Climate Goals in Latvia: Steps, Challenges, and Opportunities

In Latvia, at the end of 2024, the government approved a new draft Climate Law that transposes EU requirements and strengthens climate-neutrality goals and instruments. The law is currently under consideration in the Saeima and will become one of the cornerstones of Latvia’s climate policy.

Key facts and challenges

• The National Energy and Climate Plan (NECP 2021–2030) has been updated and should be used as a strategic framework; however, its implementation requires concrete operational steps.

• Latvia’s reports to the UNFCCC show that the targets are clear, but greater focus is needed on reducing emissions across the economy and on strengthening implementation capacity.

• There are political and administrative delays in adopting specific legal acts, such as the inclusion of ETS provisions, which creates risks if EU mechanisms enter into force while national regulations are not aligned.

• Companies and society must take into account the new EU sustainability reporting regulation (CSRD) and national transparency/reporting requirements, which will require greater transparency in the operations of large companies and, later on, smaller companies as well.

  
  

As emphasized by Armands Gūtmanis, Head of the Latvian Sustainability Cluster:“Our goal—a climate-neutral Latvia by a defined deadline—is right and inevitable. However, a goal in itself is not a plan; we must talk about steps, financing, and priorities.”

How realistic are the commitments?

Climate targets are achievable if the following are ensured:

1. Clear and enforceable national legislation.

2. A targeted investment programme for the transition in energy, buildings, transport, and agriculture.

3. Capacity building for society and businesses.

Risk factors include delays in regulatory frameworks (e.g., transposition of the EU ETS), insufficient public funding, and a lack of coordination between ministries. Armands Gūtmanis adds:“It is important to talk not only about goals, but also about how much this costs, what expenditure redistribution instruments are available, and how EU funds are being used.”

Most promising directions for Latvia

• Energy decarbonisation and building energy efficiency — rapid emission reductions and improved energy security.

• Mandatory electrification in transport and public transport — strategic investments in cities and regions.

• Expansion of renewable energy with smart grid planning — local resources must be utilised, but planning must be regional.

• Agriculture and land use — emission reductions and carbon sequestration by supporting technologies and practices that increase carbon storage.

• Sustainability reporting and corporate readiness — CSRD and national disclosure requirements will require companies to reassess risk management and investment plans.

  
  

Urgent short-term steps

1. Adopt and strengthen three key national instruments: the Climate Law, the transposition of the ETS, and the NECP implementation plan, and clearly define responsibility at the ministerial level.

2. Activate targeted support instruments for building insulation, electric transport, and local renewable energy (grants, loans, fast-track administrative procedures).

3. Launch an intensive corporate training programme so that companies understand their new reporting responsibilities and associated risks.

4. Develop a clear list of sanctions and enforcement mechanisms to avoid “surprises” and penalties imposed through EU mechanisms.

   
   

The Latvian Sustainability Cluster calls on everyone—both businesses and society—to actively engage in making a climate-neutral Latvia a reality. As Armands Gūtmanis emphasizes:“Every step, every investment, and the implementation of every decision brings us closer to our common goal. A sustainable Latvia is not just a dream—it is an opportunity we can realise now.”