Press Information Funds and investments

On January 23, 2024, the Cabinet of Ministers approved the draft regulations developed by the Ministry of Environmental Protection and Regional Development on providing support to municipalities for the purchase of emission-free vehicles, promoting the transition to a climate-neutral economy.

The total planned funding for the event is 24.9 million euro, incl. financing of the Just Transition Fund (JTP) 21.17 million euro and municipal co-financing at least 3.73 million euro.

The support is intended for the municipalities of Kurzeme, Latgale, Vidzeme and Zemgale statistical region, their institutions and capital companies for the purchase of zero-emission vehicles in order to improve the performance of autonomous functions of municipalities and the management tasks arising from them, ensuring the accessibility of education, social, health care and cultural services.

The measure supports the purchase of M2 or M3 category electric buses, as well as the M1 category specialized electric vehicles and the creation of the charging infrastructure necessary to ensure their operation. Municipalities will be able to use the purchased zero-emission vehicles to ensure, for example, that students get to municipal educational institutions, that social institutions or social service clients get to places where social services are provided or received, that local government amateur art collectives get to cultural events or their rehearsals in their municipality, to shows or Latvian Song and Dance Festival, as well as the transportation of patients to and from medical facilities in cases where the existing public transport system is not suitable for this or it is necessary to get from one level of hospital to another.

As a result of the implementation of the measure, it is planned that municipalities will purchase at least 38 emission-free vehicles and the number of passengers transported by them (in the next calendar year after their purchase) will be at least 323 thousand passengers.

The minimum amount of the total attributable costs of the project is 200 thousand euro, while the maximum JTP financing of the project is 3 million euro.

Project selection will be organized in the form of an open competition. Within the framework of the competition, preference will be given to those projects in which a smaller amount of JTP funding is provided per transported passenger and passenger transportation will be carried out from or to at least two regional territorial units (cities or parishes), as well as projects in which it is planned to stop operating municipally owned fossil fuel vehicles powered by fuel of origin.

The Central Finance and Contracts Agency, as the cooperation institution of European Union funds, plans to announce the first selection round of project submissions this year in February. The projects of the first selection round can be implemented until December 31, 2026.

This investment measure will complement the Recovery and Resilience Facility investment "Purchase of zero-emission vehicles necessary for the implementation of municipal functions and provision of services", within the framework of which contracts have already been concluded with 17 municipalities for the purchase of 24 zero-emission vehicles (school buses): Saldus, Saulkrasti, Ogres, Alūksne, Dobele, Madona, Jēkabpils, Preiļu, Smiltene, Kuldīga, Bauska, Tukuma, Balvu, Augšdaugava, Dienvikkurzeme districts, Rēzekne district, Jelgava district.