to find solutions to the green growth challenges (http://www.crescimentoverde.gov.pt/)
x X x X x X
Market intelligence and other forms of information
sharing
The Eco.nomia projects provides significant information on market trends and best practices through its website and through sectoral workshops that take place around the country (www.eco.nomia.pt)
X X X
DEM
AN
D
SID
E FO
CU
S
Regulations and standards
Regulations, targets, cap & trade schemes
Law n.º 82-D/2014 introduces a plastic bag tax with very positive effects X x
Performance standards, labeling, certification
All electricity providers must include information about the carbon footprint in electricity bills and should follow the energy regulators’ recommendations. More info available at:
X x
19
Group of policy
measures Type of policy measure
Specific measure Please provide reference to or brief summary of specific measures
(national, regional) add cells if necessary
Focus of policy measure (tick if relevant)
Circular economy
Generic focus on
eco-innovation
Resource efficiency
improvement
Energy efficiency improve
ment
Reduction of
emissions incl. CO2
Other relevant
areas (e.g. renewable
energy, etc)
http://www.erse.pt/pt/desempenhoambiental/rotulagemenergetica/Paginas/default.aspx
Public procurement
“Green“ public procurement of goods and services
The Estratégia Nacional para as Compras Públicas Ecológicas 2020 (ENCPE 2020), approved by Ministerial Order n.º 38/2016, of July 29, aims to foster green public procurement and therefore prevent pollution and reduce the consumption of natural resources.
X x X X x
The ECO.MOB programme aims to support the public procurement of electric vehicles. The programme, supported by the Fundo Ambiental, was approved by the Ministerial Order nº 54/2015, of July 28.
X X x
GPP2020 (through LNEG – National Laboratory on Energy and Geology): aims to mainstream low-carbon procurement across Europe in support of the EU’s goals to achieve a 20% reduction in greenhouse gas emissions, a 20% increase in the share of renewable energy and a 20% increase in energy efficiency by 2020
X x
R&D procurement Nothing available x
Pre-commercial procurement
Nothing available
Technology Transfer
Advisory support for technology adopters
Vale Inovação (innovation voucher): aims to support small, but focused and with a high return potential, innovation projects in SME, including covering operation and development costs (e.g. consultancy, trademark and patent registering, licencing, certification)
X x
Financial or fiscal support for technology adopters
(e.g. grants for purchasing new technology)
The Portugal 2020 Competitiveness and Internationalization Programme has specific funding instruments for technology adoption, at different TRL (e.g., first-adopters, etc.)
x X x X X X
Support of private demand
Tax incentives for consumers (e.g. for purchasing
environmentally efficient products)
Law n.º 82-D/2014 (Green Tax Reform): incentive for ELV abatement in purchasing of a new electric vehicle
x x x
Tax reductions for products and services (e.g. VAT
reductions)
Law n.º 82-D/2014 (Green Tax Reform): VAT reduction in the purchase of new electric vehicles x X
Demand subsidies (e.g. eco-vouchers, consumer
subsidies)
The Fundo de Eficiência Energética has open calls for energy efficiency measures for home owners. For example, cofounding in the “Aviso 20 – Edifícios Eficientes 2016” call could reach as high as 60% , or up to 7.500 €.
x X
Awareness raising and information provision
The Eco.nomia website provides general information on the importance of the transition towards the circular economy.
x X X
About the
Eco-Innovation
Observatory (EIO)
The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’s Directorate-
General for the Environment. The Observatory is developing an integrated information source and a series
of analyses on eco-innovation trends and markets, targeting business, innovation service providers, policy
makers as well as researchers and analysts.
Visit EIO and DG ENV EcoAP website and register to get access to more information
and to access all EIO resources.
www.eco-innovation.eu
ec.europa.eu/environment/ecoap