Portugal’s carbon tax, introduced in 2015, is part of the special taxes on consumption and is recalculated annually based on the previous year’s average EU ETS allowance price. As of 2024, the tax covers direct (scope 1) CO2 emissions from fossil fuel combustion, particularly in the industry, buildings, and transport sectors. Facilities covered by the EU ETS are eligible for rebates, and non-ETS electricity generators face reduced rates. Portugal also imposes a flat €2/ticket carbon charge on air and sea travel. The tax was frozen at 2021 levels due to high energy prices but resumed adjustments in April 2023.