Report: EUKI Networking Event Baltics

The event started with a networking session, followed by three thematic inputs on transport, agriculture, and heating. Experts shared insights into the region’s challenges and opportunities, highlighting positive examples like Lithuania’s heating sector transformation. Participants exchanged strategies to overcome obstacles.  

Transport Decarbonization Challenges 

Martynas Nagevicius, President of the Lithuanian Renewable Energy Confederation, highlighted the urgent need for solutions in the transport sector of the Baltics. Lithuania, for instance, ranks third last in the EU for renewable energy use in transport. Key challenges include reliance on petroleum and inadequate infrastructure. Describing transport as the overlooked elephant in the room, Mr. Nagevicius suggested support for biomethane and electric cars, green procurement, major infrastructure adjustments and fossil fuel taxation. The discussion round emphasized the need for better transport strategies, namely the Avoid-Shift-Improve approach, and major infrastructure improvements with the power to change carbon intensive behavioral patterns. However, funding and public support remain significant barriers. Effective incentives are necessary to encourage a change in behavior. The key challenge lies in promoting climate policies in a way that gains public support while ensuring politicians do not fear the risk of not being re-elected.  

Reforming Agricultural Financing for Climate Goals 

Agnė Prakapienė, Chief Officer at the State Service for Protected Areas und the Ministry of Environment in Lithuania, discussed the EU’s Common Agricultural Policy (CAP) and Lithuania’s efforts to align its agricultural funding with climate goals. While four billion euros are planned for agriculture and rural development in Lithuania, she pointed out the funding model’s inefficiencies. Farmers are currently not fully utilizing these funds, partly due to a lack of awareness and complicated regulations. Participants suggested shifting from pay-per-hectare to performance-based subsidies, promoting local and sustainable food production, and improving education for farmers on sustainable practices. Carbon credits were brought forward as a promising tool for the CAP reform. Additionally, Lithuania’s focus on food and produce exports, highlights the need for shorter supply chains. Overall, there is a need for changed consumption and supply patterns, such as a shift towards local, ecological nutrition. 

Decarbonising the Heating Sector: A Lithuanian Success Story 

Remigijus Lapinskas, Director of Green Policy Institute, presented Lithuania’s success in leveraging the potential of sustainable biomass for heating, thereby freeing itself from dependency on Russian gas imports. The low price of biomass heating in Lithuania sets a clear economic incentive. This enabled significant progress, with 90% of heating in Vilnius now coming from biomass. The public scepticism about wood cutting can be addressed by demonstrating the exclusive use of low-quality wood (branches, tops, residues) and largely non-forest biomass sources, which includes cuttings from the cleaning of roads, railway and electricity line protection zones. This model has proven both cost-effective and sustainable in Lithuania, with plans to further increase the share of district heating from renewable sources by 2030. 

The political segment of the EUKI Networking Event opened with brief welcoming remarks from Elsa Benhöfer, EUKI Academy Coordinator, and Remigijus Lapinskas who set the stage for the day’s discussions.  

Rüdiger Zettel, Deputy Head of Mission at the German Embassy in Vilnius, delivered the first keynote. He underscored that the climate crisis is a shared global challenge, interwoven with critical issues like competitiveness and prosperity. European cooperation is fundamental to meeting national, European and global climate targets, reinforcing the importance of cross-border collaboration in the Baltic States. Mr. Zettel also underlined the importance of civil society, independent organisations, and knowledge-sharing in fostering the green transition, as is achieved through EUKI-funded projects.  

In his keynote speech, Lithuanian Minister of Environment Simonas Gentvilas shared latest insights from his recent participation in COP29. He highlighted several key successes, such as the agreement on carbon credit standards, which aims to enable a global emissions trading system. However, he also emphasized the persistent challenges, particularly in the area of climate finance. Minister Gentvilas pointed out that the financial contributions from developed countries are still insufficient, summarizing the agreements as “too little, too late”. He underscored that climate finance is not a form of charity, but a critical necessity for collective global livelihood. 

The Political Roundtable “Europe’s Green Transition – 2030 and Beyond”, moderated by Remigijus Lapinskas, brought together government officials and civil society representatives from the Baltics to discuss the EU’s climate goals, share best practices, and identify common challenges. 

In light of recent US election results and some global leaders rolling back Climate Policy commitments, Tomas Tomilinas, Member of the Lithuanian Parliament, emphasized the importance of integrating social justice and public trust into climate policies to ensure successful green transitions while countering populist resistance. Climate policies must be clear, stable, and promote trust among the public to encourage individuals to invest in green solutions like energy-efficient home upgrades. The biggest challenge lies in balancing interacting issues like economic growth, social issues and defense. He stressed the importance of securing global stability, noting that the war in Ukraine not only contributes to CO2 emissions but also damages critical natural resources, which exacerbates environmental harm and climate change.  

One approach to address societal skepticism is emphasising the widespread benefits of the green transition. Talis Linkaits, Senior Expert at Riga Energy Agency, highlighted the Baltic States’ potential to become leaders in green energy exports, like solar, wind, and hydrogen. Nevertheless, achieving this vision requires substantial infrastructure investment, behavioral change, and subsidies to ensure competitiveness in the EU market, as Minister Gentvilas added. Simonas Gentvilas underlined the potential of the green transition to drive economic growth, creating jobs in Lithuania, Latvia, and even Estonia, despite the transitional challenges in its coal- and oil-reliant regions. To foster sustainable and equitable economic growth, Mr. Tomilinas urged businesses and investors to take an active role in climate action. The Minister emphasized the need for politicians to push for new standards that encourage proactive climate action and ensure that those willing to act are not disadvantaged by those unwilling to change. 

In conclusion, all speakers acknowledged the need for coordinated regional efforts, investment in green technologies, and clear policies to ensure the Baltic states can successfully navigate the green transition while addressing economic, social, and environmental concerns. The consensus is clear: Achieving the ambitious goals of Europe’s green transition and implementing climate policies is only possible with the trust and support of the general public. 

The afternoon comprised another round of expert inputs paired with group discussions on the topics: Hydrogen, forests and building renovations.  

The Development of Hydrogen as a Crucial Element for the Future of Energy: Current Status and Prospects 

Remigijus Lapinskas highlighted the challenges faced by hydrogen companies, including concerns of local communities related to wastewater management and safety perceptions. He noted the lack of political support for the sector, emphasizing that authorities should facilitate land access and coordinate with affected communities. Mr. Lapinskas also mentioned the importance of subsidies to support the growth of hydrogen energy, necessary for ensuring long-term profitability and competitiveness. During the discussion, it was pointed out that the implementation of hydrogen projects is still in its early stages, with limited state funding available for development. Public relations efforts were seen as crucial for building acceptance. 

The Role of Forests in the Future of the Bioeconomy, Decarbonization, and Climate Change Adaptation 

Jūratė Mažeikytė, Project Manager at Green Policy Institute, discussed the state of forests in Lithuania and their role in bioeconomy and climate adaptation. Currently, only 32.93% of Lithuanian forests are designated as protected areas. The increasing capitalisation of forests is a concerning trend, particularly in combination with lower increases in forest land creation. Data discrepancy between the reported increase in forest area and a decline in CO2 sequestration demonstrate the need for adequate data collection, as reliable data provides the foundation for informed decisions, effective regulations and funding. Overall, the condition of Lithuania’s forests has worsened, with a decline in greenhouse gas accumulation and increasing forest degradation urgently calling for protective action. 

Building Renovation: Accelerating Energy Efficiency Improvements 

Martinas Nyderis, Advisor at the Housing Policy Group of the Lithuanian Ministry of Environment, presented long-term renovation strategies aimed at decarbonising the existing building stock by 2050. Mr. Nyderis shared an example of successful serial renovations in the city of Sau in Estonia, which demonstrated the potential for quick large-scale energy efficiency improvements. Key challenges include digitalisation and the communication of long-term benefits of building renovations to the public. It was noted that property owners, especially in Soviet-era buildings, often resist investing in renovations due to financial concerns and a lack of awareness over opportunities and benefits. An example from Riga highlighted efforts to promote successful renovations through organized excursions to best practice sites. The message to be conveyed would be that renovations are inevitable, and the sooner investments are agreed upon, the more beneficial they will be. 

With its valuable opportunities for exchange and networking, as well as its informative inputs, the first EUKI Networking Event Baltics in Vilnius serves as a great starting point for future events and cooperation in the Baltics. Throughout the day, it became clear that the Baltic states have great potential to be a driving force in the green transition, e.g. by exporting wind and solar power. However, achieving this requires a multidimensional and multisectoral approach, infrastructure upgrades, and behavioral changes, all of which can be accelerated through trilateral cooperation. In critical sectors, such as transport, agriculture, and buildings, a lack of awareness among the general public and on the policy-level is hindering progress. On the other hand, there are best practice examples serving as role models for the region, like Lithuania becoming independent from Russian gas imports for heating. Support for vulnerable households, incentivizing climate-friendly behaviors, and increasing public trust in new strategies and emerging technologies in climate action are essential to gaining public support for the green transition.