Latvia plans to direct climate reserves to sports fund

Latvia plans to use about 20 million euros from the Climate and Energy Ministry’s reserves to fund sports over the next four years, LSM reported, citing the LTV investigative programme De facto. The ministry has identified 50 million euros in reserves, including 10 million euros for housing benefits during the current heating season.

The funding for sports would go to a new institution, the State Sports Fund, which the Ministry of Education and Science must establish by the end of May next year. The ministry has not yet specified which measures would receive the money next year.

Several environmental organisations oppose the proposed reallocation. The finance minister said the funds should not be viewed as belonging to the Climate and Energy Ministry.

Climate and Energy Ministry State Secretary Līga Kurevska said the money was a one-off payment not subject to directive requirements. She said officials reviewed funds that had no specific, narrow obligations attached to them as they looked for ways to support the overall budget.

The funds came from the sale of emissions allowances. Latvia won a court case against the European Commission in 2013 over the insufficient allocation of free allowances, and allowances acquired eight years ago were later sold for more than 50 million euros. The money had remained unallocated for some time and was included in a law adopted last year for climate goals. Plans changed under austerity measures to make funding available for housing benefits.