ECO-Taxes in Latvia Janis Brizga Pasaules dabas fonds in association with WWF

Introduction Political situation and position concerning eco-taxes and EFR No political discussion on EFR, but ideas to decrease income tax. Environmental taxes in Latvia: 1. Natural resource tax (0,11% of GDP): Natural resources: gravel, peat, water, etc; Waste disposal; Packaging; emissions: CO 2, CO, SO 2, NO x, heavy metals; Water pollution Harmful products: oils, batteries, ozone depleting products, tires, IT and electronic products Cars (0,06% of GDP); Radioactive compounds. 2. Excise duty for energy products (1,93% of GDP) 3. Vehicle registration fees (age of the car) + annual duty on cars (weight of the car).

Share of energy products ProductShareHousehold y 2000y 2003y 2000 Gas29,66%32,47%12,10% Oil33,69%28,75%6% Renewable (firewood, peat, wind, small HPP)24,09%28,17%60,50% Electricity (HPP, TEP)10,58%9,24%19,40% Coal1,97%1,37%2,40%

Energy intensity

Electricity Primary energy resources utilized in the production of electricity, 2002 Proportion of renewable energy resources in the production of electricity 2004 Large HEP 95,7% Biogas Wind energy 1,5% Small HEP Others 2,3%

Energy taxes Energy taxes by sectorfrom 2007 from 2008 from 2011 Unleaded petrol28,732,335,9 Leaded petrol (cent per litre )42,1 Diesel24,527,430,2 Liquefied petroleum gas12,5 Natural gas0 Light heating oil2,1 Heavy fuel oil for Heating1,5 Gas used for heating purposes/ Coal and coke (b / p)7,5 / 1515 / 30 Electricity (per MWh)0,0025 / 5050 / 100

Further Commentary / Analysis We have minimal rates, but also low income Transition periods: Petrol – 2011 Gas oil – 2013 Heavy fuel – 2010 Electricity, coal, coke – 2007 Reductions: heating, ships, aircrafts, agriculture Government is planning to subsidize bio-fuel production