Agriculture is the 3rd largest sector of GHG emissions both in Latvia and Europe, and is directly and indirectly related to other sectors, including energy and transport. The purpose of this study is to analyze the current situation of the agricultural sector and define the prerequisites for the development of the sector towards sustainability. By using this work and the developed models in future decision-making, both at company and national level, would allow to increase the competitiveness of agriculture in the global market, reducing its future dependence on state subsidies, while reducing its impact on the environment and mitigating climate change.