Positive developments in the Lithuanian legal framework and capital markets are preparing the ground for Lithuania to become a pioneer in green and sustainable finance among the Baltic and Nordic states. In order to achieve that goal and to develop an effective sustainable finance strategy, a Lithuanian Green and Sustainable Finance Strategy Workshop will take place in London on 27 January. The workshop, jointly organised by the Lithuanian Ministry of Finance, the European Bank for Reconstruction and Development (EBRD) and the European Commission, will gather leading participants in the field of green and sustainable finance.
Key questions to be answered
During the workshop, Tomas Kontautas, Sorainen Lithuanian country managing partner and co-head of the firm’s Finance & Insurance team in Lithuania together with colleagues Dalia Augaitė and Rimantas Bendorius, along with other key representatives – the Lithuanian Minister of Finance, the EBRD Vice President, the European Commission Structural Reform Support Service leadership, the Head of the Economic Policy Analysis Division of the Bank of Lithuania – will approach topics such as:
- Lithuania as a centre of green finance: ability to invest in Lithuania
- Developing new instruments to facilitate green finance across the region: what can laws and regulations do?
- What service providers support the green finance market? What can Lithuania do to support them?
- What is not being done to help green finance that could be done in Lithuania?
- What interactions can usefully take place with existing green finance agencies? What practical problems have they encountered?
Lithuania establishing itself as a pioneer in sustainable finance
Lithuania adheres to the targets of the Paris Agreement on Climate Change and the UN 2030 Agenda for Sustainable Development and is implementing measures to achieve these targets.
Additionally, in October 2019, a project was launched in Lithuania to promote sustainable (green) investment. In cooperation with the EBRD, experts will prepare a country action plan on green finance and a feasibility study on establishing a Green Finance Institute in Lithuania ‒ the first country in the Baltics to launch a project of this kind.
Increased activity in government and corporate green bonds
The Lithuanian capital market has been witnessing activity in both government and corporate green bonds. In 2017, Ignitis Group, the energy utility state owned entity, issued a EUR 300 million green bond, followed by a second issue of EUR 300 million in 2018. In 2018, the Government supported a decision on granting a loan to the Public Investment Development Agency (“VIPA”) by issuing green bonds ‒ the first issue of government securities in the Baltic region whose proceeds will be dedicated to implementing green projects.