Latvia locks in €462.8m EU Social Climate Fund stream for 2026–2032

The European Commission and Latvia, represented by the Klimata un enerģētikas ministrija, have concluded the financing agreementLikumi for Latvia's Social Climate Fund envelopeLikumi covering 2026 to 2032Likumi. The Union makes available a maximum allocation of EUR 462 759 597Likumi, and Latvia contributes national investment of EUR 154 253 199 for the same periodLikumi, a combined envelope of EUR 617 012 796. The Commission's positive assessment of Latvia's plan, Decision C(2026)4993, was adopted on 20 July 2026.

The money funds the measures and investments in Latvia's Sociālā klimata fonda plāns for 2026–2032Likumi, whose stated purpose is a socially fair transition to climate neutrality as buildings and road transport emissions enter the Directive 2003/87/EC emissions-trading scope. Support goes to mazaizsargātās mājsaimniecības, mazaizsargāti mikrouzņēmumi and mazaizsargāti transporta lietotāji hit by higher energy and transport costs, through building efficiency and decarbonisation, clean mobility and temporary direct income support. The Union contribution is milestone-based rather than upfrontLikumi: disbursement to Latvia follows satisfactory fulfilment of the milestones and targets in Decision C(2026)4993Likumi.

Latvia claims payment electronically via SFC2021, once or twice a year by 31 July or 31 December, with evidence that the milestones and targets are fully met plus a signed management declaration and an audit summary. Only fully achieved milestones and targets may be claimedLikumi; partial achievement waits for a later request. The final request is due no later than 31 July 2033. The Commission decides two to three months after each submission deadline and pays within annual budgetary commitments subject to available funding, pro-rata across Member States where a round's revenue falls short. Reversed measures allow proportional reduction and recovery.

Latvia must implement the plan so final recipients receive the amounts due, run an effective internal control system with document and on-the-spot checks, prevent fraud, corruption, conflicts of interest and double funding, coordinate with other Union programmes, report biennially on implementation and the common indicators, and retain data on fund use and final recipients. Spending must comply with public procurement and State aid rules.

Beneficiary and contractor data and the list of supported measures with funding totals are published on a single website in open, machine-readable, sortable form, except where the Financial Regulation bars publication or temporary direct income support to vulnerable households is concerned; beneficial-owner data is collected and stored but is not among the published categories. Communication materials carry the Union emblem with the statement “finansē Eiropas Savienība – Sociālais klimata fonds” and the standard disclaimer that the views are the author's own.

The Commission, OLAF, the European Public Prosecutor's Office and the European Court of Auditors may audit and investigate during the plan and up to five years after the final payment. Fraud, corruption, unresolved conflicts of interest or material breach allow proportional reduction and recovery, with flat-rate corrections of 5% to 100% for serious control-system deficiencies. Sums due are repaid against a debit note payable at least 30 calendar days after issue, with late interest at the European Central Bank refinancing rate plus three and a half percentage points. No real progress on any milestone or target within 15 months of signature lets the Commission terminate the agreement. Payments run in euro to State Treasury account LV39TREL1060992069020. The agreement is governed by Union law, supplemented by Belgian law where needed, with disputes under the exclusive jurisdiction of the Court of Justice of the European Union.

Legal basis: Regulation (ES) 2023/955 establishing the Sociālais klimata fonds, Commission Decision C(2026)4993 on Latvia's Sociālā klimata fonda plāns, Regulation (ES, Euratom) 2024/2509 on the financial rules for the Union budget, and Directive 2003/87/EK.