The European Bank for Reconstruction and Development (EBRD) has bought a stake worth €10 million (£7.1m) in a waste treatment operator.
Eco Baltia JSC is a waste management operator in Latvia and the Baltic States.
The bank’s investment will be used to build a mechanical biological treatment plant for household waste.
It will extract recyclable materials from household waste and is claimed to be the first of its kind in the region.
Matt Hyyrynen, EBRD Head of Office for the Baltics said: “By becoming a shareholder, the EBRD aims to make a strong company even stronger for the benefit of the environment and the economy. Companies are increasingly realising the vast potential of recycling and for this they need waste management operators like Eco Baltia.”