(1)

Latvia submitted its draft updated integrated national energy and climate plan (NECP) on 11 December 2023 with extensive parts missing. Due to the late submission of Latvia’s draft updated national energy and climate plan, the European Commission was not in a position to adopt this recommendation six months before the final updated national energy and climate plans are due, as required by Article 9(2) of Regulation (EU) 2018/1999.

(2)

Article 3 and Annex I to Regulation (EU) 2018/1999 (‘the Governance Regulation’) lay down the elements that are to be included in the updated integrated NECPs. In December 2022, the Commission adopted the guidance to Member States on the process and scope of preparing the draft and final updated NECPs (2). The guidance identified good practices and outlined the implications of recent policy, legal and geopolitical developments in energy and climate policies.

(3)

In connection with REPowerEU plan (3), and as part of the 2022 and 2023 European Semester cycles, the Commission has put a strong focus on Member States’ energy and climate related reform and investment needs to strengthen energy security and affordability by accelerating the green and fair transition. This is reflected in the 2022 and 2023 country reports for Latvia (4) and the Council Recommendations to Latvia (5). Member States should take into account the latest country-specific recommendations in their final updated integrated NECPs.

(4)

The Commission’s recommendations with regard to the delivery of national targets under the Effort Sharing Regulation (6) (ESR) are based on the likelihood that the Member States will respect the 2030 targets, taking into account the rules for the use of flexibilities under the ESR.

(5)

The Commission’s recommendations regarding Carbon Capture, Utilisation and Storage (CCUS) aim at having an overview of the intended deployment of these technologies at national level, including information about annual volumes of CO2 planned to be captured by 2030, split by source of CO2 captured coming from installations covered by Directive 2003/87/EC of the European Parliament and of the Council (7) or from other sources, such as biogenic sources or direct air capture; about planned CO2 transport infrastructure; and about potential domestic CO2 storage capacity and injection volumes of CO2 planned to be available in 2030.

(6)

The Commission’s recommendations regarding the performance under the Land Use, Land Use Change and Forestry Regulation (‘LULUCF Regulation’) (8) address the delivery by the Member State on the ‘no debit’ rule for the period 2021-2025 (Period 1) and its national target for the period 2026-2030 (Period 2), taking into account the rules governing the use of flexibilities as set out in that Regulation. The Commission’s recommendations also take into account that in Period 1 any excess in emissions under the LULUCF Regulation will automatically be transferred to the ESR.

(7)

For climate adaptation to properly support the achievement of energy and climate mitigation objectives, it is essential to identify the potential climate change hazards and to analyse climate vulnerabilities and risks that may affect areas, populations and sectors. The Commission’s recommendations on adaptation look at the extent to which Latvia has integrated in its updated NECP adaptation goals that account for climate risks that could prevent Latvia from meeting the objectives and targets of the Energy Union. Without specific adaptation policies and measures, planned and implemented, the achievement of objectives in Energy Union dimensions is at risk.

(8)

The Commission’s recommendations regarding Latvia’s renewable energy ambition are based on the formula set out in Annex II to Regulation (EU) 2018/1999. The formula is based on objective criteria, and on the main policies and measures lacking in Latvia’s draft updated plan to enable a timely and cost-effective achievement of Latvia’s national contribution to the EU’s binding renewable energy target of at least 42,5 % in 2030, with the collective endeavour to increase it to 45 % pursuant to Directive (EU) 2018/2001 of the European Parliament and of the Council (9) as regards the promotion of energy from renewable sources as amended by Directive (EU) 2023/2413 of the European Parliament and of the Council (10). The Commission’s recommendations are also based on Latvia’s contribution to the specific targets set under Articles 15a, 22a, 23, 24 and 25 of that Directive and the related policies and measures to rapidly transpose and implement it. The recommendations reflect the importance of developing comprehensive long-term planning for the deployment of renewable energy, and in particular wind, to increase visibility for the European manufacturing industry and grid operators in line with the European Wind Power Package (11).

(9)

The Commission’s recommendations regarding the national contribution to energy efficiency are based on Article 4 of Directive (EU) 2023/1791 of the European Parliament and of the Council (12) on energy efficiency, the formula in Annex I to that Directive and the related policies and measures to implement it.

(10)

The Commission’s recommendations focus in particular on the targets, objectives, contributions and related policies and measures to implement the REPowerEU plan in order to rapidly phase out dependence on Russian fossil fuels. They take into account lessons learnt from implementing the ‘Save gas for a safe winter’ package (13). The recommendations reflect the imperative to make the energy system more resilient in light of the obligations stemming from Regulation (EU) 2019/941 of the European Parliament and of the Council (14) on risk preparedness in the electricity sector and Regulation (EU) 2017/1938 of the European Parliament and of the Council (15) on the security of gas supply in line with the Commission Recommendation on energy storage (16).

(11)

The Commission’s recommendations take into account the need to accelerate the internal energy market integration to increase flexibility and empower and protect consumers. The Commission’s recommendation also underscores the importance of assessing the number of households in energy poverty in line with Article 3 of Regulation (EU) 2018/1999 and Commission Recommendation (EU) 2023/2407 (17).

(12)

The Commission’s recommendations reflect the importance of investing sufficiently in clean energy research and innovation to boost their development and manufacturing capacities (. This includes adopting specific policies and measures for energy-intensive industries and other businesses and the need to upskill the workforce for a net-zero industry in order to consolidate a strong, competitive and clean economy in the EU.

(13)

The Commission’s recommendations build on the commitments made under the Paris Agreement to phase down the use of fossil fuels, and on the importance of phasing out fossil fuel subsidies.

(14)

The Commission’s recommendation on investment needs follows its assessment of whether the draft updated plan provides (i) a general overview of investment needs to achieve the objectives, targets and contributions in all dimensions of the Energy Union; (ii) the sources of financing, distinguishing between private and public sources; and (iii) an outline of the investments consistent with Latvia’s recovery and resilience plan, Latvia’s territorial just transition plans and the 2022-2023 country-specific recommendations issued under the European Semester, including a robust macroeconomic assessment of planned policies and measures. The NECP should ensure the transparency and predictability of national policies and measures to support investment certainty.

(15)

The Commission’s recommendations reflect the crucial importance of holding broad regional consultations and of holding early and inclusive consultations on the plan, including enabling the public to participate effectively by providing sufficient information and a timeframe, in line with the Aarhus Convention (18).

(16)

The Commission’s recommendations on ensuring a just transition reflect the assessment of whether Latvia’s plan identifies in sufficient depth the relevant social, employment and skills impacts of the climate and energy transition and outlines adequate accompanying policies and measures to promote a just transition, while contributing to the promotion of human rights and gender equality.

(17)

The Commission’s recommendations to Latvia are underpinned by the assessment of its draft updated NECP (19), which is published alongside this Recommendation.

(18)

Latvia should take due account of these recommendations when developing its final updated integrated NECP, to be submitted by 30 June 2024.