Latvia

Latvia is a medium performer in the CCPI, ranked 34th. The country receives a low rating in GHG Emissions, medium in Energy Use, high in Renewable Energy, and low in Climate Policy.

Latvia updated its National Energy and Climate Plan (NECP) and this has brought overall positive changes, especially in the energy sector. The country has set high ambition for increasing renewable energy (RE) in transport. Latvia has adopted a Long-term Climate Strategy (LTS) aligned with the EU 2050 climate neutrality goal. EU Emission Trading System (ETS) participation ensures a carbon-pricing signal for large emitters. The country is in the process of adopting a climate law, which will set the climate neutrality goal in national legislation.

Domestic coal is gone but fossil fuel subsidies persist and biomethane has limits; forests also need stronger governance

Latvia has no domestic coal power plants; thus, hydropower and gas dominate electricity, with solar and wind expanding. Grid and interconnection investments are underway and permitting is being adjusted for a more decentralised system. However, the CCPI country experts criticise the absence of a clear gas phase-out and the policy signals for RE developers remain mixed. They are also critical of the lack of clarity and ambition in fossil fuel phase-out, especially in the transport and heating sectors. They point out weak implementation of the LTS and persistence of fossil fuel subsidies, including for diesel in agriculture and natural gas in heating. Latvia maintains extensive gas pipelines and plans wider biomethane use. Biomethane can only cover about 15% of current gas use, so this approach risks locking in gas networks and diverting funds from electrification.

The experts criticise the high emissions in the land use, land use change, and forestry (LULUCF) sector due to forestry and peat extractions, and there is no clear and realistic plan for reversing the emissions trend. Latvia exports large volumes of wood chips and pellets. Civil society flags biodiversity impacts, clear-cutting, and weak transparency in forest governance. Overall, the experts indicate that the sustainability criteria for energy wood remain insufficient. Some EU-funded pilot projects target peatland recultivation and peat alternatives, but the experts criticise that the overall ambition is not yet aligned with 2030 LULUCF requirements.

Roadmap needed for fossil fuel phase-out, along with greater climate finance and alliance memberships

The experts recommend introducing a national carbon tax for non-ETS sector and developing a clear roadmap for fossil phase-out, including deadlines and just transition measures. They also advise strengthening the LTS 2050 implementation mechanisms, including interim targets and annual monitoring. They recommend integrating greenhouse gas reduction targets into sectoral strategies, especially agriculture and transport. They also call for increased climate finance contributions and for the country to join progressive alliances such as the Global Methane Pledge to match EU-level rhetoric with leadership.

Key Outcomes

CCPI experts

• Maksis Apinis (Green Liberty)
• Jānis Brizga (Zaļā brīvība)