The European Union is providing Latvia with 617 million euros through 2032 via the Social Climate Fund. The funds will be used to improve the energy efficiency of homes, subsidize the purchase of electric vehicles, buy electric trains for regional transport, and establish bicycle rental services, according to IPN.

The support approved by the European Commission can amount to 15,000 euros for renovating an apartment, 20,000 euros for renovating a house, and 15,000 euros for purchasing an electric car. The specific eligibility requirements and the applicants’ contribution will be determined at a later date as part of the National Social Climate Plan.

The aid will primarily go to residents of energy-inefficient buildings who are having difficulty paying their bills. Beneficiaries also include those who already receive energy cost compensation. Latvian authorities will set up energy counseling centers to help households identify the right renovations, understand the forms of support available, and reduce their bills through measures tailored to their homes.

In addition to the incentive offered for the purchase of electric vehicles, the authorities in Riga will also invest in public transportation: electric trains will be purchased, and on-demand transportation services will be provided. Furthermore, free bicycle rental services will be introduced for 97 schools in areas without public transportation.

Latvia is the third European Union member state to have its National Climate and Social Plan approved, following Sweden and Lithuania. Five other countries have officially submitted their plans, and most of the remaining governments have submitted draft versions to the Commission.