Republic of Lithuania: Selected Issues

This Selected Issues paper on the Republic of Lithuania takes stock of policies and reforms countries are implementing to mitigate and adapt to climate change. Within Europe, the Baltic Sea basin is particularly vulnerable to global warming caused by climate change. Fiscal policy measures, including a carbon tax on fossil fuels, are the most efficient tool for climate change mitigation. Well-designed policies and structural reforms would help reduce CO2 emissions and strengthen energy security. Baltic countries must also mainstream adaptation into development plans to strengthen resilience against climate change. Long-term climate risks demand decisive action to strengthen physical, financial, institutional, and social resilience. While a variety of adaptation measures have been introduced to enhance resilience to climate change throughout Europe, there are still significant gaps that keep some countries, such as the Baltics, more vulnerable to threats associated with climate change. Furthermore, strengthening physical and financial resilience would reduce damages from climate change and increase expected returns to private investment and output.