The Latvian draft Recovery and Resilience plan (RRP) was published in January 2021, following public consultations at the end of 2020. The measures of the RRP are organised into six areas: climate change and sustainability, digital transformation, economic transformation and productivity reform, health, inequality and the rule of law. Further 2% (€ 33m) of the total investment is planned in the field of culture and media, covering several of the components of the RRP.
Overall, the Latvian RRP includes measures worth €1.65bn (or 5% of domestic GDP). The plan makes a moderate contribution to the green transition, but falls short on ambition.
We find that Latvia’s draft recovery plan (RRP) achieves a green spending share of 29%, below the EU’s 37% climate spending benchmark. In contrast, 6% (€0.1bn) of all measures have a negative impact. Furthermore, we find that almost 17% (€0.28 bn) may have a positive or negative impact on the green transition depending on the implementation of the relevant measures, illustrating the importance of further scrutiny during the planning, review and implementation of the recovery measures.
Our calculation of the green spending share aims to mirror the approach used for the official assessment of national recovery plans (find more information here).
*This report was written by Lilija Apine, Janis Brizga (both Green Liberty) and Magdolna Prantner (Wuppertal Institute). We are grateful to Helena Mölter, Timon Wehnert (both Wuppertal Institute), Johanna Lehne and Felix Heilmann (both E3G) for providing valuable inputs.
The government is planning to green the transportation system of the Riga metropole area, improve the energy efficiency of the buildings and businesses.
The Latvian plan details a list of investment projects but does not include necessary structural reforms to ensure these investments are properly absorbed. It, therefore, falls short on one of the key goals of the EU Recovery and Resilience Facility: incentivizing critical structural reforms in member states.
Public consultations were conducted in November and December 2020 ahead of the publication of the plan. Overall, six thematic discussions are planned concerning each main area of the plan, as well as several high-level discussions to talk about the reforms and objectives provided for in the RRF plan for Latvia. The government also involved business associations and local municipalities in the drafting process.