Cleantech market in Latvia

Latvia is making strong progress toward building a circular economy, one that reduces waste and makes the most of its resources. This effort is guided by EU policies, national plans, and partnerships between the public and private sectors.

Lativa is focusing on cutting waste, increasing recycling, and using resources more sustainably in areas such as energy, transport, agriculture, and manufacturing.

Key actions include:

  • turning waste into energy through modern waste-to-energy projects
  • encouraging green purchasing by promoting environmentally friendly products and services
  • supporting cleantech startups that develop clean and sustainable technologies
  • raising public awareness to promote recycling and sustainable consumption
  • investing in infrastructure to improve waste management and resource efficiency.

Key opportunities for Canadian clenatech companies in Latvia

Water and wastewater

With the EU’s focus on a circular economy and material recovery from wastewater, Latvia offers opportunities for Canadian companies with innovative remediation technologies. 

Areas of interest include: 

  • chemical and biological applications for sludge and nutrient recycling
  • phosphorus recovery and hazard reduction 
  • recycling of construction waste and technical compost with heavy meatal content
  • digital tools for tracking waste flows

Solutions that help prevent or clean up pollution in the Baltic Sea have strong regional potential. 

Recycling and waste-to-energy technologies

Latvia aims to reduce landfill waste and recycling rates. With a circularity rate of 4.3% and landfill as a preferred type of waste disposal, Latvia is significantly behind the EU27 average.

Industry highlights

800,000 tons of household waste are generated each year, equal to more than 460 kilograms of waste per person. 

1.5 million people’s worth of wastewater is produced every day by households and certain industries in 57 urban areas. 

€457 million invested in climate change mitigation in Latvia in 2023.  

50% of total waste collected is sorted and recycled. 

99% of urban wastewater is treated according to the requirements of the EU Urban Wastewater Treatment Directive.

53 urban wastewater plants: 36 biological treatment facilities and 17 facilities with nitrogen and phosphorus removal.  

This creates the demand for:  

  • advanced recycling technologies
  • waste-to-energy solutions and systems 
  • circular economy models

Canadian companies with expertise in these areas can play a key role in Lativa’s waste management transition. 

Sustainable agriculture solutions

Latvia’s agricultural sector is shifting towards sustainable and organic practices. This opens up opportunities for Canadian companies offering agri-tech solutions. 

These opportunities include:

  • soil health and water management solutions 
  • precision farming technologies
  • bio-fertilizers, bio-pesticides, and composting solutions

Canadian expertise in these areas can help Latvia advance its commitment to eco-friendly agriculture.

Green building and energy efficiency

Latvia is investing in energy-efficient buildings and developing green infrastructure. This creates opportunities for technologies that: 

  • improve building energy performance
  • support the eco-friendly construction and building management technologies
  • enable solar energy recycling and environmental assessments 

As solar energy projects expand, recycling and consultancy services are increasingly in demand.

Cleantech innovation

Latvia’s commitment to cleantech innovation welcomes collaboration with Canadian companies on research and development projects. These opportunities include: 

  • joint ventures, pilot programs and co-investments
  • partnerships with local startups, incubators and accelerators

Canadian companies can work with Latvian innovators to help Canadian companies share expertise, gain local insights, test new solutions and develop partnerships with local tech innovators in the EU market.  

Notable challenges for Canadian cleantech companies in Latvia

  • Complex regulatory environment: Canadian companies must comply with complex EU and local regulatory standards and certifications. Adapting to specific environmental, safety, and product requirements can be time-consuming and costly.  
  • Market size and scale limitations: Latvia's relatively small market size may restrict the scalability of large projects. Canadian companies should anticipate constrained demand for large-scale solutions should consider strategies for cross-border projects early on. Expanding into neighboring Baltic and EU countries can provide access to larger markets and help maximize the impact of their investments. 
  • Dependence on EU funding: Many circular-economy focused projects rely on EU grants and incentives, which often prioritize EU suppliers, potentially limiting opportunities for non-EU companies.

Latvia's business landscape

Latvia is increasingly focused on the principles of a circular economy, driven by government initiatives aligned with EU sustainability goals. This transition opens opportunities in sectors like sustainable agriculture, renewable energy, and waste management, fostering innovation in recycling and waste-to-energy projects. The growing startup ecosystem supports cleantech innovation, while public awareness of sustainability prompts businesses to adopt eco-friendly practices and products. However, challenges such as infrastructure gaps and regulatory complexities persist. Overall, Latvia’s commitment to circular economy principles positions it as an attractive environment for businesses aiming to contribute to sustainable development and resource efficiency.

Summary

Latvia is an attractive market for cleantech businesses, particularly for those involved in renewable energy, sustainable agriculture, and energy efficiency technologies. With its strategic commitment to circular economy and green energy development and EU-backed incentives, Latvia’s cleantech market provides opportunities for Canadian companies looking to expand into Europe’s sustainable technology sector.

Contact us

For more information on cleantech in the Latvian market please contact Trade Commissioner, Irena Cirule (irena.cirule@international.gc.ca).

 

Additional Information

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