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The Portuguese Ministry of Environment and Energy (MAE) published last October 13, Ordinance No. 358/2025/1, which sets out the procedural requirements for applications for production and operation licences of biomass power plants.

This Ordinance enacts Decree-Law No. 64/2017, which established a special scheme for the installation and operation of new forest biomass plants by municipalities, intermunicipal entities or municipal associations. It also sets out in detail the documents and information required for licensing applications and for binding opinions issued by the Portuguese Institute for Nature Conservation and Forests (Instituto da Conservação da Natureza e das Florestas - ICNF). Among these requirements are:

• For production license applications: the request of opinion from ICNF on biomass sustainability and availability, copies of supply contracts, the Single Environmental Title (Título Único Ambiental -TUA), and the design of the carbon capture project;
• For operation license applications: the elements listed paragraph 3 of Article of Decree-Law No. 15/2022.

The ICNF opinion request must include a 10-year biomass supply forecast, the plant’s capacity, estimates of forest and agricultural biomass availability, and the sustainability, local coordination, and monitoring measures regarding the origin and type of biomass.

The Ordinance also provides for the possibility of waiving the biomass power plant of carbon capture project, upon a duly justified request to DGEG, the Portuguese Directorate of Energy, and the submission of an independent technical opinion confirming the project’s technical or economic infeasibility. The decision rests with MAE, the member of the Government responsible for the energy sector and is valid for up to three years.

This Ordinance entered into force on October 14 and revokes Ordinance No. 267/2022.

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This article discusses why and how legal design can help improving legal documents. Legal design is an innovative approach to the way businesses and law firms draft and use legal documents to ensure they are accessible and truly effective by applying product design principles to legal drafting.

Legal design aims to address the often hermetic or closed nature of traditional legal documents by taking the viewpoint of end-users, whether they are clients, suppliers, government authorities or other legal professionals, and communicating in a manner that is effective and comprehensible without compromising its intended purpose.

THE PROBLEM

Use of Antiquated and Hermetic Terminology

Many legal terms, such as habeas corpus, estoppel, chattel or tort, are relics of the eras in which they originated.

At the time most terms began to be used in a legal context, they were often common words used in day-to-day language of that time; in some cases, they adopted a symbolic nature that conferred them power and warned people that were to be taken seriously. We must also remember that when civilization appeared, Law, religion and political power were closely interconnected.

This feature is seen in every country, language and legal system, showing the intrinsic cultural nature of the Law.

It is possible to reduce the use of complex and difficult legal terms, but it is impossible to avoid their use altogether. To do so, we would need to rewrite the laws of every country and replace such old terms for newer common words. This task would not only be enormous but also give rise to new legal terms that would eventually age and get disengaged with society as time lapses.

Legal terms, as an integral part of the Law, aim to provide security and predictable outcomes. For this reason, once a legal term is coined it will remain unchanged for as long as it is needed, its meaning changing slowly as it is used by courts, legislators and other legal practitioners. Like other words it may fade away or be replaced, but not at the normal rate of evolution of language, which is everchanging. Legal terms remain as cornerstones of the Law; their rate of change is slow because people must trust they remain almost static in a world of continuous flux.

The use of established legal terms that may be either antique or not easily understood by consumers or lawyers' clients is many times unavoidable, but lawyers should endeavour to use simpler terms and providing clear explanations of more difficult and not commonly used terms.

Complexity of Legal Texts

The meaning of most legal terms can normally be condensed in one sentence. You can look up many legal terms in a dictionary and get a reasonably straight explanation.

However, legal terms will eventually acquire various interpretations as they are applied to specific situations as controversies between individuals and businesses surface. Legal books discuss such interpretations. Court decisions reflect on their meaning and on the applicability of specific legal terms in real life situations, giving rise to more views and interpretations. This makes the Law a complex business mastered only by specialists, but that does not mean that ordinary people should be excluded from the legal world.

Despite their inherent complexity, legal texts can be simpler than they currently are. Legislators, judges and lawyers should reduce the length of sentences and use a simpler language in their documents.

USER-CENTRIC APPROACH OF DESIGN

Legal design implies a shift in the approach to legal writing, moving from old school formal structures where legal concepts are the central object of the document, to a user-centric approach that prioritises conveying a clear message to the intended recipient. This change in focus – from the object (legal concepts) to the subject (the reader) – is essential for lawmakers, judges and lawyers to write legal documents that are purposeful, meaningful and understandable.

Using the analogy of product design, Apple's iPhone (including both its software and hardware) is a good example of a user-centric product, which has in mind the user's ability to learn and use new features or adapt to changes, such as the shape, size, position and functions of buttons. Features that are not understood by the user are either eliminated or redesigned. Steve Jobs' and Jony Ive's stellar products like the iMac, iPod, iPhone and iPad - arguably inspired by the famous industrial designer Dieter Rams - show what product design should be. This approach contrasts with the clumsy and often unintuitive competing products like the physical keyboards of Nokia and Blackberry "smart" phones.

Good legal design aims to make legal documents accessible and understandable to the persons they are addressed to. The first consideration in drafting a legal document is identifying its addressee. It is different to write the terms and conditions for a B2C like Amazon's online shop or Google's search engine, which are addressed to persons with different backgrounds, cultures and languages, from drafting a B2B loan agreement to finance the acquisition of a multinational business.

Google's terms and conditions adopt the principles of legal design. They start by a giving a good visualisation of their content, with the use of only minimal visuals to make the presentation more aesthetic without compromising the importance of the message. The text fonts are clean and easy to read. Defined terms are used sparingly and their respective definitions are shown by hover-over side notes. Hyperlinks take users to the relevant sections of the legal terms. Most of the text is written in plain English.

However, there are some redundant sentences in Google's legal documents; for instance, its Privacy Policy starts with the following paragraph:

"When you use our services, you’re trusting us with your information. We understand this is a big responsibility and work hard to protect your information and put you in control." (our emphasis)

The phrase "we understand this is a big responsibility and work hard to…" seems to lack substantive value. It is self-evident that Google can face potential sanctions and lawsuits if it does not protect the privacy of its users. Statements regarding Google's efforts, like working "hard" to protect the user's rights, are unnecessary and can reinforce Google’s obligations towards users. Google must not only do what is legally or contractually required, it must work "hard" in doing so.

Legal terms are meant to establish the rights and obligations of users and service providers. The use of promotional language that only aims to enhance the service provider's image can be potentially misleading and should be avoided.

LEGAL DESIGN PRINCIPLES

Dieter Rams "Ten Principles of Good Design" can be used as a starting point for legal professionals tasked with legal drafting.

Inspired by Dieter Ram's principles, we propose the following "Nine Principles of Good Legal Design":
1. Good legal design is purposeful. A good legal text is not an end in itself; any legal text must have a defined purpose.
2. Good legal design makes the text meaningful. A good legal text must convey a message.
3. Good legal design is aesthetic. The aesthetics of a good legal text lies in the clarity of its message.
4. Good legal design makes a text understandable. A good legal text must be easy to read and understand.

5. Good legal design is unobtrusive. A good legal text is not verbose; words are used intelligently and intentionally.

6. Good legal design is honest. A good legal text must be plain, not concealing unexpected conditions or exceptions in complex provisions.
7. Good legal design is long-lasting. Good legal texts survive time changes. The French 1804 Civil Code, that served as an inspiration for civil law countries codification in the nineteenth century, and the United States Constitution of 1787 are good examples of how legal texts can live for centuries. Both texts are aesthetic and clear despite using what is now an antiquated style.
8. Good legal design is thorough, down to the last detail. Good legal texts must be well thought; the implications of each sentence must be considered; each word counts; the phrasing of conditions and consequences will have an impact that must be intended.
9. Good legal design is as little design as possible. Legal texts must be as short as possible and redundancy kept to the minimum. Double conditions should be avoided. Sentences that are not serving an intended purpose should be eliminated.

PRACTICAL STEPS

Legislators, judges, lawyers and other legal professionals must communicate with every other person in clear, unambiguous and accessible language.

Generally, legal documents do not need to be overly complex and difficult to understand. Following basic grammar and style rules is sufficient to greatly improve the accessibility of any legal text, whether it is a statute, a court decision, a contract or a client memo.

To ensure the accessibility and clarity of legal texts to their addressees, legislators, judges, lawyers and other legal professionals should:
1. Use short and clear sentences. Reduce the use of conditions and other embedded sentences as much as possible. Double conditions should be avoided in all instances. Break long sentences in smaller ones. Put conditions to the application of provisions in lists that are easy to read. When there are exceptions to the application of particular provisions, place them in separate paragraphs.
2. Ensure that every sentence has a clear and defined purpose. In contracts and other legal terms and conditions include only the provisions that are mandatory under the Law or required to properly describe the parties' obligations and the contract conditions. For B2C this will mean reducing document to essential clauses only. For B2B contracts complexity will surely arise but should be mastered and well thought. Question the need and meaning of every sentence.

Do not use boilerplate provisions unless needed. Consider the implications of each provision in the transaction at hand; consider if a shorter version of the provision would not protect the parties adequately considering the nature, size and importance of the transaction.

Do not curtail provisions by creating exceptions to conform with legal requirements. For instance, if a limitation of liability is not allowed in a particular jurisdiction do not include such limitation, instead of carving an exception for that jurisdiction. In terms and conditions applicable to multiple jurisdictions, identify the provisions that must be changed to conform with certain jurisdictions and organise a workflow showing similarities and differences to reduce the need to customise language for the fewer number of countries as possible.
3. Avoid complex legal expressions without compromising meaning and precision. Replace old words for their equivalent everyday language whenever this does not make the text ambiguous or less clear.
4. Use defined terms and definitions sparingly. In B2C contracts include a glossary explaining the meaning of complex terms, but avoid using definitions for cross-referencing across the document unless they facilitate its readability. For B2B documents use definitions purposefully. If a term is used only one time, do not define it. Put definitions in a separate clause when the document contains many defined terms. Avoid putting definitions in the middle of sentences.
5. Ensure that the visual presentation of the text is clear and accessible. Use legible fonts, consistent numbering and font hierarchy and size and by highlighting the more important sections and words to focus the addressee's attention to the key aspects of the document.
6. Set measurable goals to incentivise improving the clarity of documents. For instance, when reviewing existing terms and conditions in a B2C agreement, aim to reduce the number of provisions by 30%. For B2B contracts and other legal documents, aim to cut the length of sentences by at least 20%. These metrics may be more or less adequate to a particular text, but by setting measurable goals you take a first step in the right direction: simplifying legal texts.

FINAL REMARKS

We advocate that lawyers and other legal professionals should strive to make their documents simpler and more readable to their audiences, whether they are other legal professionals or ordinary people.
The suggested legal design principles and practical steps aim to help change the current mindset in the legal profession and introduce lawyers into the habit of working with their readers in mind rather than crafting laborious but hard to understand texts.

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The Portuguese Government has submitted for public consultation the legislation introducing changes to the National Electricity System (“SEN”) approved by Decree-Law No. 15/2022. that partially transposes Directive (EU) 2023/2413, of 18 October 2023 (Red III Directive).

Please find below the main topics of the new draft legislation:

• The creation of Renewable Energy Deployment Acceleration Zones (“ZAER”), aimed at simplifying and accelerating the licensing of renewable energy projects;The ZAER will be defined by the Task Force for the Licensing of Renewable Energy Projects 2030 (“EMER 30”) and the General Direction for Energy and Geology (“DGEG”), subject to public consultation and environmental assessment, excluding areas that are sensitive from an environmental, cultural, and heritage standpoint and providing for measures to mitigate possible impacts;
• The setting of maximum deadlines for licensing decisions: one year for projects in general and six months for those located in ZAERs. In the case of offshore projects, the deadlines are three and two years, respectively;
• The DGEG will now be the sole point of contact for licensing applications, with 45 days (or 30 days in ZAER) to confirm receipt and completeness of applications;
• Exemption from environmental impact assessment for certain projects located in ZAER, including power generation centers, re-equipment, storage facilities, and respective connections to the grid;
• Requirement for developers to submit a plan of measures to facilitate public acceptance as a condition of licensing;
• The preparation by EMER 30 of a National Plan for the Promotion of Knowledge and Public Acceptance of Renewable Energy, aimed at involving local communities and raising public awareness through the creation of regular channels of communication with citizens.

Finally, the project clarifies that the new rules only apply to licensing procedures initiated after the law comes into force.

All stakeholders can participate in this public consultation on the ConsultaLex platform until October 23, 2025.

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In August 2025, the Prime Minister of Portugal announced the Government's intention to launch an international public tender for the construction of the new Central Hospital of Algarve (Hospital Central do Algarve) under a Public-Private Partnership scheme (PPP) in October 2025.

At the occasion, the Prime Minister stated that the new hospital would involve an investment of €800 million. Construction is expected to begin in 2027 with the hospital scheduled to be fully operational by 2030.

BACKGROUND INFORMATION

The Prime Minister's announcement follows an aborted tender for the construction of the Algarve Central Hospital launched in 2008 that was ended in 2022. At the time, the construction of the hospital represented an investment of €250 million, with a total cost to the State of €267 million over the course of the concession.

The first tender included the design, project, construction, supply and installation of equipment, financing and maintenance of the hospital building for a period of 30 years. The tender also included energy and supply management, and management of the parking facilities. In addition, the tender contemplated support services (e.g., sterilisation, catering, laundry, cleaning, waste management, security, and infection control) for a period of 7 years from the date the hospital building became operational.

In 2009, following the prior qualification phase, Teixeira Duarte and a consortium led by Edifer were chosen to present their best and final offers (BAFO).

The project derailed in 2011 when Portugal sought a bailout from the European Union, the European Central Bank and the International Monetary Fund, resulting in the suspension of the Algarve Central Hospital along with many other investment projects.

In 2021, a technical evaluation of the procedure was conducted. The Central Administration of the Health System (ACSS, I.P.) determined that a thorough revision of the functional program was necessary for relaunching the project to ensure alignment with current standards in hospital care provision, particularly in relation to clinical and technological advancements.

In 2023, a project team was created by Project Support Technical Unit to study and prepare the PPP for the construction of the Algarve Central Hospital, which conducted a comprehensive review and reformulation concerning the area of influence, care profile, activity projection, and project sizing requirements for the new hospital. This technical review was approved by the Minister of Health’s Order 1661/2024 of 2 February 2023, setting the key objectives of the new Algarve Central Hospital.

The technical review report highlighted the need to strengthen outpatient surgical services and to modernise and integrate technological advancements. The report also recommended, based on the expertise gained within the public hospital network, a reassessment of the inpatient care framework, including an increase in bed capacity to address the extended average duration of medical stays, driven by rising life expectancy, greater complexity of conditions, and the prevalence of multiple severe comorbidities.

NEW ALGARVE CENTRAL HOSPITAL MAIN REQUIREMENTS

Based on the technical review conducted in 2023, the Government established the functional profile and sizing for the project, setting a minimum capacity requirement of 742 beds, which includes:

• 619 conventional inpatient beds;
• 36 psychiatric inpatient beds;
• 10 child and adolescent psychiatric inpatient beds; and
• 77 special inpatient beds (i.e. 39 adult intensive care, 6 paediatric intensive care, 6 cardiology intensive care, 9 stroke unit beds, and 17 neonatal care beds).

The new hospital is also expected to have the following facilities and capacities:

• Home hospitalisation;
• Palliative care;
• 18 operating theatres;
• 74 consultation rooms;
• Maternity block with 10 rooms; and
• Various day hospitals.

In addition, the tender is likely to include the provision of the following medical equipment:

• 3 CT scanners;
• 3 MRI machines;
• 3 angiography systems;
• 1 PET/CT scanner;
• 1 gamma camera;
• 2 linear accelerators: and
• 1 brachytherapy unit.

The provision of reserved spaces to accommodate various types of additional equipment in the future are expected to also be part of the tender requirements.

PPP MODEL FOR THE NEW ALGARVE CENTRAL HOSPITAL

The specifications of the new PPP are not yet known. However, it is foreseeable that the Government will use one of two PPP models that were used in the hospital sector in the past:

• Design, Build, Finance and Operate (DBFO). Under this model, the private partner was responsible for the design, construction, financing and operation of the hospital and entered into two contracts with the State: one for the construction and maintenance of the hospital facilities for 30 years and another for the healthcare service management for around ten years (e.g. Hospital de Cascais (2008), Hospital de Braga (2009), Hospital de Vila Franca de Xira (2009) and Hospital de Loures (2010)).
• Design, Build, Finance and Maintain (DBFM). Under this model, the private partner’s role is limited to the design, construction, financing and maintenance and the clinical management remains entirely with the State (e.g. Lisboa Oriental Hospital).

The last PPP in the hospital sector in Portugal was the Lisbon Oriental Hospital awarded in 2022. This PPP was based on the Design, Build, Finance and Maintain (DBFM) model.

Regarding the Algarve Central Hospital, it remains uncertain at this stage which PPP model (DBFO or DBFM) will be implemented; however, considering the change in Government in 2024, either of the two models may be selected.

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The Government presented yesterday the draft State Budget for 2026. In this newsletter we summarise the main tax changes included in the draft State Budget.

PERSONAL INCOME TAX

Regarding Personal Income Tax (PIT), the proposed changes are as follows:

• PIT brackets update. The PIT brackets will be updated by 3,5%.
• Reduction of PIT rates. Reduction of the PIT rates for the 2nd to the 5th brackets, according to the following table:

• Minimum subsistence amount. The reference value for the minimum subsistence will be increased from €12.180 to €12.880.

CORPORATE INCOME TAX

In terms of Corporate Income Tax (CIT), the 2026 State Budget proposal includes the following proposal:

• Autonomous taxation. Expansion of the list of vehicles eligible for reduced autonomous taxation rates. In addition to plug-in hybrid vehicles with a minimum electric range of 50 km and emissions below 50 gCO?/km, vehicles approved under the “Euro 6e-bis” emissions standard — which allows emissions up to 80 gCO?/km — will also be included.

It should be noted that the announced reduction of the CIT rate from 20% to 19% will be included in a separate act.

VALUE ADDED TAX

Regarding Value Added Tax (VAT), the following measure is proposed:

• Reduced VAT rate. Application of the reduced VAT rate to services related to the processing of olives into olive oil.

REAL ESTATE TRANSFER TAX

Regarding the Real Estate Transfer Tax (RETT), the 2026 State Budget Proposal includes the following change:

• Adjustment of tax brackets. Update of RETT brackets by 2%.

TAX BENEFITS

The 2026 State Budget Proposal includes the following changes to the Tax Benefits Statute:

• Incentive for wage increases: Maintenance in 2026 of the exemption from PIT and social security contributions, up to 6% of the annual base salary, on productivity bonuses, performance bonuses, profit-sharing, and balance-sheet gratifications that are irregular in nature. Reduction of the minimum required salary increase from 4.7% to 4.6% for companies to benefit from the 200% relief in relation to the expenses related to salary raises for employees with permanent contracts.
• Incentive for consolidation of rural properties: Extension of tax incentives for the consolidation of rural properties (exemption from RETT and stamp duty on the transfers of rural properties required for the consolidation).
• Other benefits: Extension of several tax benefits until 31 December 2026, namely:

- Deductions under social impact bond partnerships;
- External loans and rental of imported equipment;
- Financial services from public entities;
- Swaps and loans from non-resident financial institutions;
- Deposits from non-resident credit institutions;
- Repo operations with non-resident financial institutions;
- Management entities of designations of origin and geographical indications;
- Entities managing integrated systems for specific waste flow management;
- Sports, cultural, and recreational associations;
- Associations and confederations;
- Tax incentives for forestry activities;
- Forest management entities and forest management units;
- Deduction for the determination of taxable profit for companies;
- Deductions from individual income tax;
- Value Added Tax (VAT) – transfers of goods and services provided free of charge.

SPECIAL CONTRIBUTIONS

The 2026 State Budget proposal also includes the following measures:

• Special contributions. Continuation of the main extraordinary special contributions, namely:

- Contribution to the audiovisual sector;
- Contribution in the banking sector;
- Contribution in the pharmaceutical industry;
- Extraordinary contribution by suppliers to the medical devices industry of the National Health Service; and
- Extraordinary contribution in the energy sector (CESE).

• Solidarity surcharge in the banking sector. Repeal of the solidarity surcharge on the banking sector, following its declaration of unconstitutionality by the Constitutional Court.
• Contribution to the audiovisual sector. No adjustment of the contribution to the audiovisual sector in 2026.
• Extraordinary Contribution in the energy sector. Companies operating in transportation, distribution, or underground storage of natural gas will no longer be subject to this contribution, in accordance with the unconstitutionality rulings by the Constitutional Court. Assets dedicated to the operation of electricity transmission and distribution networks, acquired from 1 January 2026, in new condition, constructed, or expanded will be excluded from the CESE tax base.

ACESSORY OBLIGATIONS

The 2026 State Budget proposal also includes the following measures:

• Inventory. Taxpayers will be exempt from the obligation to value inventories when fulfilling the reporting requirement under Article 3.º-A of Decree-Law No. 198/2012:

i. For the taxable period starting on or after January 1, 2025; and
ii. For taxpayers not required to maintain a permanent inventory, for the taxable period starting on or after January 1, 2026.

• SAF-T. Submission of the SAF-T (PT) accounting file, as defined by Ordinance No. 31/2019, will apply to the 2027 and subsequent periods, to be submitted in 2028 or later periods.
• Invoices. Until December 31, 2026, invoices in PDF format will be accepted and electronic invoices for all purposes established in tax legislation.

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On September 30, 2025, through Order No. 71/SEAEn/2025, the Portuguese Secretary of State for Energy decided to extend by a further 12 months the deadlines established in paragraph 1 of Joint Order No. 1/SEAMB/SEENC of February 22, 2024. This extension applies to projects holding production and operation licenses issued under Decree-Law No. 15/2022, as well as to certificates of operation for generation units with an installed capacity of up to 1 MW, not already covered by Order No. 170/MAEN/2025 of May 14. According to the Portuguese Government, the measure was adopted to ensure equal treatment and legal certainty.

With the publication of the new order, the deadlines for the entry into operation of generation units have now been extended as follows:

• 52 months for projects not subject to Environmental Impact Assessment (EIA) or Environmental Incidence Analysis (AIncA);
• 55 months for projects subject to EIA or AIncA;
• 54 months for units with an installed capacity of up to 1 MW.

The sequence of ministerial orders leading to the above is already extensive. For reference:

• Order of the Portuguese Secretary of State for Environment and Energy, June 21, 2021: extension of 10 months for deadlines to obtain production and/or operation licenses (later clarified on May 20, 2022, to include the expiry period of preliminary registrations for units ≤ 1 MW);
• Order of the Director-General for Energy and Geology, July 2, 2021: extension of 10 months for the expiry of preliminary registrations for units ≤ 1 MW;
• Order of the Portuguese Secretary of State for Environment and Energy, May 20, 2022: extension of 11 months for production and/or operation licenses and 6 months for preliminary registrations and operation certificates (≤ 1 MW);
• Order of the Portuguese Secretary of State for Energy and Climate, March 17, 2023: extension of:

1. 9 months for projects not subject to EIA/AIncA;
2. 12 months for projects subject to EIA/AIncA; and
3. 6 months for preliminary registrations and operation certificates (≤ 1 MW).

• Order of the Portuguese Secretary of State for Energy and Climate, February 22, 2024: extension of 10 months for all licensing and operation certificate deadlines;
• Order of the Portuguese Minister for Environment and Energy, May 14, 2025: extension of 12 months for the same deadlines.

The Portuguese Government has stated that no further extensions will be granted, and that all granted licenses and certificates will lapse in accordance with the applicable law.

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The Portuguese Government has put out for public consultation the diploma that aims to update the national renewable energy targets and implement monitoring and certification mechanisms, partially complying with Directive (EU) 2023/2413 (Renewable Energy Directive - RED III). Among the main measures of the legislative project are:

• Update of national targets: Portugal aims to reach 49% of renewable energy in gross final energy consumption by 2030, with intermediate stages of ≥40% in 2025 and ≥44% in 2028, and 5% of innovative renewable technologies in installed capacity by 2030.
• Buildings, industry and heating/cooling sector: In buildings, 75% of the energy consumed should be from renewable sources by 2030, allowing up to 20% of waste heat and cold to be accounted for. The industry is expected to increase the share of renewables by 16 percentage points by 2030, with specific targets for renewable hydrogen of 42% by 2030 and 60% by 2035. In heating and cooling, the minimum shares are set at 46% in 2025 and 63% in 2029, with incentives for heat pumps, efficient district networks and biogas/biomethane.
• Transport sector: The overall target is 29% renewables by 2030, with specific shares for road (28%), maritime (18%) and non-electrified rail (14%), including a minimum of advanced biofuels, hydrogen and non-bio-renewable fuels.
• Sustainability criteria: The diploma reinforces the rules for biofuels and bioliquids, limiting the contribution of food crops to biofuel production to 3.1% and excluding fuels with a high risk of indirect land-use change, unless certified as low risk.
• Bond system: Biofuel (TdB), low carbon (TdC) and renewable electricity (TdE) bonds issued by ENSE are created. The system also provides for credits and compensation to suppliers who do not meet the targets.

There are already some reactions in the Portuguese media: there are also those who see an opportunity opening up for the energy sector coming from the acceleration of the pace of incorporation of renewables in final consumption (80% of renewables in the electricity system in 2026, against 85% in 2030). But it is also worth highlighting the less ambitious goals than the National Commitment: The influential weekly newspaper Expresso questions the 49% fixation in the diploma, contrasting with the 51% of the PNEC 2030. The online newspaper Observador notes that the diploma sets targets for specific sectors (buildings, industry, heating), but without deepening the monitoring mechanisms, which can generate critical contributions during the consultation.Citizens, companies and associations can participate in this public consultation on the ConsultaLex platform until October 25th.

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The Portuguese government has recently launched the privatisation of TAP – Transportes Aéreos Portugueses, SA (TAP), Portugal’s flag carrier, with the publication of Decree-Law No. 92/2025 ("Privatisation Decree") and the approval of the tender documents (caderno de encargos).

The privatisation involves the sale of a minority stake of up to 49.9% of TAP’s share capital, of which up to 5% must be offered to employees. The State will retain the majority stake.

According to media reports Lufthansa, Air France-KLM, and the IAG Group have are frontrunners for winning the privatisation. All three are headquartered in Europe, have the required expertise for managing TAP and can explore many synergies for the development of TAPs business.

The possibility of non-EU airline companies, including consortia with other investors, has been downplayed by most commentators because of the perception that only an European airliner could meet the Portuguese Government's requirements.

However, European companies may not be able to present credible bids that satisfy the selection criteria of the Privatisation Decree.

The Privatisation Decree requires bidders to comply with certain requirements, such as fit and proper status, financial capacity, size (e.g. minimum of €5,000 million in revenues in one of the last three years) and certified air operator status.

The proposals will be evaluated according to the following criteria:

• Financial proposal: including, among other required elements, the price offered for the TAP shares;
• Technical proposal: including an industrial plan and strategic project aligned with the reprivatisation objectives, in particular ensuring that TAP’s headquarters and main establishment remain in Portugal, and that strategic routes are maintained;
• Legal and financial standing: absence of any legal or financial constraints that could hinder completion of the transaction within the required timeframe, affect the payment terms, or compromise conditions safeguarding the State’s interests; and
• Labour commitments: compliance with workers’ rights and existing collective bargaining agreements.

Clearly, Lufthansa, Air France-KLM, and the IAG Group fulfil the requirements of the Privatisation Decree and are capable of submitting proposals that align with the aforementioned criteria, though some (if not all) of these criteria may pose substantial challenges for any European operator seeking to adopt a long-term perspective on TAP's business, as envisioned by the Government.

Coincidentally, Lufthansa has announced an investment of €227 million in the construction of a new industrial facility for engine and aircraft component repair in Portugal, aiming to generate over 500 specialised jobs.

In contrast, Lufthansa has recently unveiled a strategic restructuring initiative, named "Matrix Next Level," aimed at centralising key functions such as network planning and financial management across its airlines. The move is expected to further consolidate the group’s various airlines. This centralisation strategy appears to conflict with the Portuguese Government’s stance on maintaining a more balanced control over TAP. Although the Portuguese Government is prepared to give operational control to its new partner, it wishes to retain certain functions in Portugal and to safeguard the Portuguese workforce, objectives that seem at odds with Lufthansa’s plans.

Similarly, IAG and Air France-KLM are pursuing the airline industry’s prevailing trend of centralising functions and cutting costs, which may also clash with the Portuguese Government’s priorities. All leading contenders in TAP’s privatisation process are likely to face challenges in restoring profitability to TAP without significantly reducing its cost structure.

The constraints posed by the privatisation evaluation criteria will put extreme pressure on the financial proposal and lead to difficult negotiations of the price terms, the investments conditions and the employee protections to be given by the entering shareholder(s). Aligning the costs of meeting the Portuguese government's desired commitments and the investor's expected return on investment may prove difficult.

This creates an opportunity for a non-European airline to submit a successful bid. Decree-Law No. 92/2025 does not exclude non-EU airline companies, as only a minority stake is to be privatised, meeting the Regulation (EC) No. 1008/2008's requirement that EU airline companies must be controlled by EU/EEA/Swiss states or nationals to retain their operating licenses and traffic rights within the EU.

Non-EU players could potentially offer more advantageous conditions (financial, industrial, and labour-related) if they have a longer term perspective of the transaction, instead of wanting TAP to fill in the gaps in their offering as the now frontrunner bidders seem to intend. TAP's European and American routes could be more important for non-European airlines and opening up the middle east and Asian markets could offer new business avenues for investors with a long term perspective. The past examples of the privatisation of the Portuguese energy companies EDP (Portugal's largest energy producer) and REN (which operates the national power grid), which proved extremely successful investments for non-European buyers show that it is possible for Asian and Middle East investors to have a chance to out-bid IAG, Lufthansa and Air France-KLM.

An intriguing possibility mentioned in the media in the context of TAP’s privatisation is the potential involvement of Carlos Tavares, the former CEO of Stellantis. Carlos Tavares, a Portuguese national with a proven track record in leading complex turnarounds and strategic restructurings in the automotive industry, could leverage his expertise and network to put together a competitive bid.

In conclusion, while European frontrunners such as Lufthansa, Air France-KLM, and IAG Group currently dominate the narrative surrounding TAP’s privatisation, the constraints imposed by the Privatisation Decree and the Portuguese Government’s strategic objectives may create significant hurdles for these contenders. Their centralisation strategies and cost-cutting priorities could conflict with the Government’s emphasis on maintaining TAP’s national identity and workforce protections. This opens a window for non-EU bidders, who, unbound by such operational constraints and potentially driven by a longer-term vision, could present competitive bids. The historical success of non-European investments in Portuguese strategic assets underscores this possibility, suggesting that the outcome of TAP’s privatisation remains far from certain.

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The Portuguese government kicks off the privatization of TAP – Transportes Aéreos Portugueses, SA (TAP), Portugal’s flag carrier, with the publication of Decree-Law No. 92/2025.

Under Decree-Law No. 92/2025, the Government has authorised the sale of up to 49.9% of TAP’s share capital, ensuring that the State retains at least 50.1%.

The minority stake will be split between a strategic investor (or consortium of investors), who will acquire up to 44.9%, and up and the TAP Group employees, who will have the option to acquire up to 5%. If the employees do not acquire the full 5%, the remaining shares will be sold to the selected investor.

The primary objectives of TAP's reprivatisation include maximising the recovery of public funds invested in TAP, enhancing the airline’s brand and market position, and ensuring connectivity to key destinations, particularly those with historical, cultural, and social ties to Portugal.

Potential investors must satisfy certain participation requirements, including fit and proper status, financial capacity, certified air operator status, size, and any other specific conditions that the Council of Ministers may establish in the tender documents (caderno de encargos).

The sale process should include the following stages:

• Expression of interest: interested parties must submit their expression of interest within the timeframe specified in the tender documents;
• Screening: the Government will assess whether the interested parties meet the participation requirements;
• Non-binding proposals: interested parties will submit indicative (non-binding) offers, after which selected bidders may be invited to submit binding proposals;
• Binding proposals: selected bidders will submit binding offers, following which the contract will be awarded or the bidders may be invited to a negotiation phase (if applicable); and
• Negotiation: the Government will negotiate with the selected bidders, who will be asked to submit their best and final binding offers.

Proposals (both non-binding and binding) will be evaluated according to the following criteria, among others which may be further specified in the tender documents to be approved by the Council of Ministers:

• Financial proposal: including, among other required elements, the price offered for the TAP shares;
• Technical proposal: including an industrial plan and strategic project aligned with the reprivatization objectives, in particular ensuring that TAP’s headquarters and main establishment remain in Portugal, and that strategic routes are maintained;
• Legal and financial standing: absence of any legal or financial constraints that could hinder completion of the transaction within the required timeframe, affect the payment terms, or compromise conditions safeguarding the State’s interests; and
• Labour commitments: including compliance with workers’ rights and existing collective bargaining agreements.

Decree-Law No. 92/2025 includes additional safeguards to protect public interests, such as a potential five-year lock-up period for shares sold to the investor, preventing immediate resale or encumbrance. A 90-day lock-up period may also apply to the shares acquired by the employees.

Additionally, both the State and the investor will retain rights over future sales of TAP shares and the investor will have a tag along right in sales carried out by the State.

To regulate these rights and the investor’s rights in the management of TAP, the State and the investor will enter into a shareholders’ agreement.

TAP privatization decree also addresses the future of TAP’s real estate assets near Humberto Delgado Airport. Given plans to eventually close this airport upon the opening of the Luís de Camões Airport, the State may retain these assets in the public sphere post-reprivatisation for independent valuation and development. This decision could have implications for companies or investors interested in real estate opportunities in the real estate market.

The reprivatisation is expected to provide TAP with the tools and scale needed to compete more effectively in the global aviation market, potentially leading to increased passenger traffic. This operation is closely tied to broader infrastructure projects in Portugal, such as the new Lisbon Airport, the high-speed train links and the third Tagus crossing.

The approval of TAP's privatization decree marks the beginning of a transformative chapter in TAP’s history, seeking to ensure its long-term competitiveness in global aviation while safeguarding Portugal’s strategic interests. The Government is expected to approve the tender documents in the coming days.

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Decree-Law No. 93/2025 establishes a new legal framework for electric mobility in Portugal and brings national legislation closer to Regulation (EU) 2023/1804 (“AFIR”), which sets targets for the deployment of alternative fuels infrastructure. This new scheme aims to make charging points more accessible for electric vehicle users, ensure effective nationwide coverage and streamline the operation of the electric mobility system, securing universal access to all charging points.

Key changes compared with the previous framework include:

• End of centralised network management – Until now, one entity managed the entire network. Service providers may now install and manage their own charging network without the need to connect to common network, while still ensuring access for all users;
• End of the role of “electricity supplier for electric mobility”, allowing charging point operators to contract electricity through the market or under a self-consumption model, and to contract with other mobility service providers.

Other key measures

• Mandatory ad hoc charging at all public charging points, allowing users to charge without a prior contract, using payment methods such as bank cards or QR codes;
• Introduction of smart and bidirectional charging, enabling energy to be fed back from vehicle batteries into the grid.;
• Extension to electric vessels, with specific rules for the installation and operation of charging points;
• Interconnection with international networks, making charging and payment abroad easier it easier to charge and pay while abroad.

On the environmental side:

• Issuance of “avoided CO?” certificates for renewable energy use, enabling users and charging point operators to trade these certificates to meet decarbonization targets.

On the information management side:

• Obligation to provide information to the new Data Aggregator for Electric Mobility, with no market activity, responsible for sending data to the National Access Point, managed by the IMT (Institute for Mobility and Transport);

On the licensing side:

• Simplified procedures with shorter deadlines, possible tacit approval, and in some cases, only prior notification;
• All procedures to be carried out online via the Single Digital Services Portal.

A transition period is established until 31 December 2026 to ensure a gradual shift from the previous model to the new framework