On 1 July 2025, the Cabinet of Ministers approved the draft Regulation of the Ministry of Smart Administration and Regional Development (MoSAMRD) on the investment of European Union funds for the revitalisation of state-owned historical peat extraction sites, mostly used for energy peat extraction, to promote the reduction of greenhouse gas emissions in the land use, land use change and forestry (LULUCF) sector and the continued use and functioning of abandoned sites.
The investments under the third round of the measure will be made on at least 7,000 hectares of public land on abandoned peat extraction sites, delivering greenhouse gas emission reductions of at least 57.4 kilotonnes of CO2 equivalent per year. The restoration of abandoned peat extraction sites into bog, forest or aquatic ecosystems will be supported.
The total funding available for the selection is at least €35.5 million, including €30 million from the Fair Realignment Fund, private co-financing of at least €1.9 million from "Latvijas valsts meži" and state budget co-financing of up to €3.4 million.
The third round of the measure will be implemented as a limited selection of projects with "Latvia's State Forests" as the beneficiary. The restored areas will also be used for economic activities in the future. The investments are also essential for achieving the objectives of the National Energy and Climate Plan LULUCF and for meeting the requirements of the Nature Regeneration Regulation regarding the restoration of wetlands and peatlands.
The selection and monitoring of project applications will be carried out by the Central Finance and Contracting Agency. The projects have to be implemented by the end of 2029.
