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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LV-2017-44/2695 – measures in Latvia

Corporate Energy Efficiency Loan

Aizdevums uzņēmumu energoefektivitātei

Country Latvia , applies nationwide
Time period Open ended, started on 01 November 2017
Context Green Transition, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Kriss Karnitis (EPC) and Eurofound
Measure added 23 June 2022 (updated 25 October 2022)

Background information

Altum, a state-owned development finance institution, is offering a loan for company energy efficiency and implementation of renewable energy projects. The loan can be used to improve companies' energy efficiency, including:

  • Modernisation of heating systems.
  • Modernisation of existing production facilities.
  • Modernisation of transport.
  • Modernisation of ventilation, drying, heat, cold, steam production equipment, dryers, motors, pumps.
  • LED lighting.
  • Electricity supply equipment as well as other energy consumers.
  • The installation of renewable energy systems.

Content of measure

The applying company and its owner must have no up-to-date records of debts in the bank of Latvia's credit register, other debtors' registers, and no current tax debt to the state revenue service.

Companies are not eligible if they meet the criteria for opening insolvency proceeding, or they have been declared insolvent by a court.

The loan is especially relevant for companies if energy consumption is a significant cost item and exceeds €20,000 per year, for example for:

  • Food producers, woodworking and metalworking companies.
  • Shopping and sports centres, warehouses, hotels, office buildings.
  • Large companies and large energy consumers affected by the energy efficiency act.

A company might use the loan to refinance existing projects or to purchase used equipment. The loan conditions are:

  • Amount may be up to €2,850,000 and up to 85% of total project cost.
  • Duration from 5 to 14 years.
  • To be repayable through project saving.
  • Absence of collateral - security is an option.

Funding for ALTUM comes from an €18 million loan from the European Investment Bank and from €3 million guarantees from the private finance for energy efficiency (PF4EE) instrument. Some other funding comes from green bonds issued by ALTUM itself.

Use of measure

The loan programme is in place since 1 November 2017. Up to July 2020 there are 45 approved loans for total amount around €20 million, the smallest approved project is €11,500, the largest approved amounts to €2,850,000, while the average project size is €497,000.

For example, wood processing company Erte Grupa has invested close to €1 million in improving energy efficiency, of which €471,000 have been received in the form of a loan from the development financial institution ALTUM. The launched energy efficiency project covers a third of the company's total technological capacity and will reduce energy costs per production unit by up to 35%.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown


No involvement

Views and reactions



  • 09 October 2017: Latvian development Finance Institution Altum will issue EUR 20m Green bonds (
  • 27 February 2020: ALTUM and EIB join forces for energy efficiency investments in Latvia (
  • 04 June 2020: ALTUM support allows to improve the energy efficiency of the plant (
  • 21 October 2022: Loan for energy efficiency of companies (


Eurofound (2022), Corporate Energy Efficiency Loan, measure LV-2017-44/2695 (measures in Latvia), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.