On 15 July the Cabinet of Ministers approved the draft law "Economic Sustainability Law", prepared by the Ministry of Climate and Energy (KEM). The aim of the bill is to promote the sustainability of the national economy by strengthening competitiveness and the ability of the state, as well as local governments, to adapt to climate change. The bill will now be submitted to the Saeima for consideration.
"As a result of climate change, extreme weather is becoming ever more frequent and more intense. As the recent holiday weekend in Ziemeļvidzeme also demonstrated, with large hailstones and heavy downpours observed in places, such phenomena are no longer a rarity. Our shared task is to strengthen the ability of society, the state and local governments to adapt to these challenges — to floods and heavy rain, and to storms and heatwaves alike. Drafting this bill is a significant step that not only builds our resilience to the risks created by climate change, but also opens up opportunities to attract European Union funding and to develop activity in sustainable niches. These funds will make it possible to implement specific adaptation measures that will reduce the impact of the climate on areas such as housing, agriculture and other sectors of the economy," explains Minister for Climate and Energy Kaspars Melnis.
European Union funding is intended for a number of measures, such as improving the energy efficiency of buildings, introducing renewable energy technologies and developing solutions to reduce greenhouse gas emissions. Within the available funding, project competitions are being run in which households and businesses can receive support for introducing climate-friendly technologies – for example, for purchasing heat pumps, solar collectors and zero-emission vehicles. Failure to bring in the bill would put the availability of this financial support at risk.
Until now, Latvia has had no single legal framework systematically linking the sustainability and competitiveness of the national economy with progress towards climate neutrality and climate resilience. With the approval of this bill, KEM will now take it forward for approval in the Saeima.
The Economic Sustainability Bill provides the regulatory framework needed for the public sector to draw up, in good time, clear and comprehensible procedures that would help businesses meet the requirements set by the European Union efficiently. Such a framework will serve not only as a tool for clarity and governance in companies' operations, but also as an essential mechanism for implementing the measures of Latvia's Updated National Energy and Climate Plan.
In essence, the framework emphasises the shared responsibility of institutions, local governments and businesses in developing a sustainable economy, so that joint efforts can mitigate climate change and the consequences it brings for our economy.