Projects related to mitigation of the climate change consequences (quantitative reduction of GHG emissions) and to adaptation to changes caused by climate change are funded under the Climate Change Program.

The Program funds consist of:

– the funds received for the transfer of assigned amount units (hereinafter referred to as AAUs) and auctioned allowances (hereinafter referred to as TEA);

– the voluntary contributions from natural persons and legal entities, as well as collection of economic fines.

The Ministry of Environment was authorized by the Government of the Republic of Lithuania to administer the funds of the Climate Change Program.

Project financing in Lithuania

The Climate Change Program funds are used in accordance with the annual estimate of the Program funds use, which is approved each year and drafted by the Ministry of the Environment. It specifies the investment areas of the Program and the amount of funding, which is allocated to them. Once the annual estimate of the Program funds is approved, the plan detailing the annual budget, specifying the allocation of funds to the specific financing instruments and other financing conditions, is approved. Following the approval of the estimate and of the annual plan, the Environmental Projects Management Agency (EPMA) announces calls for submiting proposals (registration forms) under the funding instruments for that year for both natural persons and legal entities. The EPMA is also responsible for receiving and evaluating the project proposals (registration forms), monitoring the project implementation and making payments to beneficiaries.

Program funds are used for the following areas:

o   Funds are allocated for the energy consumption and efficiency increase projects (for e.g., modernization of multiapartment houses; modernization of public buildings; renovation (modernization) of one or two-apartment dwelling houses of natural persons);

o   Program funds are allocated for projects promoting the use of renewable energy sources and introducing environmentally friendly technologies (for e.g., installation of biofuel boilers, installation of heat pumps or solar power plants – the support is granted to natural persons and legal entities (schools, kindergartens, hospitals, foster homes));

o   For the implementation of developmental cooperation projects in developing countries by transferring Lithuanian technologies and experience (for e.g. solar power plants in Georgia (Sakartvelo), Malaysia, Mali);

o   For the public information and education, scientific research works, consultancy and training for activity executors and other persons;

o   For reforestation and forest planting; for information, education and consultation on the most relevant climate change issues; for adaptation to changes caused by climate change and for implementation of the measures intended for mitigation of the climate change consequences; for execution of the plan of measures for implementation of the strategy of the National Climate Change Management Policy; for administration of the Program funds and for financing the management of the Greenhouse Gas Registry; for other measures to effectively manage the climate change policy.