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Decree Law No. 12/2020

Publication: Republic Diary No. 68/2020, Series I of 2020-04-06
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 12/2020
  • Pages: 3 - 30

Summary in plain english

What is it?

This decree-law establishes the legal framework for European greenhouse gas (GHG) emission allowance trading for the period 2021-2030, transposing the European Directive on this subject.

This decree-law is applicable to fixed installations that carry out activities under the "Community’s Emission Trading Scheme" (ETS), resulting in the emission of GHG.

The national authority competent in this matter is the Portuguese Environment Agency.

What is going to change?

From 2021, the rules for adjusting the annual amounts of emission allowances to be allocated free of charge will be changed in order to achieve a better alignment with annual production levels, taking into account both the relevant increases and decreases in production.

In addition, for the first time in national legislation, the optional exclusion from the ETS of low emission installations (up to 25 000 tCO2eq), provided that they are subject to measures allowing an equivalent contribution of emission reductions, or very low emission installations (up to 2 500 tCO2eq), without any equivalent measure, is envisioned.

What advantages does it bring?

This decree-law promotes decarbonization in the most greenhouse gas-emitting industrial facilities, contributing to the fight against climate change, which is one of the major challenges of today.

When does it enter into force?

This decree-law enters into force on 7 April 2020.

Original Version


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Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.