Mobility Basic Figures

Following the findings of the EU funded project ALTERMOTIVE research the total energy consumption in car passenger transport in Latvia has grown from 3.5 PJ in 1980 to 15 PJ in the year 2008. The highest growth rates were in the years after 2002 and can be attributed at least to some extent to Latvia’s membership in the EU. The market share of diesel in car passenger transport increased until 2001, and decreased afterwards slightly. The total stock of passenger vehicles in Latvia has grown from about 230,000 cars in 1990 to more than 530,000 cars in 2007. The percentage of alternative fuel vehicles is small and consists mainly of LPG cars (about some 15,000 cars in 2007). In 2007 there was only 1 personal car and 5 busses running with natural gas (data of the EU funded project MADEGASCAR). According to the EU funded project BEST there were no flexifuel vehicles in Latvia until early 2009.

The geoinformation system European Environmental Atlas (technologies.ew.eea.europa.eu/atlas_map) lists 5 biogas refuelling stations (two in Riga, one in Saldus, one in Daugavpils and one in Liepaja) in Latvia. The EU funded project BEST list one E85 flexifuel pump in Latvia. No refuelling station for biodiesel and hydrogen are listed (verified by various sources). The information system www.poiplaza.com/index.php lists 142 LPG refuelling stations situated all around the country. According to the data of the EU funded project MADEGASCAR there were a total quantity filling station for LPG in the Lithuanian region are 658, including for selling LPG only – 127.

Financial Incentives

There is a uniform VAT tax of 21% on the acquisition of vehicles and fuels. Following regulations no. 450 "Regulations on the procedure for payment and reimbursement procedures for vehicles and the arrangements for the release of natural resources tax for vehicles", the registration tax is based on CO2 emission. The tax rates vary from 0.3 LVL per g/km for cars emitting 120 g/km or less to 5.0 LVL per g/km for cars emitting more than 350 g/km. The circulation tax for private cars and commercial vehicles depends on the weight.

Under the amendments to the Law on excise duties adopted on 19 December 2006, the basic rate of duty for unleaded petrol is LVL 209/1000 litres (0.380 EUR/litre) and for diesel LVL 178/1000 litres (0.330 EUR/litre). As an incentive, provision was made for the following duty reliefs on biofuels and mineral oil/biofuel blends. For diesel fuel, blended with rapeseed oil or rapeseed biodiesel, provided that the rapeseed oil or rapeseed biodiesel represents:

• from 5 up to (but not including) 30 % by volume of the total product volume: LVL 170/1000 litres;

• at least 30 % by volume of the total product volume: LVL 125/1000 litres.

Funding

The Ministry of Environment regularly invites to submit project applications on climate change projects funded underv the project line "renewable energy in the  transport sector”. The competition aims to reduce greenhouse gas emissions, ensuring vehicles adaptation of renewable energy use. For the latest call open until December 2010 the financial instruments available is 3.522.621 LVL.

Regulation

In accordance with the Cabinet decision of 1 March 2005 (No 11 27§1), the Ministry of Economic Affairs has been designated as the coordinating body for the implementation of the Biofuel Law. Latvia has defined a biofuel target of 5.75% until 2010.

Each year, state and local authorities procure a wide range of goods and services. For 2007 an average 17% of the gross domestic products from the public sector were spent.

The Latvian public procurement law amended on September 1st, 2009 fully complies with new EU procurement directives 18/2004/EC and 17/2004/EC. The law is favourable towards green procurement and defines ways how a procurement maker may obtain both environmentally friendly, sustainable, and the best economic offer through introduction of environmental criteria. Still application of environmental criteria is offered on a voluntary basis which leads to situation when they are not used often. According to the Law, environmental criteria can be introduced as a part of technical specifications, tender documentations, or criteria for selection of the best economic offer. In the year 2008 the Ministry of Environment has introduced green public procurement as one of its tasks and has developed a set of recommendations for facilitation of application of green procurement in Latvia i.e. “Recommendations for promotion of green public procurement in state and municipal institutions”. This document includes a strategy for green public procurement introduction, description of legislative framework, and environmental criteria for six groups: office paper, cleaning supplies and services, office appliances, vehicles, office furniture, food products and catering.

The "green procurement guidelines” apply to the following vehicle purchase:

• Passenger car purchase or lease;

• Public transport (buses) and services;

• Refuse collection vehicles and services.

I.e. as basic criteria cars must meet the following peak CO2 emissions (CO2 g / km) under the car class:

• Small car ≤ 120

• Compact car ≤ 140

• High-class cars ≤ 200

• Luxury car ≤ 270

• SUVs ≤ 210

• Minivans ≤ 150

• Carrier of less than 3.5 tons ≤ 250

For verification the applicants must submit technical documentation of the car as the corresponding model fuel consumption and CO2 emissions. For other exhaust gas cars must generally meet Euro 5 standard. Additional points will be awarded for lower CO2 emissions than those in the technical specifications as well as a noise level lower than that fixed by law. As advanced criteria cars could be defined i.e. for a speed (gear) shift indicator (GSI), a tire pressure monitoring system (TPMS) or an air conditioning system containing fluorinated greenhouse gases.

www.vidm.gov.lv/lat/darbibas_veidi/zalais_publiskais_iepirkums/	webpage of the Latvian Ministry of environment with information on GPP, funding of projects, vehicles taxation, etc.
www.iub.gov.lv	webpage of the procurement monitoring offic

Regulations Nr.450 "Regulations on the procedure for payment and reimbursement procedures for vehicles and the arrangements for the release of natural resources tax for vehicles"

Information report on GPP

Recommendations on GPP - vehicles