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  • 27-September-2021


    Lithuania strong on renewables and recycling - must do better on transport, agriculture and emissions reductions, says OECD

    Lithuania has significantly boosted its use of renewable energy and waste recycling but needs to do better in managing environmental impacts of transport and agriculture. Policies will also need to be strengthened considerably for Lithuania to reach its 2030 and beyond climate targets and to improve biodiversity and water quality, according to a new OECD report.

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  • 26-July-2021


    Making Dispute Resolution More Effective – MAP Peer Review Report, Lithuania (Stage 2) - Inclusive Framework on BEPS: Action 14

    Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 2 peer monitoring of the implementation of the Action 14 Minimum Standard by Lithuania.
  • 12-July-2021


    Lithuania 2021 Energy Policy Review

    The International Energy Agency (IEA) regularly conducts in-depth peer reviews of the energy policies of its member, partner and accession countries. This process supports energy policy development and encourages the exchange of international best practices and experiences. Lithuania has made strong progress towards realising its vision of a secure, competitive, sustainable and innovative energy system in the Baltic region. The government supported major reforms of the electricity and natural gas markets, and further integrated with the EU energy system and markets. Thanks to the expansion of renewable energy sources, notably bioenergy and wind, the carbon intensity of the power and heat sector has decreased over the past decade. Nevertheless, emissions have been on the rise, notably in the transport sector. Lithuania will need to make energy efficiency a priority, design a strong renewable strategy, and reform energy taxes to underpin its ambitious targets. This kind of clean energy leadership can drive emissions reductions up to 2050. In this report, the IEA provides energy policy recommendations to help Lithuania accelerate its energy transition towards its ambitious 2050 targets for climate neutrality.
  • 15-June-2021


    Development Co-operation Profiles

    The verified, comparable individual profiles provide detailed statistics and analysis for the aid programmes of 93 providers, including 34 private foundations.

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  • 11-June-2021


    OECD Skills Strategy Lithuania - Assessment and Recommendations

    Skills are the key to shaping a better future and central to the capacity of countries and people to thrive in an increasingly interconnected and rapidly changing world. Megatrends such as globalisation, technological advances, and demographic change are reshaping work and society, generating a growing demand for higher levels and new sets of skills. OECD Skills Strategy projects provide a strategic and comprehensive approach to assess countries’ skills challenges and opportunities and help them build more effective skills systems. The OECD works collaboratively with countries to develop policy responses that are tailored to each country’s specific skills needs. The foundation of this approach is the OECD Skills Strategy Framework, which allows for an exploration of what countries can do better to: 1) develop relevant skills over the life course; 2) use skills effectively in work and in society; and 3) strengthen the governance of the skills system. This report, OECD Skills Strategy Lithuania: Assessment and Recommendations, identifies opportunities and makes recommendations for Lithuania to better equip young people with skills for work and life, raise adults’ and enterprises’ participation in learning, use people’s skills more effectively in workplaces, and strengthen the governance of skills policies.
  • 19-May-2021


    The Impact of Regulation on International Investment in Finland

    The Impact of Regulation on International Investment in Finland examines what drives FDI into Finland and which domestic regulatory aspects may discourage foreign investment. The report analyses trends in FDI flows towards Finland and other Nordic-Baltic countries and discusses the benefits of foreign investment for the Finnish economy. It provides a comparative overview of the regulatory frameworks in force in Finland and its Nordic-Baltic peers, outlining both economy-wide and sector-specific findings, and explores how changes in these regulatory frameworks are linked to changes in FDI inflows in the region. Foreign investors’ views on Finland’s business environment complement these findings. The report underlines potential areas for reform and suggests policy actions that could further improve Finland’s investment climate and contribute to attracting and retaining more FDI, while also strengthening its positive impact.
  • 18-May-2021

    English, PDF, 274kb

    Preventing Harmful Alcohol Use: Key Findings for Lithuania

    Lithuania has one of the highest levels of alcohol consumption – 13.2 litres of pure alcohol per capita per year, roughly equivalent to 2.7 bottles of wine or 5.1 litres of beer per week per person aged 15 and over. In addition, in Lithuania, some population groups are at higher risk than others.

  • 26-April-2021


    Greening Lithuania’s growth

    This paper provides an overview on Lithuania’s environment and environmental policy. Environmental performance has improved since the mid-2000s. Greenhouse gas emissions declined and decoupled from growth over the past decade, yet per capita emissions increased. Transport and energy are the main sources of emissions and pollution, followed by agriculture and industry. There was much improvement in waste management practices, with a significant reduction of landfills. Yet Lithuania has the highest mortality rate from exposure to air pollution in the OECD. Energy efficiency is a concern, particularly in the housing sector. Pricing of environmentally damaging activities is low. Lithuania sets no CO2 tax, has one of the lowest excise duties on motor fuel, petrol and diesel in the OECD, and has one of the largest ‘diesel differentials’, the gap in the price of diesel versus gasoline. It also provides among the highest subsidies to fossil fuels. In 2020, the country introduced a purchase tax for passenger vehicles which takes into account emissions. Against this background, the country has scope for increasing fossil fuel taxes and removing subsidies, to reach its ambitious environmental and climate management objectives and the net-zero carbon emission target by 2050.
  • 22-December-2020


    Regional development in Lithuania: A tale of two economies

    Regional differences in GDP per capita, productivity, employment and poverty in Lithuania are among the largest in the OECD, and they have increased over the last decade. The country still recovers from the legacy of the Soviet planning system which aimed at balanced geographical distribution of industrial activity and left many unviable firms and jobs particularly in rural areas. Unemployment is high in many regions, while mobility of excess labour towards economically stronger areas remains insufficient. Some regions feature 'surplus infrastructure', while others lack investment. This paper looks at potential reasons for persisting disparities and assesses recent policy initiatives to reduce them. Stark gaps in education outcomes between rural and urban areas should be addressed, mainly by reorganising the municipal school network and by fostering firm-based learning, i.e. apprenticeships. The digital infrastructure is weak in rural regions and should be strengthened to allow access to high-quality jobs in all parts of the country, including through teleworking. Housing supply in economically strong areas should be increased, while urban sprawl should be avoided. Finally, municipal governments should be given more fiscal power, while the planned functional regions should help foster inter-municipal coordination.
  • 22-December-2020


    Reducing poverty and social disparities in Lithuania

    Reducing poverty remains an important challenge, and the COVID-19-crisis may further reinforce social vulnerabilities. Although it has declined lately, relative poverty remains high in international comparison and is distributed unevenly across population groups with the elderly, people with disabilities, lone parents, the low-educated and the unemployed being particularly affected. A comprehensive approach is required to ensure an effective transition out of poverty and social exclusion. Reforms should strengthen income protection by ensuring that cash benefits provide adequate and tailored support to those in need. An individual-based approach is also essential for the provision of social services to reduce deficits in important areas such as social housing and long-term care for the elderly. Equity in educational opportunity and outcomes could be strengthened further, starting at the early school years, as not all children benefit from early childhood education and care services. Progress in this domain is also crucial for striking a better work-family balance and improving work incentives. More and better quality jobs in the formal sector, especially for the low-skilled, are crucial for reducing poverty. Enlarged participation in life-long learning programmes can help re-skilling and up-skilling towards higher incomes. Increased spending on well-designed labour market activation policies is also important for tackling poverty effectively.
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