Latvia faces 2030 climate targets risk due to transport sector woes
Latvia is at risk of failing to meet its 2030 climate targets, with the transport sector a major cause for concern, according to a recent report from the State Audit Office.
Transport sector emissions high, actions insufficient
The transport sector accounts for approximately 31% of Latvia's total greenhouse gas emissions, making it a crucial area for the country to address in its climate efforts. However, the State Audit Office's report found that the National Energy and climate Plan (NEKP) lacks a clear overarching strategy to reduce these emissions.
Of the 35 measures outlined in the NEKP for the transport sector, 66% have no defined impact on greenhouse gas reduction, 69% carry a high or moderately high implementation risk, and 31% have not even been initiated. The cost-effectiveness of measures aimed at reducing emissions also varies significantly, indicating insufficient prioritization and assessment.
This is concerning, as only 41% of the approximately 2.9 billion euros needed to implement the measures has been identified so far. Furthermore, part of the previously allocated funding has been reallocated to projects that do not contribute to achieving the 2030 targets.
Electric vehicle support fragmented and ineffective
Increasing the number of electric vehicles in Latvia is a key priority for the government's decarbonization efforts in the transport sector. Significant public funds have been invested in this area, with the number of electric vehicles growing from 658 in 2020 to over 14,000 in 2025. However, the audit found that support measures for electric vehicles are not being implemented in a unified and coordinated manner.
Another issue is the accessibility of these support programs to different social groups. While they primarily benefit residents with medium-high and high incomes, vulnerable groups often find the support 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, including the unclear definition of the target group and insufficient assessment of their needs and financial capabilities.
As a result, the actual support may not reach those who need it most, with only 3% of the designated target group expected to benefit.
The State Audit Office has called on the Cabinet of Ministers to create a unified state aid system to mitigate the impact of rising fuel prices on households affected by transport poverty and to assess the impact of EU fund reallocation on achieving the NEKP's climate goals.