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Green Spending Share EU
Green Spending Share Total
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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.

Green Spending Share

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.

Our Highlights

Good Practice

Green transportation system

The government is planning to green the transportation system of the Riga metropole area, improve the energy efficiency of the buildings and businesses.

Bad Practice

Lack of genuine structural reforms

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.

To Our Surprise

Public consultations were included in the drafting process

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.

Sectoral Analysis

This dashboard provides a detailed overview of the allocation and assessment of measures by sector for:


Using the drop-down option, you can compare results with other countries.

Sector Analysis DE

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Policy Measures

This list provides a full overview of all recovery measures. Our detailed report contains a deep dive on the most important recovery measures and how we assess them. The report can be downloaded below.

Measure List

Knowledge Hub

The article presents the 6-hour online hackathon, that took place in Estonia, seeking designs to combat the Corona pandemic crisis. The idea was taken up in neighboring Latvia and Poland.

Hack the Crisis: From Ideas to Solution Design in Just 6 Hours

The article by Omar Faridi presents the Citadele Banks' financial relief program. The program is provides financial relief to clients who are unable to meet their credit obligations due to the Corona pandemic.

Latvia-headquartered Citadele Bank Contributes €10 Million to Fintech SME Finance, Offers Loan Relief to Clients during Coronavirus Pandemic

The website provides a brief overview of the relief and stimulus programs to mitigate the effects of the Corona outbreak for Estonia, Latvia, and Lithuania. A negative GDP is expected for the countries.

Baltic states roll out fiscal measures to prop up coronavirus-stricken economies

This report is about the European recovery funding, especially the Recovery and Resilience Facility (ANM) , a new EC centrally managed budget program

European Recovery and Sustainability Mechanism/Eiropas Atveseļošanas un noturības mehānisms