2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania1 Economic Instruments for Environmental Protection in Lithuania

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania2 Main purposes of economic instruments To reduce the pollution in to the atmosphere from the stationary and mobile sources To reduce waste generating and to provide incentives to producers and importers invest in to the waste recycling measures. To create incentives for users to use more friendly goods and products

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania3 Structure of economic instruments Economic instruments Pollution charges Others (subsidies, soft loans, etc.) Taxes on natural resources

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania4 Pollution charges Charges on pollutants discharged in to the atmosphere, water bodies and surface from the stationary sources (from 1991, reform 1999) Charges on the pollutants discharged from the mobile sources, (charge is set on the fuel used) (from 1991, reform 1999) Product charges on goods (tires, lamps, filters, batteries) harmful to the environment (from 2003) Filled packaging (paper, glass, metal, plastic) charges (from 2003)

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania5 Taxes on natural resources Tax on extracted gravel, sand, dolomite, peat and others (from 1991) Tax on water resources (from 1991) Tax on oil and gas (from 1991) Tax on hunting (from 2002) Tax on fishing (from 1995)

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania6 Other economic instruments Subsidies (grants, soft loans, tax allowances) Deposit refund system (reusable items) Market creation schemes (CO 2 emission trading) Enforcement incentives (non compliance fees) Compensations for environmental damage

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania7 Distribution of revenues from charges and taxes Pollution charges: 70% to the municipalities ; 30% to the Lithuanian Environmental Investment Fund (LEIF) Goods and packaging pollution charges: 100% to the Program of goods and packaging waste management Tax on natural resources: 100% to the State Budget, excluding hunting/fishing taxes Penalties and environmental damage compensations: 100% to the Program of Support to the Environmental Protection

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania8 Grants and soft loans provided by LEIF for environmental projects in 2005 Soft loans – €3,48 million Loan subsidies – €0,34 million Subsidies / grants – €2 million Projects financed – 43

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania9 Emission trading scheme in Lithuania Emission trading scheme was set in place in 2005: –Policy maker – Ministry of Environment –Register administrator - LEIF –Participating 93 energy and industry companies – Total number of allocated allowances

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania10 Deposit refund system Deposit was imposed on glass refillable used for all types of beverage. Deposit rates are set depending on the volume of the refillable €0,1 – per unit of packaging with a volume of 0,5 liters or less €0,12 – for the containers with a volume of greater than 0,5 liters This deposit-refund scheme is not yet operational.

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania11 Enforcement incentives Non compliance fees are applied: for the pollutants discharged above the set limits in the IPPC permit for the resources extracted above set limits in IPPC permit

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania12 Charge/tax payers Legal and natural entities who pollute from the stationary sources and are obliged to have the IPPC permit Legal entities who pollute from mobile sources used for commercial purposes Producers and importers who put in to the market taxable goods and filled with goods packaging Legal and natural entities who extract natural resources and are obliged to have the IPPC permit

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania13 How many tax/charge payers The entities who were obliged to have a IPPC permit and pay the charge for emission of pollutants– 3343 stationary sources Polluters from mobile sources – units Charge payers who put the goods and filled packaging in to the market – (provided declaration forms)

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania14 Revenues from Environmental Charges and Taxes

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania15 Allowances for tax/charge payers Exemptions are applied to those: Who invest in to the environmental measures reducing pollution by 5 and more percent from maximum allowable pollution Who use cars with installed catalytic converters Who use biofuels in stationary and mobile sources Who achieve waste recycling targets set by the Government

2006 metų balandžio mėnesio 10 diena The Ministry of Environment of the Republic of Lithuania16 Economic Instruments foreseen in National Strategy of Lithuania To increase the effectiveness of charges applied to mobile sources (cars, vessels, trains and aircrafts) To revise the pollution charges on packaging waste in order to achieve waste recycling goals To increase the charge on VOC discharged in to atmosphere from the stationary sources Encouraging Public Green Purchasing