In January 2025, the Portuguese Environmental Fund (Fundo Ambiental) launched two incentive programmes to promote the uptake of zero-emission vehicles (ZEVs). These support schemes target both private individuals and commercial operators and aim to contribute to national climate objectives and the EU's Fit for 55 targets.
The initiatives are part of the annual “Green Mobility” programme and reflect Portugal’s ongoing commitment to climate change mitigation through transport electrification. The programmes are structured to facilitate the introduction of zero-emission passenger and goods vehicles into the national fleet in 2025.
1. Zero-Emission Vehicles – Passenger Transport (Mobilidade Verde – Passageiros)
This programme supports the acquisition of zero-emission vehicles by private individuals, companies, and other entities for passenger transport.
Key features of the 2025 scheme include:
- Budget: €10 million (up from €8.5 million in 2024).
- Subsidy amount:
- Up to €4,000 for the purchase of a new 100% electric vehicle (M1 category) by private individuals (limited to one vehicle per beneficiary).
- Up to €6,000 for companies, sole proprietors, and other legal entities (limit: four vehicles per applicant).
- Up to €1,000 for electric motorbikes and mopeds (L3e, L4e, L5e, L7e categories), as long as they are new and not previously registered.
Additional eligibility criteria include:
- Only battery electric vehicles (BEVs) are supported; plug-in hybrids are not eligible.
- The vehicle must be registered in Portugal and retained by the applicant for a minimum of 24 months.
- Incentives are granted on a first-come, first-served basis until the budget is exhausted.
2. Zero-Emission Vehicles – Goods Transport (Mobilidade Verde – Mercadorias)
This parallel programme incentivises the acquisition of electric vans and light commercial vehicles (N1 category) to promote cleaner logistics and goods distribution.
Key features of the 2025 scheme include:
- Budget: €3 million.
- Subsidy amount:
- Up to €6,000 per vehicle for businesses, municipalities, and other legal persons.
- Each applicant may submit up to four applications.
- Vehicles must be new, 100% electric, and used for professional goods transport.
Eligibility conditions mirror the passenger transport scheme:
- Vehicles must remain in the applicant's possession for at least 24 months.
- Incentives are available until the allocated budget is fully committed.
Programme Objectives and Context
The two schemes fall under Portugal’s national strategy for decarbonising transport and align with the EU Regulation (EU) 2023/1804 on the deployment of alternative fuels infrastructure (AFIR). Their aim is to reduce greenhouse gas emissions in the road transport sector by replacing internal combustion engine vehicles with zero-emission alternatives.
These incentives also support the growth of Portugal’s clean vehicle market, which is showing strong momentum. In January 2025, battery electric vehicle registrations reached a record market share of 22.5% for new passenger cars, reflecting growing public acceptance and commercial interest.
Portugal’s strategy builds on past programme successes and strengthens efforts to create a comprehensive and inclusive transition to electric mobility. The combination of financial incentives and infrastructure development is expected to play a crucial role in achieving the country’s climate neutrality objectives by 2050.
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Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.
