Environment at a Glance: Latvia
Table of contents
The OECD Environment at a Glance Country Notes are designed to support transparent, evidence-based information. They provide concise and descriptive overview of progress across major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity conservation. They feature selected environmental indicators, building on harmonised datasets available on OECD Data Explorer. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. See the Reader’s guide to the Environment at a Glance Country Notes for more information.
Latvia’s small open economy has grown steadily after recovering from the 2008 financial crisis. Agriculture, forestry and fishing account for a larger share of value added and employment than in most OECD countries, while industry represents a smaller share. Income levels have increased significantly over recent decades but remain below the OECD average. Population is ageing and declining and Latvia has one of the lowest population densities in Europe.
Located on the Baltic Sea, Latvia is a lowland country with some hilly areas and about 500 km of coastline. It has abundant forests and water resources and hosts a rich biodiversity, but has limited mineral and other non-renewable resources (except wood). Its diverse ecosystems include grasslands, coastal areas and peatlands. Forests cover about half of the territory and provide biomass, the country’s main domestic energy source. Natural resource-intensive products (wood products and paper, agricultural and food) account for a large share of merchandise exports.
Latvia is a unitary state with a relatively centralised system of environmental governance. Key environment-related functions are concentrated in the Ministry of Environmental Protection and Regional Development while local governments are responsible for land-use planning and environmental services.
Greenhouse gas (GHG) emissions (excluding the land use, land-use change and forestry - LULUCF - sector) declined significantly between 1990 and 2000 due a shrinking industrial base and a growing service sector. They increased until 2010 (except during the 2008 economic crisis) and have decreased since, albeit slowly (4.9% during 2000-24), while GDP continued to grow. Latvia has decoupled GHG emissions and total energy supply from economic growth, thanks to a gradual switch from fossil fuels to biomass for heat and power production and to improved energy efficiency (OECD, Environmental Performance Reviews: Latvia, 2019).
Transport is the primary source of emissions (29.8% in 2024, excluding LULUCF), followed by agriculture (21.5%) and the residential sector (heat is an essential part of Latvia’s energy production). Transport emissions rose in the 2000s as economic growth and rising household incomes led to a rapid expansion of the vehicle fleet. They declined during the economic downturn and again in 2020 due to the COVID-19 pandemic. Agricultural emissions increased until 2020 and have remained relatively stable since, as declining livestock numbers have offset increases in more intensive agricultural production. The LULUCF sector’s carbon sequestration capacity declined markedly since 2008 due to increased logging, forest ageing (increase of natural mortality), reduction of increment in mature forests and conversion of grasslands into croplands. The sector became a net emitter in 2020 (MoCE, 2026).
Demand-based GHG (footprint, i.e. including emissions incorporated in imported goods) productivity (GDP per unit of energy-related GHG emissions) has been increasing at about the same rate as the OECD average. Demand-based GHG intensity (GHG per person) is below the OECD average, but has remained relatively stable since 2000. Demand-based emissions are higher than production-based ones (i.e. produced within the territory), meaning that Latvia is a net importer of GHG emissions embodied in its final demand (i.e. demand for goods and services by all residents).
Latvia is among the leaders on renewables in the OECD, providing almost half of total energy supply and 74.4% of electricity output in 2025. Solid biofuels (wood pellets, wood chips, charcoal, wood waste and residue, and straw) are the main renewable source. Hydropower is the second largest renewable source, with three large plants on the River Daugava and several smaller plants (OECD, Environmental Performance Reviews: Latvia, 2019).
Emissions of most major air pollutants have declined since the mid-2000s. Fine particulates (PM2.5) and non-methane volatile organic compounds (NMVOCs) emissions have decreased thanks to lower use of fuelwood in individual heating installations. Nitrogen oxides (NOx) emissions decreased thanks to the implementation of stricter vehicle emission standards. More stringent regulations on maximum sulphur content in liquid fuels (in stationary sources and transport) helped reduce sulphur dioxide (SO2) emissions. Emissions of ammonia (NH3) started to decrease only in 2020. Latvia reached its 2020 Gothenburg Protocol objectives for SO2, NOx, NMVOC and NH3 emissions (OECD, Environmental Performance Reviews: Latvia, 2019).
Emissions of carbon monoxide (CO) and NOx per unit of GDP are relatively high, partly because of the old vehicle fleet.
Emission reductions went on par with air quality improvements. Average population exposure to fine particles (PM2.5) has declined since 2002, although it remains above the 2021 guideline value of 5 µg/m3 recommended by the World Health Organization.
Latvia has abundant water resources and a low abstraction intensity, putting the country under low water stress. Abstractions for public supply per person decreased until 2017 and is relatively stable since 2019.
The share of population connected to public wastewater treatment increased and most people benefit from secondary or tertiary (advanced”) treatment. The relatively low network connection rate, compared to other OECD countries, reflects the high cost of connecting sparsely populated areas to the network, which affects tariff affordability (OECD, Environmental Performance Reviews: Latvia, 2019).
Municipal waste generation grew until 2007; it decreased in the aftermath of the 2008 financial crisis, with reduced household purchasing power, but has picked up again since 2012. However, per person generation of municipal waste remains below the OECD average. Landfilling has decreased considerably and represented about a third of waste management in 2024. The recovery rate of municipal waste grew significantly after 2011 with the gradual introduction of separate collection, development of extended producer responsibility systems and increased landfill charges
Material consumption declined significantly with the economic recession between 2007 and 2009. This was partly due to population decline and reduced purchasing power after the financial crisis. Material intensity per person, although fluctuating, has generally increased since 2009. Material productivity increased since the fall in domestic material consumption after 2022 but remains below the OECD average. Non-metallic minerals, mostly construction materials, dominate the materials mix. Biomass comes second, with the bulk of it being wood used as an input by the wood processing industry, and by the energy sector as an energy source (OECD, Environmental Performance Reviews: Latvia, 2019).
Even though land use has significantly changed over time, Latvia is one of the least urbanised OECD countries. Nevertheless, recent urbanisation trends are increasing the fragmentation of natural environments.
There are 27 443 known species in Latvia (18 047 animals, including mammals and birds; 5 396 plants and about 4 000 fungi). Common mammal species are squirrel, fox, hare, lynx and badger. About 907 species (3.3% of the total number) are rare and threatened. The main pressures on habitats and species are artificial system modifications, which entail fragmentation and degradation of ecosystems, including dam construction, changes of hydrological regime and land reclamation. Other threats are resource use (e.g. intensive forestry), pollution, agricultural expansion, urban development and climate change.
Latvia achieved the 2020 Aichi targets (under the Convention on Biological Diversity) to protect at least 17% of land area and far exceeded the 10% target for coastal and marine areas. However, only a limited number of marine sites have strict management objectives (International Union for the Conservation of Nature - IUCN - categories I and II) and about 1.1% of the country’s land is covered by protected areas that have had management effectiveness assessments.1 The same is true for 0.3% of the exclusive economic zone. More efforts are needed to reach the 2030 Global Biodiversity Framework (GBF) target of protecting 30% of terrestrial and inland water areas, and of marine and coastal areas.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
Latvia’s revenues from environmentally related taxes are high by international comparison, albeit declining in recent years. Like all OECD countries, Latvia collects most environmentally related tax revenues through taxes on energy products and, to a lesser extent, motor vehicles. Pollution and resource taxes do not raise much revenue. They are all part of the natural resource tax, in place since 1991, which includes a carbon tax and levies on air emissions, water abstractions, water/soil pollution, waste and packaging materials (OECD, Environmental Performance Reviews: Latvia, 2019).
In total, 56.6% of GHG emissions in Latvia were subject to a positive Net Effective Carbon Rate2 (ECR) in 2023. Explicit carbon prices in Latvia consist of emissions trading system (ETS) permit prices and carbon taxes, which cover 21.2% of GHG emissions in CO2 equivalent. With roughly 17.7% of total GHG emissions, coverage is largest for ETS. Fuel excise taxes, an implicit form of carbon pricing, covered 49.3% of emissions in 2023. Direct fossil fuel subsidies cover 2.3% of emissions. About 45% of GHG emissions have a Net ECR above EUR 60 per tonne of CO2 equivalent, a mid-range estimate of current carbon costs. Net ECRs are highest in the road transport sector, which accounts for 26.1% of the country's total GHG emissions. The Net ECR is on average negative in the buildings sector. The buildings sector accounts for 7.7% of GHG emissions (OECD, Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, 2024).
Environmentally related government research and development (R&D) budget has increased from less than 2% of total R&D budget in 2005 to 3.7% in 2024.
Latvia is a marginal eco-innovation performer. The number of patent applications on environmentally related technologies, filed for protection in at least two jurisdictions by Latvian inventors, remains below 10 per year.
Latvia’s development co-operation seeks to promote sustainable development, poverty eradication, and resilient governance systems in partner countries. It focuses primarily on the EU Eastern Partnership and Central Asia area, drawing on its transition experience and expertise in governance, digitalisation and socio-economic reform. Latvia’s total official development assistance (ODA) is however comparatively low, representing 0.18% of gross national income in 2025. Although sustainability is embedded in its cooperation programme, the shares of bilateral ODA targeting climate change and biodiversity are also low (OECD, 2026).
References
Hockings, M., & al, e. (2006). Evaluating Effectiveness. A framework for assessing management effectiveness of protected areas. 2nd Edition. IUCN. Retrieved from https://portals.iucn.org/library/efiles/documents/PAG-014.pdf
MoCE. (2026). Latvia's National Inventory Document. Riga: Ministry for Climate and Energy (MoCE). Retrieved from https://unfccc.int/documents/656401
OECD. (2019). Environmental Performance Reviews: Latvia. OECD Publishing, Paris. doi:10.1787/2cb03cdd-en
OECD. (2024). Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down. ECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris. doi:10.1787/b44c74e6-en
OECD. (2026). Development Co-operation Profiles. OECD Publishing, Paris. Retrieved from https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/latvia_4e3fd066-en.html
Further reading
CBD (2022), Country profiles: Latvia, https://www.cbd.int/countries/profile/?country=lv
UNEP-WCMC (2024), “Protected Area Profile for Latvia”, the World Database of Protected Areas, www.protectedplanet.net
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← 1. Protected Area Management Effectiveness evaluations, can be defined as: “the assessment of how well protected areas are being managed – primarily the extent to which management is protecting values and achieving goals and objectives" (Hockings & al, 2006).
← 2. Effective Carbon Rate (ECR) is the sum of fuel excise taxes, carbon taxes and tradeable permits that effectively put a price on carbon emissions. The Net ECR equals the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.