Latvia’s Ministry of Climate and Energy has proposed a new subsidy programme worth €40 million to support the purchase of battery-electric, plug-in hybrid and hydrogen fuel-cell vehicles, with the scheme currently under public consultation ahead of a government decision.
The consultation period runs until 24 February. If approved, the programme would operate until the end of 2029 or until the allocated funds are exhausted. Officials said the proposal builds on strong public demand and the perceived success of earlier incentive schemes launched in 2021, which initially carried a €10 million budget and were later expanded by an additional €20 million.
Under the draft plan, buyers of new qualifying vehicles would receive grants of €4,000, while purchasers of used vehicles would be eligible for €3,000. An existing scrappage incentive of €2,000 for replacing older vehicles would continue. Support would apply equally to battery-electric vehicles, plug-in hybrids and fuel-cell cars.
Additional financial support is proposed for large families and households with disabled children. Holders of Latvia’s Honorary Family Certificate could receive total grants ranging from €5,000 to €9,000, depending on eligibility criteria.
“Electric vehicles strengthen the Latvian economy by reducing dependence on petrol and diesel,” Climate and Energy Minister Kaspars Melnis said, citing strong participation in previous programmes, particularly among large families.
The ministry reported that €30 million in earlier subsidies has already supported about 6,400 beneficiaries, including more than 1,200 Honorary Family Certificate holders. According to official figures, roughly 34% of electric vehicles registered in Latvia as of 1 January received government funding.
The proposed programme forms part of broader efforts across Europe to accelerate the transition to low-emission transport while reducing reliance on fossil fuels.
