EU Commission endorses Latvia’s €617 million Social Climate Plan

Brussels, 20 July 2026

The European Commission endorsed Latvia’s Social Climate Plan — the third national plan approved under the new Social Climate Fund. Using carbon pricing revenues, the Fund ensures a fair and inclusive clean transition for vulnerable citizens and businesses.

The Latvian Social Climate Plan will mobilise €617 million from this year until 2032 to help 17,000 vulnerable households living in energy inefficient homes and 453,000 transport users. The plan will benefit households already supported by the national energy costs support scheme and those living in areas with limited public transport availability. Eligible households can receive funding for home renovations and energy efficiency improvements, covering up to €15,000 for apartments and €20,000 for houses.

The plan will improve the energy efficiency of social housing and buildings used to provide social services and accommodation. In addition, new energy advisory hubs will offer targeted guidance to vulnerable households, helping them reduce energy costs and improve access to available support. The plan’s implementation is expected to reduce CO2 emissions by 45,000 tonnes by 2032.

Vulnerable transport users can receive up to €15,000 to purchase a battery electric vehicle, while people with reduced mobility will be able to receive an electric mobility device. Among other things, the plan will also support a regulatory reform of public transport, investments in on-demand transport services, as well as the purchase of new battery electric trains, improving access to public transport in rural and remote areas affected by high transport poverty. It will also fund free bicycle-sharing services in 97 schools located in areas with high transport poverty.

The plan was developed by the Latvian authorities together with the Commission. The Commission concluded that it adequately addresses the social impacts of extending greenhouse gas emissions trading to buildings and road transport under the ETS2. Latvia will be able to request its first payment to the Commission once the implementation of the plan has started and the milestones have been achieved.

Background

The Social Climate Fund provides significant financial support to the EU Member States to finance measures and investments identified in their national  Social Climate Plans,  ensuring that the clean transition is fair and leaves no one behind. Running from 2026 to 2032, the Social Climate Fund is expected to mobilise at least €86.7 billion, combining revenues from the new emissions trading system for fuel combustion in buildings, road transport and additional sectors (ETS2) as well as Member States’ contributions (at least 25% of the costs of their plans).

The Fund will support measures and investments in energy efficiency, the renovation of buildings, clean heating and cooling, and the integration of renewable energy, as well as in zero- and low-emission mobility and transport.

The Commission is working closely with Member States on the development of their Social Climate plans and calls for their swift submission. Eight Member States (Sweden, Lithuania, Latvia, Malta, the Netherlands, Greece, Croatia, and Slovenia) have formally submitted their plans to date and Sweden’s plan was the first one to be adopted, followed by Lithuania’s plan. Most of the remaining Member States have shared draft versions, and the Commission has provided dedicated guidance to help them effectively implement the Social Climate Fund and complete their plans.

For more information

Quote(s)

Latvia’s Social Climate Plan addresses critical challenges faced by many households, for example outdated heating systems and limited transport access in rural areas. With €617 million in targeted support, this plan will ensure that the green transition reduces inequalities rather than exacerbates them. It demonstrates how climate policies can — and must — prioritise social fairness alongside environmental goals.

^{Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness}

Latvia’s Social Climate Plan is a great example of how the EU is making the clean transition affordable and accessible to individual citizens, with strategic investments tackling both climate objectives and social needs. The €617 million allocated will improve energy efficiency in older buildings and expand sustainable transport options, directly benefiting households and communities most at risk. This approach ensures that the transition to a net-zero economy is achievable and equitable – an essential model for the entire EU.

^{Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth}

Source – EU Commission