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The OECD evaluation notes that since 2005 Lithuania has made progress in decoupling environmentally harmful factors, such as greenhouse gases (GHG) and other air pollutant emissions, from economic growth, as well as improving the wastewater treatment and expansion of the network of protected areas. However, it is observed that transport pollution has increased significantly in Lithuania.
In the National Climate Change Management Agenda, the government has set a long-term goal for 2050 to become a climate-neutral country.
The OECD has prepared an environmental assessment of Lithuania and 43 recommendations for our country. The news portal tv3.lt invites you to familiarize yourself with the main aspects of the OECD report.
The funds for economic recovery are proposed to green
The OECD calls on Lithuania to support the ambitious CO2 reduction targets and make optimal use of European Union funds, in particular economic recovery funds.
The authors of the recommendations call on Lithuania to ensure that measures to promote economic recovery after the COVID-19 pandemic contribute to greening the economy by linking aid to businesses and households and meeting environmental and climate requirements.
Proposes stricter control over the use of fertilizers
The organization recommends that Lithuania pay more attention to improving air and water quality. The OECD offers our country to reduce ammonia emissions by regulating the use of mineral fertilizers and implementing good agricultural practices such as integrated manure management.
It is also proposed to closely monitor air quality in densely populated urban areas with large amounts of solid fuels for heating, establish mandatory quality requirements for solid fuels if necessary, and strengthen control of domestic heating appliances.
In the field of improving water quality, the OECD calls on Lithuania to reduce nitrogen emissions from agriculture by imposing stricter restrictions on the use of fertilizers in the target areas. It also calls for the completion of the modernization of the wastewater treatment and water supply infrastructure to reduce the impact on water bodies.
The focus is on reducing waste
The OECD welcomes Lithuania’s progress and encourages its maintenance in the area of waste reuse and recovery by expanding programs to encourage behavior change and encourage households to better sort waste. The organization also calls for a greater focus on reducing waste.
Proposes tougher fines for those who pollute
The OECD recommendations promote the government’s overall approach to environmental governance by better integrating environmental concerns into cross-sectoral policies. According to the authors of the recommendations, this would ensure more effective coordination between ministries and a more efficient use of resources. Municipalities would also have the opportunity to play a more active role in implementing the country’s agenda on climate change, circular economy and sustainable mobility.
The organization also calls for tougher penalties for those who pollute. The OECD proposes to increase the number of risk-based inspections, increase the use of administrative fines for environmental violations and increase them so that the fines reflect the economic damage caused by non-compliance with non-compliances and collect the fines more effectively.
Ask for a more expensive diesel
Probably the OECD made most of the recommendations to Lithuania in the field of taxation. The organization urges Lithuania to gradually increase the tax rate on diesel to at least the current level of the tax rate on gasoline and to assess whether the rates of both taxes should be increased further to promote the sale of clean vehicles.
Offers to tax all fuel and waive VAT relief
The OECD is also promoting the introduction of a carbon tax on all fossil fuels that are not subject to European pollution limits, including domestic coal. It is proposed to gradually increase tax rates over time, including through measures to ease the burden on the worst-affected households.
Lithuania calls for the phasing out of tax incentives for fossil fuels, as well as VAT incentives for central heating.
However, the OECD does not propose to leave the poorest to their will. The organization calls for a reduction in the burden on companies and households most affected by rising fuel prices. However, the OECD does not detail how this could be done.
Support the car pollution tax
Governors’ plans to introduce a car pollution tax have also received support from the OECD. The organization calls for the registration tax already in force in Lithuania to be applied to all passenger vehicles, including classes with CO2 emissions below 130 g CO2 / km; increase tax rates for all vehicles without giving diesel-powered vehicles an advantage.
An annual motor vehicle tax is also required for passenger vehicles, – the tax rate should depend on the vehicle’s CO2 emissions and air pollutants, and consideration should be given to adding a distance component to this tax.
As the news portal tv3.lt wrote a little earlier, the amendments to the law will soon be submitted to Seimas for its consideration, which, in addition to the current vehicle registration fee, will also include a fee for their users. Depending on the pollution of the car you have, you may have to deposit several hundred or more than a thousand euros for it.
Even more upward taxes
The recommendations also highlight the point on the planned highway toll per kilometer for heavy vehicles. The OECD also urges Lithuania to consider differentiating tax rates according to time of day and week to address the problem of road congestion.
It is proposed to increase taxes on air and water pollution to better reflect the social harm caused by emissions. The OECD proposes not only raising taxes, but also creating incentives to switch to cleaner technologies, prioritizing much lower emissions.
Lithuania is also urged to gradually increase the municipal landfill tax above the current level.
Offers to waive free parking spaces
Phasing out free parking at workplaces, increasing parking fees in urban areas, consider treating the costs of public transportation and emerging transportation services (such as bike sharing) as workplace benefits, abolish the minimum parking requirements for new residential and commercial buildings.
In cities – low pollution areas
The OECD calls for priority to be given to public transport, on foot and by bicycle, and for more investment to be made in these modes.
The recommendations also cover low contamination areas. It aims to define more and more low-emission zones in urban areas, closely monitor the impact and adjust taxes accordingly, and provide limited and targeted financial support for low-income and car-dependent households.
In Lithuania, small areas of pollution will appear in a few years, which cannot be accessed by polluting cars.
You want to reduce the price difference between cars and electric cars.
The OECD also focuses on electric cars. The organization proposes to tax conventional cars in such a way that the difference between their prices and electric cars is minimal. Lithuania is also encouraged to expand the network of electric vehicle charging points.
Mathias Cormann, Secretary General of the Organization for Economic Cooperation and Development (OECD), presented Lithuania’s first environmental review in Vilnius on Monday. Although Lithuania is praised for its progress, it is emphasized that transport pollution is a major problem, that the excise duty on diesel is too low and that Lithuania should invest more in environmental protection.
OECD Secretary General M. Cormann noted that since 2005 Lithuania has made significant progress in increasing the environmental efficiency of its economic growth. For example, carbon dioxide (CO2) emissions in the Lithuanian economy have decreased significantly.
PRESENTATION OF THE LITHUANIAN ENVIRONMENTAL EFFICIENCY ASSESSMENT:
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