Law 2169/2021 promoting low-carbon development last amended by Law 2294/2023

This law impulses low-carbon development through the establishment of goals and measures in order to reach carbon neutrality and resilience. It sets accountability mechanisms, defines pillars to enable the transition, and sets a range of economy-wide and sectoral mitigation and adaptation targets and other measures. According to a World Bank report, the law establishes that, beginning in 2023, half of carbon tax revenues will be used in "costal erosion management, conversation of water sources, and the protection of ecosystems", amongst other measures. The other half of tax revenues "will be used for financing the Program for the Substitution of Illicit Use Crops (Programa Nacional Integral de Sustitución de Cultivos de Uso Ilícito)".The Law 2294/2023 amended article 33 and created the Fund for the Promotion of Technological Advancement), which will manage resources from various funding sources, distributed among specific subaccounts for different types of transportation (passenger, light-duty, heavy-duty and taxi fleet). The fund aims to support the modernization and energy transition of various transport sectors, with a focus on environmental sustainability through low and zero-emission technologies.