## 1 Introduction  
Energy is crucial for the progress of organizations and countries, as most activities require energy consumption [1]. This has led to increasing energy demand in both developed and developing countries, with China and the US as top producers and consumers [2]. Given the link between energy use and economic growth, renewable energy sources can be seen as alternatives to fossil fuels, helping to reduce ongoing environmental damage [3]. [PERSON] et al. [4] argue that growing reliance on polluting energy sources leads to complex problems, causing health and environmental issues that are hard to address. Many studies have investigated the relationship between energy consumption and economic growth, including those by [PERSON] et al., [PERSON], and [PERSON] and [PERSON] [5; 6; 7]. Unfortunately, as [PERSON] et al. [8] point out, fossil fuels have driven global economic growth. However, recognizing renewable energy's importance in addressing climate change, researchers have examined how using renewable sources can support positive economic growth. Currently, both private companies and governments are working hard to promote renewable energy use [9]. Developing and developed countries have built significant renewable energy production capacities, supported by government policies [3; 10; 11]. For example, Indonesia is analyzing how biomass waste can contribute to diversifying energy sources, and how this approach can increase the circular economy and the decarbonization of the energy production [12]. Along with local and regional actions, international environmental agreements that rely on state cooperation have become important, highlighting climate change as a global issue [13; 14]. Mainly, state leaders' strategies focus on replacing fossil fuels with renewable energy options, such as biomass [15; 16; 17]. Biomass has shown success in both environmental and economic aspects, with techniques such as cofiring with coal (a highly polluting fossil fuel), demonstrating its potential [18; 19; 20; 21]. For example, the United Kingdom has encouraged biomass use for electricity generation by introducing Renewable Obligation Certificates to motivate the adoption of cleaner energy sources [22]. Europe is highly vulnerable to climate change effects. As a result, Europe has launched various initiatives to encourage mitigation efforts, such as the European Adaptation Strategy and the Mayors Pact for Climate and Energy [23]. Introduced in 2013, the European Adaptation Strategy aimed to create solutions for climate change challenges and reduce its impacts [24; 25]. Climate change has harmed not only Europeans' health but also the economy, causing yearly losses [26; 27; 28]. This has increased Europe's urgency to act [29]. Started in 2015, the Mayors Pact for Climate and Energy aimed to voluntarily join local and regional authorities' efforts to meet the European Union's climate change goals [30]. All pac members are dedicated to cutting greenhouse gas emissions, improving their territories' resilience, and understanding their local environmental situations [31; 32]. The Kyoto Protocol, an international agreement under the United Nations Framework Convention on Climate Change (UnFCCC), was adopted in 1997 and took effect in 2000 [33]. Its main goal is to decrease greenhouse gas (GHG) emissions [34]. The protocol includes three market-based mechanisms for better results: International Emissions Trading, Clean Development Mechanisms, and Joint Implementation [35]. A study by [PERSON] et al. (2020) found that the Kyoto Protocol helps the environment by lowering CO\({}_{2}\) emissions but negatively affects the economy. The study indicates a trade-off between reducing carbon emissions and fostering economic growth [34]. Figure 1 shows the evolution of CO\({}_{2}\) emissions over the past 61 years, from 1940 to 2021. Portugal ratified the Kyoto Protocol and joined the UNFCCC to address climate change and has improved its environmental policies. [PERSON] et al.