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.

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
Gross Consumption
Electricity Generation	4030	3521	4154
Fossil Fuels	369	362	586
Nuclear Fuel	3633	3134	3532
Hydro Energy	28	25	36
Heat Generation	2100	1890	1785
Power Plant	737	714	709
Boiler Houses	1363	1176	1076
Oil Processing	350	441	530
Non-Energy Consumption	602	586	657
Fuel Losses	84	55	52
Final Fuel Consumption	2698	2609	2623
Primary Energy Consumption	9864	9102	9802
Electricity Export (-)	-444	-303	-523
Internal Consumption	9420	8799	9279

Consumer Groups	Fuel			Heat			Electricity
Consumer Groups	1996	1997	1998	1996	1997	1998	1996	1997	1998
Industry	354	349	363	459	410	408	240	239	225
Transport	1186	1228	1281	1			9	9	9
Residential Sector	767	732	726	696	636	604	138	148	150
Agriculture	128	97	89	16	37	36	38	37	36
Other consumers	263	203	164	227	241	204	134	146	161
Total:	2698	2609	2623	1397	1325	1252	560	579	581

Waste water

In 1998, the total amount of wastewater requiring treatment was 217 million m³. Of this amount 117 million m³, i.e. 54% were treated to meet Lithuania�s effluent standards, 66 million m³, i.e. 30% was discharged into surface waters without sufficient treatment (mechanical treatment only or cleaned in ineffective biological treatment facilities). Some 34 million m³, i.e. 16% were discharged into surface waters without treatment. Only from Kaunas, Lithuania�s second largest city�s untreated wastewater in 1998 amounted to 14%.

Pollution caused by industry has decreased over recent years, partly as a result of reduced economic activity in certain key sectors. Agriculture has rather strong impact on water quality. 50% of the total riverine N load and 22% of the total riverine P load originate from non-point pollution sources.

Air quality

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. The emissions of classic pollutants such as sulphur oxides, nitrogen oxides and carbon monoxide have fallen more than half during the period 1991-1998.

In the last few years, SO₂ emissions from the plants of Lithuania�s State Power System have fallen by nearly 70 per cent compared to 1980. Total CO₂ emissions were considerably lower in 1998 than in 1990 (19 and 42 e.q. million tones, respectively. The decrease in emissions was caused first of all by the economy recession, though new regulations and norms are also beginning to have an effect. However, emissions from traffic in urban areas, energy production and the chemical industry continue to be a problem. In 1998, the main sources of atmospheric pollutants was transport amounting to 70% of total emissions.

The future air pollution from the power sector depends primarily on the complete closing-down of Ignalina NPP, scheduled in two stages. First nuclear unit to be decommissioned in year 2005.

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 yr 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 yr with the lowest values in southern and north eastern parts of Lithuania.

There are no special provisions relating to the training of administrative officials in the environmental field in Lithuania. 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 3 years. The training of the environmental inspectors are carried out regularly.

There is also the Energy Efficiency Center, which was created in 1995 and started functioning in 1996. The Center provides information and advice on energy savings, promotes energy efficiency throughout the energy cycle and undertakes energy audits in the buildings sector.

Energy Efficiency Research and Information Center of the Lithuanian Energy Institute funded through the State budget. The Center carries out research and transfers its expertise to the Energy sector. It is a major body implementing the National Energy Efficiency Programme.

Trans port mode	1990	1991	1992	1993	1994	1995	1996	1997	1998
Railways	112	110	106	120	124		104	80	78
Road	1198	1270	724	660	548	606	926	1080	1142
Water	289	288	216	257	215	159	158	125	4,5*
Air	64	84	54	45	38		31	31	26
Total	1663	1753	1101	1082	1150		1219	1217	1269

In 1992, Lithuania signed the UN Framework Convention on Climate Change and ratified it in 1995. Lithuania prepared National Strategy for Implementation of UNFCCC.

In 1998, Lithuania signed the Kyoto Protocol, committing itself to a reduction of GHG emissions of 8 % by 2008-2012 from the base of 1990.

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 (STEM, formerly NUTEK). 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.

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., Klaipeda Geothermal Demonstration Project and bio-gas demonstration plants in Rokai). 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.

As example could be presented the Lithuanian Government�s position on Ignalina NPP:

1.1 In mid-1999, the Government of Lithuania formally presented to the Lithuanian Seimas the National Energy Strategy, which included its intentions to (a) decommission Unit 1 of Ignalina Nuclear Power Plant (INPP) and (b) decide upon the closing scenario for Unit 2 in the context of updating the National Energy Strategy. The Parliament adopted the National Energy Strategy on 5 October 1999. Following this decision, the Government introduced the �Law on the Decommissioning of Unit 1 at the State Enterprise of the Republic of Lithuania INPP� (hereafter: the �Law�), which was adopted by Parliament on 2 May 2000. The Law provides the enabling framework for the decommissioning process.

1.2 Even before the adoption of the Law, the Government had initiated discussions with the international donor community on the ways and means, as well as the direct and indirect consequences of decommissioning. Many of these policy-oriented discussions took place in the Joint European Commission/Lithuania Working Group on Energy. In parallel, the implications of decommissioning were addressed in a variety of bilateral and multilateral settings.

1.3 The positive international response to its decision to decommission prompted the Government to organize the donor conference. The Government�s expectations with regard to the donor conference focus on international recognition of Lithuania�s commitment to:

1.4 The Government would welcome the international community�s support for the wide range of activities necessary to be implemented in the coming decades, in general, and for the activities directly and indirectly related to the decommissioning process in the period 2000-2010, in particular.

1.5 The Government considers the convening of the Donor Conference as the first step in a process in which Lithuania can seek the advice and support from the participants, collectively and individually, with a view to receiving the most extensive contribution from the international community towards achieving the goals as set out in the National Energy Strategy.

2.1 The Government regards the decommissioning process as an issue that can only be solved in an international context. The preamble of the Law reflects this: �Lithuania has inherited Ignalina Nuclear Power Plant, which was constructed to solve energy supply problems of a large part of Eastern Europe, and therefore the closure of the plant is not only Lithuania�s, but also an international problem. The adoption of the present Law is based on the National Energy Strategy�. The National Energy Strategy (1999) is set explicitly in the context of preparing for accession to the European Union.

3.1 Upon regaining its independence, Lithuania commenced an in-depth review of the actual state and future development of its energy sector. The role of nuclear power constituted an integral part of this review.

3.2 The internal discussions on the re-shaping of the energy sector, long lines of economic viability, were much assisted by a variety of externally funded assistance programmes. Although the discussions on energy sector restructuring of necessity had to tackle a number of highly problematic issues in parallel (covering, but not limited to: the nuclear power, electricity, gas, district heating and renewable energy fields), all these different strands pointed to the central question of the future of nuclear power in Lithuania. The decision to decommission forced more concentrated thinking on conventional and alternative methods of power generation in particular.

3.3 The Government is committed to continue its investigation of the advantages offered by various power generation modes. Inter-connection of the Lithuanian grid with the Western European grid is expected to increase security of supply and access to the international energy market. The trade-offs between future investment in the rehabilitation of existing conventional power plants, which suffered a long period of under-investment, on the one hand, and in the establishment of the combined heat and power plants (CHP), on the other hand will be important element in this investigation. The Government will be led by the principle that there is a need to establish combined heat and power production in the context of the rehabilitation of existing district heating systems, to integrate natural gas network into Western networks and improve energy efficiency. The Government will urgently outline and, in the very near future further detail, the regulatory framework for the production, distribution and consumption of power, gas and heat.

3.4 This regulatory framework is covered by three separate pieces of legislation currently under preparation and dealing with, respectively, electricity, gas and district heating. These new laws are intended to provide the enabling framework for reform in these areas. They are part of the implementation of the National Energy Strategy, in line with the Action Plan to Implement the National Energy Strategy (1999). In addition, the Government intends to introduce in the very near future new legislation aiming to enhance energy efficiency on the part of households and industrial consumers.

4.1 The Government recognizes that decommissioning will change and accelerate the investment pattern in Lithuania. New investment will introduce new energy efficient and environmental friendly technologies in the country�s capital stock, which will contribute to limiting the emission of greenhouse gases. The Government expects the advice and support from donors in identifying, selecting and implementing the appropriate technology mix.

4.2 Apart from the requirements attached to the restructuring of the energy sector, as outlined under 3 above, the Government wishes to do the utmost possible to adhere to the Kyoto Protocol in regard of limiting of CO₂-emissions.

4.3 To the extent that adhering to these requirements implies incurring additional investment and operational costs in power and heat generation, the Government expects the support of the international community in identifying and putting in place adequate solutions.

5.1 Many of the projects that need to be carried out in the medium and long term for the reform of the energy sector, offer scope for participation by private domestic and foreign investors. Of particular interest for private investment are the electricity, gas and district heating areas.

5.2 The Government is committed to stimulating private investment in the energy sector, through further privatization and restructuring of utility companies.

5.3 The Government expects the assistance of the international community in regard of stimulating investment, through drawing the attention to foreign direct investment opportunities in the Lithuanian energy sector.

5.4 The Government recognizes that in-depth, long-term restructuring of the energy sector will be heavily dependent upon loan-based financing of commercially viable energy projects.

6.1 The process of decommissioning has a number of implications for the economic development of the Tuna region. While decommissioning itself will generate economic activity, especially in the medium term, there is a clear need for a dedicated programme of regional development aiming at restructuring and generating additional economic activity in the region.

6.2 At the same time, public resistance to economic deterioration, whether based in fact or not, is a factor that may influence the speed and eventual success of the decommissioning process.

6.3 To do justice to both the long-term development of Utena region and public concern in the medium-term, a dedicated programme of regional development aiming at generating additional economic activity in the Utena region, also for the benefit of the whole of Lithuania, will be necessary. A number of initiatives is already under preparation, but a long-term effort will be required.

6.4 The government expects the active support of the international community in identifying, adopting and implementing viable regional development measures.

7.1 The Government has developed two groups of support it considers necessary for a successful start and implementation of the decommissioning process:

projects directly related to the (preparation of the) decommissioning process and mainly to be funded through a multi-lateral International Decommissioning Support Fund, managed by the EBRD;

projects more indirectly related to the decommissioning process, or the general need for restructuring of the sector, and submitted for funding from either international financing institutions and bilateral sources, or through equity and credits from domestic and international private investors.

7.2 The projects presented reflect current thinking on the short, medium and long term needs of the energy sector. The anticipated financing modalities differ from project to project and are based on grants, �soft� loans, commercial loans and combinations of these.

7.3 In the short term, the projects focus on the preparation and facilitation of the decommissioning process. In addition, a substantial volume of technical assistance will be required in the period 2000-05 for feasibility studies, design and engineering of the projects envisaged for implementation in the medium and long term, especially those with a pre-dominantly commercial character. The update of the National Energy Strategy scheduled for 2004 will include the findings of this preparatory work and shape a new Action Plan to Implement the National Energy Strategy for the period 2006-2010.

7.4 The two groups of projects are presented in the attached tables and short project descriptions. The Government is conscious of the need to match project volumes to absorptive capacity in the sector, especially for the years up to 2006. The project tables and summaries that form part of the Conference documentation are prepared with this in mind.

7.5 The Government expects the international community�s support in procuring the financing necessary for the activities directly and indirectly related to the decommissioning process.

The Ministry of Environment the Republic of Lithuania actively enlarge its activity in multinational agreements/conventions. In 1992 Lithuanian delegation took part in Conference on Environment and Development in Rio de Janeiro organized by UN during which UN Framework Convention on Climate Change and Convention on Biological Diversity were signed. Lithuania ratified them in 1995. At present the co-operation is very active in order to implement the requirements of these conventions.

The Republic of Lithuania ratified the UN Framework Convention on Climate Change in 1995. The national implementation committee of UNFCCC was established. During the implementation of UNFCCC requirements and with the help of Convention Secretariat and UN Institute Training and Research the task force was formed from which prepared the National Strategy.

Lithuania has joined the Vienna Convention and Montreal Protocol in 1994. The Ministry of Environmental Protection was appointed to organize and co-ordinate implementation of the Montreal Protocol. The National Strategy of Cease of the Use of Ozone depleting substances is prepared and adopted. There the data on ODS use and its dynamics are presented, priority objectives and projects for reduction and cease of the ODS use are set up.

The Strategy was approved by the Lithuanian Parliament in October 1999. Its general objectives are as follows:

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

The plan develops those objectives into more concrete policies, legislation and actions by Government for the next five years.

� Restructuring of the electricity and gas sector to create competition wherever possible and to implement the EURO Electricity and Gas Directives;

� The closure of Unit One at Ignalina NPP, the licensing of Unit Two, and a decision made on the future of Unit Two;

� A modernized and forward-looking Energy Administration in the Ministry of Economy which is appropriately organized, resourced and trained for its future tasks;

� Significant measurable improvements in energy efficiency and, if possible, also the use of local energy resources and renewable, to reduce the dependence on fuel and energy imports, and to diversify fuel supply;

� Significant progress in planning air pollution control and readiness to take part in emissions trading and joint implementation if appropriate for Lithuania;

� Modernization of the Lithuanian education and scientific research system to meet the needs of the energy sector for education, training and research.

When this work is complete, the Government will also have achieved the changes necessary to meet international agreements on:

Cost reduction for consumers

Although energy production is currently considered relatively cheap to consumers compared with EURO prices, the Lithuanian prices conceal large inherited technical and managerial inefficiencies which it is now time to remove. By removing these inefficiencies first, the price rises will be minimized.

The main inefficiencies will be reduced by the creation of a commercial energy sector with market relations and the introduction of competition between producers and distributors. Since the role of the market is different in each sector - electricity, gas, oil and heat, are discussed separately.

It is anticipated that when the market has been set up and market players established, many of the players will be privatized, through open and transparent tendering processes, to appropriately qualified strategic investors, to improve competition and bring needed investments and skills.

At the same time, since competition is not possible in all parts of the market, consumers must be protected by a strong regulatory body from the monopolies created, and it is unlikely that most of these parts of the system will be suitable for privatization.

Security of energy supply

In the new market economy for energy, local security of supply is a commercial matter between the energy utility and the consumer.

Regional security of supply is a matter to be resolved between the new Regulator and the utility. The Regulator will set reliability standards for groups of consumers, and allow reasonable investment costs incurred by the utility to meet those standards to be included in the tariffs for the consumers.

National security of supply is, however, a Government policy concern. It is likely to be affected by three issues:

1. Increasing use of imported gas (replacement of nuclear energy by fossil fuel , efforts to control air pollution from heavy fuel oil, higher heavy fuel oil price).

2. The creation of an independently operating power system in the Baltic States, with possible disconnection from the Russian power system.

These issues are discussed later in the relevant sections of the Action Plan, but for electricity and gas, security could be improved in the longer term by links westwards to the European energy systems.

� Energy efficiency measures, especially gas-fired CHP instead of separate generation of heat and power;

The environmental policy described below means that most actions by polluters on environmental issues could be delayed. However, this does not mean there will be no action. In the current period for the Action Plan, energy efficiency improvements will be a major focus and as such will also contribute to environmental improvements especially to prevent emissions rising as the economy grows.

Actions by consumers in the field of energy conservation (both domestic, commercial and industrial) will be important in reducing their own costs, and improving the parameters of energy demand for producers.

Previous efforts to promote energy efficiency have been handicapped in the past by comparatively low energy prices sending the wrong signals to consumers, lack of legislation and lack of investment funds. Promotion has also been hindered by the lack of priority shown by the Government. This Action Plan is intended to correct this.

At the same time, energy suppliers will be given a duty to work with consumers to assist them to reduce their consumption.

The passing of the Energy Conservation Law, revision of the National Energy Efficiency Programme and the activation of the Energy Efficiency Fund will be the main means to promote this.

Because the major nuclear safety issues relate only to Ignalina NPP, they are dealt with in Section 7 not here.

One of the major driving forces on the international energy sector in the next decade will be the incorporation of environmental targets for reduction of emissions of SO₂, NOx and CO₂, especially those of the Kyoto protocol. Reductions of SO₂ and NOx can be made by technological improvements, by fuel substitution to less polluting fuels, and by energy efficiency improvements. CO₂ reduction can be done only by reducing the amount of fossil fuels burnt, i.e. by improved energy efficiency in production and consumption. The increasing use of renewable energy resources will also assist in meeting targets. However, possibilities for international CO₂ emissions trading and joint implementation are also developing in which Lithuania may assist other countries in meeting their own targets.

At the same time legislation in Lithuania must be harmonized with existing environmental legislation in the EURO, in emission standards, energy efficiency and environmental protection. Little practical work has been done so far on this and ministries are still confused as to their exact plans and obligations.

At present, due to much lower levels of economic activity, Lithuania is in a favorable position with regard to keeping emissions below 1990 targets. However, by 2005 as the economy develops again, and Ignalina NPP Unit One closes, increasing emissions from power generation, air pollution control targets will need to be applied, especially to users of heavy fuel oil, so that they change to less polluting methods of energy production.

In order to balance the need for careful planning on environmental issues with the need for immediate action, Government policy for the environment up to 2005 will have two main directions:

1. Planning for air pollution control, including legislation, taxation and investment planning for introduction in the period 2005-2010.

2. The introduction of legislation for the implementation of EURO environmental standards in other areas (mainly the oil sector).

Planning of air pollution control targets for introduction between 2005 and 2010.

Targets must be allocated for all sectors of the economy, especially transport and energy intensive industry, as well as for the energy sector. Efficient tax incentive schemes for investment in emission reducing equipment, energy efficiency, renewable and local energy resources need to be worked out. Lithuania needs as well to establish its national position on CO₂emission trading.

There are not yet any firm targets for air pollution control in the energy sector in Lithuania. However, targets could be as follows:

� NOx: to maintain NOx emissions at the level of the year 1987 (Sofia Protocol)

� SO₂: not to exceed SO₂ emissions at the level of 1980 reduced by 30% (Oslo protocol)

� CO₂: to maintain emissions of greenhouse gases 8% below the 1990 level by the years 2008-2012 (Kyoto protocol)

Investments needed to achieve these targets in the energy sector must be compared with those needed in other sectors of the economy, to find those which are most cost effective. Legislation and taxation is needed to promote those measures chosen. Investments must be available in time for the revision of the Least Cost Power Generation Plan, which will determine the lifetime of Unit 2 of Ignalina NPP.

The main immediate action required is therefore to set up a joint working group with the Ministry of Environment and the Ministry of Finance to clarify the legislation and taxation needs, and the feasibility and timetable for realistic implementation. The timetable will be an important contribution to the Lithuanian negotiations for EURO membership.

� A national programme on control of air pollution by SO₂ and NO_x emissions from Lithuanian energy sector enterprises based on air pollution targets agreed with EURO, including taxation incentives;

� To adopt Ministerial Order under the Atmospheric Air Protection Law defining the licensing procedures for Large Combustion Plants (LCP) and to begin the process of issuing licenses;

� To prepare legislation in line with EURO requirements for air quality monitoring methods in Lithuania;

� To require the installation of stationary emissions monitoring systems in all energy generating sources with capacity higher than 50 MW ;

� To implement cheap NO_x control measures in all sectors of industry with adequate funding;

� Promotion of CHP in the medium term and renovation of district heating in the short term;

� To promote integrated resource planning in energy production enterprises taking into account future emission reduction targets;

� A tax on pollution, the revenue from which is directed to a fund to promote investment to reduce pollution;

� To implement EURO standards for SO₂ and particulate emissions from power plants (according requirements of EURO Directive 88/609/EEC).

Taxation as an instrument of energy policy

Taxation has been seen merely as a means of raising Government revenue, and its role as a mechanism for implementation of energy policy in the energy market is hardly recognized at present in Lithuania. The use of taxation to redistribute from polluters to pollution reduction or to energy efficiency improvement schemes remains only an idea on paper at present. It needs also to be extended to incentives to municipalities and/or heat or power utilities to implement projects which are least cost for Lithuania (and which may not be least cost for the municipality or utility).

This Action Plan calls for further development of this instrument, but recognizes the need for joint development between the Ministries of Finance, Environment and Economy. This activity needs to begin very quickly, probably with western assistance.

� Energy audits for energy intensive industries, companies and buildings with large energy consumption;

� Energy conservation demonstration projects for the public sector and industry;

� Public information campaigns, including implementation of requirements of the EURO Directives.

1. The Energy Conservation Law drafted by March 2000 should be passed by the Seimas in 2001, after checking for further amendments needed to comply with EURO legislation and the revised Energy Efficiency Programme (see point 3 below).

2. Legislation to implement the above Directives, if not included in the Energy Conservation Law.

3. The National Energy Efficiency Programme should be urgently revised and updated by early 2001. The revision should also to take into account :

� The need to update and investigate energy efficiency possibilities in all branches of industry in the country.

Taxes

� Development and implementation of common national taxation policy promoting energy efficiency;

� To identify and implement possibilities and solutions to disburse part of the green taxes on imported fuel through the Energy Conservation Fund for introduction of energy conservation means.

Actions

� Revision and implementation of the National Energy Efficiency Programme by developing annual programme implementation plans, specific means and instruments for each sector (industry, agriculture, transportation, buildings, etc.). This should be based on necessary main means such as: regulation and orders, taxation, subsidies and financial schemes;

� More active continuation of a cross-ministerial Task-force to ensure co-ordination and implementation of the necessary tools for achieving the energy efficiency targets;

� Development and implementation of legislation and means promoting and ensuring speed up of development, production and implementation of energy efficiency means;

� Development of procedures and establishment of energy audits in accordance with the legislation;

� Energy audit project for 9 electricity intensive firms and 15 large electricity consumers;

� Energy audits for other energy intensive industries, with emphasis on typical firms and monitoring of energy efficiency projects;

� Energy efficiency demonstration projects for the public sector and industry;

� Energy efficiency audit and energy saving measures for thermal power plants;.

� Constant supply of Energy Conservation Fund with resources that are further disbursed for funding of enhanced implementation of local and renewable energy sources (RES) utilization projects;

� Analysis of the system for statistical reporting on energy consumption and development and implementation of recommendations related to supplementing the system with data on energy consumption in buildings, industry, transportation, etc. in order to appraise energy effectiveness;

� Development and implementation of legislation regulating both labeling of household appliances for energy efficiency and establishment of energy effectiveness of hot water boilers with regard to requirements of the EURO Directives;

� Production of publications on energy saving means and introduction of the means in buildings and industry;

� Development and implementation of procedures for certified training of energy managers;

� Integration of practical energy management in the energy saving theory in the curriculum of universities;

� Development and conduction of courses on energy management and investment projects appraisal in universities;

� Development and implementation of awareness campaigns for general public on energy efficiency and labeling of household appliances for energy consumption and promotion on constant basis of energy saving employing the mass media.

The reduction of the dependency on imported fossil fuels by increased use of renewable energy sources is one of the priorities in the energy policy, as it is regarded as a way to decrease the external dependency and give a contribution to reduce the environmental impact from the energy sector. Currently only hydro energy (with total installed capacity of 106 MW) and biomass (wood) are used.

� In 1998 local energy resources and RES accounted for 6.4% of the fuel balance. An increase to 8%, at the same time as growth of total consumption of energy, as the economy recovers, is deemed feasible by 2015;

� Development and expansion of co-operation among countries of both the Baltic Region and the EURO in the sphere of RES utilization � from studies and project development to implementation;

� Readiness for implementing an eventual EURO directive on Renewable (expected this year).

� Increase the efficiency of the utilization of renewable energy supply and improve the competitiveness of renewable energy sources;

� Encourage CO₂emission trading and/or joint implementation if viable for Lithuania;

� Establish access transmission and distribution networks for RES produced energy;

� Improve public awareness, understanding and information schemes for the general promotion of renewable energy sources, as well as establishment of comprehensive educational and research and development (R&D) programmes.

� Programmes and studies for enhancing local and RES utilization of which is insufficient at present;

� Implementation of pilot projects for new RES technologies (solar, wind and biomass);

� Development and implementation of common national taxation policy promoting production and usage of RES which will include measures which help to harmonize the energy and environmental tax systems, in order to ensure competitive conditions for renewable energy sources compared to other forms of energy;

� This may also include the provision of direct subsidies for renewable, as a simpler mechanism than taxation;

� Consideration of the introduction of environmental taxation based on the external costs of energy supply;

� Identification and implementation of possibilities and solutions to disburse part of the green taxes on imported fuel through the Energy Conservation Fund for enhanced utilization of RES.

Competition Policy

The main objective of government policy is to restructure a power industry with the aim to introduce competition and to achieve, by 2005, a functioning Baltic electricity market in which Lithuanian companies compete to provide cheaper electricity for consumers.

� To restructure and privatize the electricity sector and to create self-financing, unbundled electricity companies, heaving precisely defined functions and operating independently of the government;

� To create a regulatory body for the power sector able to regulate in a common Baltic Electricity Market, independently of the government;

� To create conditions for consumers to buy electricity in the competitive market;

A further objective will be to implement the requirements of the EURO legislation on air pollution in the power sector, especially the licensing procedures for large combustion plants.

The Lithuanian Government has set up a Commission to manage the restructuring and privatization of the electricity sector, and a tender for an international advisor to the Commission has been held. The Advisor is expected to be in place in April 2000.

The Lithuanian National Energy Strategy passed by Seimas did not sufficiently identify a clear strategy for the development of district heating and some problems still remain to be resolved. Their resolution is more complex because of the need to consider more actors than in other sub sectors: national and municipal government, CHP stations and district heat utilities, maintenance operators, housing owners and heat consumers themselves. All these actors have their own point of view, yet have an important part to play in the improvement of the sector.

Until recently[1], there was no comprehensive review of EURO CHP/district heating policy and the Lithuanian district heat sector policies, legislation and regulatory framework. In the Law on Heat Sector Decentralization in April 1997, when the decentralization took place, coordination was supposed to occur between the Ministry of Economy and the Ministry of Local Government. Coordination of the sector relies, in fact, mainly on foreign assistance working with an ad hoc group from the sector, the District Heating Strategy Task Force.

The resolution of these problems is urgent because of the current high cost of heat and the poor service level giving low comfort in return. This is, in itself, a cause for political concern, though not yet at the level of telephone price rises after privatization, or is it yet an issue in the municipal elections.

The scope for energy saving is considerable but needs actions both by consumers and the heating utilities. Access to capital is limited both from municipalities� restricted ability to finance and the ability of consumers to tolerate further increases when winter charges have risen to 20% of the average family income. Actions by consumers are also limited by the need to form housing associations to improve the building insulation and the heating system for the whole building and to carry out the most effective action, to modernize the heat substations. It is probable that consumers would prefer first to enjoy adequate comfort levels at the current cost, rather than merely reduce heating charges.

There is also concern that inefficient and badly managed district heating systems will be a poor basis for increasing CHP capacity and operation, which according to the National Energy Strategy looks an attractive option later when new electricity generating plant or emission reduction is required.

There is concern now that the lack of cost transparency and price distortion in the electricity sector means that opportunities to generate electricity by CHP with the obvious energy savings are prevented, wasting the value of investments already made. This will, however, be corrected by unbundling of the electricity sector and the creation of the Baltic Electricity Market

Some policy questions today are still being debated for district heating. In these debates, the issues of management reform, competition, investment policy and tariff policy are inextricably linked.

In general it is not economic to promote competition between gas and district heating in urban areas, since both are natural monopolies and competition will mean duplication of networks. However, the threat of competition at local level is useful so that district heating becomes more efficient and responsive to consumers� needs for cheaper heat. On the other hand, both the gas and district heating sectors will gain if the long-term least cost national heat solution is gas-fired district heating and/or gas fired CHP. The Ministry of Economy should authorize interventions in the market by municipalities where necessary to protect district heating in the short term.

There are claims of unfair competition made by district heating utilities against the gas company because it is claimed that prices for gas are distorted for some groups of customers, and this encourages disconnection from the district heating networks. The District Heating Task Force has now requested the Price Commission to review gas prices and the Ministry of Economy should support them.

Some protection of district heating is probably necessary to provide stability for reform into the period of the next strategy, when environmental and new power generation requirements are likely to make gas-fired CHP the most attractive option. Without renovated and efficient district heating networks it will not be possible to employ CHP which will bring benefits at national level.

It is very important that new investments (whether by groups of consumers for boiler plant to connect to gas, or by the gas utility for new gas pipelines) are subject to serious investment appraisal to determine the least cost solution for Lithuania, than it is to implement detailed heat planning. Pilot activities for heat planning are ongoing until June 2000 with the help of foreign assistance to:

� Complete planning handbook and set of tools (computer programmes, etc.) for investment appraisal;

� Launch training of municipal staff representatives to be responsible for heat planning as well as staff of utilities;

� Disseminate information on the heat sector for state, municipal and utility users.

Pre-feasibility studies for CHP have been carried out for six cities and the results will be available soon.

This information was provided by the Government of Lithuania to the 5th, 6th and 9th Sessions of the United Nations Commission on Sustainable Development. Last update: March 2001.

FORESTS

The Ministry of Forestry of the Republic of Lithuania is primarily responsible for the forestry sector. Other ministries and institutions actively involved in forestry matters are the Ministry of Agriculture and the Ministry of Environmental Protection, the State Forest Inspection, the Lithuanian Agricultural Academy, the Center of Forestry Economics, and the Forest Management Planning Institute.

Since the restoration of Lithuania's independence, most attention in the forestry sector has been paid to the establishment of a new legal framework. In 1994, the Lithuanian Parliament adopted a new Forestry Law. Following the Law, from 1994 to 1996, a number of rules and regulations were issued, including Regulations on Forest Use in Nature Protected Areas, which combine silvicultural, environmental and economical requirements. Therefore, the establishment of a forestry legislation system has been practically completed.

Within the last few years, remarkable progress was made to develop legal and regulatory framework, economic policy, financial instruments and informational means in the forestry sector. In order to develop sustainable forest management, Principles of Lithuania’s forest policy were established in the Forest Law, which was issued on 22 November 1994 and updated in 1996. The Parliament will most probably adopt new changes of the Forest Law at the end of 1999 after which basic principles of sustainable forest management will be introduced.

Law on the Restoration of the Right Ownership of the citizens to the existing Real property was issued on 18 June 1991. During 1991-1997 several amendments and updates to this Law have been issued, where customary and traditional rights of forest owners have been promoted in a higher level. The liberalisation of management of private forests has been provided in updated Regulations on Management and Harvesting in Private Forests. New changes in liberalisation are under way as well.

The Department of Forests and Protected Areas under the Ministry of Environment is willing to receive an independent forest management certification for Lithuanian forests and is setting up a top level committee, which will carry a task to choose certification methods and implementation structure. Governmental officials, NGOs, industry and local forestry representatives will be invited as members of the committee. However, negative changes, which have appeared recently in timber market, slowed down concrete steps on the development of forest certification.

According to the Lithuanian Forestry Act (1994), cutting areas are reforested within two years after final felling. All silvicultural measures are aimed at the establishment of productive and resistant stands and protection of biologic and genetic diversity in forests. While carrying out reforestation, planting is successfully combined with natural forest regeneration. About one-third of cutting areas are left for natural regeneration.

Some IPF proposals for action were taken into consideration while preparing forest policy and strategy.

Guidelines for Conservation of Biodiversity in Commercial Forests were prepared in 1996, Recommendations were made in 1996 for Conservation of Rare Forest Habitats and Proposals for the Improvement of the Protection of rare Forest Bird’ nesting Sites.

Several measures have been undertaken in order to harmonise cross-sectoral policies related to forests (e.g. environment, agriculture, land use, industry, air, water and economy). For instance, the State and private forest use and management rules have been updated by including measures for biodiversity conservation and implementing principles of sustainable forest management.

The implementation phase of general guidelines on a regional level was started through improving forest management planning methods and corresponding forest management activities. Many corresponding regulations and rules ensuring and enhancing sustainable forest management were issued.

According to the IPF proposals for action, the non-governmental organizations have been involved in the process of legislation and development of forest policy and strategy. Forest Owners Association of Lithuania which was founded 27th April 1993 is a fast growing organization with country-wide organizational structures: local association and the co-operatives of private owners. The Association represents forest owners interests in Government and other institutions, and has influence upon legal acts.

Forestry and Forest Industry Development Programme has been approved by the Government in 1994 and updated in 1996. This programme is closely related to Lithuanian national sustainable development strategy. Some of IPF proposals for action have been taken into consideration while preparing Forestry and Forest Industry Development Programme. The Action Plan, which is annexed to the program, foresees the actions to be undertaken up to the year 2023. In this Programme and Action Plan the principles of sustainable forest management were introduced in a broader sense.

Forestry and Forest industry Development Programme has linkages with Programme of Diversification of activities in areas less suitable for farming and with Rural development strategy. Afforestation of abandoned agricultural lands and implementation of principles of sustainable forest management is provided in Rural Development strategy and in the Programme of Diversification of activities in areas less suitable for farming as well.

Forestry and Forest Industry Development Programme also promotes the use of wood based energy what is closely related to the National energy strategy. Afforestation of abandoned agricultural lands, which is a part of the rural development strategy, is reflected in Forestry and Forest Industry Development Programme as well. The Programme annually assess the short-term trends in supply and demand for wood. The long-term trends in supply and demand for wood have also been assessed.

Forests are one of the principal Lithuanian natural resources. They occupy almost one-third of the country's territory. Despite the structural changes that occurred during the last five years, the amount of employees in the Lithuanian forestry sector has not decreased. In 1995, over 16,000 employees were working in the Lithuanian forestry sector, and some 75 foresters graduate each year.

Forests are generally state-owned. At present, private forest and privatized forest make up 16.7% of the total, but this is anticipated to increase to one-third following the land reform. The Lithuanian policy of forest use is based on the principles of sustainable and multiple-use management and conservation of forest resources.

It is expected that in the nearest future the share of forestry and forest industry in GNP can reach 7.5-10%. Annual harvesting foreseen by the year 2003 is 5.1 mill.m3. The average annual increment per hectare is 6.3 m3, while the average annual drain (removals) makes up 3.2 m3 per hectare. Twenty-seven percent of regulations for forest management are based on environmental requirements (protection of biodiversity, protective functions of forests etc.). In commercial forests, management activities have very small restrictions, although general silvicultural and ecological requirements should be followed.

The network of nature protection areas was strengthened within the last few years. Structural and protection quality improvements were followed by an increase in protected areas.

The bans or any trade restrictions of forest products have been abolished during last few years.

The relationship between forestry and poverty is reflected on the amount of illegal forest activities. In country regions, where the level of unemployment is high, the number of illegal forest activities is noticeably bigger. On the contrary, in the industrial regions where unemployment level is low, the number of illegal forest activities is small.

Lithuania has not developed ists own criteria and indicators for sustainable forest management. The majority of criteria and indicators have derived directly from the Pan-European system. These criteria were officially approved for use by the former Ministry of Forestry in 1995. Only the additional criterion - percentage of private is being used. The reason for that is the constantly increasing share of private forests and significant influence of private forest sector on sustainable management of country’s forests.

The information on sustainable forest management is available in the annual report on forestry activities in State Forest Enterprises and in the report "Lithuanian Forest resources" The new year book on Forestry Statistics is also available. The possibility to access information on sustainable forest management via the Internet is being prepared.

Besides the above guidelines and recommendations, numerous fundamental applied research project dealing with various aspects of forest biodiversity and environmentally sound silvicultural practices have been recently conducted. While carrying out harvesting and other silvicultural operations, environmentally sound and economically viable technologies are being introduced on a broader scale.

The pulp and paper industry recycles waste paper. The national energy strategy foresees measures aimed at promoting use of biolofuel and especially fuel wood instead of fossil fuels.

The Government of the Republic of Lithuania may provide subsidies and preferential credits for afforestation, regeneration, growing of forests, for the development of fire prevention and sanitary protection as well as the infrastructure of forests. If the economic activity of forest managers, owners or users is restricted, they shall be granted tax and other privileges and compensations in the manner defined by laws and the Government of the Republic of Lithuania. However, the subsidies for forest owners are not being provided due to economic constraints.

A self-financing principle has been implemented in the Lithuanian forestry sector which is very important at the given movement. All forestry operations are financed from the Forest Fund, defined in the Forestry Law. Regulations on Forest Fund Formation and Use were approved by the Government in 1995. The Forest Fund consists of incomes from the sold non-cut forest, secondary use of forest, from forest area rented for hunting, from sold forestry and from hunting

production. In general, the Forest Fund is a part of the State financial resources used for forestry development. At present it creates good preconditions for forestry functioning in comparison with other industries. However, it is clear that it will not be enough in the future, and forestry (especially silvicultural operation) has to be subsidized from the State budget.

Lithuania has always participated in major international initiatives aimed at enhancing forest development. The country also took part in the IPF process. The relevance of some IPF proposals for action in Lithuania has been assessed.

Lithuania is also actively taking part in the pan-European process for the implementation of Strasbourg (1990) and Helsinki (1993) resolutions aimed at sustainable forest management and protection of forest resources.

Besides the mentioned projects of technical assistance, bilateral cooperation between institutions is very important for transfer of information and exchange of know-how. Lithuanian forestry institutions have established good contacts with foreign partners.

Recently, cooperation with foreign countries and international organizations increased considerably. Since 1992, cooperation with the Swedish company Jaakko Poyry Consulting AB has been underway. The Forest Sector Development Programme covers six subprojects and is aimed at implementation and training of regional forest authorities, detailed design and implementation of a national forest inventory, a wood measurement system, training in and implementation of a grading system for wood, training and implementation of an operations improvement programme at forest enterprises, and vocational training of sawmill workers. This project is financed by the Swedish Government through SIDA (Swedish International Development Agency). PHARE is financing the Dubrava Nursery Modernization Project which is carried out by the Danish company Hedeselskabet. Very important technical assistance was received from the Danish Ministry of Environment and Energy.

This information was provided by the Government of Lithuania to the 5th and8th Sessions of the United Nations Commission on Sustainable Development. Last update: October 1999.

FRESHWATER

There are three bodies at the national level responsible for co-ordinating water resource management and development. The Ministry of Environmental Protection (MoEP) is the governmental institution responsible for rational natural resource management and environmental protection and is in charge of surface water monitoring as well. The Lithuanian Geological Survey (LGS) is responsible for groundwater survey and monitoring, and the Lithuanian Hydrographical Network Survey (LHNS) is responsible for water reservoirs management. There are eight regional environmental protection departments and forty-four environmental protection agencies at the local level.

A new draft Standard on Drinking Water, Hygiene Requirements and Monitoring is presently under preparation. The Hygiene Rate HN-48-1994 regulates the concentration levels of hazardous substances in drinking water. The Ministry of Environmental Protection prepared and approved in 1996 the "Rates on Polluted Waste water" (LAND 10-96). It is foreseen that new Rates on Quality of Water Bodies will be prepared in 1998.

Law on Environmental Protection (1992),
Lithuanian Environmental Strategy. Action Programme (1996),
Law on Protected Areas (1993)
Water Law (1997),
Law on the Nature Resources Usage Taxes (1991),
Law on Environment Pollution Taxes (1991),
Draft Law on Drinking Water,
Draft Law on Reclamation,
Law on Land (1994),
Law on Territorial Planning (1995),
Law on Environmental Impact Assessment (1996),.
Law on Monitoring (1997),
Draft Law on the Protection of Marine Environment,
Code on the Internal Water Transport (1996),
Code on Violation of Administrative Rights (1994),
Decisions of the Government,
Regulations on the Establishment of the Water Bodies Protection Zone
Special Conditions of the Use of Land and Forest (1993)

Among these, water use by agriculture is covered by the Law on Protected Areas (1993), the Law on Land (1994), the Law on Territorial Planning (1995), Regulations on the Establishment of the Water Bodies Protection Zone (1982), and Special Conditions of the Use of Land and Forest (1993). Water use by industry is covered by the Law on the Nature Resources Usage Taxes (1991), the Law on Environment Pollution Taxes (1991), and the Law on Environmental Impact Assessment (1996). Water use by households is covered by the Law on Environmental Impact Assessment (1996) and the Code on Violation of Administrative Rights (1994).

A policy for disaster preparedness is identified in Decision No. 1090 of the Government of the Republic of Lithuania "Due to the Prevention, Elimination of Industrial Accidents and on the Endorsement of the Investigation Findings" adopted in 1995. The policy is detailed in the Draft Law on Civil Defence.

There are pricing policies for water use in every sector, and costs for water supply and treatment are fully covered by user charges. The Law on Environmental Protection stipulates that permits for usage of natural resources must be obtained from the Ministry of Environmental Protection before any exploitation occurs. Water usage limits and the pollutants in water outlet norms should be observed. These assist not only in the effective distribution of water resources but also lead to reduced pollutant emissions to water bodies.

Representatives from Lithuanian Municipality Association, Lithuanian Manufactures Confederation and some other NGOs participate in preparation laws and strategies on environmental protection issues. Disputes at all levels are settled in court.

The role of the private sector is not substantial in this sector. Groundwater resources are owned by the State and waste water treatment systems are mostly under the authority of municipalities.

Lithuania is located in a very humid zone and abounds in water resources: the hydrographic network density is 1km/1km2; there are 2,800 lakes over 0.5ha in the country with a total surface area of 880 km2; annual river water flow is 26.1km3/day.

In 1995, fresh water extraction was 4,582 million m3 (in 1991: 4,510 million m3), of which 304 million m3 (580 million m3) came from ground water resources. Consumption for municipal/household purposes was 196 million m3 (369 million m3 in 1991); consumption by industry was 49 million m3 (216 million m3 in 1991); by the energy sector, 4,100 million m3 (3,295 million m3 in 1991); by fisheries, 116 million m3 (216 million m3 in 1991). The decline of water consumption during recent years is related to the decline of industry, economic restructuring, and the taxation system reform (taxes for water and polluted waste water discharge have been introduced). Consumption of water by the energy sector has grown due to capacity increase of the Hydro Accumulation Station.

With the reduction of pollution loads, water quality in rivers and lakes has somewhat improved. Monitoring by established criteria indicates that in forty-three percent of investigated rivers, water was clean; in forty-eight percent, the water was polluted to medium levels; and, in nine percent, it was heavily polluted. River waters are typically polluted with organic and biogenic substances. Contamination by oil of river water below major industrial centers was 2-3 times beyond standard limits. Hydro biological parameters indicate no significant changes in water quality.

Surface water bodies can be owned by the State or by individuals. However, only ground water is used for drinking water needs in Lithuania.

According to 1996 data there are more than 700 waste water facilities in Lithuania with a total capacity about 1.2 million m3/per day. Ninety percent of these facilities have capacity of about 100 m3/per day each. Such facilities are located mostly in the country-side.

Approximately eighty-three percent of sewage is treated in Lithuania at present. Two hundred fifty-two million cubic meters of waste water were discharged in 1997 as follows:
15 % after mechanical treatment (primary treatment),
67 % after biological treatment (secondary treatment),
1 % treated in waste water treatment facilities with nitrogen and phosphorus removal (tertiary treatment),

According to EURO requirements, tertiary waste water treatment is planned in forty-seven Lithuanian cities and towns (tertiary treatment exists in six cities already). So, 209 million m3 or about 83 % of waste water would be treated effectively. The tertiary treatment is already foreseen in projects of waste water treatment plants which are under construction/reconstruction at present. After finishing the construction/reconstruction (with nitrogen and phosphorus removal), about 110 million m3/year or 53 % of waste water will be treated. The completion of these waste water treatment plants depends on investments which are sorely needed in Lithuania. In addition, biological waste water treatment facilities (secondary treatment) need to be constructed so as to allow for the treatment of about 2 million m^3/year of waste water.

Eighty-seven percent of the water resources has amounts of iron and manganese that exceed permissible rates. This iron is purified from 28% of the supplied water, but the percentage is expected to increase with the building of new purification stations in Vilnius, Kedainiai, Anyksciai, and the Pagiriai water fields.

Utilization of recycled waste water has been undertaken only in the town of Akmene where all the treated waste water (10 000 m3/per day) was utilized in the cement factory. However due to the production decline in the factory, recycling of waste water has become less urgent.

The Ministry of Environmental Protection presents forms with consolidated statistical data to the Department of Statistics under the Government of the Republic of Lithuania. Reports with statistical data are available on the Ministry's computer net. Reports on "Environmental Protection in Lithuania" are published annually. The information is not yet available on the Internet.

According to preliminary data presented by scientists, 315 million Liters (approximately 80 mill USD) are needed for the construction of water purification facilities in Lithuania.

External resources invested in water management and development for 1996 were as follows (thousand US$):

It is not possible to present the ratio between domestic expenditures and external funds for water resource management and development as data are only available for water treatment expenditures.

Lithuania currently takes part in the following agreements concerning the use of international watercourses, lakes or groundwater:

The Ministry of Environmental Protection has signed bilateral co-operation agreements in the field of environmental protection with Denmark (4 September, 1991), United States Environmental Protection Agency, Region 5 (11 October, 1991), Poland (24 January 1992), Finland (7 February 1992), Sweden (30 March 1992), Byelorussia (14 April 1995), Slovakia (24 June, 1996), and the Government of Flanders (7 March 1997). Bilateral agreements with the Russian Federation and Ukraine are under preparation. A trilateral agreement in the field of environmental protection was also signed between the Governments of the Republic of Lithuania, Latvia and Estonia (21July, 1995).

This information is based on Lithuania's reports to the 5th and 6th Sessions of the United Nations Commission for Sustainable Development, April 1997 and 1998. Last update: January 1998.

LAND MANAGEMENT

The Ministry of Construction and Urban Development and the Ministry of Environmental Protection were merged in to the Ministry of Environment in 1998. This merge created favorable conditions of better understanding between the professionals working in a similar fields of regulations and strengthened the institution which is now directly involved in issuing regulations and controlling implementation of such regulations for management and use of land resources. The Ministry of Environment is responsible for territorial (land use) planning, preparing and adopting relevant regulations, norms and standards as well as preparing policy documents since 1998.

Sustainable management of natural resources, especially soils, is implemented through national legislation. Recently, the Ministry of Environment prepared a new Law on Soil Protection which was submitted to the Parliament of Lithuania for adoption. The Government of Lithuania is preparing an updated legislation on coastal zone management, a new law on coastal zone and assisting local governments for protecting and managing coastal zone and its dune ecosystems.

The Seimas of the Republic of Lithuania has enacted a Law on the Amendments to the Law on Land Reform and of the Law on Land Lease, thereby completing the development of the legal framework for the land reform. The Draft Law on the Compensation Payments for land has been submitted to Seimas for deliberation. A Law on the Cadastre of Real property is being drafted. Provisions have been made for working out a draft resolution of the Government of the Republic of Lithuania on the agricultural census. The cadastre and register of Land and Other Real Property were established on July 8, 1997, as a state enterprise. In the process of the land reform, an institution will be established for the expert evaluation of land management projects. The state budget allocations for the land reform in 19998 amount to30.853 million liters. Today all the legal acts are necessary for the restitution of land area in place.

Integrated approach for planning and management of land resources also addresses international and regional cooperation, scientific understanding of land resources systems and strengthening of technological capacity.

The planning and management of land resources by the Lithuanian Government includes the following issues: policy development (prepared National Environmental Protection Strategy, preparation of land management guidelines, afforestation programs, special requirements for use of land and forests and etc.), policy issues raising awareness and promoting public participation in decision making process (Law on Public Information, Environmental Protection Law, Environmental Impact Assessment Law and several governmental resolutions).

The National Development Plan which is in preparation by the Ministry of Environment is part of national policy documents on sustainable land management and development. The National Development Plan forecasts and designates areas and regions for economic, industrial development and use for nature conservation purposes. According to this Plan and the National Environmental Protection Strategy, sustainable planning and management of land resources is implemented through the optimization of land use. In the context of the Environmental Protection Strategy, short, medium and long term priorities are developed for the management of natural resources and landscape protection, for the improvement and optimization system of protected areas, and for the prevention of urban and agricultural landscapes from degradation especially in protected areas.

Action programme of the National Environmental Protection Strategy and National Development Plan supports the integrated approach to the planning and management of land resources. Integrated land management is always included in documents prepared by the Ministry of Environment and other relevant ministries.

All decisions for adopting and revising local land use plans by the Territorial Planning Law were passed to the local authorities.

The main sources of funding for the implementation of the National Environmental Protection Strategy are the state budget, budgets of municipalities, state and municipalities nature funds, and foreign assistance.

The Government of Lithuania in coming years is going to join UN Combat Desertification Convention and participate in regional initiatives on sustainable land use and management.

Within the framework of bilateral development cooperation, Lithuania receives support for participation in various programmes and projects, including:

This information was provided by the Government of Lithuania to the 5th and 8th Sessions of the United Nations Commission on Sustainable Development. Last update: October 1999.

MOUNTAINS

There are no mountain areas in Lithuania. The highest point in Lithuania is Juozapin�s hill with 293.6 metres.

This information was provided by the Government of Lithuania to the 5th session of the United Nations Commission on Sustainable Development. Last update: 1 April 1997.

OCEANS AND COASTAL AREAS

The National Helsinki Commission (HELCOM) Committee was established in 1998 by the Order of the Minister of Environment to facilitate co-ordination among all of the responsible organizations.

The Ministry of Environment is the main responsible body for the marine affairs. The following specific bodies of the ministry are responsible for the integrated coastal zone management: the Center of Marine Research, the Regional Environmental Protection Department of Klaip�da, and the Landscape and Environmental Impact Assessment Divisions. The following bodies of the Ministry of Environment are responsible for marine environmental protection: Center of Marine Research of the Ministry of Environment, Joint Research Center, and the Coast Guard Service of Klaip�da Regional Environmental Protection Department. Also the Klaip�da State Seaport Authority under the Ministry of Transport deals with marine environment protection. Issues of sustainable use and conservation of marine living resources belong to the Klaip�da Regional Environmental Protection Department, Fish Resources Department, and Marine Research Center of the Ministry of Environment, and the Fishery Department of the Ministry of Agriculture.

Integrated coastal zone management is regulated by the Administrative Law Violation Code of Republic of Lithuania (1994), Penal Code of Republic of Lithuania (1994) with some amendments later, Statute of the Klaipeda State Sea Port of the Republic of Lithuania (1996), Inner Water Transport Code of Republic of Lithuania (1996), Law on Construction of Buildings in the Coastal Zone and Kursiu Nerija (1995), and the Governmental Decree on Delineation of Coastal Zone No 78 (1996). All development works in the coastal zone are regulated by the special Law on Coastal Zone. The territorial planning documents are being prepared for the coastal and marine areas.

Marine environmental protection is regulated by the Decree of the Government of the Republic of Lithuania No 495 (1998), Order of the Transport and Communication Ministry of the Republic of Lithuania No 185 (1998), Law on Marine Environment Protection No VIII - 512 (1997), and the Methodical Recommendations for the Calculation of Damages for the Nature according to the Environmental Protection Law (1992).

Sustainable use and conservation of marine living resources is regulated by the Draft Fisheries Law, Rules on Fishing and Protection of Fish Resources in the Economic Zone of the Baltic Sea, Order on Enforcement and Management Measures for Lithuanian Fishing Vessels in the Conventional Area of the North West Atlantic, and the Law on Wild Life.

Furthermore, there are regulations for the navigation such as the Navigable Regulations of the Klaipeda State Port (1993).

Lithuania has a National Strategy on Integrated Coastal Zone Management that aims to minimize the pollution in the land and sea water basins during intensive economical activities. Requirements exist to prepare territorial planning documents for coastal zone management and assess environmental impact of the planned solutions. Also the Biodiversity Conservation Strategy and Action Plan affect the management of coastal and marine areas.

The Environmental Strategy aims to better control, minimize pollution and preserve natural resources. Lithuania also has a National Oil Spills Contingency Plan.

Local authorities, scientific institutions, business and industry, and NGOs are involved in the decision-making process.

The following programmes and activities address marine issues: the HELCOM Baltic Sea Environmental Protection Monitoring Programme, and the State Sea Environmental Monitoring Programme. A HELCOM Integrated Coastal Zone Management Project started in 1997. There is also a HELCOM Project on Coastal Conditions and Monitoring. Furthermore, the following HELCOM working groups address marine activities: the HELCOM PITF MLW Working Group on Management Plans for Coastal Lagoons and Wetlands, and the HELCOM Environment Committee’s Working Groups on Coastal Assessment, Coastal Monitoring of the Baltic Sea, and Nature Conservation and Biodiversity.

The following plans and documents address the preservation and sustainable use of fragile ecosystems: Project Action Plan with USA called the Redevelopment of a Wetland Buffer System in the Nemunas River Delta (Kursiu Marios Lagoon Estuary of Lithuania), creating Kursiu Nerija (Curonian Spit) National Park, Nemunas Delta and Pajuris Regional Parks. There is a special plan for Kursiu Nerija National Park, and territorial planning documents for Klaip�da, Palanga and Sventoji cities for protection and management of coastal zone.

Major issues relating to oceans and seas are being carried out conforming to the IBSFC and NAFO Recommendations.

All of Lithuania's territory is within the Baltic Sea catchments area. The major uses of the coastal areas in Lithuania are recreation, tourism, fishing, shipping and other industries.

The primary sources of land-based pollution of the marine environment are industry, agriculture and transport that load waste from the coastal areas to the marine basins. The primary sources of sea-based pollution of the marine environment are oil spills, waste waters, garbage, and smoke from chimneys of the ship.

About 80 percent of the Kur�i� Lagoon and 45 percent of the Baltic Sea coastal waters are heavily polluted with nitrogen and phosphorus. Often, particularly during algae blooming, oxygen deficit resulting in mass fish deaths occurs. The impact on the Baltic Sea of both the Nemunas basin rivers and the Kur�i� Lagoon water mass can be easily traced at a radius of 10 to 15 km from the Klaip�da Straits. During the hot days of the summer season, the sanitary status of the beaches of Klaip�da, Giruliai and Palanga is below standards.

Domestic waste waters in cities, with the exception of Panev��ys, Vilnius and Marijampol�, are discharged into the rivers with only mechanical or insufficient biological treatment; in Kaunas City waste waters are totally untreated. After biological waste water treatment is introduced in Klaip�da, Giruliai, Palanga and the waste water treatment plant in Kaunas starts operating, it can be expected that only one percent of waste water will remain untreated. Therefore, construction of waste water treatment facilities remains the highest priority for investments, particularly for funds from State budget, and loans and subsidies received by the State. At the same time, it is necessary to implement measures for the reduction of non-point source pollution of surface waters, and develop the necessary water protection laws.

The management structure of the Port of Klaip�da has been fundamentally reorganized. Container and oil terminals are under reconstruction. The period of implementation of the projects of the port modernization is 1996-2000.

Since June 1993 Lithuania has used a "sanitary fee" which depends on the volume of ships. Taxes are levied on the volume of waste produced by a ship when it goes to the repairing enterprise and is able to deliver wastes. The capacities of two liquid oily waste treatment plants are sufficient for the needs of the Port of Klaip�da.

The share of fishing in the national economy is approximately one percent. The sustainable use and conservation of marine living resources is encouraged by international and national legislation systems. For each fishing vessel, fishing enterprises are being allocated a quota.

The major impact of shipping on the sustainable management of coastal zones is the pollution of the coastal areas. The impact of coastal and marine based industries on sustainable development of coastal areas is not large.

The Great Lakes-Baltic Sea Initiative and the Helsinki Commission (HELCOM) activities on the protection of the Baltic Sea environment contain training and awareness-raising activities for the responsible planners and for relevant industries to assist them in managing sustainable development in coastal zones.

National information available to assist both decision-makers and planners working in coastal areas related to sustainable management of fishery resources can be obtained from research and investigations as well as from various recommendations. Information on marine pollution is available from HELCOM Assessment of the Marine Environment of the Baltic Sea (every 5 years) and from the Annual Report of the Marine Research Center.

Lithuania has started to make use of Geographic Information Systems (GIS) to monitor the implementation of relevant laws and regulations.

Lithuania applies the best available technology to identify pollution of the marine environment. The problems are with the means for fixing of oil spills (aerial control).

Lithuania has not signed the United Nations Convention on the Law of the Sea as of 5 January 1999.

Lithuania is party to the following international and regional conventions related to marine affairs:

Other regional activities related to sustainable development and use of oceans and coastal areas include:

This information was provided by the Government of Lithuania to the 5^th and 7^th Sessions of the United Nations Commission on Sustainable Development. Last update: December 1998.

TOXIC CHEMICALS

The Ministry of Health, the Ministry of Environmental Protection, the Ministry of Transport, and the Ministry of Agriculture all share responsibility for decision-making in the area of toxic chemicals.

The main features of the legal acts on chemical substances are to regulate commercial-economic activities which are connected with production, commerce and storage of hazardous chemical substances by issuing licenses for this kind of activity and issuing permission for import, export and transit of hazardous chemical substances. In order to reduce the use of particularly harmful chemical substances and to make them less hazardous, legislation emphasizes the importance of introducing new technologies, information exchange and public education.

There is no established mechanism for the management of chemicals in Lithuania. Two very important steps in that direction will be made after the "Law on Chemicals", drafted by the Environmental Protection Ministry and the "Law on the Control of Toxic Substances", prepared by the Health Ministry, are adopted by the Seimas, in conformity with EURO Directives. Requirements for the use of pesticides are set up in the Plant Protection Act of the Republic of Lithuania and in "The regulations on import, transportation, storage, trade, use and treatment of chemical and biological plant protection measures and plant growth regulators". A Memorandum has been signed between the International Register of Potentially Toxic Chemicals and the Ministry of Health. The National Register of Potentially Toxic Chemicals is under preparation using the data base of IRPTC/UNEP.

In 1992, Lithuania acceded to the Convention on International Civil Aviation, and implements Annex 18 of this Convention concerning the transportation of dangerous goods by air transport. In 1995, Lithuania also acceded to two other conventions: (1) the Convention on the International Marine Organization, including implementation of the code for the transportation of dangerous goods by sea (IMDG-Code), and (2) the European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR). At the same time, Lithuania began to apply the regulation on the international carriage of dangerous goods by railway (RID), which is a part of the annexes of the Agreement on International Railway Transport (COTIF). At present, the procedure on carriage of goods by road and railway which is harmonized according to EURO Directive 94/55/EC and 96/49/EC, is under preparation.

International cooperation takes place in the context of the International Programme on Chemical Safety (IPCS), the Intergovernmental Forum on Chemical Safety (IFCS); the International Register of Potentially Toxic Chemicals (UNEP/IRPTC); and the National Chemical Inspectorate, Sweden.

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.

WASTE AND HAZARDOUS MATERIALS

In 1992, Lithuania acceded to the Convention on International Civil Aviation, and implements Annex 18 of this Convention concerning the transportation of dangerous goods by air transport. In 199, Lithuania also acceded to two other conventions: (1) the Convention on the International Marine Organization, including implementation of the code for the transportation of dangerous goods by sea (IMDG-Code), and (2) the European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR). At the same time, Lithuania began to apply the regulation on the international carriage of dangerous goods by railway (RID), which are a part of the annexes of the Agreement on International Railway Transport (COTIF). At present, the procedure on carriage of goods by road and railway which is harmonized according to EURO Directive 94/55/EC and 96/49/EC, is under preparation.

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.

The Ministry of Industry and Trade is primarily responsible for waste management. Non-hazardous industrial and municipal waste are managed by local authorities.

The Act on Waste Management has been submitted to the Parliament for adoption. At present almost all former Soviet Union waste management acts are in use in Lithuania. After the restoration of Independence of the Republic of Lithuania, a legal document entitled, Solid municipal waste dumping site selection conditions was adopted by the general order of the Ministries of Environmental Protection and Health Protection on 18 March, 1992. According to the Act of Environmental Protection, Article 23, import of waste to the Republic of Lithuania for storage, treatment and dumping is prohibited.

The main elements of the waste strategy are laid out in the Environmental Strategy of the Republic of Lithuania which was recently approved by the Parliament (Decree No. I-1550 of 25 September 1996).

Waste management planning and organization will be introduced after the Act on Waste Management has been adopted. At present, fees and claims are applied for municipal and hazardous waste management order violations.

The main information on waste production is collected from enterprises by established order according to submitted reports. Each year, the Ministry of Environmental Protection receives such information from approximately 1,600 enterprises in the Republic. According to the data from 1995, 1.55 ml. tonnes of municipal and non-hazardous waste were produced in the enterprises of the Republic. There were five paper recycling enterprises, two glass recycling enterprises, and three compost grounds (two in Vilnius and one in Kaunas) in Lithuania. There are more than 800 dumping sites in Lithuania. During 1994-1995, tons of plastic raw material, 100 tons of waste paper and 3000 tons of glass waste were imported to Lithuania. Secondary material can be imported only under permission of the Ministry of Environmental Protection and after comprehensive study of expediency of secondary material import and technical possibilities of their recycling. There is a secondary raw material programme which was adopted by the Government in 1994.

Domestic waste waters in cities, with the exception of Panev��ys, Vilnius and Marijampol�, are discharged into rivers with only mechanical or insufficient biological treatment; in Kaunas City waste waters are totally untreated. After biological waste water treatment is introduced in Klaip�da, iauliai, Palanga and the waste water treatment plant in Kaunas starts operating, it can be expected that only 1% of waste water will remain untreated. Therefore, construction of waste water treatment facilities remains the highest priority for investments, particularly for funds from State budget, and loans and subsidies received by the State. At the same time, it is necessary to implement measures for the reduction of non-point source pollution of surface waters, and develop the necessary water protection laws.

Environmentally sound waste disposal is related to modernization of existing landfills. There are some modernization projects going on in Lithuania, e.g. on Kaunas landfill where a monitoring system was already established in 1994. Sludge is disposed in a special landfill. The technique appears to be very expensive, and it is therefore important to reduce volumes of sludge by introducing best available techniques.

In 1996, there were 500 000 Lt. (approx. US$425,000) allocated from the State budget to implement the secondary raw material programme.

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.

Management of hazardous waste is under the responsibility of the Ministry of Industry and Trade.

The Waste Management Act was approved by the Government and submitted to the Parliament. Regulations on hazardous waste management are in preparation. At present almost all former Soviet Union waste management acts exist in Lithuania. Since the Act of Independence of the Republic of Lithuania the following legal documents have been adopted:

In order to strengthen the control and monitoring of transboundary movements of hazardous waste, Lithuania's Government approved the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal and submitted it to Parliament for ratification.

The Lithuanian Government approved the Programme of Hazardous Waste Management in Lithuania in February 1993 which envisages a centralized hazardous waste collection, transportation and processing system with central hazardous waste incineration, physical-chemical treatment and deposition plant. The main elements of the waste strategy are laid out in the Environmental Strategy of the Republic of Lithuania which was adopted by the Government in 1996.

Information on waste production is collected from enterprises by the established order according to submitted reports. Each year, the Ministry of Environmental Protection receives such information from approximately 1,660 enterprises in the Republic. According to the data from 1995, 150 tonnes of hazardous waste were produced, 70% of which accumulated in industry. There is no waste incineration plant in Lithuania. A very small part of hazardous materials is recycled (7%); others are disposed at the territory of facilities. Part of the hazardous waste which should be incinerated (e.g. solid paint, varnishes waste, etc.) is disposed in the landfills of domestic waste.

There are more than 800 dumping sites in Lithuania. The biggest part of oil products waste and other flammable hazardous waste are incinerated in thermal power plants. Luminescent bulbs are exported to Latvia (in 1995 export was 264 t units) and batteries are exported to Estonia. Radioactive waste is stored in Ignalina NPP storage. Measures for reduction of hazardous waste accumulation include improvement of technological processes in enterprises and introduction of low waste technologies.

The Ministry of Industry and Trade is constantly seeking financial resources both in Lithuania and in foreign countries to implement the Waste Management Programme. In 1996, there were 500,000 liters (approx.. US$120,000) allocated from the State budget for construction of waste management facilities. A grant of US$1.33 ml. is expected from PHARE funds.

The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal was approved by the Government (Order No. 1407 of 28 11 1996) and passed to the Parliament for ratification in December 1996.

The special EURO directives on waste will mainly be implemented through Government Decisions under the Waste Management Act.

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.

Responsibility for activities related to radioactive substances and their wastes is shared by several institutions. The Environmental Protection Ministry controls transportation of radioactive substances and equipment containing radioactive substances, and it is also responsible for organizing radioactive waste management at the national level. The Ministry of Health establishes the order for the use of radioactive substances and other ionizing radiation sources. Transportation, handling and waste management of nuclear and radioactive substances which are used in nuclear energetic is organized by VATESI (State Nuclear Safety Inspectorate).

In recent years, legislation has been adopted for the regulation of radioactive wastes management, including: Environmental Protection Law (supplemented in 1996); Decree on the Radioactive Wastes Import Export, Transit, Registering, Handling, Storing and Dumping Order (1992); Decree on Radioactive Wastes Illegal Import, Transit, Storing, Handling and Dumping (1995); Decree on the Order of Rendering Harmless of Illegal Radioactive Substances and Objects Contaminated with them (1995).

At present, Licensing Rules are being developed for undertaking activities related to the transportation, handling, etc. of radioactive and nuclear substances or their wastes. By the year 2000, the Radiation Safety Law will be developed as well as the needed subordinate legislation to the existing laws.

To date in Lithuania the Ignalina Nuclear Power Plant, research, hospital and industrial wastes and illegal radioactive shipments are sources of radioactive wastes. Ignalina Nuclear Power Plant alone generates over 99% of the total amount of wastes.

Radioactive wastes are stored in two radioactive wastes storage sites, one of which was closed in 1989 awaiting an assessment of long-term safety. The assessment terms are being negotiated with the Swedish company SKB.

Since 1989, all radioactive wastes are taken to the storage at Ignalina NPP. There, wastes are sorted into three groups: solid wastes, bitumen containing concentrations and ionic resins. In 1996, the Lithuanian Ministry of Energy signed an agreement with the Swedish Company SKB for the assessment of storage safety of solid wastes and bitumen containing concentrations.

Storage for spent fuel is currently being designed. It will be stored in special containers where it can be kept for 50 years.

According to the Lithuanian Republic legislation, the cost of radioactive waste management is the responsibility of users.

In 1996, the Energy Ministry and the Ministry of Environmental Protection signed agreements with the Swedish Nuclear Fuel and Waste Management Company for the period 1996-1997 on the radioactive wastes management plan in Lithuania which is aimed at long-term safety assessment of existing radioactive wastes storage and their safe operation.

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.

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

Waste water

Air quality

Million tonnes

Million tonne-kilometres

Railways

Cost reduction for consumers

Security of energy supply

1. Planning for air pollution control, including legislation, taxation and investment planning for introduction in the period 2005-2010.

2. The introduction of legislation for the implementation of EURO environmental standards in other areas (mainly the oil sector).

Taxation as an instrument of energy policy

Taxes

Actions

Competition Policy

FORESTS

FRESHWATER

LAND MANAGEMENT

MOUNTAINS

OCEANS AND COASTAL AREAS

TOXIC CHEMICALS

WASTE AND HAZARDOUS MATERIALS

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

Fuel Consumption (Fuels)	1996	1997	1998
Heavy Fuel Oil	244	153	133
Gasoline	693	691	663
Diesel Oil	532	638	707
Jet Kerosene	33	32	28
Light Fuel Oil	41	13	3
Liquefied Gas	76	99	113
Other Oil Products	12	7	9
Total Oil Products:	1631	1633	1656
Natural Gas	371	336	306
Coal	182	147	125
Peat	16	15	13
Firewood and other Solid Fuels	498	478	523
Total fuels:	2698	2609	2623
Heat	1397	1325	1252
Electricity	560	579	581
Total:	4655	4513	4456
Energy Consumption
Industry	1053	999	996
Transport	1195	1237	1290
Residential Sector	1601	1516	1480
Agriculture	134	171	161
Other consumers	624	590	529
Total:	4655	4513	4456

Financial resource	Grants	Loans
PHARE	9542
EBRD		14800
NEFCO		3000
World Bank		13200
Denmark		30780
Finland	5600
Norway	1500
Sweden	13750
Other donors	400