Decree-Law No. 205/2026, published on October 27 in the Diário da República, stipulates that at least 60% of the annual TGR revenues will be transferred to the Environmental Fund. These funds will finance projects aimed at improving waste management, promoting material valorization, and reducing landfill disposal, marking a significant shift in how these resources are utilized.
The new regime also ensures that funding provided to municipalities will not be less than 30% of the TGR revenues, supporting infrastructure modernization, waste management system efficiency, and the implementation of more effective selective collection models. The Minister of Environment and Energy, Maria da Graça Carvalho, emphasized that the reform aims to accelerate investments and improve the country's environmental outcomes, with the goal of "less waste in landfills, more recycling, and an increasingly circular economy."
Incentives have been introduced for municipalities that meet environmental objectives, through the reduction or suspension of the annual TGR update. The decree also enhances transparency with an annual report and introduces new rules for the reuse and recycling of construction and demolition waste, as well as for the safe management of asbestos-containing waste.
Measures for administrative simplification and digitalization of procedures have also been implemented. This revision aligns with the Government's strategy for the transition to a circular economy, in line with national and European strategic plans, which aim to achieve ambitious recycling and landfill reduction targets by 2030 and 2035, respectively.
