MPs from “Apvienotais saraksts” (AS) have submitted a draft Saeima decision “On the direction of implementation of Latvia's national climate and energy policy in a situation where national security is under threat”, which would instruct the government to make substantial changes in the field of climate policy.
Given that Latvia borders aggressor states that continuously threaten our country's territorial integrity and its very existence, there is an objective need to increase defence spending substantially. Both President Edgars Rinkevičs and Prime Minister Evika Siliņa have expressed a clear commitment to reaching defence spending of 5% of GDP by 2028.
It is therefore self-evident that national security has been set as the single priority area in preparing the 2025 and medium-term state budget, allowing us to predict with confidence that national security will remain a priority in 2026 as well, with significant public funding allocated to it.
Given this priority, the state will most likely not be able to cover in full the expenditure required to implement the National Energy and Climate Plan for 2021-2030 (NECP) and to achieve the targets that have been set.
According to Ministry of Finance estimates, additional investment of at least 13.1 billion euros is needed, of which only 3.8 billion euros, or 29.1%, has been earmarked so far. This objectively creates a need to review climate and energy policy and align it with meeting the country's defence and security needs.
Moreover, the measures planned under the NECP impose substantial obligations on private legal entities and other consumers, driving up the cost of everyday services and goods.
Meeting the climate targets places a financially unbearable burden on the state budget, while at the same time creating additional bureaucracy in public administration and limiting the scope to channel funds into strengthening national security, which is currently designated as the priority. In addition, as ministries integrate climate and energy policy objectives into their policy planning documents and legislation, they are also expected to be required to assess the impact on the achievement of climate targets and to specify performance indicators, which will create a significant administrative burden for them.
Saeima MP Andris Kulbergs:
“We must have only one overriding priority – security. That is why mega-expensive political projects such as the climate targets, which breed bureaucracy and formalism, have to be set aside for now. We have neither the time nor the money for them. The focus must be on what matters most: defending our country and our people.”
The MPs take the view that both the legislative process as a whole and the government's further actions must be urgently reviewed, so as to prevent the advancement of legislation that would substantially increase state budget expenditure or place an unjustified burden on private legal subjects in connection with the implementation of the so-called green course provided for by the NECP, including by jeopardising the planned national security measures.
The draft decision that has been submitted provides for the following:
1. To postpone the Saeima's consideration of the draft laws “Climate Law” (No. 718/Lp14), “Transport Energy Law” (No. 660/Lp14), “Amendments to the Law on Pollution” (No. 910/Lp14) and the “Economic Sustainability Law” (No. 1007/Lp14).
2. Not to adopt, and to call on the Cabinet of Ministers not to adopt, legislation that substantially worsens the rights of private individuals, increases taxes or duties, creates a disproportionate bureaucratic burden or increases state budget expenditure in connection with the implementation of the “green course”, thereby jeopardising funding for national security needs.
3. To call on the Cabinet of Ministers to work with the Lithuanian and Estonian governments to develop a joint position of the three Baltic states on climate policy and the “Fit for 55” package.