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Among several issues listed in the Partnership Agreement where administrative capacities need to be strengthened, climate change issues are not covered specifically. This might be explained by the low priority of climate change mainstreaming between others, like reduction of corruption risk, professional ethics, or project cycle management. Even the climate change topic itself is not perceived and understood adequately by staff of sectoral ministries; therefore efforts to improve existing horizontal integration are necessary. If well-targeted, this might be a very important measure to shape the current policy perspective, to address climate change issues properly and to secure climate mainstreaming in sectoral policies. GRAPH 29: Different types of energy infrastructure investments. Source: our own calculations based on approved Operational Programmes according to categories of intervention OPERATIONAL PROGRAMMES: RENEWABLES POTENTIAL UNTAPPED Lithuania has three operational programmes: one for European Structural and Cohesion Funds, one for EAFRD and one for EMFF. All of them address climate change mitigation objectives. Thematic Objective 4 addresses the low-carbon economy, increased energy efficiency and renewables. Thematic Objective 5 addresses adaptation, resilience, capacity strengthening to assess and analyse climate change impacts, better public awareness, climate change risk minimisation (flood risk minimisation, coastal zone management) and strengthening the capacity of rescue services. An increase of energy and resource use efficiency (technologies) as well as introducing renewables (infrastructure) in companies will be supported from Thematic Objective 3. The total European Structural and Cohesion Funds’ contribution to climate change goals amounts to 20.94% according to the EU ‘Rio Marker’ methodology. The share of clean energy investments, i.e., energy efficiency, renewables and smart electricity distribution is 13.21%. euro 45% Energy Efficiency 465.942.000 32% Renewable Energy Sources 329.868.110 8% Gas 84.195.303 7% Co-generation, district heating 73.649.780 7% Electricity transmission, storage 69.508.804 2% Smart Grid 20.766.632 58 ‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’
Considering the fact that renewables are supported to a relatively small extent and just at the enterprise level, the largest share of ERDF allocations goes to energy efficiency projects (45% of allocations for energy infrastructure), namely renovation of public infrastructure and housing stock. This shows that energy efficiency is perceived as one of the most important issues from an economic, social and environmental point of view (see Graph 29). Despite the Operational Programme pointing out that further renewables development will help to solve not only climate change problems, but also increase Lithuanian energy independence, dedicated support for renewables is limited to support for solid biomass-burning power plants, which would significantly reduce heating prices for citizens. Lithuania has already reached its Europe 2020 target for renewables and more rapid wind and solar power plants development is not promoted by the Lithuanian government. The Law on Renewable Energy Resources establishes installed capacity caps for all types of renewables. Wind energy is the most promising source of renewables. But there are no free licences left: all licences for onshore wind power plants were distributed several years ago. Tariffs for solar energy were decreased by 40% in 2013. Thus, incentives to develop this source of renewables are suppressed now. This is explained by the impact on energy prices for consumers as renewable energy buying tariffs were incorporated into the final energy consumption price. Lithuania has not put in enough effort to motivate, involve and create attractive business models for local communities to become wind energy producers, even though this could be a very strong factor promoting rural development. Citizen ownership is also considered to be the one of the key elements of the Energy Union Communication of 2015 from the European Commission 96 . So far, almost all installed capacity is owned by private companies where local communities act as shareholders only in exceptional cases. Even state-owned options or private-public partnerships are excluded as an ownership model. As wind and solar energy development is suspended, a high share of planned investments goes to biomass-based energy production. Looking at all allocations for energy infrastructure (see Graph 29), it is interesting to note that investments into natural gas distribution systems are almost equal to allocations into electricity distribution systems. Large investments have been made into LNG terminal development in the last few years. This now requires development of supplementary systems, competing to some extent with investments for other types of energy. However, gas consumption is tending to decrease due to support for conversion from gas-based heat generation to solid biomass-based heat generation and investments into renewables exceed investments into gas up to four times due to allocations for biomass. The development of smart grids would be an important step towards increasing energy efficiency and reducing energy consumption, however, the measures planned in this area are not accompanied by information on how and which planned measures will contribute to reaching climate change mitigation objectives. As presented in Graph 29, the share of investments into intelligent energy distribution systems is an insignificant 2% of the total allocation for energy infrastructure. The main goal of these investments is to increase energy supply stability and management efficiency of the electricity grid by introducing remote control systems and other measures. The chosen main result indicator – System Average Interruption Duration Index (SAIDI) – is related to electricity supply stability rather than efficiency. Perhaps one of the most promising investment priorities in the transport sector under the ‘low-carbon’ objective is the implementation of strategies to reduce CO 2 emissions in cities and promotion of sustainable mobility. The introduction of integrated transportation systems (Park&Ride, Bike&Ride) together with the renewal of existing public transportation vehicle fleets, the introduction of smart traffic management schemes and corresponding changes in spatial planning documents could catalyse the shift towards a more sustainable life in the cities and, together, would reduce climate change 96 Communication From The Commission To The European Parliament, The Council, The European Economic And Social Committee, The Committee Of The Regions And The European Investment Bank A Framework Strategy For A Resilient Energy Union With A Forward-Looking Climate Change Policy /* Com/2015/080 Final */ ‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’ 59
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CLIMATE’S ENFANTS TERRIBLES HOW N
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TABLE OF CONTENTS EXECUTIVE SUMMARY
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safeguard mechanism, the Strategic
Page 7 and 8: SLOVAKIA HUNGARY ROMANIA CROATIA Sl
Page 9 and 10: INTRODUCTION PURPOSE OF THIS STUDY
Page 11 and 12: EU FUNDS IN CENTRAL AND EASTERN EUR
Page 13 and 14: LT RO SK HU CZ LV CEE EE PL HR 20.0
Page 15 and 16: GRAPH 7: Comparison of energy effic
Page 17 and 18: GRAPH 10: Different types of energy
Page 19 and 20: GRAPH 12: Member States’ GHG emis
Page 21 and 22: TABLE 2: Criteria for renewable ene
Page 23 and 24: What EU money can’t buy: the gree
Page 25 and 26: 25% of production respectively 30 .
Page 27 and 28: are implemented through six Nationa
Page 29 and 30: track to carbon-neutral development
Page 31 and 32: It is also worth noting, that all O
Page 33 and 34: very specific - although mostly sil
Page 35 and 36: 110 billion in the optimal renovati
Page 37 and 38: whose ROP clearly prioritises commu
Page 39 and 40: aimed at modernising and building n
Page 41 and 42: The long and rocky path away from s
Page 43 and 44: GRAPH 21: Production of electricity
Page 45 and 46: CLIMATE ACTION: THE CASE FOR EU FUN
Page 47 and 48: GRAPH 23: Investment areas of Cohes
Page 49 and 50: could play a major role in replacin
Page 51 and 52: The missing pathway to long-term de
Page 53 and 54: intensity has decreased over the la
Page 55 and 56: achieving policy objectives. Such i
Page 57: change. Nevertheless, no specific c
Page 61 and 62: equires a more comprehensive assess
Page 63 and 64: A ‘green’ veneer, but at what c
Page 65 and 66: NATIONAL GHG EMISSIONS The transiti
Page 67 and 68: monopoly (which imports Russia`s ga
Page 69 and 70: GRAPH 36: Cargo traffic by mode of
Page 71 and 72: than that of deforestation, some ex
Page 73 and 74: GRAPH 41: Energy efficiency allocat
Page 75 and 76: Bring on the money, don’t ask for
Page 77 and 78: GRAPH 43: Energy mix of the Czech R
Page 79 and 80: Regarding the Europe 2020 emissions
Page 81 and 82: the renewables share to 35%, the Cz
Page 83 and 84: of commitment of public authorities
Page 85 and 86: GRAPH 53: Share of transport modes
Page 87 and 88: TABLE 12: Renewable energy output i
Page 89 and 90: 2007-2013 2014-2020 In the Enterpri
Page 91 and 92: GRAPH 55: The different types of en
Page 93 and 94: Finance for the energy transition -
Page 95 and 96: ENERGY SECTOR OF SLOVAKIA: STEADY W
Page 97 and 98: strategy until 2030, in 2012, but t
Page 99 and 100: This support is very welcome as it
Page 101 and 102: environmentally-friendly production
Page 103 and 104: participation in assessment procedu
Page 105 and 106: The Integrated Infrastructure OP se
Page 107 and 108: THE DARK SIDE IS IN THE DETAILS Cli
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GRAPH 60: Climate targets, scenario
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GRAPH 64: Total climate allocations
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EXPECTED COMPLEMENTARY FINANCING MO
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Recommendations for the mid-term re
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Notwithstanding a few exceptions, t
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c) Renewable energy sources Eligibl
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enewables in transport, as this tas
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Annex II - Complementary financing
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Going ‘super-green’, but not ri
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GRAPH 67: Energy mix 2013 - Gross i
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OVERVIEW OF EUROPEAN STRUCTURAL AND
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cogeneration systems, monitoring sy
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pollution levels and poor air quali
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line with the Europe 2020 targets a
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esidential sector and the usage of
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In the preparation phase, the mains
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of the Thematic Objective or progra
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Land of unfulfilled clean energy po
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hydropower plants (94%), and the ot
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points to a need for the developmen
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and adaptation, disaster resilience
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significant biomass growing fields.
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ports (EUR 140 million), new and im
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RECOMMENDATIONS FOR PLANNING, MONIT
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ENFANTS TERRIBLES

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