Latvia to sign agreement with European Commission on €462.76 million from Social Climate Fund

The Latvian government on Friday backed a draft regulation under which the country will sign an agreement with the European Commission (the EU's executive body) on receiving €462.76 million from the European Union's Social Climate Fund between 2026 and 2032. The agreement is needed for Latvia to obtain funding for its already approved Social Climate Fund plan, which focuses on improving the energy efficiency of homes and developing sustainable transport.

Funding and payments

The plan's total funding is €617.01 million, of which €154.25 million will be Latvia's national co-financing. The agreement will set out how the money is allocated, paid out, monitored and controlled.

Funds will be paid in instalments once the milestones and targets set in the plan are met. Latvia will be able to submit payment requests to the Commission once or twice a year, by 31 July or 31 December. The final request must be filed no later than 31 July 2033.

Conditions

If the Commission finds that milestones or targets have not been met, payment of the relevant part will be suspended. If they remain unmet after nine months, the Commission may proportionally reduce the funding. The agreement also provides for reducing or recovering funds in cases of fraud, corruption, conflict of interest or serious breaches of obligations.

The Ministry of Climate and Energy will coordinate the fulfilment of the obligations. Climate and Energy Minister Jānis Vitenbergs (National Alliance) will be authorised to sign the agreement on behalf of the government. It will enter into force on the day the last party signs it.

What the plan covers

The Commission approved Latvia's 2026–2032 plan on 20 July this year. It provides support for renovating private houses, apartments and multi-apartment buildings, improving the energy efficiency of social housing, and setting up energy advice centres. It also aims to help vulnerable transport users and social and health care providers buy electric vehicles, to purchase new battery-electric trains, and to develop on-demand transport and micromobility solutions.