The Latvia Carbon Tax, officially known as Nodoklis par oglekla dioksida emisiju, was implemented in 2004 as part of the Natural Resources Tax Law to promote efficient resource use and environmental protection. Priced at €15 (US$16.12) as of April 1, 2024, the tax targets direct CO2 emissions from fossil fuel combustion in industries and power sectors not covered by the EU Emissions Trading System (ETS). It complements the EU ETS by addressing emissions from fuels that fall outside its scope, while the use of peat in industrial activities is exempt from the tax. The government sets the tax price, and fuels used by operators within the EU ETS are also exempt.