Subsidy (Climate Change Special Programme)

Updated: 16.10.2017

Author: Jurga Tallat-Kelpšaitė

The Climate Change Special Programme supports projects which aim to reduce greenhouse gas emissions. No less than 40% of the funds of this programme are used to support renewable energy projects and environmentally friendly technologies. This fund provides support in the form of loans and subsidies in line with 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 not engaged in economic and commercial activities, rural communities, legal persons engaged in economic and commercial activities (with the exception of income-generating projects), if they are registered in the Republic of Lithuania and are implementing renewable energy projects (Chapter II Item 4.1.2, Chapter IV Item 26 Order No. D1-275/2010). Natural persons may apply for subsidies solely for the implementation of small-scale projects not exceeding € 14 500 (Chapter I Item 3.6, Chapter IV Item 27 Order No. D1-275/2010).

Obligated parties: The Lithuanian Environmental Investment Fund (LEIF) (Item 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 LEIF 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 LEIF along with the other mandatory documents (Chapter VI Item 46 Order No. D1-275/2010).
  • Written notice of registration. The LEIF 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 LEIF 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 have to be evaluated according to a simplified procedure (Chapter VI Item 53 Order No. D1-275/2010).
  • Finance Agreement. The Ministry of Environment and the applicant have to sign a finance agreement. Within 20 working days from the adoption of the decision, the LEIF shall draft the finance agreement and submit it for signature to the applicant. The applicant must sign the finance agreement within one month from the date of receipt of the draft agreement. Otherwise it is deemed that the applicant has refused funding. Finance 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 Pollution Prevention Department of the Ministry of Environment is responsible for coordinating the management of the Climate Change Special Programme as well as for drafting and approving cost estimates and reports (Item 2.1. Order No. D1-275/2010).

The LEIF 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).

Lithuania

Further information

  • Lietuvos aplinkos apsaugos investicijų fondas (LAAIF) – Lithuanian Environmental Investment Fund (LEIF)
  • +370 5 216 9599
  • LEIF website
  • laaif(at)laaif.lt