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Factsheet for measure LV-2023-52/3551 Updated – measures in Latvia

Support for the development of public infrastructure needed for business, promoting the transition to a climate-neutral economy

Atbalsts uzņēmējdarbībai nepieciešamās publiskās infrastruktūras attīstībai, veicinot pāreju uz klimatneitrālu ekonomiku

Country Latvia , applies nationwide
Time period Temporary, 27 December 2023 – 31 March 2029
Context Green Transition
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery into a green future
– Financing the green transition
Author Kriss Karnitis (EPC) and Eurofound
Measure added 25 March 2024 (updated 23 October 2025)

Background information

On 17 October 2023, the Cabinet of Ministers approved the draft Regulation on support to local governments for the development of public infrastructure necessary for entrepreneurship, promoting the transition to a climate-neutral economy in the regions most affected by socio-economic consequences, elaborated by the Ministry of Environmental Protection and Regional Development. The measure is regulated by Cabinet of Ministers Regulation No 593 Rules for the implementation of

  • Measure 6.1.1.3 - Support for the development of public infrastructure necessary for entrepreneurship, promoting the transition to a climate-neutral economy
  • Specific Support Objective 6.1.1 - Mitigation of the economic, social and environmental consequences of the transition to climate neutrality in the most affected regions
  • European Union Cohesion Policy Programme for the period 2021-2027.

Content of measure

The programme supports the following actions for infrastructure development and accessibility that contribute to the transition to a climate-neutral economy:

  • Industrial connections and associated capacity building (including heating, drinking water and sanitation, electricity);
  • development of infrastructure for road traffic;
  • development of buildings and related infrastructure for business purposes;
  • landscaping of the area;
  • engineering systems and installations which store or produce energy from renewable energy sources;
  • remediation of environmental damage or rehabilitation of degraded ecosystems to restore and improve the quality of the environment in and around contaminated sites, to prevent risks to the health of the population and the environment and to create space for business development.

The funding available in the first round of selection is €54,168,344, including Just Transition fund funding – €46,043,092 and national funding of no less than €8,125,252. Beneficiaries are local governments or institutions established by local governments, local government capital companies, public-private capital companies in which the capital or voting shares belong to local governments, and special economic zone administrations.

Updates

The following updates to this measure have been made after it came into effect.

25 September 2025

On 12 March 2024 The Cabinet of Minister amended regulations No. 593. The amendments introduce overall more favourable conditions for project applicants, aimed at achieving the planned budgetary targets under Measure 6.1.1.3, i.e. compliance with the n+3 principle. The amendments provide for example, increased de minimis aid from €200,000 to €300,000 over a three-year period (in line with Regulation No. 2023/2831), NACE codes update - from 1 January 2025, NACE Rev. 2.1 will apply, allowing support for a broader range of sectors and ensuring a smooth transition to the new regulation. Some administrative procedures have been eased, for example, rights to make project investments in land may be registered up until the project’s final payment, clarified rules to ensure legal certainty — once building rights expire, the constructed building remains the property of the landowner (a public authority), for water management projects an alternatives analysis no longer required, simplifying documentation.

Use of measure

It is planned that by the end of 2029, as a result of the implementation of the projects, at least 25 businessmen will benefit from the developed public infrastructure areas, which will provide more than 420 jobs. In the first call, 17 projects for the development of public infrastructure necessary for business operations in various municipalities of Latvia have been approved.

Target groups

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

Actors and funding

Actors Funding
National government
Local / regional government
European Funds
Local 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: N/A

Involvement

No involvement

Views and reactions

No views to report

Sources

  • 18 October 2023: Publiskās infrastruktūras attīstībai uzņēmējdarbībai piešķirs finansējumu 49 milj. eiro apmērā (lvportals.lv)
  • 11 November 2023: CFLA: 6.1.1.3. Atbalsts uzņēmējdarbībai nepieciešamās publiskās infrastruktūras attīstībai, veicinot pāreju uz klimatneitrālu ekonomiku, 1. kārta (www.cfla.gov.lv)
  • 25 January 2024: VARAM: 6.1.1.3. pasākums „Atbalsts uzņēmējdarbībai nepieciešamās publiskās infrastruktūras attīstībai, veicinot pāreju uz klimatneitrālu ekonomiku” (www.varam.gov.lv)

Citation

Eurofound (2024), Support for the development of public infrastructure needed for business, promoting the transition to a climate-neutral economy, measure LV-2023-52/3551 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2023-52_3551.html

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