Latvia to Extend National Support for Electric Vehicle Purchases

The Government of Latvia is advancing plans to extend and enhance state support for the purchase of electric cars and other low-emission vehicles for private individuals. The initiative, developed by the Ministry of Climate and Energy (KEM), proposes a new programme under the Emissions Quota Auction Instrument (EKII) aimed at accelerating market uptake of cleaner passenger cars. The draft programme is currently open for public feedback and awaits governmental approval.

Objectives and scope of the new support programme

The proposed support mechanism builds on a previous scheme that allocated €30 million in funding and enabled around 6 400 Latvian households to purchase environmentally friendly vehicles, including battery-electric and plug-in hybrids. Roughly 34 % of all EVs registered in Latvia up to early 2026 were acquired with state assistance through the earlier programme.

Under the new draft, the government foresees:

• Total budget: €40 million, to be disbursed until funding is exhausted or until 31 December 2029, whichever comes first.
• Eligible vehicle types: Battery-electric vehicles (BEVs), externally rechargeable plug-in hybrid electric vehicles (PHEVs) and hydrogen-powered vehicles.
• Incentive amounts:
  • €4 000 for the purchase of a new BEV or PHEV, and €3 000 for a used BEV.
  • A state-financed €2 000 bonus for scrapping an existing internal-combustion engine car and delivering it to an authorised processing company — this “scrappage bonus” applies to all recipients.

Enhanced support for families

A distinctive feature of the proposed framework is increased support for large families. Holders of the “Latvian Honorary Family Certificate”, typically awarded to families with multiple children, would qualify for enhanced incentives ranging from €5 000 to €9 000, depending on vehicle type. Additionally, for families with more than three children, an extra €1 000 per child would be added to their support package.

Policy rationale and expected impacts

According to KEM, the rationale for extending the support programme is two-fold:

• High public interest and demonstrable results from the existing scheme, which boosted EV adoption among private buyers and helped establish momentum in the Latvian EV market.
• Economic and energy benefits, including reducing reliance on imported gasoline and diesel fuels by shifting to electricity, much of which can be generated from domestic renewable sources.

The proposed programme is designed to support Latvia’s broader transport decarbonisation strategy and climate commitments. By maintaining purchase incentives over the coming years, policymakers aim to further stimulate demand for zero-emission and low-emission vehicles, thereby contributing to lower CO₂ emissions and a gradual renewal of the national vehicle fleet.

Next steps

The draft support programme is currently published on Latvia’s treaty and legal acts portal for public consultation. Stakeholders and members of the public can submit comments until the end of the consultation period, after which KEM will finalise the proposal for government approval.

Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.