Fuel price fluctuations over recent months have become a constant reality. The conflict in the Middle East, affecting the Strait of Hormuz - one of the world’s most important oil transit routes - is also being felt in the everyday lives of people in Latvia. While fuel price increases across the European Union have varied in intensity, the rise in Latvia has been particularly notable. For example, at the end of April, Latvia had the 11th highest average diesel price in the EU (€2.006 per litre), significantly exceeding even neighbouring Estonia (€1.878 per litre). Rising fuel prices have heavily affected other sectors as well, including transport companies, whose monthly expenses have increased by approximately €700,000. Given that markets continue to react to every development related to the conflict, and a calm, stable geopolitical environment currently feels almost utopian, it is necessary to look for long-term solutions - and one of them is the circular economy.
Is Climate Neutrality Possible?
It is no secret that the European Union has set ambitious targets in renewable and alternative energy in order to achieve climate neutrality by 2050. However, the EU currently produces only 43% of its energy, while more than half (57%) is imported, much of it consisting of fossil resources: oil and petroleum products (38%) and natural gas (21%). This means that every geopolitical disruption is immediately reflected in prices, making the transition to alternative energy not only a logical and environmentally responsible step, but at times seemingly the only viable solution. Nevertheless, there are still sceptics who argue that climate neutrality is unattainable.
Every Solution Has Its Shadow Side
From a theoretical perspective, climate neutrality is achievable because we already possess the four key prerequisites - sunlight, wind, technological capabilities, and scientific advancement. In practice, however, achieving this goal will only be possible if it is accompanied by efforts to address economic growth and competitiveness challenges, while simultaneously investing in relevant education and academic programmes.
Climate neutrality and alternative energy represent the end goal, but every solution also has its shadow side. Lithium and other battery materials such as cobalt and nickel are extracted with considerable impact on ecosystems and intensive water consumption. Likewise, the production of wind turbines generates relatively high emissions, while their transportation and installation still largely rely on fossil fuels.
In the “Circular Economy and Social Entrepreneurship” programme, we discuss these aspects with students in order to strengthen their competencies and encourage critical evaluation of sustainability solutions throughout their entire life cycle, not only by looking at the final result. This means developing the ability to make informed, data-driven decisions while balancing environmental, economic, and social considerations, as well as understanding the compromises that inevitably accompany the green transition. It is precisely this approach that allows us to prepare specialists capable not only of implementing innovative solutions, but also of responsibly assessing their long-term impact.
A Place Where Sustainability Solutions Are Put into Practice
The alternative energy sector, as well as the circular economy more broadly, is still a relatively new and rapidly developing field. For education to keep pace with these developments, close cooperation with industry professionals, opinion leaders, and experts working on real-world projects is essential.
Students from various countries studying in the programme often point out that Latvia is highly advanced in this area. Compared to many other countries, Latvia already has a relatively high share of renewable energy, practical examples of circular economy solutions are available, and the social entrepreneurship ecosystem is also actively developing. Latvia is a place where sustainability solutions are implemented in practice rather than remaining merely topics for discussion. This, in turn, creates additional motivation to continue developing the sector by strengthening cooperation between education, business, and the public sector.
Fuel price volatility clearly demonstrates how vulnerable an economy based on imported fossil resources can be. Every geopolitical disruption immediately translates into real costs for both businesses and residents, and this instability is likely to persist in the future. Therefore, the transition to alternative energy and the implementation of circular economy principles are not merely environmental issues - they are also matters of economic security and competitiveness. The faster we develop local, sustainable solutions and educate specialists capable of implementing them in practice, the less dependent we will become on global crises and price fluctuations in the future.
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