Lithuania has several policies targeted at maintaining and improving carbon sequestration from the Land-Use, Land-Use Change and Forestry (LULUCF) sector. The Common Agricultural Policy Strategic Plan provides several incentives for practices that increase soil carbon sequestration, while the Soil Sustainable Use Action Plan 2030 creates a framework to preserve soils’ health. The draft NECP also recalls the targets for the LULUCF sector in the National Climate Change Management Agenda. These include increasing the stock of organic carbon in forests and wood products, increasing the country’s woodland surface to at least 35% by 2024, reaching at least 8,000 ha of permanent grassland, restoring at least 8,000 ha of carbon-rich ecosystems, ensuring their sustainable use, and halting the exploitation of new natural wetlands by 2024. The goal of these measures is to achieve at least 6.5 MtCO₂e of net removals over the 2021-2030 period. Overall, existing policy instruments cover peatlands, wetlands, grassland, forests and agroforestry measures. Planned policy instruments include the conservation of grasslands, promotion of carbon farming, preservation of tree self-growth, afforestation, restoration of peatlands and “promotion of organic construction”.

In its updated NECP, Lithuania’s strategy for decarbonising industry includes the use of CCU technologies. The plan sets a target for the capture of biogenic CO₂ by 2030 and 2050, with the aim of producing synthetic green fuels or transporting it to be permanently stored. To facilitate the deployment of the plan, the NECP commits Lithuania to developing a CO2 transport infrastructure with open-access criteria for eventual export to cross-border storage sites.

Furthermore, the 2025-2027 Strategic Activity Plan of the Minister of Energy serves as a roadmap for industrial decarbonisation in Lithuania. It sets a long-term goal for hard-to-abate industries to achieve climate neutrality by 2050 by offsetting their fossil fuel emissions with captured CO₂. To meet this target, the plan outlines a phased approach: the first biogenic CO₂ capture projects for synthetic green fuels are to be implemented by 2030, followed by large-scale projects at biofuel and waste incineration plants by 2040. These initiatives are supported by specific quantitative targets, aiming to capture 0.2 million tons of biogenic CO₂ by 2030 and increasing that to 3.5 million tons by 2050.

The legal framework around CCS is based on two contradicting pieces of legislation: on the one hand, the Law on Geological Storage of Carbon sets out the rights, duties and responsibilities in terms of the exploration, transportation and storage of CO₂; and on the other hand, a 2019 amendment to the Law of the Depths of the Earth and CO₂ Storage prohibits the introduction and/or storage of CO₂ in natural and/or artificial subsoil cavities and/or aquifers; meaning Lithuania  currently relies on exporting the CO2 it captures or removes, unless the amendment is reversed with time.

The Strategic Activity Plan of the Minister of Energy for 2025–2027 is working to overcome the storage challenge through international cooperation and infrastructure development. The Strategic Plan aims to create a supportive legal and regulatory environment for the capture of biogenic CO2 and its use in producing synthetic green fuels. The Ministry has already initiated the “Utilisation of Carbon Dioxide for the Production of High Value-Added Products” project to develop CCU/CCS capacity.

As part of the Lithuanian Climate Change Program, funds collected through emission allowance auctions are used, among others, to increase the GHG absorption capacity of the LULUCF sector.

On October 29, 2024, the Lithuanian Ministry of Energy officially launched the CCS/CCUS platform. Its tasks include fostering technological innovation, developing CO₂ storage and utilisation solutions, and promoting research and innovation in CO₂ management.

The European Commission has granted the Project of Common Interest status for CO₂ transport infrastructure projects  to the CCS Baltic Consortium. The project has received over EUR 3 million in EU funding from the Connecting Europe Facility (CEF) for technical and commercial studies. The consortium is developing a CO₂ transport and sequestration infrastructure across Latvia and Lithuania. CO₂ will be captured at cement plants and transported by rail to a terminal in Klaipeda port in Lithuania to then be shipped to offshore geological storage locations. Commercial operations for the terminal are projected to begin in 2030, with a final investment decision expected by the end of 2027.