European Commission supports the purchase of environmentally friendly buses and related infrastructure in Portugal

The European Commission has found Portuguese plans to support the purchase of low-emission buses for public infrastructure in urban areas to be in line with EU state aid rules. The measure contributes to reducing CO2 emissions while limiting distortions of competition in the Single Market. The beneficiaries of the scheme are the transport operators and transport authorities responsible for carrying out urban passenger transport in Portugal and they will be selected through an open tender process.

Earlier this year, Portugal notified a €60 million scheme aiming to support the replacement of old conventionally propelled buses with new low-emission buses and related refuelling/recharging infrastructure. This is expected to lead to a reduction of greenhouse gas emissions for each bus of at least 15% compared to current European standards (i.e. Euro VI).

The measure will be open to all green technologies currently available – compressed natural gas or liquid natural gas buses, electric or hybrid buses, and hydrogen buses. The Portuguese government will support 85% of the eligible costs through funding from the EU Cohesion Fund. Bus operators will bear the remainder.

Commissioner Margrethe Vestager, in charge of competition policy, said: "This measure will help to improve air quality in Portugal and is aligned with Europe's objective to reduce emissions. It supports the transition towards greener public transportation in urban areas without distorting competition."