Agenda 21 - Lithuania

The Ministry of Agriculture is primarily responsible for agriculture and rural development in Lithuania. The Environmental Protection Ministry is responsible for environmental protection of agriculture.

National legislation in this area includes the Land Law, the Law on the Land Reform, and the Law on the State Regulation of Agricultural Economic Relations.

The environmental protection of agriculture is based on legislation as well as on voluntary measures taken by farmers and advisory services. Loading of surface and ground water is regulated by legislation on the use of protective zones of water bodies. In 1999, Lithuanian and Danish experts on environment protection prepared the Code of Good Agriculture Practice. It has to be approved and to enter into force by the end of 1999.

The Ministry of Agriculture has adopted Recommendations of Prevention Means for Reduction of Prevention Means for Reductions of Spread Pollutants from Agricultural Sources. The recommendations include means to prevention pollution and ways to reduce agriculturally-induced pollutants, especially concentrations of phosphate and nitrogen in water. The Recommendations are supported by the results of foreign and Lithuanian investigations as well as based on industrial experience. These Recommendations constitute a first step towards the preparation of the Code of Good Agricultural Practice according to Nitrate Directive. It is planned that Nitrate Directive will be implemented before the year 2006. This Code is being prepared with the help of Swedish and Danish projects.

The national policy on sustainable agriculture is consolidated in: the National Agriculture Development Programme; the Strategy of Environmental Protection; the Strategy of Biological Diversity; and the Programme of the Rural Development.

The Chamber of Agriculture started its activity from 1991; this is a voluntary union which comprises farmers, producers suppliers of the intellectual services and representatives of the interests of the agricultural organizations. Chamber of Agriculture (ChoA) applies its activity to whole Republic of Lithuania and helps to implement self-government for farmers.

ChoA is stimulating the self - government, initiative and overall development of the activity of agricultural organizations and rural communities. It represents them in state, governmental institutions and authorities and co-operates with foreign institutions. ChoA prepares or participates in preparing and debating programmes on subject of agriculture and rural development; projects of law and other legal normative which are related with the supporting of the interests of members of ChoA.

The Working Group on Agro-environment established within the Ministry of Agriculture is undertaking the preparation of Agro-environmental Pragramme with the help of Dutch Avalon Project according to the Council Regulation 2078/92. There are two main schemes in the Programme - general agro-environmental scheme and supplementary agro-environmental schemes. Lithuanian application to SAPARD for co-financing of a pilot programme will be presented in 2000.

The Ministry of Agriculture launched an Ecological Farming Support Programme financed by the Rural Support Fund in 1998, No332. Its aim is to develop organic farming, to establish a favorable infrastructure, to create conditions for production of organic products which have demand in local and foreign markets. According to the Law on the State Regulation of Economic Relations in Agriculture, organic farms are controlled and inspected by the public institution called "Ekoagras", which was established by the Ministries of Agriculture and Health in 1997 for the certification of the ecological production of agriculture.

Programme "Tatulos programa" for modeling of ecological farm was prepared and launched in the North of Lithuania in 1993. Now its activities are extended to all regions of Lithuania. In order to provide the financial support for farms and reorganize enterprises to ecological ones, Tatulos Fund was established. It organizes fairs and exhibitions, designs and builds equipment for water cleaning and implements other means related to the environmental protection; it also consults and makes environmental monitoring, publishing and other educational activity.

An agricultural cooperation development programme was approved in 1999. Its main objectives include: to create favorable infrastructure for farmers and other participants of agriculture; to enhance their economic conditions and to co-ordinate interests of farmers with the interests of processors through the promotion of co-operation between them.

The country consist of 10 counties with two main cities, Vilnius and Kaunas. Lithuania has a well developed network of highways and secondary roads, but some of the basic services, such as water supply, and telecommunications, still remain under-developed in rural areas.

Agriculture has gone through several periods of historic development as land reforms have changed the structure by a proportionate increase or decrease of specific land use groups. The agricultural reform and privatization created many serious problems in rural areas, because during the Soviet period, the main social, medical and cultural services were provided in special, purpose-built facilities on state and collective farms. With the farms restructuring, these functions were transferred to local government, and many services ceased to be available in rural areas. The gap in income between rural and urban areas seems to be deep and there is a need to diversify the rural economy also for countering the increasing unemployment in rural areas.

Large areas have suffered from past agricultural pollution originated from poor handling of animal waste. Excessive use and misuse of chemicals in the past have also given rise to environmental problems. Other environmental concerns are related to soil erosion, which cover almost 20% of agricultural land in Lithuania.

According to the needs of agriculture, educational programmes and plans are constantly renewed. High schools infrastructure are also being modernized. At main educational centers, re-qualification courses and continuous training are provided. Some new rural business training centers are established where farmers and rural businessmen are taught about new technologies, product quality improvement, environment protection, management and marketing.

In 1998, the Rural Business Development and Information System Center was established. The Center is developing an information system on live-stock marking, crop area declaration. It is also preparing programmes for rural development and providing consultations.

In 1997 the Government adopted a resolution "Concerning the Formation of the Rural Support Fund which regulates the form and use of the Rural Support Fund. The Fund is used mainly for the following purposes:

The new programme for the reorganization of agricultural activities to earn alternative income was created in Rural Support Fund in 1999. This programme finance farmers and entities related to: a) traditional and non-traditional plant growing and cattle-breeding production; b) crafts, trades, services; and c) development of rural tourism.

Economic conditions have been created for establishing the credit institutions in rural areas in order to move banking services closer to the people concerned. It is foreseen to develop and support credit unions, gradually transform the regulations of the Rural Support Fund and administrative procedures, taking into account of the rules of EURO agricultural support.

The Danish project proposal "Reforestation of Abandoned Agricultural Land based on Sustainable Planning and Environmentally Sound Forest Management" is planned for 2 years. The project is designed to facilitate and to accelerate the actual reforestation of abandoned land, where reforestation is considered the optimal form of land use based on sustainable criteria.

This information is based on Lithuania's reports to the 5^th and 8th Sessions of the United Nations Commission for Sustainable Development, April 1997 and 2000. Last update 27 October 1999.

ATMOSPHERE

Responsibility for protecting the atmosphere in Lithuania is ensured by the Ministries of: Environment; Health Care; Transportation; Agriculture; and Economy.

The Ministry of the Environment is the main institution shaping the environmental policy of the Republic of Lithuania. The monitoring of the implementation and enforcement of the environmental legislation is performed by the State Environmental Protection Inspectorate, 8 regional environmental departments and 54 city and district environmental agencies.

The Joint Research Center (JRC) of the Ministry of Environment is responsible for environmental monitoring. The Environmental Research Center of the JRC and 8 regional laboratories are executing the functions of monitoring and analytical control.

The State Department for Energy Resources is responsible for energy-related policies. In order to address all energy-related issues, three non-governmental organizations have been created:

The Ministry of Health Care and institutions under its subordination - the State Public Health Center; the Ministry of Agriculture (the implementation of the measures to reduce pollution with nitrates); the Ministry of Social Security and Labour (certain issues related to noise regulation); the State Labour Inspectorate under the Ministry of Social Security and Labour (issues related to the prevention of industrial accidents); the Ministry of Transport and Communications (issues related to pollution from mobile sources and certain issues related to noise regulation); the Civil Protection Department under the Ministry of National Defence (issues related to the prevention of accidents and the organization of civil protection); and the Ministry of Economy (issues related to hazardous waste, certain issues related to air pollution and noise regulation).

The Ministry of Environment executes the State regulation of the use of natural resources and environmental protection management. Therefore the main part of proposals of the Environmental Protection Acts are prepared in the Ministry. Depending on the character of the legal acts they are approved by Minister�s order, adopted by the Governmental decision or ratified in the Parliament. If the competence is general (for few Ministries), the joint orders of the Ministries are issued. The local structural sectors of the Ministry of Environmental Protection are regional departments (8) as well as cities and regional agencies(50) which ensure the requirements of the environmental protection and implementation of its objectives. The officials in the specialized institutions have the authorization of the state environmental protection inspectors. Other institutions such as the Ministry of Economy (management of hazardous waste), Geological Survey (Use of the Earth entrails) the problems of the environmental protection solve in the limits of their competence which is determined by the acts and other legal documents.

According to the Law on Environmental Protection, local authority institutions shall:

� Distribute the national natural resources according to the limits established for municipalities;

� Prepare, approve and implement programmes and schemes of environmental protection and use of natural resources of municipalities and other environmental protection measures;

� Set up the municipal fund for nature protection and dispose of its funds and approve expenditure for environmental protection;

� Within their competence, analyze and co-ordinate projects of planned activities;

� Manage green spaces in urban and rural areas, prepare and approve rules for protecting green spaces;

� Establish within their territories norms stricter than national standards, upon co-ordinating with public authorities which have approved them.

According to the Law on Energy, fuel prices and energy tariffs of facilities that are within the sphere of regulation of municipalities may be fixed by municipalities. Prices and tariffs for consumers that are within the sphere of municipal regulation shall become effective only upon co-ordination thereof with the State Commission for the Control over Prices of Energy Resources and Energy Activities and upon the approval thereof by the Government.

� the Environmental Protection Law 1992 amended in 1996, which describes the powers and duties of the MoE and some others;

� the Ambient Air Protection Law 1999, which describes many of the systems for monitoring and controlling air quality and emissions such as the permitting system and protection plans;

� Law on Environmental Monitoring 1997, which outlines in more details monitoring duties,

There are also many MoE Orders setting standards for air quality, emissions from stationary and mobile sources and for fuel.

There are several economic instruments used for protection of the environment. These include taxes on natural resources, pollution charges on the emission of pollutants into the atmosphere if emissions are more than 10 tones per year, and penalties for exceeding emission limit values. There are four main pollutants: SO2, NOx, solid particulates and heavy metals.

The Law on Environmental Monitoring (1997) establishes the organizational structure and procedure of implementation of environmental monitoring requirements

In the Republic of Lithuania, an inventory of green-house gases and their absorbents was made in 1995. In 1996, the National Strategy for the Implementation of the United Nations Framework Convention on Climate Change was developed and adopted by the Lithuanian Republic Government. The Strategy contains concrete measures for climate change mitigation and adaptation to it.

The Environmental protection regulatory statutes are established by several Articles of the Constitution of the Republic of Lithuania. The main constitutional norms on the questions of the environmental protection provide basic principles of the ownership of the environmental matters, protection of environment from deterioration and State�s responsibility for the nature protection and natural resources.

The basic principles of the environmental protection are determined by the Environmental Protection Law which was passed in 1992. The Environmental Protection Law sets the general guidelines and principals of the administration of the environmental protection, determines the rights and duties of the citizens and public organizations, characterizes the use and accounting of the natural resources, sets regulation of economic activity and mechanism of the economic environmental protection, shows liability for violation of the Environmental Protection Law and solving arguments on the environmental protection questions, and imprints international co-operation in the area of environmental protection.

The national long term environmental strategy of the Republic of Lithuania has been prepared and was ratified in 1996. It is an important document which sets the environmental protection goals, priorities, environmental protection policy principles.

The Environmental Protection Action Program is a complex part of the Governmental Program. Jointly with the National Long Term Development Strategy it is foreseen to establish more comprehensive short and medium term environmental protection action program. The main objectives of the action program are administrative, legal, economic and enforcement.

The main principles of regulation of environmental legislation in Lithuania are sustainable development, environmental policy integration, polluter-pays-principle, precautionary, partnership and liability principle, and the principle of the access to information. The use of the economic instruments in the environmental protection area is foreseen in the Act of Environmental Protection. The provisions are specified in the other acts and other legal documents. The taxes for the use of natural resources, taxes and fees for environmental pollution and other economic instruments are used in the policy of Lithuanian environmental protection.

Integrated pollution prevention control system is under creation at this period. The unified system of the issuing of permits is carried out. There are determined air conditions and water pollutants, use of the natural resources in the same permit. The permit is issued by the regional departments of the Ministry of Environment.

According to the Environmental Protection Act of Republic of Lithuania industrial enterprises are obliged to get permission from the Ministry of Environmental Protection with certain conditions and are obliged to comply with them during production. There is written the type of production, amounts, production technology, pollution emissions into the environment (air, water) norms, the monitoring procedure foreseen, and terminology of the necessary environmental protection means to be implemented. The main principle of the Lithuanian Republic Acts on taxes for natural resources and taxes for environmental pollution is �Polluter pays�. For violation of the conditions set in the permits or breaches, the sanctions foreseen in the mentioned acts are applied that are few times bigger than fees for polluting substances emission to the environment.

Since 1991, the estimated air emissions of the main pollutants from stationary and mobile sources in Lithuania have decreased on average by a factor of 2. However, the situation differs depending on the pollutant, the sector and the city.

There are three level air quality monitoring system: a global air monitoring station in Preila is operating under international Environmental monitoring and evaluation programme (EMEP) and EUROTRAC, three regional integrated monitoring stations and twenty-three local monitoring stations in zones of influence of point pollution sources and their complexes (city and industrial centers) where anthropogenic impact both on the nature and human health is the most prominent. For the moment there is three automatic monitoring station in Vilnius, which provides data on the Internet in order to inform public rapidly.

In Lithuania as of 1996 there were 48 facilities that met the thermal input according to the Large Combustion Plants Directive, but no large combustion plants were considered �new�, because they were all constructed before July 1987. The importance of the energy sector will increase dramatically over time, because of plans to close the Ignalina Nuclear Power Plant, which produces about 80% of the electricity sold in Lithuania, during the first decade of the next century. Combustion power plants are used in half capacity at present.

One of priority measures for reduction of transport pollution is bus fleet modernization, primarily through the purchase of new vehicles. Only small proportion of the new fleet is equipped with modern engines meeting EURO 2 and EURO 3 standards. Fleet modernization would not only involve the purchase of new buses but also the replacement of engines in older vehicles with modern ones which meet the stricter emission standards according EURO Directive.

To reduce air pollution from mobile sources, as the National Environmental Strategy states, it is necessary to solve the fuel quality issue and gradually shift to vehicles which meet the EURO standards, introduce optimal transport streams regulation systems, implement other measures aimed at the reduction of atmospheric pollution. With respect to the energy sector and industries, it is necessary, following the European Union standards, to speed up and finalize the development of legislation for the regulation of emissions, to implement energy saving measures, to promote the use of cleaner fuels and introduction of advanced production and pollutant treatment technologies.

The New National Energy Strategy which adopted by Lithuanian Parliament, proposed a number of environmental measures:

Closing this plant (which will occur within the next 10 to 15 years) will increase the demand on thermal power plants that burn heavy fuel oil.

The main objectives of the energy sector for the nearest future are as follows:

Emission ceiling for volatile organic compounds (in thousand tons of NMVOC per year)

NOTE: Projections assume that the Ignalina Nuclear Power Plant is still in operation

The strategy of reducing emissions of atmospheric pollutants is closely incorporated into the environmental protection strategy whereby several Governmental programmes such as �Transport and Environmental protection�, National Strategy of United Nations� Framework Climate Change Convention�s Implementation, National Programme on Termination of the Use of Ozone Depleting Substances (ODS) are prepared to solve specific problems.

In Lithuania, the public participates in the implementation of environmental protection policy. The 7th article of the Law on Environmental Protection foresees public�s right to information on: environmental status and use of natural resources; impact to the environment by the planned activities and other types of environmental information, participation in the Environmental Impact Assessment (EIA) of the planned activities. In this country, the public has the right to request: an EIA; for an action stop harmful economic activity which is harmful to the environment; to visit natural environmental areas except ones in which the visits are forbidden or restricted by the determined order. The annual reports are published and shared widely. There are many contracts signed with NGOs which receive special editions with specified environmental information directly from MoE. All major groups specified in Agenda 21, particularly NGOs, local authorities, and scientific and technological community, are involved very widely in the decision-making process regarding the protection of the atmosphere as qualified advisors, experts in preparation of legal acts, municipality programmes for traffic systems, air monitoring, etc.

Transport depends to a large extent on road transport. The development of a programme to strengthen the national railway system is planned.

In recent decades, a very intensive and highly chemical agriculture has been developed in Lithuania. In 1991 when crisis both in Lithuanian economics and agriculture started, consumption of chemicals for plant protection, growth stimulators, synthetic mineral fertilizers was considerably reduced. Yields in agriculture decreased accordingly.

Consumption of mineral fertilizers, especially of nitrogen and potassium, in Lithuania was increasing until 1990. If in 1973, agriculture of Lithuania received (in the form of active ingredient) 159.8 thousand tons of nitrogen fertilizers, in 1988 it was 267.5 thousand tons and in 1993 this figure dropped to 29.8 thousand tons. The amount of potassium fertilizers correspondingly was 154.5, 292.2 and 1.0 thousand tons and that of phosphorous 83.9, 141.5 and 12.9 thousand of tones.

A similar situation was observed in the application of chemical means for plant protection in Lithuania. If the amount of pesticides used in 1989 was 8822 tons, in 1993 the corresponding figure was only 490 tons.

Circumstances for positive restructuring of agriculture when implementing the strategy for climate change, are especially favorable today. In the recovery process of economics of Lithuania, it is possible to avoid the former chemical way of farming and exercise sustainable or bio-organic agriculture instead.

The demand for energy resources in Lithuania may and has to be reduced by restructuring agriculture into alternative forms of farming. Having restructured agriculture, pollution and contamination of the environment will be reduced both considerably and directly (when reducing consumption of pesticides and mineral synthetic fertilizers) and indirectly (due to the reduction of output of chemical industry).

Apart from the reduction of the consumption of chemical fertilizers mentioned above, the cutback of energy resources, and improved environmental protection, transition from the so called traditional to sustainable or bio-organic agriculture is extremely facilitated by search of agricultural markets (sale of agricultural products becomes easier) as well as abatement of social hardships (unemployment rate is reduced).

First significant transition measures were implemented. By Resolution 589 of December 24, 1991 of the Lithuanian Government on �Measures of Improvement of Ecological Situation in Karst Region of North Lithuania�, a certain territory was chosen in which limited economic activity was introduced. The intensive zone covers the area of 29.4 thousand ha and the protective region 164.1 thousand ha. To implement the decisions of the Government, the pilot project for the protection of groundwater from contamination and implementation of the development of ecological agriculture in the intensive Karst Zone, was drafted in 1992 and approved by Resolution No. 719 of September 17, 1993 of the Government of Lithuanian.

The program, implemented in the Karst Region by "Tatula" Fund, is a pilot project. Together with the recovery process of economics, reconstruction of agriculture in Lithuania is planned alongside with the first program implemented in the Karst Region and other similar programs in preserved areas to the development of sustainable and bio-organic agriculture in the whole of Lithuania. Possibilities of financing provided, the environmental program for the Karst Region can last for about a decade (until a breakthrough takes place in the region).

� look for the credits from international organizations and developed countries.

Implementation of the pilot project in the Karst Region which can be regarded as a promising model for agriculture is directly interrelated with the commitments of the United Nations Framework Convention on Climate Change. In the process of recovery of the economic potential of Lithuania but without alternative projects for agriculture approximately 600,000 - 700,000 tons of mineral synthetic fertilizers (in the form of active ingredient) and about 14,000 tons of pesticides would be used in the average annually again. This type of production would cause approximately 1.5 million tons of CO₂ emissions.

The Ministry of Environment is planning to modernize laboratory equipment and ambient air quality monitoring system in Lithuania. Equipment for the improvement of the existing 16 air quality measuring station will be bought and installed in the biggest cities and industrial regions in Lithuania. The equipment are proper to produce the results that are equivalent to those obtained by the reference methods common in EC. In addition, staff training to work with the new equipment is foreseen in the project. It is foreseen that for the strengthening of air quality monitoring system until year 2001 about 15 million litas will be allocated (for the methodology development and equipment strengthening).

The overall objective of the project Environmental Policy Development and Regulatory Capacity Building Programme in Air Sector is to build upon the existing Lithuanian approximation process in the area of environmental compliance and enforcement in the air sector with particular emphasis on strengthening institutional and regulatory frameworks. Particular emphasis will be placed on the development of an ambient air quality management system based upon protecting human health and cost effectiveness and on the foundation of a basis for modern environmental compliance in accordance with the requirements of EU air sector legislation.

The objectives of the project are to prepare programmes for the Ministry of Environment of the Republic of Lithuania in respect of harmonizing the following areas with the current EU directives� requirements, standards and norms:

� national fuel quality standards, volatile organic compounds (VOC) emission and emission from large combustion plants and the national stationary sources monitoring system;

� national fuel quality and mobile sources emissions standards, type approval and road worthiness testing of motor vehicles and a statistical data system;

� the Karts Region through the implementation of the environmental program, adopted and approved by the Government (not less than 5 %, or 20 thousand hectares of the land use by the end of the period).

� other regions, supported by the state as well (less of the land use than in the Karst Region).

In 2005-2015, development of sustainable agriculture (about 20 % of all agricultural land by the end of the period) and development of bio-organic agriculture (about 2 % of all farming land by the end of the period) in the whole territory of Lithuania.

Some HCFC substances are in use in Lithuania. HCFC‑22 is still used as a temporary refrigerant. But its consumption does not exceed consumption limits set by the Montreal Protocol. Besides HCFC‑141b is used in foam production by refrigeration plant �Snaige�. But the project on its replacement is under way and completion of the project in the year 2000 will allow us to cease HCFC‑141b use completely.

According to the National Programme on ODS phase out in Lithuania CFC is to be ceased by the year 2001 (save for essential uses if authorized by the Parties and refrigeration servicing). The investment projects currently being implemented will contribute to this process. The completion of the CFC Recovery - Recycling Project and introduction of three recycling facilities in Lithuania will ensure certain amount of CFC available for the secondary use.

In total territory of the Republic of Lithuania occupies 6530.1 thousands of hectares (01 1995), including 3328.6 thousands of hectares of land for agricultural use and 1979.6 thousands of hectares of forests. Farming lands occupy 3513.3 hectares and ploughed of them are 2958.3 thousands of hectares. In the Republic of Lithuania 3041,5 thousands of hectares have been land - improved, 2616,4 thousands of hectares of them by drainage.

Since 1956, Lithuania has started taking state forestry inventories every five years. The last several years inventory is carried out with the help of a computerized database �Forests in Lithuania�. Data are updated every year.

According to the data collected consumption of Annexes A and B substances in 1997 was approximately 118 metric tones, in 1998 - 115,9 metric tones (6.5 metric tones consumed as feedstock are included). Consumption of Annexes A and B substances in 1998 was slightly less compared to 1997 and decreased by 62 % compared to level of 1996 (305.8 Metric tones). In 1998 consumption of HCFC�s and methyl bromide was in compliance with control measures under the Montreal Protocol and its amendments. In 1999 ODS consumption for group A and B substances constituted 85.1 tons (and 11 tones of CCl₄ for feedstock). Since 2000, the import of CFC-113, carbon tetrachloride and methyl chloroform is not allowed to Lithuania. The consumption of Annexes A and B substances reduced in Lithuania by 86 % in 2000 to compare with 1996 level.

Lithuania is not a country that currently has a large air pollution problem, a situation that is partly the result of the reductions in emissions by stationary sources that occurred since 1990. The energy sector is a major source of sulphur and nitrogen-oxide emissions, but it contributes relatively small proportions of the other pollutants.

But we ought to have in mind that the period of transition to market economy will be over, industry will revive and develop, that foreign investments and establishment of new joint stock ventures with foreign capital will enhance industrial development, and increase the demand for energy resources, which in its turn will increase emissions. Then we shall see the importance of the choice of the base year and influence of the structure of energy sector. This month, a political decision was made to close the first reactor of Ignalina Nuclear Power Plant in 2005 (Parliament was approved). Projections for future developments of Lithuania's economy and energy demands have been made based on the World Bank estimations, projections by PHARE experts as well as National Energy and Economy Strategies. The most recent estimations are presented in the Action Plan of National Energy Strategy of Lithuania in view of energy conservation potentials in different sectors.

When Ignalina Nuclear Power Plant is closed, total fuel demand will increase by 30 % in comparison to the situation when Ignalina NPP is in operation. When Ignalina NPP is closed and energy is generated by cogeneration plants (CHP), emissions of carbon dioxide CO2 to the atmosphere may reach the level of 1990.

The general situation in industry and the existence of Ignalina Nuclear Power Plant enabled to reduce emissions by 50 % as compared to the base year. Therefore present environmental situation of Lithuania and its reports to international conventions and their protocols look quite nice, because emission values of carbon dioxide (CO2), nitrogen oxides (NOx), sulphur oxides (SOx), or non-methane volatile organic compounds (NMVOCs) do not exceed and are much lower that limit or target values, set up in relevant conventions(UNFCCC and UNLRTAP)

Air pollution results from industrial and agricultural activities and from traffic and consists most significantly of dust, nitric oxides, sulphate oxides, carbonic oxides and heavy metals. In industry, only 30% of all enterprises have air pollution purification systems, and some 20% of them are not functional.

The decrease of industrial production during the last years, while economically stressful, has resulted in a dramatic decline of pollutants from industry. CO2 emissions result primarily from energy production; SO2 emissions are mostly caused from energy production and industry. Reductions of these emissions were achieved through a change in the use of wood, coal and diesel in favor of gas. NOx emissions were reduced by 20% from 1983 to 1990. Lead emissions from industry and transport decreased by 23% from 1980 to 1990. Total emissions from transport, especially CO2, have been significantly reduced in the past decade: from 551,600 tons in 1985 to 127,000 tons in 1994. Despite the decrease of emissions, air quality in cities does not always meet health requirements. There are only few monitoring stations in the country and monitoring equipment is partly inappropriate.

Lithuania has limited financial resources. Therefore, it is unrealistic to expect financing and , consequently, successful implementation of all policies and measures listed in the Strategy. Therefore, Lithuania should secure available international financial support. The main financial resource to cope with climate change issues is the Global Environmental Facility (GEF) and some subsidies from developed countries according to bilateral cooperation agreements. There is a contact person for GEF at the Ministry of Environment. Projects for international financial support, approved by the National Committee for the implementation of the UNFCCC, are submitted to GEF through the coordinator. The coordinator informs the National Committee about key GEF policies and documents, project presentation terms, etc. Country team is responsible for the preparation of projects.

For the effective execution of the National Implementation Strategy of the UNFCCC, the role of the Ministry of Environment is very important in coordinating activities to ensure planning and coordination of the actions of all state and municipal institutions as well as feedback to specify and update the means foreseen by the strategy. That calls for resolved joint actions of state, municipal and research institutions and NGOs., but it is necessary to enhance the actions of all state and municipal institutions in authority to deal with environmental protection matters and issues.

Stationary source air emissions outside the power sector are in general not considered or expected to be a serious problem. This, of course, could change rapidly depending on economic conditions. The transport sector accounted for approximately 70% of the total emissions into the air in 1998, but the effects of transport pollution are mainly felt in urban areas. Data from the two automatic monitoring stations in Vilnius suggest that cars, trucks and buses account for almost 90% of all air pollutants emitted.

And as is true in most European cities with more than 50,000 people, periods and pockets of high concentrations exist. In particular, concentrations of nitrogen oxides and ozone s sometimes exceeded 24 hour and momentary concentration limits. Since 1996, Lithuania is producing only unleaded gasoline. From 1998 use of leaded gasoline is prohibited as well as diesel fuel with sulphur content higher than 0.05%.

Lithuania still lacks programs on climate change issues for students of both higher, special high and secondary schools. Elementary knowledge on ecology is included into the curriculum of biology, chemistry, physics though not fully integrated and comprehensive

There is a general education system which covers basics of ecological science and other specials environmental protection questions. The administrative officials of the environmental protection institutions have to participate in the training on environmental issues each year. The training of the environmental inspectors is carried out regularly.

When implementing the UNFCCC in the Lithuanian education system, it is started only to identify target groups, establish priorities, develop specially adapted curricula for schools as well as guidelines and manuals. Good measures to promote public awareness of climate change and protection of the atmosphere are active disseminating of information by environmental NGOs and rather often articles in this field in mass-media.

Research and education institutions: teachers of ecology and environmental protection in senior forms of secondary, special high and higher schools; instructors of upgrading courses for teachers; instructors and teachers of upgrading courses for employees of governmental institutions and departments; students studying environmental sciences, forestry, energy, transport, management of economics, agriculture, biology, water management in higher and special high schools; pupils of senior forms of secondary schools where teaching of natural sciences is enhanced.

State and management institutions of all levels (governmental/ county/ local administration): state officials and employees, working in B category governmental/ county/ local administrative institutions in sectors for environmental protection, energy, transport, agriculture, forestry, water management and municipalities, as well as members of respective commissions in local municipal councils who prepare and make decisions.

Sector of economics: environmental protection officials, working in all enterprises without respect to their ownership; bank employees and experts, analyzing and approving business plans for economic activities that influence the environment; employees of environmental consulting companies, environmental experts.

The key priority in Lithuania is to form a public comprehension of climate change issues, factors encouraging climate change, possible negative impacts on Lithuania and the world, possible mitigation means and measures.

In order to have a more realistic view on Lithuania�s contribution on the global climate change process, it is necessary to continue and perfect data collection, compare and analyze more intensively the data by various institutions, continue inventory of greenhouse gases applying other methods as well as comparing the received data with the results of other projects (e.g., CORINAIR), to update and correct data in accordance with the local conditions and available equipment and emission factors of combustion products. More accurate data will be needed for evaluation of the situation when Ignalina nuclear power plant is stopped and search of alternative energy resources mainly influencing the quantities of GHG emissions. This is the general task as the emissions have no borders and their accumulation is hazardous globally

The critical loads of nitrogen and sulphur compounds have been mapped for Lithuanian ecosystem, using recently available calculation methods. The results of calculation showed that critical loads of nitrogen compounds lay in the range from 0,7 to 3,0 g/m² per year with the lowest values in western and south eastern parts of Lithuania. The range of critical loads of sulphur compounds was found to be from 0.2 to 1.8 g/m² per year with the lowest values in southern and north eastern parts of Lithuania.

The mapping of critical loads and exceedances for nitrogen and sulphur have been conducted with the aim of defining the most sensitive terrestrial ecosystems and providing the decision making organizations with a quantitative information as the basis for assessing the strategies of emission reduction for nitrogen and sulphur oxides in Lithuania.

As the first step the assessment of sensitivity of various ecosystem to acid deposition in Lithuania has been performed. The results are presented in a report �Assessment of influence of acid precipitation on national ecosystem (plants, soil and waters)� It has been shown that most sensitive are forest ecosystems, while surface waters can tolerate comparatively high loads of acidifying compounds. Therefore as the second step the maps of critical loads of S and N have been developed for terrestrial ecosystems. These maps have been compared with the monitoring data on annual deposition of S and N in Lithuania, and maps of the exceedances of critical loads have been generated.

The state complex environmental monitoring is executed in Lithuania. The Joint Research Center of the Ministry of Environmental Protection and regional departments of environmental protection are responsible for the implementation of the monitoring program. The monitoring is performed strictly according to the program, confirmed methods, and other standard documents. Each year data about air status are submitted to international data centers on the bases of international agreements. Therefore quality assurance and quality control is ensured according to the international requirements.

Lithuania is now preparing Second National Communication which would enable Lithuania to:

The Academy of Science undertook investigations on renewable energy sources and successfully implemented pilot projects for the use of bioreactors. The national industry is producing solar technologies and Moldovan scientists currently specialize in solar cell technology and application. The company Incomes, with the support of Israeli partners, produces solar heating systems for households, municipal buildings and for the agricultural sector. The Mecagro Industrial and Scientific Association is implementing a technological line for the manufacturing of energy-producing wind installations.

In a general sense, ways should be found to reduce greenhouse gas emissions and to make long-term grounded forecasts to predict narrow gas spectrum and their low emissions in future. Action plans require reliable knowledge on the status of the environment, and accurate, comprehensive and operational information together with vast amount of data. Research and applied investigations on environment, energy, economy, biology and other sectors shall be developed and must include the following:

To more accurately estimate the amounts of GHG gases, additional studies have to be carried out as well. This first of all concerns identification of national emission factors for CO₂, CH₄, N₂O gases, separate technologies or production and perfection of already initiated assessment of pollutants emissions of HFC, CFC, PFC. As it has already been mentioned, the inventory of greenhouse gases has been carried out applying the IPCC methodology of UP-DOWN method, where the accuracy of the initial data is the main factor.

According to the Law on Environmental Monitoring adopted by the Parliament of Lithuania in 1997, the system of environmental monitoring including monitoring of changes and fluctuations in the atmosphere is developed.

Hydropower

All the possessed in Lithuania technological hydro energy resources are estimated to have average annual capacities 407 MW or 3.6 billion kWh every year. From the total the Nemunas river alone has got 237 MW or 2.1 billion kWh/year, the Neris river has got 110 MW or 1.0 billion kWh/year, small rivers have got 60 MW or 0.5 billion kWh/year. The resources are economically grounded and make 1.5 billion kWh per year. In 1994, the hydropower plants in operation such as Kaunas HPP and 14 minor power plants produced 450 million kWh per year. This figure comprises only 10 % of all the technical energy resources and ~26 % economically aimed hydro energy resources in Lithuania.

The river Nemunas complex energy utilization program should be initiated, because of a very perspective location from Kaunas to Druskininkai from the point of view of hydro energy production

Lithuania as a state has limited local resources. The primary objective of energy development here is to increase the efficiency of energy resources and energy consumption. In 1992, under the initiative of the Ministry of Energy �The Program on Development of Efficiency in National Energy Consumption (DENEC)� was prepared. It estimated some possible and important changes of fuel and energy consumption in Lithuania. Estimations have confirmed that implementation of saving measures of the primary energy resources in 10-15-years period would definitely save 1/4 of imported energy resources. The updated DENEC Program and the main trends of its implementation in 1996-2000 have been approved by the Lithuanian Government (Resolution 940 of August 5, 1996). The Program is in implementation stage now.

Annual solar energy potential in Lithuania is estimated 1000 kWh/m² . This potential is equal to the solar radiation in similar latitudes in North Germany and Denmark. Here are presented the figures that rest on the supposition that solar energy could be used for preheating 30 % of domestic hot water (i.e. ~ 30 % from 5000 GWh, that makes 1500 Gwh a year). Then solar energy could substitute 1.5 % of the total primary energy consumption to be used for domestic hot water preheating. Solar energy application in active heating systems has been considered as having no practical implementation in Lithuania. This is proved by the fact that even now the system is not used as an active solar heating system.

It is estimated that environmental pollution by SO₂, CO₂ and NO_x emissions is to be reduced due to the geothermal heat. Implementation of the pilot project on geothermal heat utilization in Western Lithuania (~ 10 PJ per year) would considerably reduce annual emissions of pollutants, i.e. ~ 0.9 million tons of CO₂, 5.8 thousand tons of SO₂ and 2.0 thousand tons of NO_x and annual savings will be 52 million US dollars.

Indigenous Wood Fuel and Biogas

Based on the "Forestry Development Program" as well as on the "Wood Fuel and Conversion Study" prepared by the Danish company "CarlBro Energy A/S" in 1994, an assumption can be drawn that wood fuel reserves to be consumed in 2000 as well as their preparation for fuel, including transportation costs, would be less than 1.4 USD/GJ. It would make:

It is possible to produce 300 MW for this amount of wood fuel consumed. The consumption of indigenous fuel (wood, agricultural waste, peat etc. included) is projected to 200,000 TJ per year. The capacity of boilers burning wood fuel amounts to approximately 60 MW. The mentioned HOBs burned heavy fuel oil and partially coal till now. Having in mind the fact that growing woods uptake much of CO₂, the emission of CO₂ alone in the atmosphere could be reduced by ~0.5 million tons annually if heavy fuel oil is converted by wood.

It is possible to produce approximately 1 million tons of methanol and/or high energy methanol (HEM) out of waste and biomass (wood and timber industry waste, straw). Lithuania can do without oil import for transport needs if it would utilize peat for the production of methanol. 1 ton of combusted gasoline in vehicles makes up ~2.8 tons of CH, CO and CO₂; and 1 ton of diesel fuel ~3.0 tons accordingly. If 1 ton of methanol is combusted, 1.4 tons of CO₂ is produced in a closed biological-production cycle according to a proposed technological scheme.

The chosen technology enables to recycle waste into methanol. There are two ways of methanol consumption: either as fuel for carburetors or diesel engines, or as raw material for further chemical recycling. It is extremely important for Lithuania to have an alternative fuel resource instead of oil products. Such fuel could be a mix of methanol and other higher alcohol (e.g. high energy methanol or HEM) which is formed during the catalytic synthesis of methanol. This fuel would be more environmentally friendly; environmental pollution by exhaust gases and hazardous substances could be reduced by tens of times and would enable to gain a double ecological benefit: waste would not be accumulated in landfill sites, environmental pollution by transport would be reduced.

The model enterprise could be located on sites where biomass is accumulated and connected with each other to achieve the desired capacity.

Lithuania could do with 50 model enterprises with output capacity of each being 1 million tons of methanol / HEM. This amount could be the equivalent for oil fuels and could satisfy ~ 60�80 % of Lithuania�s needs for transport fuels.

According to action plans 8.52 million tons of environmentally friendly fuel could be produced by 2010. Thus, we can state that having consumed ecologically friendly fuel instead of oil fuel, the GHG emission could be reduced in 1999-2010.

Ministry of Environment and the Joint Research Center are responsible for the alignment of the existing legislation to the acquis in the area. The Joint Research Center of the Ministry of Environment is responsible for the organization and methodological control of the State air pollution monitoring and running the air pollution measurement sites.

Of the revenue from the charges and penalties, 70 % goes to the Environment Protection Fund, 20 % to the Environment Protection Investment Fund and 10 % to the State budget.

During the last six years approximately 1 billion litas (approx. 250 million Euro) has been invested in environmental protection. Funds were mainly allocated to construct wastewater treatment plants and sewerage networks, also for boiler-houses and some other environmental projects. Resources allocated for environmental investments from different sources are presented in the next table:

All public priority investments are covered by the Public Investment Programme (PIP) which include projects to be financed from the State Budget, loans and grants taken on behalf of the State, foreign loans guaranteed by the State and earmarked funds in Municipal Budgets. The planning horizon is 3 years. The Government has ratified all PIPs. The first PIP was for 1995-1997, and current is for 1999 - 2001. The allocations for environmental purposes are also planned in the Public Investment Programme.

Environmental investments from the state budget (and state guaranteed foreign loans and grants) are channeled through municipal budgets. Financing of environmental investments from municipalities' own resources is unusual, generally occurs with substantial co-financing from the state budget, and normally makes up only a few percent of overall investment resources.

The level of investment from the Municipal Environmental Funds and current expenditures is increasing, both in nominal and real terms. Allocations to water related expenditures (both investment and current) are the most significant article of the funds' expenditures.

Foreign grants and loans made about half of all investments. The biggest part of loans � about 30 million Euro - came from Danish soft loan facility. The World Bank allocated about 20 and EBRD about 15 million Euro. Financing in general and investment financing in particular from foreign sources has been constantly increasing.

Planned demand and supply of environmental investments for the period 1999 � 2006 is presented in the table:

* Assuming Euro 25 million per year received from ISPA funds for environmental protection

In many cases, to form viable financial packages for environmental projects is possible only by combining grants from state and municipal budgets, environmental funds, and foreign donors and loans from international or national financing institutions.

It is forecast that the financing gap for implementation of approximation projects in the fields of water protection, air protection and waste management for the years 2000-2006 will be approximately Euro 57 million.

In case of joint stock companies which are private or partly private, the main investment sources for activities aimed at protecting the atmosphere are private. As examples could be:

� JSC �Achema� (Jonava Fertilizer Plant) allocating 3.2-3.5 million Litas (800-900 thousand USD) annually for environment protection,

� JSC �Lifosa� (Kedainiai Chemical-fertilizer Plant) which made a great progress in decreasing of hazardous emissions after the plant reconstruction was finished in 1998 (emissions to the atmosphere decreased 14.6 times in 1998 to compare with 1986),

� JSC �Mazeikiu Nafta� (Mazeikiai Oil Refinery) which is under reconstruction now. Emission parameters presently meet applicable Lithuanian regulations. �Mazeikiu Nafta� (MN) has several air emission pollution reduction projects in its modernization plans that will be initiated in the near future. MN�s plans, focusing on the environment, include an incorporation of the latest technology for new process units to reduce atmospheric emissions and minimize energy consumption. Fuel production will meet EU specifications for sulfur, benzene, and olefins and aromatics. Additional environmental projects include sulfur emissions� reduction from the refinery with the installation of more recovery capacity; reduction in volatile organic compounds� (VOC) emissions from certain gasoline tanks with the installation of internal floating roofs; and reduction of VOC emissions from tank car and track loading racks with the installation of vapor recovery systems.

A part of the state funds for the implementation of the UNFCCC and a part of the environmental funds of the MoE and municipalities for public education and awareness on climate change issues should be allocated. NGOs activities, related to public education and awareness on climate change should be financed by these funds as well.

The approximation program was approved in 1996 by Lithuania Government. It sets a list of priority actions necessary to implement White Paper requirements. Some of the regulations established in the existing acts and documents of the Republic of Lithuania are compatible with those of the European Union. Other operating legal acts, new acts in preparation as well as other legal documents will be approximated to the requirements of the EU Directives. For this purpose a special Task Force for the European integration process is places in the Ministry of Environment. For support of the process of integration in the environment sector technical assistance from the European Union and other individual countries are used.

The Ministry of Environment of the Republic of Lithuania actively enlarge its activity in multinational agreements/conventions. Since restoration of independence, Lithuania has established close links for environmental cooperation with its neighbors as well as with other countries around the Baltic Sea and elsewhere in Europe. Lithuania has established very close links and environmental cooperation with the northern Baltic countries. Technical assistance and financial support from these countries has led to a gradual improvement in their common environment.

In 1995, the Governments of Lithuania, Estonia and Latvia signed the Trilateral Agreement on Co-operation in the field of Environmental Protection. It stipulates that the coordination and supervision of the relevant activities are the responsibility of the Baltic Council of Ministries. The Environmental Policy Committee of the Baltic Council of Ministries discusses and prepares all environmental issues giving rise to trilateral cooperation. It also proposes activities to the Baltic Environmental Forum. The Forum is a joint project between the EU, Sweden, Finland, Germany and the three Baltic States.

In 1992, Nordic and Baltic countries set up an integrated monitoring system. In Lithuania there is one EMEP transboundary pollution measuring station for monitoring of air quality (both long-range transboundary air pollution and precipitation)according to EMEP standards. Lithuania participates in warning systems developed to comply with the Helsinki Commission�s Recommendations on the prevention of air pollution.

In June 1992 the Republic of Lithuania signed the United Nations Framework Convention on Climate Change together with the rest of 154 states in Rio de Janeiro. The Seimas (the Parliament) of the Republic of Lithuania ratified the Convention on 23 February 1995 and it has entered into force for our state since 22 June 1995. Since then, Lithuania has started an important venture - inventorisation of greenhouse gases (GHG). To implement the CC:TRAIN programme, developed by the Climate Change Secretariat and the United Nations Institute of Training and Research (UNITAR), a country team was established, which had to prepare the National Implementation Strategy (NIS) of the UNFCCC in Lithuania.

Lithuania participates in the Swedish Programme for an Environmentally Adapted Energy System (EAES) in the Baltic Region and Eastern Europe aimed at the improvement of energy efficiency, use of renewable energy resources, and reduction of emissions, having impact on climate and the environment. The Programme is formulated in line with the UNFCCC provisions on activities implemented jointly (AIJ) and carried out in co-operation with the Swedish National Energy Agency. Lithuania has benefited from this programme, having 10 projects with total investments worth more than US$ 4 million on favorable terms. All projects aim to cut CO₂ emissions by converting heating plants to the use of bio-fuels, introducing efficient energy distribution systems in district heating plants.

The Kyoto Protocol was signed by the President of the Republic of Lithuanian October 1998. Lithuania has pledged itself to reduce GHG emissions by 8 percent. Such a commitment requires the country to undertake quite serious tasks. Assessment of carbon dioxide CO2 also reveal the fact that after the closure of Ignalina NPP, which generates over 80 % of total energy amount at present, the country may face difficulties when fulfilling the obligations of Kyoto Protocol equivalent emissions. Thus, the situation with GHG may become quite complicated but, the country is looking for possibilities to improve the situation in future. Emissions of GHG will decrease if the demands for primary energy resources are substituted by natural gas which is the most environment-friendly fuel. It is also expedient to switch from the consumption of orimulsion (which is a polluting fuel of low calorific value of 27.6 MJ/kg) to natural gas. All the above mentioned specific factors of Lithuania once again stress the need and importance of the GHG inventory for the assessment of the situation in future.

The Government of Lithuania and the World Bank have agreed on a World bank loan (US$ 10 million) to increase energy efficiency of the housing sector in Lithuania. The Energy Efficiency Housing Project is aimed at energy saving in domestic sector and is expected to have a positive impact on the environment (CO₂ reduction) and the economy. Moreover, a number of projects have been carried out on energy saving and renewable energy with the support from Denmark and World Bank (e.g., Klaipėda Geothermal Demonstration Project and bio-gas demonstration plants in Rokai).

The European Bank for Reconstruction and Development supports a project to reduce energy losses and to increase energy efficiency in the capital. The EU TACIS programme supports activities in this sector.

Lithuania has joined the Convention on the Long-range Transboundary Air Pollution in 1994. In 1995 the task force directed by the Ministry of Environment has made assessment of the negative impact of acid precipitation to ecosystems (plants, soil, water) and estimation of critical load of substances which cause acidification (SO2, NOx) per year to the area unit. The final goal of this work is to estimate critical loads of sulphur and ammonium formations to Lithuanian ecosystems and considering the emission quantities of these pollutants in Lithuania and their quantities coming from neighboring countries, to prepare the reduction program of the above mentioned pollutants

Lithuania has no co-operation programs in the area of environmental protection with developing countries. As a country in transitional economy, Lithuania mainly have relationship with economically developed countries and countries which have big experience in environmental protection area, as well as with neighboring countries in transition. For this purpose few intergovernmental bilateral co-operation agreements and few agreements between environmental ministries have been signed.

This information was provided by the Government of Lithuania to the 5th and 9th Session of the United Nations Commission on Sustainable Development. Last update: March 2001.

BIODIVERSITY

On the State level the Ministry of the Environment is responsible for biodiversity. It shares the responsibility with the Ministry of Agriculture and Forestry. The National Environmental Strategy of Lithuania was prepared in 1996, with inclusion of the conservation of biota resources and landscape protection. Preparation of the National Action Plan for Biological Diversity Conservation was the next step.

The most valuable ecosystems and nature areas in Lithuanian nature are protected in five national parks, thirty regional parks, four strict nature reserves and three hundred managed reserves of different types. There are 728,042 ha of especially protected areas in Lithuania, comprising 11.1% of the total territory. The objectives are both to preserve and, where possible, to restore the unique diversity of ecosystems, biotopes, organisms and their populations. The current Lithuanian Red Book describes 501 rare or vanishing animals, plants and fungi species.

The Red Data Book of Communities (prepared for publication) will include 59 association communities out of 120 existing in Lithuania.

The main sources of funding for the implementation of the Action Plan for Biological Diversity Conservation are the State budget, budgets of municipalities, state and municipality's nature funds, foreign funds, and private money. Financial resources to cover all the objectives of the National Biodiversity Research Programme have been strictly limited. During 1994 and 1995, 200.000 Lt (US$50.000) were allocated to the acquisition of nature conservation areas. In Lithuania there is as yet no fund for compensation for landowners.

The National Environmental Protection Strategy was financed by PHARE and was approved by Parliament in 1996. The Biodiversity Strategy was financed by the World Bank. The Landscape and Biodiversity Protection Programme is financed by PHARE.

The Convention on Biological Diversity was ratified in 1995. In conformity with Article 6 of the Convention, Lithuania established a National Action Plan for Biological Diversity Conservation, which was revised in 1996 to include proposals on coastal and marine biodiversity.

Lithuania acceded to the Convention on Wetlands of International Importance, especially as Waterfowl Habitats (Ramsar Convention), in 1993. The Lithuanian Ramsar Sites were established by national legislation through Executive Order No 408 of 25 May 1994.

The Convention on International Trade in Endangered Species of Wild Fauna and Flora has not been ratified.

Lithuania intends to ratify the Convention on the Protection of the Marine Environment of the Baltic Sea Area (Helsinki Convention), which entered into force in 1980. The Lithuanian legislation on land use, landscape protection and activities in terrestrial - local marine areas is compatible with the obligations set out in the Convention.

The Convention on the Conservation of European Wildlife and Natural Habitats (Bern Convention) was ratified by the Lithuanian Parliament in 1996. Lithuanian legislation is still being reviewed for its compatibility with this Convention. The Red List of protected species was published in 1991 and will be revised in 2000.

This information was provided by the Government of Lithuania to the 5th Session of the United Nations Commission on Sustainable Development. Last update: April 1997.

DESERTIFICATION AND DROUGHT

The International Convention to Combat Desertification in Countries Experiencing Drought and/or Desertification Particularly in Africa has not been signed or ratified. There are no deserts or areas in danger of becoming deserts in Lithuania.

This information was provided by the Government of Lithuania to the fifth session of the United Nations Commission on Sustainable Development. Last update: 1 April 1997.

ENERGY

Responsibility for elements of energy is with the Ministries of: Economy; Environment; Transport; and Agriculture.

The Ministry of Economy is responsible for overall energy policies and programmes. There is one section of the Ministry responsible for energy. Within that section, there are two departments (Department for Energy Development and Department of Energy Resources) and one division (Nuclear Division). The Department for Energy Development has the Energy Strategy Division which is responsible for energy efficiency. The Lithuanian Energy Agency (LEA), created in 1993, is responsible to the Ministry of Economy, co-ordinated through the Energy Strategy Division.

There are two units within the LEA directly handling energy efficiency and other international relations including monitoring multilateral and bilateral projects. First is the Energy Conservation Programme Directorate is responsible for preparing the National Programme for Energy Efficiency and Conservation. The Directorate also manages the Energy Conservation Fund, promotes the use of indigenous and renewable energy resources and is responsible for environmental aspects related to energy

The Ministry of Finance is also directly involved to energy related issues because of budgetary considerations. Co-ordination is through the LEA but there is also a separate Energy Conservation Commission, headed by the Minister of Economy. The Commission, approved in 1997, supervises and co-ordinates the implementation of the National Energy Efficiency Programme. There are 10 members of other relevant ministries and organizations

The Ministry of Environment concentrates on environmental policy and the design of management instruments (emission standards, permitting system, environmental impact assessment, economic instruments). For implementation and enforcement of these instruments are responsible the regional and local levels. The Ministry maintains administrations in eight environmental regions. Each environmental region has its own Environmental Protection Department, consisting of 5 to 10 agencies staffed with inspectors. All in all, there are 56 such agencies.

The regional departments� main responsibilities concern the permitting system, environmental impact assessment, laboratory control and enforcement of environmental regulations. To carry out those functions, regional departments have centrally-based core staff and district Environmental Protection Agencies. Inspectors have access to plants and installations, the operators have to keep inspectors informed. Inspectors can order laboratories to monitor pollution, and they can impose penalties if regulations or permit conditions are violated.

An important institution in the implementation of the requirements of environmental protection is the Joint Center of Analysis. This institution, together with 8 regional laboratories, is responsible for state laboratory control and monitoring.

In 1999, the Seimas approved the Law on the Air Protection. Article 3 of the Law gives a high priority to energy efficiency. Also, Article 14 is important because environmental pollution permits can be granted to companies who reduce pollutants through improved energy efficiency.

The Law on Energy, adopted on 28 March 1995, defines the general provisions of energy activities, the basic principles of energy development, functioning and management. In fact, the Law provides the legal basis for the entire energy programme. Law on heat, electricity and natural gas was presented to the Seimas.

The main document which outlines energy efficiency policy is the National Energy Efficiency Programme which was approved by Government (Decision No. 940) in 1996. It replaced the Plan adopted in 1992. The 1996 Programme covered the period 1996-2000 and had the following tasks:

� Refurbish existing buildings, update energy utilities, insulate and build houses effectively;

� Reorganize the construction materials industry in order to ensure the manufacturing of energy efficient construction materials;

� Design, produce and install water, steam, gas, power and heat metering and regulating devices and systems;

� Provide information and promotional activities related to energy saving and the utilization of energy resources, local fuels and renewable.

For each of these categories, the government has specific sub-tasks with bodies responsible and milestones. A detailed work plan is prepared annually. The annual plan takes budgetary conditions into account.

The Law on Air Protection gives a high priority to energy efficiency. As an example could be Article 14 according to them, environmental pollution permits can be granted to companies who reduce pollutants through improved energy efficiency.

Lithuania has made a big progress in its overall approach to energy efficiency, providing a good policy base for the future. There is a good acceptance and integration of energy efficiency within the overall energy strategy. In some Lithuanian legal acts there are more strict requirements than those in the EURO legislation. The most important Lithuanian legal acts which concern energy and energy related aspects of atmosphere and transportation are as follows:

� Law on Natural Gas (Law is adopted, translation is on-going);
Download as Word document (58 KB);

� Electricity Law (Law is adopted, translation is on-going)
Download as Word document (133 KB);

Energy prices are being set on a cost-based principle. While not necessarily distorted from a cost point of view, they are nevertheless affecting the fuel mix that may have negative long-term implications. This is particularly so with respect to heat and natural gas. The heat sector has the legacy of a large, often inefficient infrastructure. On the other hand, district heating can be fuel flexible because it can switch from oil to natural gas to renewable. From an energy security point of view, this has many advantages.

The National Control Commission for Prices and Energy was created by President�s Decree on February 10, 1997. The Commission, which is independent and reporting to the President, was given the responsibility to set regulated energy prices for electricity, natural gas and district heating.

� Analysis of the main economic issues of the energy sector, including investments;

� Establishing price principles for electricity, district heating, hot and cold water supply and natural gas, passenger transportation by road transport over regular long distance routes, and passenger transport by train and water transport inside the country;

� Negotiation with suppliers of their prices and tariffs, using the approved methodologies;

� Approval of fuel consumption norms for production of heat and electricity; and

� Within its legal authority, investigation of complaints made by customers, of disputes arising between suppliers and consumers, and defending the interests of customers.

According to Article 15 of the Energy Law, tariffs are designed to cover costs and investments. Energy companies set their own prices following methodologies set by the Commission. The prices are then submitted to the Commission for approval. Following the Commission's analysis (for example, the Commission will determine what company costs are eligible), an open meeting is held to allow all interested parties to voice their concerns. If there is no agreement, the Commission unilaterally sets the price.

Eligible costs include tangible costs, depreciation and interest. Limited environmental costs are allowed. The methodology is regularly assessed and, for example, it was changed for electricity in 1999. The 1999 change allowed the Commission to make a better allocation of electricity costs to the appropriate customer groups. The Commission believes that this avoids "social tariffs" which subsidize some customers.

There are no subsidies or cross-subsidies remaining. There is a problem concerning the price differential between natural gas and heat, not because of subsidies, but because natural gas is about 40 % cheaper, leading consumers to want to switch. To counterbalance this problem, the Commission has proposed that municipalities should establish heat plans within their jurisdictions to set certain districts for heat and others for natural gas.

The 33^rd Article of the Law on Environmental Protection foresees that juridical and physical bodies whose health, property or interests were harmed and the officials of the Ministry of Environment, other officials when harm was made to the interests of the State can submit claims for the compensation of illegally made harm to environment. Organizations and separate bodies (physical as well as juridical) may object the decisions in the administrative law violation cases by the environmental protection officials, other decisions and resolutions to the Court. Non-governmental organizations have the right to participate in discussion of environmental protection questions. Participation of non-governmental organizations in environmental protection is confirmed by the Law on Territorial Planning adopted in 1995, and Law on Environmental Impact Assessment which is adopted in 1996.

The Energy Inspectorate, created in 1995, is subordinated to the Ministry of Economy. Its goal is to ensure reliable and safe use of energy equipment. It issues permits for installations, undertakes audits, inspects repairs, examines energy managers (which are required for each company). In fact, the Inspectorate ensures that safety norms are enforced.

There are several economic instruments used to protect the environment. These include taxes on natural resources, charges on the emission of pollutants into the atmosphere if emissions are more than 10 tones per year, and penalties for exceeding emission limit values.

The 1996 National Environmental Strategy is the main policy document related to the environment. The strategy gives high priority to energy. Many elements of environmental policy relate to energy efficiency. The National Energy Strategy also promotes both energy efficiency and environmental protection.

Energy policy has evolved in Lithuania throughout the 1990s. The first National Energy Strategy, which covered the planning period up to 2015, was approved in 1994. The Strategy focused on:

In 1999, the new National Energy Strategy was approved by the Seimas (Parliament of the Republic of Lithuania). The Strategy revised the energy development trends that were established in 1994. The 1999 Strategy has the following objectives:

� improvement of the energy sector management and implementation of market economy principles in the energy sector;

� integration of the Lithuanian energy sector into the energy systems of the European Union; and

The Strategy, which covers the period to the year 2020, has different elements on energy supply, improvement in energy efficiency, environmental protection, training of specialists and scientific research, and market liberalization and competition. The Strategy provides the targets and directions for modernizing the energy sector, meeting both national needs and international obligations. The Strategy also includes a demand forecast. In the scenario that the government considers the most likely, household energy demand will decrease by 7.5 % by 2020, the trade and services sector (together with construction and agriculture) will increase by 20-30 %, and both industry and transport will grow by 80 %. The scenario expects natural gas consumption to double, the share of solid fuels and oil products for heating to decrease and the consumption of motor fuel and electricity demand to increase 1.7 times. In the fast growth scenario, electricity could increase 2.4 times.

The enforcement process is largely based on a system of permits and self-monitoring, with environmental inspectors periodically checking emission levels to verify the accuracy of operators� reports. All pollution is �taxed�, even if it is within the permissible limits. Failure to report (or fraudulently reporting) environmental information and releasing pollutants

Energy efficiency is an important priority in the transport sector and many of the measures combine energy efficiency improvements and pollution reduction. There are import taxes to limit old, inefficient cars from entering the country. There are different taxes depending on whether the car is 5 or 10 years old. There are regular inspections of vehicles for emissions. Lithuania is gradually adopting EURO standards for emissions.

The State Road Transport Inspectorate and driving schools promote training and information on energy-efficient driving, fuel consumption and city driving. Leaded gasoline has been banned.

One of the main instruments that has been approved but not implemented yet is the Energy Conservation Fund, which would be partly funded by the PHARE programme, and which is authorized under the Energy Law. This fund was approved but never implemented because PHARE would not fund it without a funding commitment from the State. This commitment was given in late 1999 (for 400,000 Litas � 100,000 USD) but the fund had not started as of April 2000. The Fund will be managed by a Board of two representatives of the Ministry of Finance and two representatives from the Ministry of Economy.

The National Energy Efficiency Programme is currently being revised and presented to the government at the end of 2000.

The principal sources of pollutant emissions in Lithuania, as in many other countries, are transport, industry and energy sectors. There are no major subsidies either in the transport or in the energy sectors to improve environmental issues.

Indigenous energy resources provided only 9.3 % of Lithuania's energy needs in 1998. These included crude oil (2.9%); peat, firewood and straw (6.0%) and hydropower (0.4%). Of the energy imports, Russia contributes 99 % in the form of natural gas, oil and coal.

The two major inputs into primary energy supply are oil products and nuclear energy. Oil products represented 38.3 % of TPES in 1998 and nuclear 36.0 %. This was followed by natural gas at 17.9 %.

Nuclear energy comes from two units of the Ignalina Nuclear Power Plant. In 1998, total generating capacity was 5980 MW in Lithuania, with Ignalina accounting for 2760 MW. Peak demand was 2077 MW. Lithuania is also a large exporter of electricity.

Renewable are starting to show promise. Currently 6.4 per cent of primary energy demand is derived from renewable, mainly in the form of biomass and hydro. There have been many efforts to increase renewable, particularly in rural areas and in the forestry industries, where there is good potential. There has been international support to convert boilers to use wood (with a total capacity of 140 MW). There are also 15 straw-fired boilers with a total capacity of 10 MW and several other new hydro and biogas plants.

Lithuania has a high energy intensity. In 1998 it was estimated to be 0.91. This is significantly higher than the EURO average.

Due to increase of electricity export and of amount of oil refined in 1998 primary energy consumption in Lithuania increased from 9.1 to 9.8 Mtoe or by 7% if compared with 1997. In this consumption oil products constituted 38.3%, nuclear energy - 36.0%, natural gas - 17.9%, coal and coke - 1.4%, local solid fuel (peat and firewood) - 6.0%, hydro power - 0.4%. The biggest part of the primary energy was consumed for electricity generation (42.4%), while for heat production - 18.2%, for fuel processing - 5.4%, for final fuel needs - 26.9% was consumed. Non-energy fuel demand and various losses constituted 7.2%.

Final energy (fuel, heat and electricity) annual demand decreased from 4.51 to 4.46 Mtoe or by 1.3%. The biggest part of final energy in 1998 was consumed by household users (33%), in transport (29%) and by industry (2.2%).

Index	1996	1997	1998
Energy Sources	9864	9102	9802
Indigenous Energy Production	4371	3908	4434
Crude Oil	155	212	278
Solid Fuels	555	537	588
Nuclear Energy	3633	3134	3522
Hydro Energy	28	25	36
Import Fuels	5493	5194	5368
Oil and Oil Products	3122	3029	3472
Natural Gas	2168	2002	1754
Coal and Coke	203	163	142
Energy Consumption	9864	9166	9802
Fossil Fuels
Heavy Fuel Oil	1503	1250	1591
Gasoline	698	695	666
Diesel Oil	537	650	707
Jet Kerosene	34	32	28
Light Fuel Oil	82	33	12
Liquefied Gas	82	103	113
Other Oil Products	342	478	619
Total Oil Products:	3277	3241	3750
Natural Gas	2168	2002	1754
Coal	203	163	142
Peat	19	19	17
Firewood and other Solid Fuels	536	518	571
Total Fossil Fuels:	6203	5943	6234
Nuclear Energy	3633	3134	3532
Hydro Energy	28	25	36

Party	Emission levels in		Emission ceiling for	Percentage emission
	1980	1990	2010	reduction for 2010
LITHUANIA*	311	322	154	-35 %

Party	Emission levels in 1990	Emission ceiling for 2010	Percentage emission reduction for 2010
LITHUANIA*	158	110	-30 %

Party	Emission levels in 1990	Emission ceiling for 2010	Percentage emission reduction for 2010
LITHUANIA	84	84	0 %

Party	Emission levels in 1990	Emission ceiling for 2010	Percentage emission reduction for 2010
LITHUANIA	111	92	17 %

GHG source and sink categories	CO₂emissions	CO₂removals	CH₄	N₂O	NO_x	CO		NMVOC
Total emissions and sinks	42338	11651	377.95	13.15	178.29		644.1	93.65
1. All energy	37332		31.35	0.95	17789		644.1	81.36
A. Fuel combustion	37332		5.25	0.95	177.89		644.1	72.76
1. Energy & transformation activities	16352		0.73	0.36	58.63		43.8	0.74
2. Industry	5379		0.44	0.14	10.90		18.4	0.44
3. Transport	5791		1.42	0.19	71.69		492.3	65.03
4. Residential heating	6313		0.73	0.16	30.16		42.1	3.84
5. Other	2882		0.43	0.09	6.02		11.0	0.43
Biomass for energy purposes	615		1.50	0.01	0.49		36.5	2.28
B. Fugitive fuel emission			26.1					8.6
1. Solid fuels
2. Oil and natural gas			26.1					8.6
2. Industrial processes	2203		0.2	1.4	0.4			1.2
3. Solvent and other product use								11.1
A. Paint application
4. Agriculture			180.7	10.8
A. Enteric fermentation			157.3
B. Animal waste			23.4
C. Agricultural soils				10.8
5. Land use change and forestry	2803	11651
A. Changes in forest other biomass stocks		10375
B. Forest and grassland conversion	2803
C. Abandonment of managed lands		1276
6. Waste			165.7
A. Landfills			162.0
B. Wastewater			3.7

NATURAL RESOURCE ASPECTS OF SUSTAINABLE DEVELOPMENT IN LITHUANIA

AGRICULTURE

ATMOSPHERE

Party

Hydropower

Indigenous Wood Fuel and Biogas

BIODIVERSITY

DESERTIFICATION AND DROUGHT

ENERGY

Sectors	Emission/removal
1. Energy	37332
2. Industry	2203
5. Land use change and forestry	2803
TOTAL	42338
5. Land use change and forestry	( - 11651 )

Source of financing	1992 � 1998
State budget	447
Environmental funds	85
Foreign loans	275
Foreign grants	138
Total	945

Specification	Years
	1999	2000	2001	2002	2003	2004	2005	2006	Total
Resources for environmental investment
State budget		8	8	8	8	8	8	8	56
Municipal budgets		1	1	1	1	1	1	1	7
Own resources and loans		10	10	10	10	10	10	10	70
Environmental funds		5	5	5	5	5	5	5	35
Foreign grants*		28	28	28	28	28	28	28	196
Total		52	52	52	52	52	52	52	364
Needs in the field of environmental assessment³
Water protection		43	43	43	43	43	43	43	301
Air protection		-	-	10	10	10	10	10	50
Waste management		10	10	10	10	10	10	10	70
Total		53	53	63	63	63	63	63	421
Financing gap for implementation of approximation programs
		1	1	11	11	11	11	11	57

Kinds of Fuel	Import	Export
Crude Oil	322	357
Gasoline (95)	648	604
Diesel Oil	572	522
Light Fuel Oil	506	-
Heavy Fuel Oil (M-100)	235	238
Liquefied Gas	567	454
Orimulsion	216	-
Natural Gas (t/km³)	296/435	-
Hard Coal	159	184
Lignite	95	-
Oil Bitumen	548