Republic of Lithuania: Selected Issues
IMF Staff Country Reports, July 28, 2022
Source details
- Canonical URL
- Republic of Lithuania: Selected Issues
Other formats
Bibliographic details
- Published: July 28, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400217333.002
Summary and context
- Publication date: July 28, 2022
- This Selected Issues paper takes stock of policies and reforms countries are implementing to mitigate and adapt to climate change, with focus on implications for the Republic of Lithuania and the Baltic region.
- The Baltic Sea basin is identified as particularly vulnerable to global warming caused by climate change.
- Long-term climate risks require decisive action to strengthen physical, financial, institutional, and social resilience.
Key findings
- 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 mainstream adaptation into development plans to strengthen resilience against climate change.
- While various adaptation measures have been introduced across Europe, significant gaps remain that keep some countries, such as the Baltics, more vulnerable to climate-related threats.
- Strengthening physical and financial resilience would reduce damages from climate change and increase expected returns to private investment and output.
Policy recommendations
- Implement fiscal policy measures focused on mitigation, notably a carbon tax on fossil fuels.
- Design and enact structural reforms that reduce CO2 emissions and enhance energy security.
- Mainstream climate adaptation into national and regional development planning.
- Strengthen physical resilience (infrastructure and land-use planning), financial resilience (risk financing and insurance mechanisms), institutional capacity, and social resilience to address long-term climate risks.
Thematic subjects and keywords
- Subject: Crime, Environment, International organization, Monetary policy, Taxes
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), B. climate change mitigation, Baltics, Carbon tax, Climate change, data overview, Energy conservation, energy security, Energy security, Europe, Global, Greenhouse gas emissions, TF risk
Content in this bundle
- Republic of Lithuania: Selected Issues; IMF Country Report No. 22/252; July 11, 2022