Thursday, January 21, 2021
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Lithuania approves draft law on alternative fuels

Lithuania’s Government approved a draft law on alternative fuels that will help the country increase to 15 per cent the share of renewable energy sources (RES) in the transport sector. The law promotes the use of clean vehicles and the local production of biomethane or other advanced biofuels.  

The transport sector is one of the largest consumers of energy in Lithuania, therefore its role in creating a climate-neutral economy is extremely important. Currently, the share of RES in the final consumption of the transport sector is only 4.3 per cent as advanced biofuels are not used and the infrastructure of alternative fuels is underdeveloped.

“This law will allow for the implementation of strategically important changes in the transport sector, which will ensure the sustainable development of this sector in the long run,” said the Minister of Energy Žygimantas Vaičiūnas. “The transformation of the transport sector is necessary and inevitable to reduce its impact on climate change. At the same time, it will be a stimulus for the economy – it will open opportunities to produce advanced biofuels in Lithuania and create jobs in the regions.”

The government estimates that in 2030 there will be around 6,000 electric vehicles in Lithuania and the new law also include financial schemes to support this development until at least ten per cent of the country’s vehicles becomes electric.

Particular attention is paid to the transformation of the freight transport sector. The government plans to expand the network of natural gas filling points and promote the purchase of gas-powered vehicles while ensuring the use of RES fuel. This will allow for biomethane and green hydrogen to account for at least 5 per cent of final energy consumption in the transport sector.

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