Portugal spent almost 4 billion euros on environmental protection in 2021, 18% more than 2020 – Sustainability

Never has the country invested as much in environmental protection as in 2021. That year, Portugal spent 3,927.5 million euros in the sector, a value that corresponds to 1.8% of national GDP (0.1% more than the previous year). Compared to 2020, expenditure increased by 18%, the biggest jump since 2014, according to data released this Tuesday by the National Statistics Institute (INE).

DNPA – national expenditure on environmental protection – “increased more than GDP”, which rose “7.7% in nominal terms”, reveals INE.

The increase in the year under review is justified by the increase in final consumption expenditure of 20.8%, to 1,056.2 million euros, as well as in intermediate consumption, which stood at 22.6%, corresponding to 2,132 .6 billion. Investment in the production of environmental protection services also grew by 6.1% (775.4 million).

Despite the increase in spending across all institutional sectors, “companies” were responsible for most of the positive developments in environmental protection in 2021, corresponding to 60% of the total value, an increase of 24% compared to the same period last year. “Public administrations” and “non-profit institutions serving families” totaled 6%, followed by “families” which jumped 17.2%.

Waste management and wastewater management represent the largest contributions to total expenditure, at 44.7% and 29.9%, respectively. INE points out that the first domain reduced its representation, from 36.1% registered in 2014, to 29.9% in 2021.

“On the other hand, the representation of ‘other environmental protection activities’ and ‘protection of biodiversity and landscape’, which constitute minor areas in the total DNPA, slightly increased”, they explain.

In comparison with the rest of the European Union countries, DNPA’s weight in national GDP (1.8%) was below the European average, which stood at 2.2%. Portugal occupied the 17th position in relation to that ‘per capita’ expenditure, rising three places compared to the previous year, with 383.3 euros per inhabitant, almost half the EU27 average (718.8 euros). Leading the race in first place is Austria.

The employment figures in environmental protection, which until now were revealed in the annual reports, were suppressed in the 2021 report, as “they have been subject to almost continuous changes since 2017”, explains the institute. In 2020, the sector represented 1% of national employment.