The Foreign Investors’ Council in Latvia calls for the immediate adoption of the Economic Sustainability Law (ESL)! Without a clear regulatory framework, Latvia risks losing more than EUR 600 million from the European Climate Instrument as well as substantial funding from the next EU budget. In recent years, Latvia has taken significant steps towards building a green economy, thanks largely to the Ministry of Climate and Energy. If at this moment we shift direction and divert all resources exclusively to defense, it would undermine the progress already achieved and jeopardize the foundations of our sustainable future.
On 10 September 2025, the Saeima’s Economic, Agricultural, Environmental and Regional Policy Committee decided to advance the Economic Sustainability Law (No. 1007/Lp14), hereinafter – ESL, for consideration in the first reading, supporting its review under the urgency procedure.
The ESL, prepared by the Ministry of Climate and Energy (hereinafter – MCE), addresses several issues of critical importance for Latvia. Under conditions of acute financing shortages and budgetary constraints, it is, for example, necessary to continue implementing energy efficiency measures in both private and public sector buildings. It is also essential to invest in the development and deployment of renewable energy technologies. At the same time, integrated solutions for reducing greenhouse gas emissions must be introduced. It is crucial for Latvia to adopt a regulatory framework without delay to ensure the use of approximately EUR 600 million potentially available under the European Climate Instrument. In addition, the next EU multiannual budget will provide significant funding for sustainability and innovation projects, which will require timely regulatory implementation in Latvia.
FICIL particularly appreciates the MCE’s thorough work, with the ESL clearly outlining the responsibilities and areas of involvement of various ministries and municipalities. Climate resilience and adaptation to climate change are vital for the country and society as a whole. At the same time, these measures are a tool for stimulating economic growth and a launchpad for a technically and financially sound transition of the economy towards more prudent and circular market solutions.
Without in any way questioning the priority and importance of defense and security spending, FICIL stands firmly by the principle that Latvia must first have freedom, people, culture, economy and a state to defend. Therefore, FICIL expresses its unwavering support for the adoption of the ESL, recognizing in it significant opportunities for economic growth in the long-term interests of society and the state.