Caspian Energy (CE): Dear Madame Minister, how well are the EU actions coordinated on the issues of environmental protection and renewable energy sector? What pan-European projects are being implemented?
Maria da Graça Carvalho, Minister of Environment and Energy of Portugal: I would say that our coordination level is better than ever. We have recently approved the Nature Restoration Act, which is a landmark – not just for Europe but for the World -, in the sense that, for the first time, there are binding targets for the restoration of ecosystems. At the same time, this legislation leaves enough flexibility for Member States to develop their national plans. We are also actively accelerating our move from fossil fuels. As you know, the revised Renewable Energy Directive (EU/2023/2413), which entered into force in all Member-States on 20 November 2023, raises the EU’s binding renewable target for 2030 to a minimum of 42.5%, with the possibility of reaching 45%. This was a major step from the previous 32% target. Of course, again, there are different realities amongst European countries, and this is something that we have considered during the legislative process. However, I can safely say that we are heading in the right direction.
Regarding pan-European projects, there are multiple initiatives being implemented under the Horizon Europe Framework Programme in the fields of Climate, Energy and Mobility. Several of these projects are included in the new generation of European Partnerships, of which I was a rapporteur in the European Parliament.
In the field of international cooperation, it is also worth mentioning that the EU has allocated €3.7 billion from development funds to sustainable energy actions in partner countries, covering the period between 2024 and 2030.
CE: How efficient is the renewable energy market in the industrial sector?
Maria da Graça Carvalho:The efficiency of this market has been improving steadily over the last decades, but there is still a lot of room for improvement, especially considering the EU’s 2030 and 2050 climate targets. Several industrial sectors, namely energy-intensive industries, need support, not just in terms of funding but also regarding access to innovative technologies, so we must invest more in research and innovation. I believe that recent legislative initiatives, such as the revised Electricity Market Design, will play an important role in terms of creating the right ecosystem for the energy transition in the industry. For example, by making it easier for the industry to invest in the creation of renewable energy communities. Another important dimension, which is addressed by the Net-zero Industry Act, is the scaling-up of the manufacturing of clean technologies in the EU.
CE: How attractive is the solar energy sector for investments in Portugal?
Maria da Graça Carvalho: In July, Portugal reached another landmark, with solar energy representing 15% of total electricity consumption. We are already doing very well in terms of solar energy, and we certainly have a strong margin for growth. National and foreign investment in solar energy continues to grow and we are working to make our country even more attractive for investors. We are currently reviewing our National Energy and Climate Programme, which greatly increases our ambitions in terms of renewables, including solar energy.
CE: Do you plan to participate in COP29? Will the phase-out of oil, gas and coal help to solve climate challenges?
Maria da Graça Carvalho: Yes, I will be present in COP29. The phase-out of fossil fuels is very important, because there is a direct connection between them and Greenhouse Gas Emissions causing climate change, but it will not be enough. We must invest a lot more in renewables, including innovative renewables, and we must hep developing countries in this process, because they will not be able to do it alone.
CE: Which issues on the COP29 agenda do you find the most topical?
Maria da Graça Carvalho: Climate funding will most likely be the biggest topic in COP29 and the most demanding to negotiate. As I said, international solidarity with the least developed nations, and not merely those more impacted by the consequences of climate change, must become a reality. We need to find different solutions to ensure that these nations can implement the green transition without compromising their social and economic growth. There are many possible approaches. For example, Portugal has signed an innovation agreement with Cabo Verde in which we have agreed to convert part of their national debt to Portugal into funding for their national Climate Plans. Thanks to that agreement, several projects are underway, namely solar and hydroelectric projects. A similar agreement was also signed with São Tomé e Príncipe.
Thank you for the interview.
