Subsidy (Lithuanian Environmental Investment Fund)

Updated: 13.02.2017

Author: Jurga Tallat-Kelpšaitė

The LEIF supports projects aiming to reduce environmental damage in the long term. This definition covers the conversion of heating plants in order to switch from solid fuels to liquid biomass and geothermal resources (Chapter II Item 13.2.3 Statutes of the LEIF as amended on 09.12.2010). Projects are supported in the form of subsidies. Each year, there are two calls, published via the media or on the website of the LEIF. For general information in Lithuanian on the funding of projects by the LEIF please see www.laaif.lt.

Eligible technologies

The LEIF supports projects for the conversion of heating plants in order to switch from solid fuels to liquid biomass and geothermal resources (Chapter II Item 13.2.3 Statutes of the LEIF as amended on 09.12.2010).

Biogas

Eligible.

Biomass

Eligible

Geothermal energy

Eligible

Amount

The maximum subsidy is € 200,000 and must not exceed 80% of the total project expenses (Chapter II Item 7 Order No. 437/2003). Applicants shall demonstrate that they are able to provide funding for the rest of the project through their own resources (Chapter II Item 12 Order No. 437/2003). The first part of the awarded subsidy (60%) is paid when the applicant has acquired, installed and started operating facilities as intended in the project plan and the head of LEIF confirmed the report on the project technical implementation. The remaining part of the awarded subsidy (40%) is paid when the applicant has submitted data on the environmental compliance achieved during the first year of the supported project. The remaining part of the subsidy is paid under the condition that during the first project year the environmental indicators set in the grant application are met by at least 95%. If 50% - 95% of environmental indicators are met, the grant shall be reduced accordingly. Finally, if during the first project year less than 50% of environmental indicators are met, environmental compliance is considered as not achieved and the second part of the subsidy will not be paid to the applicant. In this case, the applicant shall pay back the first part of the subsidy (which he has already received) to the LEIF (Chapter II Items 9-11 Order No. 437/2003).

Addressees

Entitled party: Legal entities registered in Lithuania, or legal entities established in another country within the European Economic Area (EEA) whose subsidiary is registered in Lithuania and carries out projects in Lithuania (Chapter I Item 5 Order No. 437/2003).

Procedure

Process flow

  • Project Information Form. Applicants shall complete the Project Information Form and submit it to the LEIF. The LEIF decides whether a project complies with its funding objectives and financing conditions and shall inform the applicant about its decision within 10 working days from the receipt of the form (Chapter III Items 16, 17 Order No. 437/2003).
  • Application. The applicant then submits an application for a subsidy (Chapter III Item 16 Order No. 437/2003).
  • Application assessment. The LEIF examines the application. This includes an inspection to determine whether an application complies with the administrative and environmental-technical requirements (Chapter III Items 23 Order No. 437/2003). The examination on compliance with administrative requirements shall be carried out within 5 working days and the examination on compliance with environmental-technical requirements shall be carried out within 60 working days (Chapter III Items 27, 29 and 34 Order No. 437/2003).
  • Decision on the award of a subsidy. The decision on the award of a subsidy consists of several steps:
    • The applications selected by the LEIF are presented to the Minister of Environment within 5 working days from the selection made by the LEIF (Chapter III Item 35 Order No. 437/2003).
    • The Minister shall decide within 20 working days which projects will be granted a subsidy (Chapter III Item 37 Order 437/2003).
  • Information to the successful applicants. Within 5 working days from the decision on granting a subsidy, the Ministry of Environment informs in writing the successful applicant. In addition, this decision is published on the website of the Ministry (Chapter III Item 37 Order No. 437/2003).   
  • Contract on financing and supervision. The LEIF shall prepare a draft contract on financing and supervision and submit it to the applicant within 20 working days from the decision on the award of a subsidy. The applicant shall sign the contract within one month from its receipt (Chapter IV Item 41 Order No. 437/2003).
  • Payment of subsidy. After acquiring, installing and starting to operate the facilities as intended in the project plan, the applicant has to submit an application for payment of the first part of the awarded subsidy (60%) and a report on technical project implementation (for approval) to the LEIF (Chapter II Item 9.1, Chapter IV Item 46 Order No. 437/2003). An application for payment of the second part of the subsidy (40%) shall be submitted to the LEIF together with the data on environmental compliance achieved during the first year of the supported project and with a final report on project implementation (Chapter II Item 9.1, Chapter IV Item 51 Order No. 437/2003).

Competent authority

The Lithuanian Environmental Investment Fund (LEIF) (Chapter II Item 1 Order No. 437/2003).

Distribution of costs

State

The LEIF is funded from the state budget and other lawfully acquired funds (Chapter I Item 8 Statutes of the LEIF).

Lithuania

Further information

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

Basic information on legal sources