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Cohesion Fund will be available to support the transition to a circular economy

Cohesion Fund will be available to support the transition to a circular economy

Ministry of Environmental Protection and Regional Development

On 26 March 2024, the Cabinet of Ministers approved the draft regulations* elaborated by the Ministry of Environmental Protection and Regional Development (MoEPRD) on investment support from the European Union funds for improvement of waste separate collection systems and establishment of waste recycling facilities in Latvia, promoting the transition to a circular economy.

The total funding available for the implementation of the projects is at least EUR 2.35 million, including EUR 2 million from the Cohesion Fund, with private co-financing of at least EUR 353 thousand. Operators with a waste management permit or a permit for category A or B polluting activities can apply for funding.

The funding is intended for the purchase of new containers and receptacles for the separate collection of various types of waste (packaging waste, textiles, biodegradable waste, household composting, construction and bulky waste, unused medicines, cigarette butts, sea-type containers for the collection of household hazardous waste or waste of goods harmful to the environment). The projects should achieve a total increase of 4 750 tonnes of sorted waste per year.

For separate waste collection projects, the aid intensity is up to 85% of the cost of a single unit or container. The Fund will be disbursed according to the simplified cost methodology for each type of container prepared by the MoEPRD. The support for traders is provided under a de minimis framework and the maximum amount per company is up to EUR 300 000.

To improve the separate waste collection system, an open selection of project applications is planned, with priority being given to projects that will promote the return of more secondary raw materials to the economy and improve public awareness of the importance of separate waste collection, as well as the accessibility of the separate waste collection service both in terms of coverage and the number of waste types collected separately.

The total funding for waste recycling promotion projects is at least EUR 26.7 million, including EUR 20 million from the Cohesion Fund, with private co-financing of at least EUR 6.7 million. The funding is open to waste operators and is intended to support the establishment of new recycling facilities. The Cohesion Fund's aid intensity for setting up recycling facilities is 55-75%, depending on the size of the operator.

It is planned to set up waste recycling facilities with a total recycling capacity of at least 30 000 tonnes per year, with investment from EU funds. At least 50% of the waste recycled in the plant must be generated in Latvia.

Waste recycling projects will be selected through an open call for tenders, with priority given to projects that recycle packaging waste and municipal waste, recycle more recyclable waste and recycle waste into products. 

In addition, projects will also be required to implement public education and environmental awareness-raising measures on waste management.

The Central Financial and Contracts Agency, as the European Union Funds' Cooperation Authority, will launch calls for proposals in spring this year. Please keep up-to-date with the latest information on project calls on the website of the Central Financial and Contracts Agency.

*European Union Cohesion Policy Programme 2021-2027, Specific Support Objective 2.2.2 "Promoting the Transition to a Circular Economy", Measure 2.2.2.2 "Separate Collection of Waste" and Measure 2.2.2.1 "Waste Sorting, Recycling and Recovery", Rules for the first round of the selection of project applications

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