2.3 Million Tonnes of CO₂: Latvia Must Urgently Introduce Support for Zero-Emission Freight Transport to Maintain Competitiveness

Freight road transport in Latvia is one of the largest sources of greenhouse gas emissions, and without a clear national strategy there is a risk of losing competitiveness and failing to meet the country’s emission reduction targets. A study by the association Sustainability Cluster reveals that the sector generates more than 2.3 million tonnes of CO₂ annually, and that Latvia still lacks a targeted policy to support the transition to modern, efficient, and environmentally friendly freight transport.

The study shows that business sentiment is positive—70% of freight operators would be willing to purchase zero-emission trucks if the state covered the price difference compared to diesel vehicles. Most respondents also emphasize the importance of infrastructure development and tax-related solutions.

Calculations by the Sustainability Cluster show that emission reductions worth approximately EUR 20 million would be achieved if 10% of the existing heavy-duty vehicle fleet were replaced with zero-emission transport. This amount reflects the costs that would not have to be paid for the purchase of emission allowances. The calculation is based on publicly available data on the average mileage of the heavy-duty vehicle fleet in Latvia, average fuel consumption, and the average CO₂ per tonne price on the market,” notes Justs Dimants, researcher at the Sustainability Cluster.

The broader benefits of the transition are explained by Armands Gūtmanis, Board Member of the Latvian Sustainability Cluster:

“The benefits are both direct and indirect. We are able to produce electricity, biofuels, and biomethane in Latvia, thereby reducing dependence on imported fossil energy. The risk of the state facing EU sanctions is reduced, and zero-emission transport also helps Riga achieve the emission reduction targets set out in the Riga Climate Neutrality Commitment Plan. At the same time, competition must be taken into account—if neighbouring countries subsidise their transport operators and they gradually acquire zero-emission vehicles, this creates direct pressure on Latvian companies.”

Krists Leiškalns, Adviser at the Ministry of Climate and Energy, emphasizes that Latvia pays between EUR 5–10 million every day for imported energy resources—funds that could otherwise remain within the country. He notes that in the light-duty vehicle segment, state support has already led to significant growth in electric vehicles, while similar instruments have not yet been introduced in the freight sector, despite there being around 90,000 trucks in Latvia. The representative of the Ministry of Climate and Energy stresses that the ministry is currently analysing the introduction of support measures for the heavy-duty vehicle sector.

Gūtmanis also highlights a crucial and often overlooked factor—the major role that freight transport service clients play in driving market change. “For the transition to truly take place, solutions must also be found to motivate freight transport customers—supermarket chains, construction and forestry companies, as well as public and municipal procurement. Clients also set requirements and can significantly influence how quickly the market will demand cleaner freight transport.”

From a transport policy perspective, the need for action is emphasized by Jānis Kalniņš, Deputy Director of the Public Transport Services Department at the Ministry of Transport:“To achieve Latvia’s target of reducing transport emissions by 21.5% by 2030, the freight vehicle fleet must become significantly more modern and efficient. This is no longer just an environmentally friendly choice—it is a matter of competitiveness. The sector operates at the intersection of fuel price volatility, customer requirements, and international competition. The state must promote solutions that make vehicle fleets more efficient and up to date.”

The manufacturing sector, in turn, confirms that the return on investment is real. Jurgis Ansfelds, Head of e-Mobility and Sustainable Solutions at Scania in the Baltic States, notes:“Scania’s strategy, both in its operations and in the trucks we produce, aims to replace fossil fuels with renewable fuels. This is the fastest way for the freight transport sector to reduce CO₂ emissions, and it is available now. Electric Scania trucks, running on renewable electricity, can reduce carbon emissions by approximately 90% compared to diesel trucks. Gas-powered trucks, when fueled with biomethane, also allow for up to a 90% reduction in CO₂ emissions while maintaining high mileage and performance.”

Both the study’s conclusions and the data provided by the ministries show that decarbonising freight transport is not a distant future goal, but an urgent necessity. To ensure that Latvia does not lose its competitive edge in the Baltic and European markets, it is vitally important to implement a clear, predictable, and sustainable state support system that allows companies to plan long-term investments and the transition to a modern freight fleet.

On 4 December, a seminar–think tank titled “Carrot or Stick? Transformation of Freight and Municipal Transport in the Context of Decarbonisation” was held at the LTRK premises. Alongside representatives from ministries and the association, the panel discussion included Dr. oec. Ingūna Jurgelāne-Kaldava (Associate Professor and Lead Researcher at RTU), Pēteris Krīvens (Board Member, Baltic Logistic Solutions), Ģirts Greiškalns (Chairman of the Board, Latvian Hydrogen Association), and Jānis Aizbalts (Board Member, Latvian Circular Economy Business Association).