Lithuania takes hold as a leader in the Baltic Sea region in developing sustainable (green) finances. Our country is the first country which together with the European Commission and European Bank for Reconstruction and Development (EBRD) launches the project of sustainable finances which will offer more opportunities for financial institutions to attract funds for financing the Lithuanian undertakings and will create conditions for new international investors.
This message was transmitted on Tuesday to political, business and financial market leaders from all over the world attending the international financial markets conference “Financial Markets Re-defined: Exploring New Horizons“ by Minister of Finance Vilius Šapoka.
“The European Union and the governments of other countries of the world adopting the Paris Agreement on Climate Change committed to create a more sustainable economy and to earmark the necessary funds by attracting the major share of funds from the private sector. We take our efforts to prepare in advance for subsequent changes and to contribute to repression of the effects of climate change with financial instruments. Our goal is to initiate in Lithuania the movement of sustainable finances and to become the best jurisdiction for financial services in the region”, says Minister of Finance Vilius Šapoka.
Lithuania is the only country which submitted the project through the Structural Reform Support Service (SRSS) in the field of sustainable finances. The project will prepare the Lithuanian Strategy and action plan on sustainable (green) finances and the feasibility study on the establishment of the Green Finance Institute in Lithuania. The project aims at offering more opportunities for national institutions to create the ecosystem favourable for sustainable investments in Lithuania, to promote the development of sustainable instruments, to involve the public into the implementation of sustainable development goals and to help attract investments in sustainable products.
To date Lithuania has made a good progress in the field of sustainable finances in order to ensure the goals of transition to green economy and mitigation of the effects of climate change. Last year, the Government placed on the market green bond issues, where the funds attracted will be used for the implementation of green projects – modernisation of multi-apartment buildings and energy efficiency enhancement. Lithuania’s efforts in introducing innovations were welcomed by the European Bank for Reconstruction and Development – last year our country was awarded a gold medal for the project of renovation of multi-apartment buildings, and this year the project of one of the Lithuanian agricultural undertakings also won a gold medal.
It is estimated that in order to achieve the 2030 EU-wide targets on climate change agreed in Paris and 40% cuts in greenhouse gas emissions, it will require almost EUR 180 billion of additional investments.
Globally, it is estimated that about EUR 6.2 trillion of annual investments in infrastructure until 2030 will be required in order to achieve the goal of the Paris Agreement to keep the global temperature increase well below 2 °C above pre-industrial levels.