Permanent economic growth have resulted in natural resource depletion, increasing pollution, biodiversity loss and many other environmental and social problems, but have not solved issues of poverty, inequality and injustice. Therefore mainstream economics based on neoclassical model of economic theory lately has been challenged by emerging new economics discipline - Green economics. Green economics combines economics with knowledge from natural sciences, brings very long-term perspective, and considers widest range of values, including sustainability, a sense of community, appreciation of social and environmental values (1). Latvia has experienced rapid economic growth during 1996-2007, when GDP in prices of 2000 growth rate in average was 7.5 per cent (2). Global economic crisis of 2008 has hit Latvia hard – there has been sharpest decrease of GDP in the European Union. It creates many problems in providing sustainability. Recent Eurostat data about poverty risk and material deprivation shows that Latvia’s indicators are amongst the worst in EU (3). Environmental quality indicators, like Environmental Performance index and ecological footprint, in which Latvia usually had good rankings also are becoming worse. Problems in all three sustainability spheres – economy, social and environment, give reason to doubt sustainability of the country. This paper will analyse Latvia’s economic policy and economic recovery programme from a sustainability and Green economics perspective. Authors have studied different policy instruments applied in economic policy, such as plans, standards, taxes, fees, subsidies, regulations, emission trading systems, development of infrastructure and analysed their impact on sustainable development. Particular attention is paid to the economic recovery program and how it can affect sustainability preconditions and important principles set in Green economics. The aim of the paper is to evaluate current Latvian economic policy and economic recovery plan in respect to their impact on sustainability and Green economics principles. Research methods: regulatory and planning document analysis, data statistical analysis.