Latvia is a small country, with a population of about 2.2m. It has been a Member State of the EU since 2004. The main economic sectors in the Latvian economy are the service industries with 72% of the GDP. The processing and manufacturing industries make up about 10% of the national economy’s GDP. In 2010, Latvia started its slow recovery from the economic crisis of 2008-2009 and economic growth continued to accelerate in 2011. Latvia belongs to a group of countries with modest eco-innovation performance. The country has relatively better scores for environmental outcomes, due to improved water and energy productivity, and for socio-economic outcomes, thanks to higher employment and expansion of eco-industries. In terms of eco-innovativeness, positive results were achieved by two sectors: the wood industry and bio-cosmetics. It is expected that eco-innovations in nanotechnology, as well as greening of service sectors and agriculture will be taking place in the near future. Eco-innovation challenges in Latvia can be associated with a lack of political awareness of innovation in general. However, Latvia has a series of environmental issues to be solved. The most pressing of these are the energy inefficiency of the housing stock, a lack of efficient waste sorting and the need for more mobility solutions.
Currently Latvia has no specific eco-innovation policy strategy, neither has it environmental technology action plan. Other policies might address eco-innovation via programmes on innovation, energy, environmental technologies and entrepreneurship.