Latvian Parliament reviewing Transport Energy Bill with potential to boost biofuels

In Latvia, the Saeima (Parliament) reviewing Transport Energy Bill (TEL) prepared by the Ministry of Climate and Energy (CEMI). The transport sector is the largest source of emissions in Latvia, which accounts for about 37% of the total non-ETS emissions. The aim of the regulation is to provide the opportunity to produce fuel here in Latvia, on the spot, allowing consumers to buy cheaper transport energy than imported products, as well as to ensure the development of the common economy.

“This regulation gives a strong signal for the development of local biofuel production in Latvia, which, accordingly, will have a positive impact on the creation of new jobs, especially in the regions of Latvia. By developing local fuel production, we are not only able to strengthen our energy self-sufficiency, but also to promote the competition much needed in the market of fuel. Fuel produced in Latvia allows us to strengthen our own economy – by supporting local production, we ensure that additional funds go to the state and local government budget, not in the profit of foreign companies. These resources are further invested in areas of public importance here in Latvia – education, security, etc.,” explains the Minister of Climate and Energy Kaspars Melnis.

The Ministry of Climate and Energy positively evaluates the dialogue with the representatives of the Parliament, listening to the proposals for the improvement of the draft law, as well as the readiness expressed by the sectoral associations to continue the practical progress towards competitive and sustainable solutions, providing consumers with alternative opportunities – for example, biofuel produced in Latvia or biomethane from local resources – rape, food industry residues, waste.

According to the Latvian Biofuels and Bioenergy Association, the dependence of fuel imports makes Latvia particularly vulnerable to global fluctuations in the oil market, which causes price rises and directly affects both businesses and residents. Producing on the spot – Latvia can be more independent and protected from fluctuations in the prices of fossil resources.