Circular economy and sustainability: The case of the automotive industry in Portugal

Abstract

This paper analyzes the basic principles of the Circular Economy in the context of the automotive industry in Portugal. This is a sector of great importance for the Portuguese economy, in terms of production and income (around 5% of GDP), employment and exports, as well as one of those raising great concerns in terms of energy use and environmental impacts. In recent years, it has been the target of several rules and regulations, with the EU recently announcing the end of production of vehicles that emit CO2, from 2035 on, as part of the European Green Deal. This is, however, just one of many ongoing changes in a sector that has been under pressure to become more circular and sustainable, whether in the way it produces, the cars it makes, and the way cars and their waste are disposed of, eventually its useful life period. This work shows how the transition process towards greater sustainability and circularity in the sector in Portugal is taking place, through a detailed analysis of the disposal and recycling/reuse practices of its various waste, as well as the sustainability of car factories and their environmental plans.

Keywords

• Circular economy
• Environmental sustainability
• Energy transition
• Automotive industry