Enabling business decarbonisation through research and innovation

Problem

International Commitments

Under the Paris Agreement and the European Green Deal, Lithuania, like other European Union (EU) countries, has committed to achieving climate neutrality (net-zero emissions) by 2050 through transitioning to a circular economy and implementing decarbonisation measures.

Decarbonisation refers to the process of reducing greenhouse gas (GHG) emissions into the atmosphere. To reach this goal, Lithuania has set interim targets to reduce national emissions by at least 40% by 2030 (compared to 1990) and to lower emissions in the sectors covered by the EU Emission Trading System (EU ETS)—such as industry, energy, and aviation—by at least 30% (compared to 2023).

The main decarbonisation measures outlined in the National Energy and Climate Action Plan 2021–2030 (NECAP) include transitioning to renewable energy sources, improving energy efficiency (e.g., building renovations), and promoting transport electrification.

Challenge for the Private Sector

Achieving these GHG reduction targets requires not only effective public policy but also significant operational changes within organisations. Proactive efforts to reduce emissions are crucial, both to meet national decarbonisation targets and to ensure the long-term competitiveness of Lithuanian companies.

As consumers and investors increasingly favour sustainable products and services, businesses must adapt to shifting expectations. Moreover, with the introduction of mandatory sustainability reporting requirements (Corporate Sustainability Reporting Directive (CSRD)), carbon taxes (EU ETS), and the Border Carbon Adjustment Mechanism (BCAM), and various EU regulations concerning business sustainability (e.g. EU circular economy action plan, EU taxonomy), slow progress in emission reductions can lead to their increased operational costs and even potential sanctions.

However, the public sector’s capacity to support businesses in their green transformation remains limited. It is vital to ensure that the available funds and resources are used efficiently and that business incentives align with sustainability and green innovation. While several public bodies in Lithuania already advise businesses on issues such as digitalisation, innovation, green transformation, and sustainability strategies and reporting, there is still no institution specifically focused on decarbonisation.

Potential solution – Decarbonisation Competence Centre (DCC)

To address this gap, the proposed solution is the creation of a Decarbonisation Competence Centre (DCC). The centre’s goal would be to help Lithuanian companies implement decarbonisation strategies to reduce emissions and achieve climate neutrality targets.

The centre, in collaboration with Lithuanian academic institutions and scientists, could offer expert advice, conduct training sessions, seminars, and workshops, and facilitate research and innovation to help companies adopt solutions in energy efficiency, renewable energy, electrification, and circularity. The DCC could also serve as an analytical hub to address the challenges of transitioning to a climate-neutral economy and to provide guidance for further strategic projects in Lithuania. Similar centres already operate successfully in other European countries, such as Germany’s KEI (Competence Centre on Climate Change Mitigation in Energy-Intensive Industries), CDI (The Cluster Decarbonisation in Industries), and the UK’s IDRIC (The Industrial Decarbonisation Research and Innovation Centre).

Goal

The aim of the project is to propose an effective solution for how the Lithuanian public sector can accelerate the decarbonisation of companies

Participants

2024/25

Vaida Arlauskaitė

2024/25

Evelina Matusevič