Stating that “there is more to life than the Budget” and that the “Government continues its reformist and transformative spirit at high speed”, the Prime Minister presented measures from the Green Mobility Package this Friday including the national rail pass.
In Entroncamento, Luís Montenegro announced that the Council of Ministers approved 13 measures designed to improve mobility, increase convenience, and enhance people’s ability to move across the country.
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The Prime Minister highlighted three key measures among those approved, with the national rail pass being one of them. This plan is now set to take effect.
Details of the National Rail Pass
Luís Montenegro announced that, for 20 euros, the national rail pass will provide one month of access to all rail transport, except the Alfa Pendular train. He also confirmed that the free pass will be extended to all young people up to the age of 23.
The Prime Minister argued,
“It is curious that a socialist government has bequeathed us an instrument of mobility, as happened with taxation, with the IRS Jovem (Youth IRS), a decision that discriminates between young people who study and those who do not, between young people who have higher education and those who do not. Let’s correct this in the IRS, and let’s correct it today in rail transport, because it is fair.”
Encouragement of Electric Vehicle Acquisition
Montenegro also announced the approval of measures to encourage the acquisition of electric vehicles, alongside a program for scrapping light passenger cars.
Regarding environmental and energy measures, the Prime Minister highlighted the approval of the updated National Energy and Climate Plan 2030, which will be submitted to the Assembly of the Republic.
He also announced the creation of a Climate Agency, which will manage and coordinate all funds, both national and European, in the area of Environment and Energy. Montenegro explained:
“With all these measures, the Government intends, firstly, to be more efficient and, by being more efficient, to encourage greater control of energy consumption.”
The Prime Minister stated that the measures approved by this Council of Ministers will have a significant impact on the country’s future in the coming years. He added:
“It is very important to have a State Budget, but we need to have policies, guidelines, paths, and we need to decide. And this Government has decided and today it did so in two fundamental areas for us to have a more sustainable country.”
Investment in Green Mobility
Miguel Pinto Luz, the Minister of Infrastructure and Housing, provided further details on the approved measures, including those linked to the green mobility package for passengers. The minister explained that this represents an investment effort of 115 million euros until 2025.
The first measure Miguel Pinto Luz highlighted was the extension of the social pass. He acknowledged that while it had a lot of social aspects, it was unfair because it did not cover all corners of the country. The minister then spoke about the Green Rail Pass saying:
“For 30 days of use, and covers the intercity service”, but also the “regional, interregional service, the urban services of Coimbra, Lisbon and Porto, whenever these are outside the area covered by intermodal passes already in service.”
Effective Date and Passenger Benefit
The rail pass will take effect on October 21st and is expected to benefit around 30 million passengers, according to government estimates, with an annual cost of approximately 19 million euros. He also assured that the new pass would not risk CP’s sustainability.
The minister acknowledged the great anxiety in the sector following the announcement of the 20-euro pass. However, he assured that everything was handled transparently, with demand studies conducted by CP.
He emphasized that there is a guarantee of sufficient capacity to accommodate the expected increase in demand. CP will be compensated 18.9 million euros per year, via a public service contract with the State, for the 20 euro rail pass.
Still in the Green Mobility Package, the minister highlighted the extension of the free pass for all young people, students or non-students. He said:
“A measure that will require a budgetary effort of more than 40 million euros. There are 241 thousand more potential beneficiaries of this measure.
Auction for Renewable Gases
The Government has announced an auction worth 140 million euros for renewable gases, including biomethane and green hydrogen. This initiative is designed to boost the production of these sustainable fuels in the country.
As part of the measure 14 million euros annually for a decade. The total investment to 140 million euros is set for this task.
Decarbonization with €40 Million Investment
João Pedro Matos Fernandes also revealed that the Government will move forward with the creation of a national roadmap for aviation decarbonization. This will entail a €40 million investment in the production of sustainable fuels.
It will support the production and use of sustainable fuels, with the Environmental Fund providing 40 million euros for this initiative.
Fund for Public Transport and Green Mobility Initiatives
The Government has approved the establishment of a Fund for the Public Transport Service. This fund will support initiatives focused on decarbonization, digitalization, and the integration of artificial intelligence and communication technologies for passengers, promoting green mobility.
Additionally, the measures approved by the Council of Ministers include an allocation of 20 million euros to encourage the scrapping of cars older than 10 years.
The program offers a support of 4,000 euros for each electric vehicle valued up to 38,500 euros, or 5,000 euros for institutions involved in social action, as explained by Minister Pinto Luz.
The Council of Ministers also approved a support line of three million euros to expedite the construction of cycle paths. This funding will additionally reinforce support for the public administration’s acquisition of bicycles and bicycle parking systems, with an allocation of 200,000 euros designated for 2024.