OECD Environmental Performance Reviews: Latvia 2019

Latvia has come a long way in improving its environmental performance and the well-being of the population. Large amounts of investment have helped increase the use of renewables, improve energy efficiency of homes, reduce greenhouse gas emissions and extend access to water and waste services. However, convergence with more advanced OECD economies is far from being accomplished. Forestry and agriculture play a key economic role, but exert increasing pressures on biodiversity. Mainstreaming biodiversity considerations into economic development policies should be a priority. Accelerating the transition towards a low-carbon and circular economy will require major investment in sustainable infrastructure, more waste prevention and recycling and stronger economic instruments.
This is the first Environmental Performance Review of Latvia. It evaluates progress towards sustainable development and green growth, with special features on waste and circular economy, and biodiversity conservation and sustainable use.
Towards green growth
Latvia has managed to decouple several environmental pressures from its sustained economic growth, although challenges remain. It has significant opportunities for accelerating the transition towards a low-carbon, greener and more inclusive economy. This chapter analyses progress in using tax policy to pursue environmental objectives, as well as the steps taken to reform environmentally harmful subsidies. It also discusses public and private investment in low-carbon energy and transport infrastructure and services. The chapter examines the country’s eco-innovation performance and opportunities for the green industry. Finally, it briefly reviews progress in mainstreaming environmental considerations into development co‑operation.