On Jul. 3, LTH MoF prepared a draft amendment to the Securities Law.
Ministry of Finance prepared draft Securities Law amendment, consolidating European Green Bond Standard, which is a voluntary European green bond standard aiming to make it easier for firms, and the State, to finance sustainability-related investments.
Overview
In a year since adoption of Green Finance Plan, Lithuania has made strong progress, with Institute of Green Finance, and it has gathered a strong financial community.
Another step is the regulation of green bonds, which will stimulate the development of this market in Lithuania and will ensure the transparency of a new investment market.
This will benefit green bond issuers and investors, who will have more choice and more incentives to invest in green projects or assets meeting requirements of EU taxonomy.
The creation of a European green bond standard is expected to increase investor confidence in green investments, giving Lithuania opportunity to contribute to creation of a sustainable economy, and strengthen position in EU and global financial market.
The amendment to the law was prepared during implementation of the Nov. 22, 2023 Regulation of the EP and of the EU CNCL on the new European Green Bond Standard.
The regulation applies from Dec. 21, 2024 and Lithuania is in a hurry to adopt the legislation implementing it, so that Lithuanian market participants, the issuers and investors, can take advantage of the opportunities provided by it as soon as possible.
The supervision of all the green bond issuers in Lithuania will be carried out by LTH CB.
Next Steps
Draft law has already been submitted to various interested parties for coordination, and it is currently planned to submit the final draft law to LTH GVT, in the fall of 2024.
Sep. 2024 Approval of Draft
On Sep. 4, 2024, LTH MoF reported that LTH GVT approved draft on the European green bond standard, making it easier to attract financing on sustainable investments.
Amendments to the law introduce transparency requirements for green bond issuances for bond issuers who intend to label their environmentally sustainable bonds.
This is with the designation European Green Bond or EU-FIO, the requirement to publish a summary of information on green bonds, and an annual report.
Specifically on allocation of income from bonds to projects in line with EU taxonomy.
Sep. 9, 2024 Submission to LTH PRL
On Sep. 9, 2024, LTH GVT registered with LTH PRL bill XIVP-4116 on amending art 2, 36, 37, 40, 41 and the annex of Securities Law X-1023, re EU green bond standard.
The draft law's provisions are planned to enter into force on Dec. 21, 2024.
Nov. 2024 Law Published
On Nov. 14, 2024, LTH PRL published Law XIV-3078 of Nov. 7, 2024, amending art 2, 36, 37, 40, 41 and the annex of Securities Law X-1023; in force on Dec. 21, 2024.
Regulators
LTH CB; LTH GVT; LTH MoF; LTH PRL
Entity Types
Corp; Inv Co
Reference
OG 2024-19833, 11/14/2024; Law XIV-3078, 11/7/2024; Bill XIVP-4116, PR, 9/9/2024; PR, 9/4/2024; PR, 7/3/2024; EUGBR Reg 2023/2631; ESG
