Latvia‘s Electric Car Support Program a Success, with Plans for Future Initiatives
Latvia’s program to encourage the purchase of environmentally kind vehicles (ECII), launched in 2022, has proven successful in reducing greenhouse gas emissions. To date, 6,426 residents have utilized the program to purchase electric cars and plug-in hybrid vehicles.
Funded by EUR 30 million from emission quota auctions (increased threefold from the initial budget), the ECII program has supported approximately 40% of all electric car registrations in Latvia. A notable portion – 28%, or 1,200 vehicles - were purchased by large families and individuals with disabilities.
The purchases break down as follows: 37% were new electric cars, 37% were used electric cars, and 26% were plug-in hybrid vehicles. Popular models include the Tesla Model 3, Nissan Leaf, and Volkswagen Tayron.
Currently, the Environmental Investment Fund (VIF) is processing final reports from vehicle sellers. Any unused funding resulting from cancelled purchases or rejected applications will be offered to other eligible residents. Aid amounts ranged from EUR 3,350 to EUR 9,000 depending on vehicle type and eligibility for the Latvian Honor Family certificate.
Looking ahead, the Climate and Energy Ministry (KEM) is developing a new support program, aiming for implementation in 2026, potentially through the Social Climate Fund. This new initiative will re-evaluate support conditions based on market changes,financial sustainability,and carbon emission reduction efficiency.KEM emphasizes the importance of continued incentives, like grants and discounts, to further promote electromobility in Latvia, collaborating with industry stakeholders to ensure the program’s effectiveness and alignment with sustainable mobility goals.
