Subsidy (Climate Change Special Programme)

Updated: 21.12.2018

Author: Jurga Tallat-Kelpšaitė

The Climate Change Special Programme supports projects aiming to reduce greenhouse gas emissions. No less than 40% of the funds of this programme are intended to be used to encourage renewable energy use and the introduction of environmentally friendly technologies, including energy efficient cogeneration. This fund provides support in the form of loans and subsidies according to the Guidelines for the Use of the Funds of the Climate Change Special Programme, approved by Order No. D1-275/2010. 

Eligible technologies

All renewable energy generation technologies are eligible for this scheme (Chapter II Item 4.1.2. Order No. D1-275/2010 in conjunction with Art. 10 Par. 3 Law on Financial Instruments for Climate Change Management).

Wind energy

Eligible.

Solar energy

Eligible.

Geothermal energy

Eligible.

Biogas

Eligible.

Hydro-power

Eligible.

Biomass

Eligible.

Amount

The maximum level of funding for applicants not engaged in economic and commercial activities shall be € 1 450 000 and for applicants engaged in economic and commercial activities € 200 000. However, the amount of a subsidy may not exceed 80% of the eligible project costs (Chapter IV Item 28 Order No. D1-275/2010).

Addressees

Entitled parties: Natural and legal persons, rural communities, managers of joint objects, if they are registered in the Republic of Lithuania and are implementing renewable energy projects specified in Art. 4.1. Order No. D1-275/2010 (Chapter II Item 4.1.2., Chapter IV Item 26. Order No. D1-275/2010).

Obligated parties: Environmental Project Management Agency under the Ministry of Environment of the Republic of Lithuania (EPMA) (Item 2.2. Order No. D1-275/2010).

Procedure

Process flow

  • Call for tenders. No later than within 30 working days from the approval of the annual cost estimate, the EPMA is obliged to publish on its website information on the calls for tenders granting subsidies to renewable energy projects. The information to be provided varies depending on the type of the project. However, such information like deadlines for the submission of an application or specification of the selection procedure shall be provided in any case (Chapter VI Item 45 Order No. D1-275/2010).
  • Application.An application form has to be completed and submitted to the EPMA along with the other mandatory documents (Chapter VI Item 46 Order No. D1-275/2010).
  • Written notice of registration. The EPMA registers the applications received. A written notice of registration of the application shall be sent to each applicant not later than within 3 working days from the registration of his application (Chapter VI Items 47, 49 Order No. D1-275/2010).
  • Project Evaluation. The evaluation of a project is carried out by the EPMA or independent experts and consists of an assessment of the administrative compliance of the application as well as an environmental and technical evaluation of the project (Chapter VI Items 50., 51. Order No. D1-275/2010). Applications for subsidies for small-scale projects (not exceeding € 14 500) have to be evaluated according to a simplified procedure (Chapter I Item 3.6., Chapter VI Item 53. Order No. D1-275/2010).
  • Financing Agreement. The Ministry of Environment and the applicant have to sign a financing agreement. Within 20 working days from the adoption of the decision, the Ministry of Environment and the EPMA draft the financing agreement and submit it for signature to the applicant. The applicant has to sign the financing agreement within two months from the receipt of the draft agreement. Otherwise it is deemed that the applicant has refused funding. Financing agreement is not required for the small-scale projects of natural persons. In such case the applicant has to comply with the obligations specified in the application, applicant's declaration and the Guidelines for the Use of the Fund (Chapter VII Item 79., 79¹., 80. Order No. D1-275/2010).

Competent authority

The Climate Change Policy Department of the Ministry of Environment is responsible for coordinating the management of the Climate Change Special Programme as well as for the preparation and approval of cost estimates and reports (Item 2.1. Order No. D1-275/2010).

The EPMA is responsible for the implementation of the Climate Change Special Programme (Item 2.2. Order No. D1-275/2010).

Distribution of costs

The budget of the Climate Change Special Programme is financed from the revenue from the European Union’s Emissions Trading System, financial penalties, donations for climate change mitigation and other legally obtained funds (Chapter III Art. 10 Par. 2 Law on Financial Instruments for Climate Change Management).

State

The budget of the Climate Change Special Programme is financed from revenue from the European Union’s Emissions Trading System (EU ETS), financial penalties, donations for climate change mitigation and other funds that were legally obtained (Chapter III Art. 10 Par. 2 Law on Financial Instruments for Climate Change Management).

Lithuania

Further information

  • Lietuvos Respublikos aplinkos ministerijos Aplinkos projektų valdymo agentūra (APVA) - Environmental Project Management Agency under the Ministry of Environment of the Republic of Lithuania (EPMA)
  • + 370 5 272 57 58
  • APVA website
  • apva(at)apva.lt