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Reform Support
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Supporting reforms to transition to a green economy and fight climate change

Funding Programme
Year
  • 2021

Supporting reforms to transition to a green economy and fight climate change

Reform of Lithuania’s economy towards Climate Neutrality by 2050

The European Commission provided support to the Lithuanian Ministry of Environment to achieve climate neutrality by 2050. The main objective was to provide recommendations on how to effectively reform the main economic sectors and identify country-specific challenges to reaching the climate goals.

Context

To reach the objectives of the Paris Agreement, the EU raised its climate ambitions under the European Green Deal. In 2021, the European Commission adopted a legally binding target of net zero greenhouse gas emissions by 2050, and a 55% reduction by 2030 compared to 1990. Lithuania needed to assess the costs and benefits of different policy reforms for meeting these targets.

Support delivered

Support was delivered in four phases:

  • A report mapping greenhouse gas emissions in Lithuania and identifying policy options for climate neutrality.
  • Sector-specific workshops to discuss decarbonization trends, challenges, and recommendations.
  • A final report with an impact assessment, policy recommendations and cost-effective measures.
  • A workshop with policymakers to present the conclusions of the final report.

Results achieved

One of the main recommendations from this project was the introduction of a carbon tax. Following this TSI project, the Lithuanian parliament approved the Excise Duty Law introducing a carbon tax on polluting fuels.

More about the project

You can read the documents related to the project here: