"Green Deal" Could Cut Latvia's GDP by 1.5%, Says PM Kulbergs
Prime Minister Andris Kulbergs, citing a Bank of Latvia study, has warned that implementing the EU's "Green Deal" climate requirements in their current form could reduce Latvia's GDP by roughly 1.5%.
Warning over economic costs
Latvian Prime Minister Andris Kulbergs has highlighted the potential impact of the European Union's "Green Deal" and climate targets on the country's economy. Citing a study by the Bank of Latvia, Kulbergs said that implementing the current form of "green" requirements could cost Latvia approximately 1.5% of its gross domestic product (GDP).
What the Green Deal entails
The European Green Deal is the EU's long-term strategy aimed at achieving climate neutrality and reducing greenhouse gas emissions. Under this framework, member states, including Latvia, must adopt a range of requirements and regulations affecting multiple sectors of the economy.
Bank of Latvia's calculations
According to the Bank of Latvia data referenced by Kulbergs, implementing climate goals in their current format would place a noticeable burden on Latvia's economy — around 1.5% of GDP. The figure indicates that rolling out Green Deal requirements is not cost-free and could affect the country's economic growth.
The prime minister stressed that this data is important when considering how to proceed with climate policy implementation, in order to balance environmental goals with economic interests.
