The European Commission has approved Lithuania’s Social Climate Plan, which it said will mobilise €884 million by 2032 to support vulnerable households and micro-enterprises during the shift to cleaner energy and transport.
The plan is the second to be endorsed under the EU’s Social Climate Fund, a scheme that uses revenue from carbon pricing to help communities and smaller businesses manage higher costs linked to fossil fuels, the Commission said in a release on Friday.
Lithuania’s plan includes funding to improve home energy efficiency and reduce heating costs, including support covering 50% to 85% of renovation costs for more than 40,000 vulnerable households.
It also includes building or renovating highly energy-efficient homes for social housing and setting up Energy Advisory Hubs in all regions to offer personalised advice on cutting energy bills.
The measures are intended to prioritise households in energy-inefficient homes, remote areas, or places with limited public services.
Transport measures include electric vehicles, bike lanes and fare reductions
The plan also provides support for more sustainable transport, including the purchase of more than 7,000 electric vehicles for public transport, households and micro-enterprises, the Commission said.
It includes expanding electric vehicle charging in public and private spaces.
Around 280 km of bike lanes will be built and the purchase of more than 14,000 bikes will be supported, while about 320,000 users are expected to benefit from reduced public transport fares.
Of the €884 million total, €663 million will come from the EU’s Social Climate Fund and €221 million from Lithuania.
Lithuania will be able to request a first payment once implementation has started.
The Social Climate Fund is due to run from 2026 to 2032 and is expected to mobilise at least €86.7 billion across the EU, combining revenues from a new emissions trading system covering fuel use in buildings and road transport — a scheme that puts a price on carbon emissions — and contributions from member states.
