Government prepares new support for industry and transport decarbonisation

The Modernisation Fund will be reoriented to support families and businesses in the energy transition until 2030.

Generic image of a hand holding European Union and Portuguese coins, with the facade of a government building blurred in the background.
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Generic image of a hand holding European Union and Portuguese coins, with the facade of a government building blurred in the background.

The Government is preparing a new strategic direction for the Modernisation Fund, focusing on support for the acquisition of electric vehicles, decarbonisation of heavy transport, and reduction of natural gas consumption in industry.

The Minister of Environment and Energy, Maria da Graça Carvalho, has determined the redefinition of funding priorities for the Modernisation Fund until 2030. The Climate Agency will present a proposal by December 31st, aiming to direct European resources towards investments with high emission reduction potential.
"We want to mobilise more European funding to help families and businesses reduce their dependence on fossil fuels," stated Maria da Graça Carvalho. The goal is to create new financing opportunities, accelerate the energy transition, and strengthen the competitiveness of the Portuguese economy.
Electric mobility is one of the main priorities, with the possibility of new support mechanisms for the acquisition of electric vehicles by families and businesses. The decarbonisation of heavy goods transport and the reduction of natural gas consumption in industry, particularly in energy-intensive sectors, are also priority areas.
The Modernisation Fund, which supports investments in modernising energy systems and transitioning to a low-carbon economy, has benefited Portugal since 2024. The Climate Agency will identify priority areas for applications in 2027, complementing other national and European financing instruments.
The national coordination of the Modernisation Fund will be transferred from the Directorate-General for Energy and Geology to the Climate Agency by the end of 2026.
Based on information from the official source: Governo de Portugal - Comunicação (29/10/2026)