Natural Resources Tax Law

In 2006, Latvia introduced it a Natural Resources Tax Law that contains provisions for a carbon tax on CO2 emissions. The tax is applied across many industrial sectors, including "power and heat generation, oil refineries, steel works and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids, and bulk organic chemicals".

Operators of stationary technological installation and aircraft operators who are included in the scheme for emission allowance trading within the European Union are exempted from paying the carbon tax. Other exemptions include electric vehicles and rapeseed oil (if it is used as a fuel source or if a biofuel is made solely from rapeseed oil).