Latvia has asked for a CO2 allowance of 6.25 million tonnes a year for the period 2008-2012, but the European Commission has allocated it 3.43 million tonnes. "We will prepare a note for next week (for a government cabinet meeting) on the possible course of action, whether to go to court or not," Baltic news agency BNS quoted Environment Minister Raimonds Vejonis as saying.
"The main point of view of everyone seems to be that we need to take legal action, but the government will take a decision on Tuesday (of next week)," he added.
The Commission oversees the bloc's emissions trading scheme, part of efforts to reduce output of greenhouse gases to fight global warming.
Baltic neighbour Estonia has already decided to take the Commission to court, joining Poland, the Czech Republic, Hungary and Slovakia in launching legal action over CO2 quotas that they say are so restrictive they could damage their economies.