Latvia expects to achieve about 25-30 per cent lower emission levels in the year 2000 as compared to 1990 levels. Latvia also has policies to make greater use of renewable energy sources, such as wood, and to promote energy efficiency and conservation in the large combined heat and power plants that provide residential heating, which accounts for more than one-fourth of total energy consumption. With almost half the country covered by managed forest, an equivalent of nearly two thirds of the emissions of carbon dioxide are currently sequestered by sinks. Latvias national policy priorities include environmental protection strategies in various economic sectors, some of which will also help reduce GHG emissions. Latvia's approach to climate change is influenced by its geographical situation and the ongoing transition to a market economy.
Energy security is the overriding policy objective.
Currently 30 per cent of electricity and 90 per cent of primary fuel are imported. The economic restructuring, as well as removal of subsidies and an increase in prices for imported energy to world market levels, have reduced primary energy consumption, and provided incentives for the introduction of new technology, energy efficiency and energy conservation measures. Lack of finance and institutional capacity to develop and manage investments projects is likely to hinder the implementation of measures to reduce emissions of GHGs in the short term. Fiscal instruments have recently been introduced as a policy tool, but it is too early to assess their impact. Latvia has in place a strategic framework for environmental protection.