Lithuania Approved €552 Million for Climate Action

The Government of the Republic of Lithuania has approved the Ministry of Environment’s 2026–2029 Investment Plan for the Climate Change Programme, allocating €552 million to finance climate change mitigation measures.

“This plan marks another important step for all of us in building a cleaner and more sustainable Lithuania,” said Minister of Environment Kastytis Žuromskas. “Simply put, these investments will help many people live more comfortably and at lower cost, while enabling our natural environment to recover. This is not only an environmental initiative but also an opportunity for economic development that will strengthen our energy security and ensure the long-term development of clean energy. The plan opens the door for both businesses and citizens to contribute to climate change mitigation and improved energy efficiency.”

The largest share of the Programme’s funding (€470.86 million) will be allocated to building renovation, including the modernization of multi-apartment buildings, individual houses, and public buildings owned by central government and municipalities.

An additional €54.52 million will be dedicated to enhancing greenhouse gas absorption capacity. These funds will support both legal entities and individuals in preserving naturally regenerating trees, restoring the hydrological regime of wetlands (peatlands), and installing underground electricity cable lines in forested areas.

€16 million will be allocated as investment support for biomethane production and/or biogas upgrading. A further €5 million will be directed toward energy efficiency measures implemented by private legal entities.

€5.64 million will be provided as state aid to operators of greenhouse gas-emitting installations facing a genuine risk of carbon leakage due to high indirect costs, in accordance with European Commission guidelines. These funds will compensate for actual costs related to emissions that are reflected in electricity prices. Such measures will reduce the financial and economic burden associated with obligations to reduce greenhouse gas emissions.

Following the Government’s resolution, the Ministry of Environment will prepare detailed descriptions of the Climate Change Programme’s progress measures and their financing conditions.

The Climate Change Programme Investment Plan was coordinated with other sectoral ministries’ funding sources to ensure that measures do not overlap or compete with one another.

Programme funding is planned for a four-year period to enable the public and state institutions to plan applications for support in advance and to implement funded projects more effectively. Long-term planning also benefits businesses, as anticipated subsidies can be incorporated into their long-term strategic planning.

The objective of the Climate Change Programme investments is not only to reduce greenhouse gas emissions, but also to encourage citizens and businesses to adopt advanced technologies and improve energy efficiency, thereby generating long-term economic benefits.