Latvia risks failing to meet its climate targets in the transport sector by 2030 – policy coordination is fragmented, support instruments are scattered, and public resources are not being directed well enough, according to the State Audit Office’s report published on 8th April.
The transport sector in Latvia accounts for approximately 31% of total greenhouse gas (GHG) emissions. As an EU Member State, Latvia has committed to achieving the EU’s climate targets, which were raised at the end of 2020. However, the audit identified shortcomings in the very prerequisites for achieving these targets.
The National Energy and Climate Plan (NEKP) sets out 35 measures for the transport sector through 2030, but there is no clear overarching strategy to reduce GHG emissions. 66% of the measures have no defined impact on GHG emission reductions, 69% carry a high or moderately high implementation risk, and 31% have not even been initiated. The cost-effectiveness of those measures expected to reduce GHG emissions also varies significantly. This indicates insufficient prioritisation of measures and assessment of cost-effectiveness to achieve the targets at the lowest possible cost, the audit states.
This is significant because only 41% of the approximately 2.9 billion euros needed to implement the measures has been identified so far. Furthermore, part of the previously identified funding has already been reallocated to measures that do not contribute to achieving the goals. For example, more than 100 million euros have been allocated to the “Rail Baltica” project, which is not included in the energy and climate plan and does not contribute to achieving these 2030 targets.
Increasing the number of electric vehicles in Latvia is one of the main priorities of the government’s policy on decarbonising the transport sector. Significant public funds have been invested in this area in recent years. From 2020 to 2025, the number of electric vehicles in Latvia increased approximately 21-fold from 658 to about 14,000. Approximately 31 million euros have been spent on electric vehicle purchase support programs, while other state and municipal support mechanisms (free initial vehicle registration, license plate issuance, free parking in Riga and Liepāja, and reduced entry fees in Jūrmala) have cost an additional 6 million euros.
Although significant investments have been made, the audit found that support measures for electric vehicles are not being implemented in a unified and coordinated manner.
Another significant issue is the accessibility of the support to different social groups. Support for the purchase of electric vehicles primarily reaches residents with medium-high and high incomes. In contrast, for vulnerable groups, this support is often out of reach even with state co-financing.
Starting in 2026, 70 million euros in funding is planned through the Social Climate Fund for the purchase of electric vehicles for approximately 4,000 vulnerable transport users. However, the audit identified significant risks—the target group is not clearly defined, and the needs and financial capabilities of these residents have not been sufficiently assessed. Consequently, the support may not reach those who need it most. Furthermore, the actual support will reach only 3% of the designated target group.
The State Audit Office will approach the Cabinet of Ministers to propose the creation of a unified state aid system aimed at mitigating the impact of rising fuel prices on households affected by transport poverty, and to call for an assessment of the impact of the reallocation of EU funds on the achievement of the NEKP’s climate goals.
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