Financing
opportunities of
eco-transport
through Special
Programme for
Climate Change
Outline
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Transport and Climate Change
EU Roadmap 2050 to low carbon economy
Special Programme for Climate Change
Tenders for acquisition of eco-transport
under the Special Programme for Climate
Change
Lithuania’s GHG emissions, 2008
Households,
1376.5
Industry, 922.5
Transport,
1847.9
Commercial
and public
services, 581
Fishing, 2.9
Agriculture,
114.2
Construction,
58.3
Various transport vehicles used
in Lithuania
EU Roadmap 2050
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The mission of Roadmap 2050 is to provide a practical, independent and objective
analysis of pathways to achieve a low-carbon economy in Europe, in line with the
energy security, environmental and economic goals of the European Union.
A new European transport plan aims to increase mobility and further integrate the EU's
transport networks - while reducing greenhouse gas emissions and the bloc's dependence
on imported oil.
Measures to encourage major infrastructure investments, change the way freight moves
and people travel will boost economic competitiveness and create jobs.
The plan - with goals to be met by 2050 - focuses on travel within cities and between
cities, and on long distance journeys. It includes calls for:
cities to completely phase out petrol cars
shifting to rail or water 50% of all passenger and freight road transport currently making
intercity journeys of more than 300km
airlines to increase their use of sustainable low-carbon fuels to 40%
shipping to cut 40% off its carbon emissions
Reaching these targets would help the EU achieve a 60% cut in greenhouse gases from
all modes of transport by 2050.
United Nations Framework
Convention on Climate Change
In 1997 in Kyoto, Japan, Conference of the Parties of the
United Nations Framework Convention on Climate Change
made an agreement to reduce global carbon emissions
between the period from 2008-2012, compared to 1990
levels.
The developed countries had a target of a minimum of 5,2
proc., while no requirement for GHG reductions was put
on the developing countries.
Lithuania has a target of reducing its GHG emissions by an
average of 8% compaired to 1990 levels, and actual
reductions are more than 50%.
The surplus of emision allowances, which belong to the
country (so called AAUs) may be traded according to the
Article 17 of the Kyoto Protocol
What is a Green Investment
Scheme (GIS)?
General definition- it is part of the Kyoto flexible mechanisms, which
ensures that the money used for the sale of AAUs is invested in
projects that reduce GHG emissions
Lithuania’s Green Investment Scheme is a set of norms and
regulations, which creates a financial mechanism where all money
generated from AAUs, EUAs, ERUs or any other emission reduction
units sales are used solely for greening activities that minimize
greenhouse gasses in the atmophere
Its is put in the form of a Special Programme for Climate Change,
established by Financial Mechanisms for Climate Change Management
Act on 7th of July, 2009
Green Investment Scheme LT
Reports on GHG
reductions
AAUs
Buyers
AAUs Sales
AAUs
$
Government
of Lithuania
$
Auctioning of
EUAs
Other
emissions
Fines
Other funds
Reports on GHG
reductions
$
Climate Change Special Programme
$
Grants
$
$
Use of finances under
CCSP
$
Soft Loans
Capital
Investment
Co-financing
Co-financing:
Investment fund
$
Administration
Ministry of
Environment (MoE)
LEIF
$
2012.....2020.
Verification on
Emissions
reductions
CCSP Investment funds
Energy efficiency
40%
Renewable
energy
40%
“Soft
Greening”*
*Soft greening- various projects where there are no actual measurable shor term GHG
Ministry
of Environment
reductions
9
Investment areas under
Lithuania’s Special Programme
for Climate Change
• At least 40 % of funds must be allocated to projects which increase
energy efficiency;
• At least 40% of funds must be allocated to projects which promote
use of renewable energy and environmentally friendly technologies;
• The rest of the proceeds may be used for various projects, which can
not achieve quantifiable emission reductions, such as various climate
change measures that promote awarness, education, aid to
developing countries, etc.
Special Programme for Climate
Change
Ministry of Environment-
Types of
projects and
mainstream
directions
selected
Annual estimates
approved
Potencial of
GHG
reductions
Climate change division
Governmental
policy priority
areas
Requirements
of the Buyers
Annual Estimates- Greening Plans
Environment
al Commitee
of the
Parliament
National Climate
change
committee
Reports to
both of
institutions
Ministry of Environment and LEIF
Administration
of CCSP
Investment
holding
company
banks
Disburstmen
t of finances
Grants
Soft loans
Ministry of Environment
Capital
investment
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Financial model of CCSP
Type
Applicant
Grants
Operators not
engaged in any
commercial
acvitities
Soft loans
Operators,
engaged in
commercial
activities
Operators, engaged in
commercial activities
Max 5 mln. Lt.
Max 80% total amount
Min GHG reductions – 2kg
CO2 per 1 Lt.
Max 1,5 mln. Lt
Max 80% of total amount
Min GHG reductions – 2kg
CO2 per 1 Lt.
Project
implementation
period
12/18/36 months
Delivery- 3+years
Additional costs
-
max 3% administrative
bank fee
Size
Other
considerations
Implementation of governmental
Financial injection to the
policy priorities and financial aid to
soft loan system of
non-comercial sector Ministry ofenvironmental
Environmentprojects
Capital
investment
Business entities and
companies
unlimited
Max 50% of shares
Min GHG reductions – 2kg
CO2 per 1 Lt.
Investment period 2.-5 years.
Fund operation period- 7.+2
years.
max 3% investment holding
company fee
Higher risks
Biggest financial return
12
Annual Estimate for 2011
• 80 mln. Lt for financing the acquisition of
environmentally friendly public transport,
mainly buses
• Greening Plan is currently being drafted,
which sets out the requirements for
participants in the tender and technical
specifications of vehicles
CNG benefits in transportation
- In the urban environment it is possible to achieve maximum reduction of
GHG emissions and air pollution by introducing new advanced buses that
operate on alternative fuels.
- In many cities compressed natural gas (CNG) powered buses have proven
themselves as reliable and environmentally friendly technology which has
lower CO2 emission rates compared to conventional diesel fuel powered buses
(around 7% less), specially considering the complete fuel cycle from well-towheel.
- CNG buses generate much less other air pollutant residues such as carbon
monoxide and solid particles or NOx. If an Internal Combustion Engine
running on CNG is combined with a regenerative braking system and an
electrical motor together (EV BUS) with a plug-in system to connect it to the
grid (EV Plug-in BUS), the bus can achieve fuel consumption reductions up to
35% with equivalent CO2 emission reductions.
Hybrids
Under the Greening Plan with the AAUs buyer, it
is specified to also purchase a number of hybrid
buses, using compressed natural gas and electricity,
to promote the use of such vehicles in the country.
The Expert Group on Transport Fuels, which
provides expert advice to the European
Commission, has notified:
“Liquid natural gas, or compressed natural gas
offers great advantage because of its liquid nature,
providing much higher energy density as well as
lower price” . Furthermore, according to the Future
Transport Fuels report, provided by the expert
group on January 2011, it is said that such support
schemes as the economic purchase incentives
should be encouraged. And both CNG and
especially electricity powered vehicles and their
infrastructure should become substitution for oil in
road transport.
Thank you 
Julija Kuklytė
Chief desk officer of Climate Change and Hidrometeorology Division at
the Ministry of Environment
j.kuklyte@am.lt
tel.: +37052663504