EU approves €884 million plan for Lithuania to cut energy costs, expand public transport

The European Commission approved Lithuania's Social Climate Fund plan on Monday, unlocking €884 million for the period 2026–2032. The EU will contribute €663 million, with Lithuania providing the remaining €221 million.

The bulk of the funding is split between transport (€440 million) and housing (€422 million). On the housing side, more than 40,000 households will be eligible for grants covering 50–85% of home renovation costs, while new energy-efficient social housing will also be built.

In transport, the plan funds the purchase of more than 7,000 electric buses and other electric vehicles, over 14,000 bicycles, and around 280 kilometres of new cycle paths. Some 320,000 residents will gain access to cheaper public transport.

A separate €58 million strand targets rural and underserved areas, funding on-demand transport services to help vulnerable residents – including elderly people, those with disabilities, large families and people in remote locations – reach medical, educational and social services across 54 municipalities.

The fund is aimed broadly at households facing high energy costs or with limited access to public services. Small businesses struggling with rising energy prices will also be eligible for support.