2019 OECD ECONOMIC SURVEY AND ENVIRONMENTAL PERFORMANCE REVIEW OF LATVIA
Towards strong, inclusive and environmentally sustainable growth Riga, May 29th 2019 http://www.oecd.org/economy/latvia-economic-snapshot/ http://oe.cd/epr-latvia
@OECDeconomy @OECD_ENV
ECONOMIC GROWTH IS ROBUST
2
Economic growth is broad-based GDP and major components, growth and contribution, % and % points Investment
8
Consumption
GDP growth
8
6
6
4
4
2
2
0
0
-2
-2
-4
Q1 2015
Q2
Q3
Q4
Q1 2016
Q2
Q3
Q4
Q1 2017
Q2
Q3
Q4
Q1 2018
Q2
Q3
Q4
-4
Note: The chart plots the GDP growth (in %) and the contribution to GDP growth by investment and consumption (in % points). Source: OECD (2018), OECD Economic Outlook: Statistics and Projections (database). 3
Income convergence continues The gap of GDP per capita to the upper half of OECD countries, % -40
-40
-50
-50
-60
-60
-70
-70
-80
1995
1998
2001
2004
2007
2010
2013
2016
-80
Note: Percentage gap with respect to the weighted average using population weights of the highest 17 OECD countries in terms of GDP per capita and GDP per hour worked (in constant 2010 PPPs). Source: OECD (2019), Economic Policy Reforms 2019: Going for Growth (forthcoming). 4
The labour market is tight Unemployment rate
Number of job vacancies (right scale)
% of labour force
Thousand
25
25
20
20
15
15
10
10
5
2010
2011
2012
2013
2014
2015
2016
2017
2018
5 2019
Source: OECD (2019), OECD Economic Outlook: Statistics and Projections (database). 5
Inflation is moderate despite strong wage growth Wage and price inflation, % Average monthly gross wages, 3-month moving average
Harmonised index of core inflation
10
10
9
9 8
8
7
7
6
6
5
5
4
4
3 2
3
1
2
0
1 0
-1 2014
2015
2016
2017
2018
-2 2019
Note: Harmonised index of consumer prices excluding food, energy, alcohol and tobacco. Source: Central Statistical Bureau of Latvia; Economic Outlook Database; OECD Productivity Database. 6
Credit growth remains close to nil Bank loans to the non-financial private sector, % change of credit stock Households
Non-financial corporations
6
6
4
4
2
2
0
0
-2
-2
-4
-4
-6
-6
-8
2015
2016
2017
2018
Note: Data are adjusted for one-off effects related to the structural changes in the Latvian banking sector (e.g., due to withdrawal of credit institutions’ licences). Source: Financial and Capital Market Commission.
-8
7
Foreign deposits have been wound down amid efforts to fight money laundering Share of foreign deposits in the Latvian banking sector , % of total deposits 60
60
55
55
50
50
45
45
40
40
35
35
30
30
25
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
25
Source: Financial and Capital Market Commission. 8
CHALLENGES REMAIN
9
Poverty is high Share of population with disposable income below the poverty line, % 18
18
15
15
12
12
9
9
6
6
3
3
0
CZE
FRA
SVK
DEU
POL
GBR
OECD
EST
LVA
LTU
Note: The poverty threshold is 50% of median household disposable income. Household income is adjusted to take into account household size. OECD average is the unweighted average of available countries. Source: OECD Income Distribution database (IDD).
0
10
Very high out-of-pocket expenditure results in unequal access to healthcare Share of households' out-of-pocket expenditure in health care, % of total current expenditure on health care, 2017 or latest available year 50
40
40
30
30
20
20
10
10
0
0
FRA USA LUX NLD SVN DEU JPN IRL NZL DNK NOR CAN CZE GBR SWE BEL ISL TUR SVK AUS FIN EST POL ISR ITA ESP AUT PRT CHE HUN LTU CHL KOR GRC MEX LVA
50
Source: OECD Health Statistics Database 11
Many households live in substandard housing Severe housing deprivation rate, %, 2017 or latest available year
HUN
LVA
POL
LTU
ITA
GRC
PRT
EU28
SVN
AUT
SVK
EST
SWE
FRA
0
DNK
0
BEL
3
CHE
3
GBR
6
LUX
6
CZE
9
DEU
9
ISL
12
NLD
12
ESP
15
IRL
15
NOR
18
FIN
18
Note: Severe housing deprivation rate is defined as the percentage of population living in the dwelling which is considered as overcrowded, while also exhibiting at least one of the housing deprivation measures (leaking roof, no bath/shower and no indoor toilet, or a dwelling considered too dark). Source: EU statistics on income and living conditions (EU-SILC).
12
Regional inequalities are high Gini index of inequality of GDP per capita, Scale from 0 "perfect equality" to 1 "perfect inequality", latest year available 0.35
0.30
0.30
0.25
0.25
0.20
0.20
0.15
0.15
0.10
0.10
0.05
0.05
0.00
0.00
GRC NLD SWE BEL JPN FIN ESP SVN PRT NOR DEU CZE FRA NZL USA AUT DNK ITA OECD CHE AUS LTU CAN GBR POL EST KOR HUN TUR IRL LVA SVK MEX CHL
0.35
Note: Inequality across TL3 regions Source: OECD (2016), OECD Regions at a Glance 2016 13
Latvia faces demographic challenges Change in population aged 15-64, 2000-2050, % 120
120
100
100
80
80
60
60
40
40
20
20
0
0 -20
-40
-40
-60
-60
LVA LTU JPN PRT EST GRC POL HUN SVN ITA SVK CZE KOR ESP DEU AUT NLD FIN FRA DNK BEL GBR CHE SWE IRL CHL CAN ISL USA NZL NOR TUR AUS LUX MEX ISR
-20
Source: United Nations, Department of Economic and Social Affairs, Population Division (2017), World Population Prospects: The 2017 Revision, DVD Edition
14
Outmigration remains substantial Net immigration, thousands 0
0
-5
-5
-10
-10
-15
-15
-20
-20
-25
-25
-30
-30
-35
-35
-40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-40
Source: Central Statistical Bureau of Latvia. 15
The large shadow economy weighs on productivity and wellbeing Estimated size of shadow economy, % of GDP 30
30
25
25
20
20
15
15
10
10
5
5
0
0
Source: Schneider, F. (2017) “Implausible Large Differences in the Sizes of Underground Economies in Highly Developed European Countries? A Comparison of Different Estimation Methods� CESifo Working Paper No. 6522, Munich.
16
Trust in national institutions is low Shares of nationals trusting their government and judiciary, %, 2017 A. Trust in government
% 90
B. Trust in judiciary
% 90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
EU bottom
Latvia
EU28
EU Top
EU bottom
Latvia
EU28
EU Top
Note: Some 28,501 EU citizens were interviewed face-to-face and were asked whether they trust the national government and the national legal system. Shares reported in panel A are shares of nationals responding they tend to trust their government. Shares reported in panel B are shares of nationals responding they tend to trust their legal system. Source: European Union (2017), Special Eurobarometer 461 “Designing Europe’s future�.
0
17
Car traffic increased substantially, due to inadequate public transportation services Principal means of going to work, Riga 2009
80
2015
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
car
public transport
walking
bicycle
Note: Respondents were given the option to mention more than one means of transport for going to work (shares may rise to over 100%). Source: Eurostat.
0
18
Policies for improving well-being and inclusiveness •
Strengthening social protection Increase the guaranteed minimum income and consider tapering its withdrawal further.
•
Increasing access to healthcare Increase spending on healthcare to reduce out-of-pocket payments. Ensure that all residents have access to the full healthcare package as envisaged.
•
Improving housing conditions Provide more public funding for affordable rental and social housing
•
Increasing the size of municipalities by merging local administrations.
•
Reducing the shadow economy and bolstering the rule of law Continue the engagement of social partners in the fight against informality through sectoral agreements. Ensure the accountability of judges, including by extending the deadlines for dealing with disciplinary cases. Ensure continued commitment at the highest level of the government to swiftly implement the government action plan, strengthening the anti-money laundering and counter-terrorist financing framework.
More recommendations in the 2019 Economic Survey of Latvia
19
STRONGER PRODUCTIVITY GROWTH IS NEEDED FOR FAST INCOME CONVERGENCE
20
Productivity growth has slowed down Average annual growth in labour productivity, % Capital deepening
Total factor productivity
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
2002-08
2011-17
LVA
2002-08
2011-17
2002-08
EST
2011-17
SVK
2002-08
2011-17
LTU
2002-08
2011-17
0
EU
Source: OECD (2019) Going for Growth 2019 Edition. 21
Productivity is held back by weak innovation and inefficient resource allocation The labour productivity of the manufacturing sector, 2005 PPP USD IRL BEL NOR DNK SWE NLD AUT FRA FIN AUS JPN LUX CAN ITA HUN PRT CHL LVA
Mean productivity Allocative efficiency
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
Note: Mean productivity is the average productivity of firms in the manufacturing sector. Allocative efficiency captures to what extent more productive firms are larger, indicating the extent to which resources are allocated to more productive firms, allowing them to grow. Data refer to 2011 and are converted to USD using the 2005 Purchasing Power Parity. Source: Latvia data are from Benkovskis, K., O. Tkacevs and N. Yashiro (2019), “The role of resource allocation in Latvia’s productivity”, OECD Economics Department Working Papers, OECD Publishing, Paris, forthcoming.. The Ireland data are from: Papa, J., Rehill, L., and O’Connor, B., “Patterns of Firm Level Productivity in Ireland”, OECD Productivity Working Papers, 2018-15, OECD Publishing, Paris. Other countries’ data are from Berlingieri, G., et al. (2017), "The Multiprod project: A comprehensive overview", OECD Science, Technology and Industry Working Papers, No. 2017/04, OECD Publishing, Paris.
22
Latvian firms lag behind in digitalisation Enterprises using specific digital technologies, % of enterprises, 2017 or latest available year OECD median
OECD maximum
OECD minimum
Latvia
100
100
80
80
60
60
40
40
20
20
0
0
Broadband Website
Social media
ERP
CRM
Cloud Computing
e-sales
SCM
Big data
RFID
Note: Data cover 26 OECD countries and correspond to the share of businesses with ten or more employees with broadband connection (fixed or mobile); with a website or home page; using social media; using Enterprise Resource Planning (ERP) software; using Customer Relationships Management (CRM) software; purchasing cloud computing services; receiving orders over computer networks; sharing electronically information with suppliers and customers (SCM); using Radio Frequency Identification (RFID) technology; and having performed big data analysis (2018 data). Source: OECD ICT Access and Usage by Businesses Database and Eurostat.
23
Weak debt recovery holds back lending Average debt recovery rate, cents per a dollar of credit, 2018 100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
0
TUR GRC LTU EST LVA CHL LUX HUN CHE SVK POL ISR PRT MEX ITA CZE OECD FRA ESP SWE AUT DEU USA AUS NZL KOR ISL GBR IRL CAN FIN DNK SVN BEL NLD NOR JPN
100
Note: The recovery rate is calculated based on the time, cost and outcomes of insolvency proceedings and is recorded as cents on the dollar recovered by secured creditors. The calculation takes into account whether the business emerges from the proceedings as a going concern or the assets are sold piecemeal. The costs of the proceedings are deducted. The value lost as a result of the time the money remains tied up in insolvency proceedings is also deducted. The recovery rate is the present value of the remaining proceeds. Source: World Bank, Doing Business 2019 database.
24
The efficiency of insolvency procedures could improve further OECD insolvency regime indicator, 2016 0.7
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.0
0
GBR JPN DEU PRT RUS ESP USA CHE FRA ISR IRL CRI GRC CHL FIN SVN NZL OECD ITA CZE POL MEX LVA AUT NOR SVK TUR SWE LTU AUS CAN BEL NLD HUN EST
0.7
Note: A higher value corresponds to an insolvency regime that is most likely to delay the initiation of and increase the length of insolvency proceedings. Composite indicator based on 13 components: time to discharge; exemption of assets; early warning mechanisms; pre-insolvency regimes; special insolvency procedures for SMEs; creditor ability to initiate restructuring; availability and length of a stay on assets; possibility and priority of new financing; possibility to 'cram-down' on dissenting creditors and dismissal of management during restructuring; degree of involvement of courts; distinction between honest and fraudulent entrepreneurs and the rights of employees. Source: Adalet McGowan, M., D. Andrews and V. Millot (2017), “Insolvency Regimes, Zombie Firms and Capital Reallocation�, OECD Economics Department Working Papers, No. 1399
25
Regulatory settings are overall competition friendly, but public ownership is relatively high OECD 2018 Product Market Regulation indicator and selected components, Index scale of 0-6 from least to most restrictive (provisional) OECD median
OECD maximum
OECD minimum
Latvia
5
5
4
4
3
3
2
2
1
1
0
0 Economy wide
Public Ownership
Administrative burden on Barriers to Service and start ups Network sectors
Barriers to trade and investment
Source: Preliminary OECD 2018 PMR database. 26
About a half of Latvians lack basic digital skills The share of individuals with at least basic digital skills, %, 2017
ISL
LUX
NDL
NOR
SWE
CHE
FIN
GBR
DNK
0
DEU
0
AUT
10
BEL
10
ESP
20
CZE
20
SVK
30
FRA
30
EU-28
40
LTU
40
ESP
50
SVN
50
PRT
60
HUN
60
LVA
70
IRL
70
POL
80
GRC
80
ITA
90
TUR
90
Source: Eurostat. 27
Participation in adult learning is low Share of working-age population participating in education and training, %, 2017
CHE
SWE
FIN
DNK
ISL
NOR
NLD
FRA
LUX
EST
AUT
GBR
SVN
0
EU28
0
ESP
5
PRT
5
CZE
10
IRL
10
BEL
15
DEU
15
ITA
20
LVA
20
HUN
25
LTU
25
TUR
30
GRC
30
POL
35
SVK
35
Source: Eurostat.
28
The research workforce is small, limiting the innovation capabilities of Latvian firms Share of researchers in total employment, per thousand of total employed, 2017 or latest available year 18
16
16
14
14
12
12
10
10
8
8
6
6
4
4
2
2
0
0
MEX CHL LVA TUR ITA POL HUN LUX LTU SVK ESP CZE EST NZL CHE OECD CAN GRC USA GBR PRT SVN IRL DEU NLD JPN FRA AUT ISL BEL NOR KOR FIN SWE DNK
18
Source: OECD Main Science and Technology Indicators database; European Commission, Research and Innovation Observatory – Horizon 2020 Policy Support Facility, https://rio.jrc.ec.europa.eu/en/stats.
29
Technology transfer to SMEs is limited Share of SMEs collaborating on innovation with research institutions, % of innovating SMEs, 2014-16
GBR
BEL
AUT
FIN
SVN
EST
NOR
ESP
NLD
DNK
DEU
JPN
FRA
POL
HUN
CZE
SVK
0
TUR
0
CHE
5
GRC
5
PRT
10
LTU
10
LVA
15
KOR
15
BRA
20
NZL
20
CHL
25
AUS
25
Source: OECD Science, Technology and Industry Scoreboard 2017. 30
Policies for stronger productivity growth •
Improving the allocation of capital Improve the quality and speed of judgement through training and specialisation of judicial staff. Allow creditors to initiate restructuring and introduce early warning mechanisms of financial distress.
•
Enhancing competition Develop more detailed guidelines and apply them more rigorously for the review of the rationale for state ownership. Strengthen the authority of the Competition Council to intervene against anti-competitive behaviour by state-owned and municipal enterprises.
•
•
Strengthening skills
Promote joint training offers involving several firms.
Implement as early as possible the planned financial support for firms providing training to employees with stronger financing for the low skilled.
Strengthening innovation and knowledge transfer Promote sharing of resources of universities and research institutions. Improve wages, working conditions and career prospects for researchers in public institutions and provide stronger incentives to collaborate with industry.
More recommendations in the 2019 Economic Survey of Latvia
31
ENVIRONMENTAL PERFORMANCE HAS IMPROVED BUT MORE WORK IS NEEDED TO GREEN THE ECONOMY
32
GHGs, PM2.5 and energy supply have been decoupled from GDP growth, but not waste and fertilisers Primary energy supply Municipal waste generated
PM2.5 emissions Fertiliser use
GHGs (excl. LULUCF) GDP
Index 2005 = 100 180
180
160
160
140
140
120
120
100
100
80
80
60
60 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: IEA (2019), World Energy Statistics and Balances (database); OECD (2018), OECD National Accounts Statistics (database); OECD (2018), OECD Environment Statistics (database).
33
The 2020 climate target is easy to meet but not the 2030 target GHG emissions outside the EU Emission trading system (transport, agriculture, waste and small industrial and commercial facilities) Mt CO2eq. 10
10
2020 target 9.5
9.5
Actual GHG emissions 9
8.5
9
8.5
GHG emission forecast
8
8
2030 target 7.5
Source: MEPRD and LVGMC (2019), “National projections of greenhouse gas emissions and removals�, submitted to the European Commission pursuant Commission Implementing Regulation (EU) No 749/2014 of 30 June 2014.
7.5
34
GHG emissions from agriculture, land use and forestry are rising GHG emissions and removal by main sector (actual emissions and projections) Mt CO2eq. 15
15 Industrial processes
10
Waste
5
5
Land use, landuse change & forestry Agriculture
0
0
10
2005
-5
2016
Actual GHG emissions
2020
2030
GHG emission forecast
Energy production & use
-5
Source: UNFCCC (2018), Greenhouse gas emissions data (database); MEPRD and LVGMC (2019), “National projections of greenhouse gas emissions and removals�, submitted to the European Commission pursuant Commission Implementing Regulation (EU) No 749/2014 of 30 June 2014.
35
Latvia is among the OECD leaders in the use of renewables Proportion of renewables in primary energy supply in 2017, Hydro
top 10 OECD countries Geothermal Solar/wind/other
Biofuels and waste
% of Total primary energy supply
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Source: IEA (2019), World Energy Statistics and Balances (database).
36
Houses still consume much energy Heat consumption per square metre, selected Northern European countries 2016
Kg of oil equivalent /m2
2005
25
25
20
20
15
15
10
10
5
5
0
0 Sweden
Lithuania
Denmark
Source: Odysee-Mure (2019), Key indicators (database).
Finland
Latvia
Estonia 37
The vehicle fleet is old and carbon intensive
Average CO2 emissions per km of new cars,
Number of cars by age,
2017
2017 Thousands
Grams of CO2/km
400
140
350
120
300
100
250
80
200 60
150
40
100
EU best
0
EU28
under 3 to 5 6 to 10 11 to 20 21 years total 2 years years years years and more
Latvia
0
EU worst
20
50
Source: Central Statistical Bureau of Latvia (2018), Transport in Latvia 2018; Eurostat (2019), Average carbon dioxide emissions per km from new passenger cars" (grams of CO2 per km) (database).
38
Quality of roads and railways is among the poorest in the Baltic Region Perceived quality of transport infrastructure, Baltic Region, 2018 Roads Score 0-6 6 5 4 3 2 1 0
Source: WEF (2018), The Global Competitiveness Report 2018.
Score 0-100
Railways
100 90 80 70 60 50 40 30 20 10 0
39
Most of Latvia’s population is exposed to high PM2.5 concentrations Population exposed to PM2.5 ,
shares (%) by concentration levels [ 0-10] µg/m³
[10-15] µg/m³
[15-25] µg/m³
[25-35] µg/m³
[>35] µg/m³
100%
100%
90%
90%
80%
90%
70%
80%
49%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0% Latvia (2005)
Latvia (2017)
Source: OECD (2019), OECD Environment Statistics (database).
OECD (2005)
OECD (2017) 40
Green taxes generate high revenue but their effectiveness is limited Revenue of environmentally related taxes, % of GDP, top 10 OECD countries
2016
2005
% of GDP
5%
5%
4%
4%
3%
3%
2%
2%
1%
1%
0%
0%
Source: OECD (2019), OECD Environment Statistics (database).
41
Only a quarter of CO2 emissions is priced at a sufficient level Proportion of emissions priced at or above EUR 30 per tonne of CO2 70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Source: OECD (2018), Effective Carbon Rates 2018.
42
Policies for a low-carbon, greener economy •
Mitigating climate change and air pollution Develop a climate mitigation plan with expected sectoral contributions to GHG emission mitigation and gradually stricter targets. Improve the knowledge on mitigation options in agriculture and forestry. Improve air quality monitoring and control measures, especially in the Riga metropolitan area.
•
Greening the system of taxes, charges and subsidies Reduce tax exemptions and discounts. Raise tax rates on energy, CO2 emissions and air pollutants, and close the petrol/diesel tax gap. Revise vehicle taxation to account for air pollutants in addition to CO2 emissions. Extend road charges to cars and link them to emission standards and distance travelled.
•
Investing in low-carbon infrastructure and eco-innovation Reduce dependence on EU funds; streamline support mechanisms for business investment.
Continue to improve residential energy efficiency and extend heat metering. Establish an integrated public transport system linking Riga to surrounding municipalities; extend the charging facility network for electric vehicles. Further increase environmental R&D funding; strengthen measures to stimulate demand for cleaner products, technology and services.
More recommendations in the 2019 Environmental Performance Review of Latvia
43
Municipal waste is growing and mostly landfilled, although recovery is improving Municipal waste generation and disposal Thousand tonnes 1 200
Index 2005=100 Waste per capita (index)
140
1 000
120
800
100
600
80 60
400
Material & energy recovery
Special landfills with anaerobic digestion Landfills
40 200
20 0
Source: OECD (2019), OECD Environment Statistics (database)
Generation index per capita (right axis)
44
Low landfill taxes encourage landfilling Percentage of landfilled municipal waste and landfill tax rates, 2016
Landfill tax USD/tonne 200
% of landfilled waste 100% 90%
% of landfilled waste
Tax rate (right axis)
180
80%
160
70%
140
60%
120
50%
100
40%
80
30%
60
20%
40
10%
20
0%
0
Note: Subnational data (local taxes) are used for: Mexico (Mexico City), Spain (Catalonia), United States (California), Australia (Western Australia) and Belgium (Flanders). Source: OECD (2019), OECD Environment Statistics (database); CEWEP (2017), Landfill Taxes and Bans Overview.
45
Policies for waste management and circular economy • Review waste-related taxation in line with the waste hierarchy. • Improve the transparency of extended producer responsibility systems, and encourage investment in high-value domestic recycling. • Fully integrate the objectives of closing material loops and waste prevention into innovation and procurement policies. • Improve waste governance by deepening co-operation across ministries, cascading national waste targets at local level, and using synergies within the Baltic Sea region. • Set up an integrated information system that covers all waste and materials management steps and treatment routes. More recommendations in the 2019 Environmental Performance Review of Latvia
46
Latvia has exceeded the 2020 Aichi targets on protected natural areas Protected areas, 2018 Terrestrial areas: % of total land area
Marine areas: % of Exclusive economic zone
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
54%
50%
50%
40%
40%
30%
30% 18%
20%
97%
17% 10%
10%
16%
20%
10%
10%
0%
0%
0% OECD top
Latvia
2020 Aichi target
OECD bottom
OECD top
Latvia
2020 Aichi target
OECD bottom
Source: OECD (2018), OECD Environment Statistics (database). 47
The conservation status of many habitats and species is poor and declining Conservation status of habitats and species, % by category Favourable
Unfavourable/inadequate
Unknown
EU average (favourable)
Habitats
Unfavourable/bad
Species
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
2007
2013
2007
2013
Source: EEA (2019), Habitats of European interest (database); Eionet (2019), Reporting under Article 17 of the Habitats Directive.
0% 48
Policies for biodiversity conservation and sustainable use • Develop a national biodiversity strategy, supported by adequate human and financial resources for implementation. • Assess the economic value of biodiversity and ecosystem services and the cost associated with their loss. • Develop management plans of protected areas. • Develop a strategic policy framework for green infrastructure and improve wildlife corridors to reduce habitat fragmentation. • Extend the use of economic and voluntary instruments for biodiversity management, especially for the sustainable use of forests. • Further untie payments to farmers from production; promote organic farming to achieve the national 2030 target. More recommendations in the 2019 Environmental Performance Review of Latvia 49
For more information
http://www.oecd.org/economy/latvia-economic-snapshot/ http://oe.cd/epr-latvia Disclaimers: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
50