Latvia’s Social Climate Plan was the third plan endorsed by the Commission under the Social Climate Fund.
The Latvian plan supports households that are most affected by rising energy and transport costs and who struggle to improve the energy efficiency of their homes and to access on sustainable transport.
Key figures- The Latvian plan will mobilise close to €620 million between 2026 and 2032
- It aims to decrease the number of energy vulnerable households by nearly 10 000 and close to 83 000 vulnerable transport users
- The implementation of the Plan will lead to an estimated GHG emission savings of around 45 kilotonnes CO2 for the period up to 2032
Context
- Latvia’s plan identifies already high levels of energy poverty, with approximately 351 000 households that are vulnerable or already in energy poverty, and 246 000 transport users that are vulnerable or already in transport poverty
- These households are low-income, exposed to increasing energy or transport costs, and face structural barriers such as energy-inefficient housing, limited public transport availability, or live in remote and rural areas
- Latvia’s Social Climate Plan includes measures and investments to durably reduce energy and transport poverty and decrease the exposure of the most vulnerable to price increases
What measures does it fund?
- Vulnerable households can receive funding for home renovations and improving energy efficiency, covering up to €15 000 for apartments and €20 000 for houses. Support is also available for renovating whole multi-apartment buildings for the primary benefit of vulnerable households. Advisory services to support renovations and energy efficiency improvements will also be provided to vulnerable households.
- Municipalities can apply for funding to improve energy efficiency in social housing and in buildings used where social services with accommodation are provided.
- Vulnerable transport users will be able to purchase a battery electric vehicle, with support for up to €15 000. Vulnerable transport users with reduced mobility will be able to receive an electric mobility device.
- Transport on demand services will be established in rural and remote areas with a high level of transport poverty, providing more flexible mobility solutions. This will be accompanied by a reform of the regulatory framework to establish transport on demand services as a form of public transport in Latvia.
- Five new battery electric trains will be purchased, along with new charging infrastructure, to improve connectivity in transport-poor areas in the Eastern border regions, in particular towards Valka and between Krustpils and Rēzekne.
- Social and healthcare service providers operating in areas with high transport poverty can apply for support to purchase an electric vehicle, notably to provide their services at home.
- Free bicycle-sharing services will be established in 97 schools in areas with high transport poverty. Sheltered bicycle parking facilities will also be built in 50 train stations in such areas.
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Funding
- The total budget of the Latvian Plan amounts to €617 million
- The EU contributes €462.8 million from the Social Climate Fund, financed fully by the EU Emission Trading Systems (EU ETS & ETS2)
- Latvia covers the remaining share of the funding (25%)
Who benefits from the plan?
- The Latvian Plan benefits households that meet the definition of energy or transport poverty, as well as specific conditions set out for each measure and investment
- Up to 17 000 households living in energy-inefficient housing and 453 000 transport users especially in areas with limited public transport will benefit from the various investments. Out of those, around 10 000 vulnerable households and 83 000 vulnerable transport users should no longer be in energy or transport poverty by 2032 as a result of the plan’s implementation
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Timeline at a glance
- 20 July 2026Commission endorses Latvia's Social Climate Plan
- Second half of 2027Applications open for most investments
- 2032Social Climate Fund fully implemented
