Electrical Support Program Ending: New Support Approach Incoming
Latvia’s Electric Car Incentive program Ends, New Support on the Horizon for 2026
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Latvia’s popular Electric Car and Externally Charged hybrid Incentive Program (ECII) is concluding as planned, having successfully spurred a significant increase in electric vehicle (EV) adoption across the country. The Ministry of Climate and energy (KEM) announced the program’s end, citing overwhelming public interest and the depletion of available funding. While no further funding will be allocated under the current ECII framework, KEM is actively developing a new initiative slated for launch in 2026.
A Resounding Success: ECII’s Impact on latvia’s EV Market
The ECII program, launched in 2022, provided financial assistance ranging from €3,350 to €9,000 to individuals purchasing electric or externally charged hybrid vehicles. The level of support depended on the vehicle type and eligibility for the Latvian Honor Family Certificate – awarded to large families, families with children with disabilities, or individuals with qualifying disability status.
The program’s success is undeniable. Approximately 37% of all electric cars currently registered in Latvia were purchased with the aid of ECII funding. This demonstrates a clear public appetite for sustainable transportation solutions. Minister of Climate and Energy, Kaspars Melnis, highlighted the program’s positive impact, noting that over 5,600 households purchased environmentally friendly vehicles in April alone. He specifically praised the program’s benefit to over 1,000 large families and families with children with disabilities.
“The program has clearly demonstrated the public’s readiness to switch to sustainable mobility,which is based on energy produced in Latvia,such as the electricity produced by solar panels,” stated Minister Melnis.
Funding Timeline and Allocation
KEM responded to the program’s popularity by increasing funding three times since its inception:
July 2024: Additional €5 million allocated.
End of 2024: Further €4 million allocated. End of April 2025: An additional €11 million allocated.
By August 11, 2025, a total of €27.7 million had been distributed, with the remaining funds expected to be fully utilized in the coming weeks. the program operated under the Emissions Quota Auction Instrument (ECII) and was set to conclude on December 31, 2025, or upon funding exhaustion – whichever came first.
What’s Next? Developing a Sustainable Future for EV Adoption in Latvia
With the ECII program drawing to a close, KEM is already focused on designing a new support program for 2026. This next phase will prioritize a comprehensive review of market dynamics, financial sustainability, and the effectiveness of carbon emission reductions.
The new program is expected to leverage funding sources like the Social Climate fund and will be developed in close collaboration with industry stakeholders. This collaborative approach aims to ensure the support provided is both effective and aligned with Latvia’s broader sustainable mobility goals. KEM intends to create a program that maximizes impact and encourages continued growth in EV adoption.
Key considerations for the new program will include:
Market Analysis: Understanding current EV pricing, availability, and consumer preferences.
financial Modeling: Ensuring long-term financial viability and responsible use of public funds. CO2 reduction Efficiency: Prioritizing incentives that deliver the greatest reduction in carbon emissions.
* Industry Collaboration: Gathering input from EV manufacturers, dealerships, and charging infrastructure providers.
Resources and Further Information
For more information about the ECII Support Program, please visit www.ekii.lv.
Contact:
Zane Leimane, Senior Expert
Ministry of Climate and Energy
Strategic Communication and Public Participation Department