Portugal Mobilises 165 Million Euros for Industrial Decarbonisation Through Urgent Funding Round

Portugal has announced a new funding initiative worth 165 million euros aimed at accelerating the decarbonisation of its industrial sector. Launched via Notice MPR-2026-01 this initiative seeks to support projects that reduce carbon emissions and lower energy costs for businesses across the country.

Targeting mainly SMEs and large enterprises the funding is available through the European Regional Development Fund ERDF under the General Regime. Companies interested must submit their applications by the closing date of 27 February 2026 giving them just over a month to prepare complex project proposals that require prior energy audits. This compressed timeline highlights the urgency and ambition of Portugals climate investment agenda.

For regions such as the North Centre Alentejo and Algarve companies can benefit from a co-financing rate of up to 85%. The scheme is designed to encourage the replacement of obsolete fossil fuel machinery with electric and energy-efficient alternatives. Notably the Lisbon metropolitan area is excluded from this specific scheme with a focus on less developed regions to promote regional cohesion.

Large-scale projects exceeding 25 million euros or 15 million for strategic enterprises are eligible under a specialised Contractual Investment Regime RCI. These projects can include investments in renewable energy systems such as photovoltaic and green hydrogen as well as energy renovation of corporate buildings. The application deadline for such initiatives extends to 30 December 2026 with detailed incentive negotiations conducted directly with AICEP based on project merit and economic impact.

A key technical requirement of this scheme is the mandatory inclusion of ex-ante and ex-post energy audits performed by qualified experts. These audits must clearly demonstrate expected energy savings and emissions reductions. This rigorous evaluation process emphasises the governments shift from traditional modernisation grants towards fostering a fundamental structural transformation within the industrial sector.

This initiative aligns with Portugals National Energy and Climate Plan 2030 aimed at enhancing industrial competitiveness by reducing dependency on fossil fuels and integrating renewable energy solutions. By channeling cohesion funds into less developed regions and encouraging large-scale investments the programme aims to significantly raise the energy efficiency and sustainability of Portuguese industry in the coming years.

Overall this urgent funding cycle signals Portugals commitment to reaching its climate goals and positioning its industry as a leader in sustainable transformation driven by targeted financial incentives and strict technical standards.