Lisbon, May 8, 2026 (Lusa) – The International Energy Agency (IEA) recommends that Portugal support the purchase of used electric vehicles (EV), particularly for low-income families, to reduce emissions in a transport sector still heavily dependent on oil.
The proposal features in the Energy Policy Review of Portugal 2026, presented on Friday in Lisbon. The document forms part of the IEA's regular cycle of energy and climate policy analyses for member countries and outlines 10 measures for Portugal.
Regarding transport, the report prioritises support for used electric vehicles, the expansion of the urban charging network, and new measures to increase modal shift.
Transport remains the primary source of energy-related greenhouse gas emissions in Portugal, accounting for 54% in 2024, while oil provided 92% of the sector's total final energy consumption.
The IEA says that electric vehicle acquisition is "expanding rapidly" in Portugal, thanks to a favourable tax regime and a well-developed charging network along major transport corridors.
In 2025, electric vehicles represented 38% of new vehicle registrations, a rate higher than the European Union average.
However, the IEA says that "major challenges" remain, as road transport continues to dominate and the Portuguese car fleet is "quite old and inefficient".
Despite the growth in sales, electric vehicles accounted for only about 6% of the total fleet.
In this scenario, it considers that electric vehicle policy should better reflect the "limited purchasing power" of consumers and the structure of the Portuguese car market, where used vehicles represent about 80% of sales.
"The introduction of a subsidy for the acquisition of used electric vehicles targeted at low-income families would allow for a reduction in the average age of the car fleet and emissions," it says.
Professional drivers and small to medium-sized businesses should be the priority beneficiaries of this support, it says. This approach aims "to ensure that scarce public resources reach the people who most need financial support and whose potential for emission reduction is greatest."
The report recommends that infrastructure expansion prioritises low-voltage charging points in urban areas, where many families park on the street and cannot install private chargers.
This expansion must pay "special attention" to low-income families. Furthermore, installing charging points at car parks near public transport hubs could improve the integration between public transport and electric vehicles.
The agency says, however, that reducing oil consumption and emissions should not rely solely on the technological replacement of the car fleet.
"The most sustainable way for Portugal to reduce oil consumption and emissions involves a modal shift from private cars to public transport, rail, walking, and cycling," it says.
This modal shift structurally reduces energy demand, unlike technological replacement within the car fleet, according to the report. The move lowers oil consumption and the need for significant investments in modernising the electricity grid.
The agency maintains that Portugal must do more to shift freight transport from diesel truck fleets to the "highly electrified" rail network.
It states that modal shift should remain a "central pillar" of transport policy. Additionally, urban and regional planning must ensure equitable access to active mobility, reliable and affordable public transport, and the national high-speed rail network.
SCR/RYOL // AYLS
Lusa
