Circular Economy Action Plan 2025–2030

The new Portuguese Circular Economy Action Plan 2025–2030 (“PAEC 2025–2030”) was approved by Council of Ministers Resolution 58/2026, which was published in the Official Gazette of the Republic of Portugal on March 24, 2026.

PAEC 2017–2020 succeeds PAEC 2025–2030. Specifically, it updates earlier strategies, promotes reduced resource use and supports the transition to a more sustainable model.

The plan comprises three main action groups:

(i) “Macro actions” operate at the national and structural levels. They create the overall framework for the entire economy.

(ii) “Meso actions” operate at the sectoral level (i.e., value chains and sectors of activity).

(iii) “Micro actions” are carried out locally. They coordinate regional actions with cross-cutting actions and, where applicable, with sectoral actions.

“Meso actions” have the most direct impact on the economy and on companies. They focus on the following priority value chains and sectors for the purposes of PAEC 2030:

• Agrifood;
• Construction;
• Distribution and retail;
• Electrical and electronic equipment;
• Plastics;
• Tourism;
• Textiles and clothing.

The plan establishes the following actions for each sector:

Agrifood:

• Promote the adoption of circular economy and agroecology practices in agriculture.
• Promote innovative solutions for nutrient extraction and use. Also, promote the reuse of agrifood waste and the use of nonstandard food products.
• Push for the adoption of regenerative agricultural practices.
• Encourage the use of organic matter in soil as fertilizer.
• Promote periurban and urban agriculture.
• Streamline the food donation process.

Construction:

• Create and implement incentives that accelerate the transition to a circular economy in architecture, engineering and construction, as well as across their entire value chains.
• Promote certification schemes for building circularity and sustainability, basing them on the European Union’s (“EU”) Level(s) approach.
• Promote a voluntary agreement for the construction sector.
• Carry out studies on incorporating recycled materials into construction projects.
• Carry out a preliminary assessment of project sustainability.
• Develop ecodesign guidelines for construction.

Distribution and retail:

• Explore collaboration opportunities and new business models for packaging, products and services. Also, adapt and implement legislation to accelerate the transition to a circular economy, reduce waste, and create value.
• Promote the adoption of circular-economy practices.
• Promote “zero-waste” incentives.
• Carry out studies to optimize supply chains.

Electrical and electronic equipment:

• Develop the collection of waste electrical and electronic equipment (“WEEE”).
• Improve WEEE management.

Plastics:

• Transform the plastics value chain from design through recycling by ensuring plastics are designed for reuse and recyclability, and ensure materials are recycled safely and to a high standard.
• Evaluate the possibility of replacing plastics in agriculture.
• Foster the incorporation of recycled plastic materials into new products.
• Perform R&D&I to develop more circular plastic raw materials and end-of-life alternatives for plastic products.

Tourism:

• Encourage programs that accelerate the transition to a circular economy within the Portuguese tourism value chain. Also, incorporate provisions that promote the practical, measurable and proven application of circular-economy practices into tourist-resort legislation.
• Encourage certifications that promote circularity and sustainability.
• Evaluate the possibility of adding circular-economy requirements to the tourism-sector company classification system.

Textiles and clothing:

• Develop measures that address structural problems in the sector. Doing so will help accelerate the transition to a circular economy within the textiles and clothing value chain.
• Perform R&D&I on more sustainable textile operations and on circular materials for textile production.
• Support and promote industrial symbiosis for textile production.
• Perform R&D&I on innovative end-of-life and circularity strategies for textile products.
• Promote a voluntary agreement for the textiles and clothing sector.
• Perform R&D&I on streamlined, digitized procedures for producing the digital product passport.

The PAEC 2025–2030 provides the framework for these actions, including legislation and strategies. It also designates coordinating entities and partners and sets the implementation timeframe.

The PAEC 2025–2030 is a strategic milestone in Portugal’s transition to a more sustainable economy, aligned with EU guidelines and the United Nations Sustainable Development Goals.

All economic operators must participate for the transition to succeed. Success will also depend on effective monitoring and adequate funding for the planned actions.

Companies that adapt proactively will be better positioned to meet rising regulatory demands, while also meeting consumers’ growing preference for sustainable products and services.