The European Commission has published data on the extent to which each member state must reduce its emissions in the coming years. The most important information is that emission reduction targets have been set for each year—2023, 2024, and 2025. For about a year now, we have known how much Latvia must reduce its emissions by 2030—17% below 2005 levels—a very ambitious target. This target has now been broken down by year. The European Commission expects to receive an annual report from all member states on the progress made. If Latvia or another member state fails to meet its annual target, the government must submit a plan outlining additional measures to fully achieve the targets. If the country is still unable to meet the target, it will have to purchase emission allowances. Conversely, those countries that have reduced CO2 emissions in a more targeted and systematic manner will be able to sell them to countries that have not made an effort to implement effective emission reduction mechanisms. In Latvia, as in Lithuania and Estonia, estimates regularly surface regarding how many millions may need to be spent on purchasing emission allowances.
These emission reduction targets apply to several business sectors—transportation, waste management, industry, part of the energy sector, buildings, and part of the agricultural sector.
Consequently, it is strongly recommended that both the sector as a whole and each individual company develop an emissions reduction plan as a key element of their sustainability strategy.