EUR 40 million earmarked in new program for purchase of environmentally friendly cars

RIGA - The Climate and Energy Ministry has prepared a new support program for people buying environmentally friendly cars, with EUR 40 million earmarked for the purchase of electric vehicles (EVs), plug-in hybrid cars, and hydrogen vehicles, LETA was told at the ministry.

The proposed support program, which has yet to be approved by the government, is currently available for consultation and comment on the website of Latvia's draft legislation TAP.

The proposal envisages that support for the purchase of environmentally friendly cars will be available to citizens, including families holding the Latvian Honorary Family Certificate, while maintaining increased amount of support and, in certain cases, increasing it even further.

Funding for the new support program is planned at EUR 40 million. The program would run until all available funding has been used up, but not beyond December 31, 2029.

Climate and Energy Minister Kaspars Melnis (Greens/Farmers) indicates that EVs strengthen the Latvian economy and reduce dependency on gasoline and diesel fuel, as they mainly use electricity generated from renewable sources.

The broad interest of the population, in particular the high participation of large families in the existing support program for the purchase of electric and plug-in hybrid cars, was the basis for the development of the new EKII support program.

"It is important that in the new support program we have further strengthened our support for large families by increasing the amount of support according to the number of children. So families with four, five, six, or more children will receive more support," said Melnis, pointing out that the existing support program has already given people the opportunity to see the economic benefits of using environmentally friendly cars while at the same time promoting the development of the EV market and charging infrastructure.

The amount of support for the purchase of a car will be slightly different compared to the previous aid scheme. The new scheme currently provides for support of EUR 4,000 for a new electric car and an externally rechargeable hybrid car, and EUR 3,000 for a used EV.

For holders of the Latvian Honorary Family Card, the support will range from EUR 5,000 to EUR 9,000, depending on the type of environmentally friendly car.

A EUR 2,000 bonus for scrapping an existing combustion engine car by transferring it to a treatment company will also be maintained, applicable to all recipients, including families holding the Latvian Honorary Family Card.

At the same time, the draft support program provides that a holder of the Latvian Honorary Family Card who has more than three children will be granted additional support of EUR 1,000 for each additional child.