“Exploring options to measure the climate consistency of real economy investments: the transport sector in Latvia”
This working paper measures the climate consistency of investments in transport infrastructure and vehicles in Latvia based on three complementary mitigation-related reference points. Applying the criteria from the EU Taxonomy for Sustainable Activities results in 4.2% of investments assessed as making a substantial contribution to climate change mitigation. Comparing actual greenhouse gas trajectories to a 2°C scenario for the EU from the IEA, and to projections from Latvia’s 5th National Communication to the UNFCCC, indicates 32% climate-consistent and up to 9% climate-inconsistent investments. Comparing current trends to 2030 and 2050 mitigation targets highlights investment and financing challenges, especially for road transport. The methodology piloted here can be scaled up across countries and sectors, using different or complementary reference points specifically aligned to the temperature goal of the Paris Agreement.