Reform Options for Lithuanian Climate Neutrality by 2050

This report presents policy reform options to support Lithuania in meeting its climate neutrality target. It takes stock of Lithuania’s current and planned climate policies and assesses their potential for meeting the country’s climate ambitions. The report details the results of modelling carried out to assess the effectiveness of different policy scenarios, an analysis of carbon pricing and the role of innovation, an assessment of financial needs in the transition to net zero, and an analysis of the distributional implications of carbon pricing. Bringing together these findings the report offers recommendations for policy reform, highlighting the importance of setting price signals complemented by innovation support, as well as the potential of revenue recycling options in alleviating distributional concerns.

Available from April 24, 2023


Reader’s guide
Executive summary
Economic context and greenhouse gas emissions trends in Lithuania
Lithuania’s current and planned policy mix
Choosing a policy mix to achieve carbon neutrality – a modelling exercise
Carbon pricing in Lithuania
Mobilising low-carbon infrastructure investment in Lithuania
Distribution of carbon tax burdens in Lithuania and social policy implications
Beyond 2030: policy pathways for meeting net zero by 2050
Main takeaways and policy recommendations
Annexes2 chapters available
Details on the modelling framework for Chapters 3 and 7 and its implementation
Effective carbon rates sectoral decomposition and fuel category breakdown
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