Association: Businesses Are Urging the Government for Clarity on Emissions Policy

The level of urgency from businesses regarding the government’s ambiguous stance on emissions reduction and so-called climate neutrality targets is steadily increasing. According to the Latvian Sustainability Cluster, this trend is clear and undeniable. The association therefore calls on the national leadership to clearly define the future direction of climate policy and to provide businesses with the necessary support.

The European Union has adopted a broad range of regulations concerning emissions reduction, which require consistent implementation across all Member States. However, the Latvian government’s unclear signals and postponed decisions—such as the delay of the Climate and Transport Energy Acts—have created uncertainty for businesses regarding the country’s strategy and the conditions for sustainable development. This comes in stark contrast to recent actions taken in September, when the same President and Parliament adopted legislation on the implementation of sustainability standards.

“Many Latvian companies operating in EU export markets face clear requirements to demonstrate emissions reduction efforts and provide sustainability certifications. At the same time, there are still businesses in Latvia that may not yet have encountered such demands. As a result, one group of entrepreneurs believes that stronger government action is necessary—through EU funding and legislation—to support emissions reduction in business. Another group argues the opposite, maintaining that reducing emissions is either not feasible or not necessary. Both perspectives are rooted in concerns about maintaining competitiveness. Since climate and emissions reduction policies are ultimately driven by political decisions, it is precisely from politicians that we must demand clear direction and leadership,” said Armands Gūtmanis, Chairman of the Board of the Latvian Sustainability Cluster.

To eliminate contradictory signals and ensure a stable business environment, the association has outlined three key proposals in its letter to government officials:

Consistent Communication on Sustainability Requirements

The implementation of the Climate and Transport Energy Acts must be resumed as soon as possible. This would provide clarity to businesses on what emissions reduction strategies they need to develop in line with EU targets—or the government must clearly state that Latvia will not comply with EU emissions regulations, and Prime Minister Evika Siliņa should personally coordinate this position with Ursula von der Leyen.

Integration of the Climate Law into Other Legislation

If it is not possible to adopt the Climate Law as a standalone document, the government should consider incorporating its key elements into other legislative acts. This would accelerate the legislative process and allow for the adoption of a separate policy framework for sustainable economic development.

Attracting Investments from EU Funds

In order to help Latvian businesses align with sustainability requirements, it is essential to begin preparing funding requests for the next EU budget planning period, starting after 2027.

The Latvian Sustainability Cluster calls on the government to engage in close cooperation with the business community to ensure a clear and predictable policy on emissions and sustainability—one that will strengthen Latvia’s economic competitiveness in international markets.