Energy Efficiency and Carbon Neutrality: The Future of Construction in Portugal

Energy efficiency in the construction sector is now a fundamental pillar of Europe’s climate transition.
In Portugal, where much of the housing stock is old and energy inefficient, the shift towards sustainable buildings is not only an environmental imperative but also an economic and social priority.

The new European Directive on the Energy Performance of Buildings (EPBD), approved in 2024 and due for transposition into national law by May 2026, marks a decisive milestone.
This directive requires that all new buildings achieve near-zero emissions, and that, by 2030, existing residential buildings reach at least energy class E, improving to class D by 2033.

In Portugal, this transition will require a comprehensive revision of the legal framework, with direct impacts on urban licensing, building renovation, and public incentives.

Rehabilitating to Grow: The Challenge of the Old Housing Stock

The main challenge — but also a great opportunity — lies in the rehabilitation of Portugal’s ageing building stock.
It is estimated that more than 60% of Portuguese homes were built before the first energy efficiency regulations came into force in the 1990s.
These buildings consume excessive amounts of energy for heating and cooling, significantly contributing to national CO₂ emissions.

However, this challenge also represents a strategic opportunity to position Portugal as a European leader in sustainable building rehabilitation, taking advantage of its favourable climate, local construction traditions, and innovation potential in eco-friendly materials.

Programmes such as the Energy Consumption Reduction Support Programme for Buildings (PAREER) and the Environmental Fund are already taking steps in this direction.
Nevertheless, it is crucial to scale up these initiatives by providing simpler, faster, and more accessible support, so that the pace of transformation matches the urgency of the climate challenge.

Beyond Operational Efficiency: Building with Low Embodied Carbon

Focusing solely on operational energy performance — that is, energy used during a building’s life cycle — is no longer enough.
True sustainability requires a full life-cycle perspective, including the emissions generated during construction.

A building may be energy-efficient in use, but if its construction involves traditional cement, steel, and other carbon-intensive materials, its initial carbon debt can take decades to offset.

The construction sector currently accounts for about 38% of global CO₂ emissions, nearly half of which come from material production — known as embodied carbon.

Sustainable Materials and Methods: The Path to Carbon Neutrality

Portugal has a unique opportunity to lead the way in full carbon neutrality in construction, by adopting practices such as:

• The use of low-carbon materials — certified timber, concrete with partial cement replacement using fly ash or slag, raw clay or biobased bricks, and natural insulation materials (such as cork, hemp, or sheep wool);
• Reusing existing structures and applying circular economy principles;
• Promoting modular and dry construction, which significantly reduces waste and emissions.

Cork, in particular, stands out as a native Portuguese resource with excellent thermal properties and a negative carbon balance, as it absorbs more CO₂ than it emits over its life cycle.

Several pilot projects in Portugal already showcase this potential.
Examples include the “House of the Future” in Coimbra, built with local materials and passive design techniques, and the “ReVive” project in Lisbon, which restores derelict buildings using zero embodied carbon criteria — both proving that the future of sustainable construction is already taking shape.

Measuring to Reduce: Integrating Embodied Carbon into Policy

To truly neutralise construction-related emissions, it is essential to include embodied carbon accounting in building permits and public funding criteria.
Countries like France already require embodied carbon declarations for buildings above a certain size.

With the transposition of the EPBD in 2026, Portugal has the opportunity to go beyond operational efficiency and establish clear targets for embodied carbon, thus promoting true carbon neutrality from the first brick.

Contact us: comercial@theventurebuilder.pt