Zero highlights that from 1 July, Portugal will no longer apply the reduced VAT rate of 6% to equipment intended exclusively or mainly for the capture and use of solar energy (such as photovoltaic panels), wind energy, geothermal energy and other alternative forms of energy, such as heat pumps or air conditioning, and will charge the normal rate of 23%.

In view of this expected increase, the environmental association “deeply regrets the lack of green taxation that is consistent with Portugal’s objectives of reducing emissions and adapting to the climate, which means that the country is moving in the opposite direction to the European Union”.

For Zero, this change in VAT “represents a significant fiscal setback, which could jeopardise the country’s efforts in the energy transition to support renewables and reduce greenhouse gas (GHG) emissions”, in addition to going against guaranteeing families “better and more efficient thermal comfort and ensuring a lower impact on public health in cases of heat and cold waves”.

“Instead of reinforcing the implementation of efficient and low-emission solutions, such as heat pumps, the country is seeing an increase in VAT on energy equipment and the absence of a coherent national plan, both in technical terms and in terms of financing accessible to families”.

According to the association, this measure “threatens to discourage investment in essential technologies for the modernisation of air conditioning systems, making it difficult to meet national and European climate targets”.

Zero recalls, in a statement, that in Portugal, the National Energy and Climate Plan (PNEC 2021-2030) includes targets for the decarbonisation of the residential sector, highlighting heat pumps as an essential technology for electrifying heating and cooling, reducing the use of fossil fuels and increasing energy efficiency.

The environmental association also criticises the fact that the climate control support programs in Portugal “continue to show structural flaws that compromise the effectiveness of the energy transition”, with one of the main obstacles being the lack of effective communication, especially among the most vulnerable groups, making it difficult to understand and access the available measures.

Another “significant problem” that it highlights is the relatively low value of the reimbursements offered.

Zero emphasises that, in addition to fiscal barriers and the fragility of financial support, Portugal still faces a significant deficit of qualified professionals in the area of ​​sustainable climate control.

The shortage of technicians and electricians with specific training in the installation and maintenance of efficient and low-climate-impact systems compromises the implementation of the energy transition in the sector.

In view of this situation, Zero calls on political parties to "reverse the decision taken when approving the 2025 State Budget and, ultimately, to return this brutal and incongruent increase in VAT to the current rate from January 1, 2026".

“It is essential to reverse the increase in VAT applied to energy-efficient equipment and to focus on renewable sources, and to ensure adequate and accessible financial support for building renovation and the adoption of energy-efficient air conditioning technologies”, it argues.

Zero also calls on the Portuguese Environment Agency (APA) and the Climate Agency to lead the definition and implementation of a coherent and ambitious national strategy for greater sustainability in the Heating, Ventilation and Air Conditioning (HVAC) sector.

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