EBRD and NIB finance greener public transport in Vilnius

This article is brought to you in association with EBRD.

The European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB) are supporting the roll-out of greener public transport in Vilnius, Lithuania by each lending €40 million to Vilniaus Viešasis Transportas (VVT), the city’s urban transport company.

The €80 million co-investment will enable VVT to purchase up to 73 additional electric trolleybuses and up to 85 battery electric buses, supporting the expansion of the city’s modern electric fleet with zero-tailpipe emissions and enhancing the quality, reliability and accessibility of public transport services in the Lithuanian capital.

The new trolleybuses will be purchased in 2025. They will have lower noise levels and be equipped with climate control systems. Unlike their predecessors, the new fleet will have low floors, which will substantially increase accessibility for people with mobility restrictions and passengers with children.

Ignas Degutis, Director General of VVT, said: “Securing this financing is an important step in implementing the planned strategy for renewing the company-managed vehicle fleet. We plan to have a fully renewed trolleybus fleet by the end of 2026. So in two years’ time, we will be able to provide comfortable, convenient and safe trolleybus journeys for citizens and visitors of the capital.”  

The company now plans to take the next steps to acquire its new electric buses. By replacing the city’s ageing diesel buses with a new electric fleet, VVT expects to reduce associated greenhouse gas emissions by 6,000 tonnes of CO2e annually.

Sue Barrett, EBRD Head of EMEA Infrastructure, said: “We are pleased to deepen our partnership with the city of Vilnius, the first EBRD Green City in the Baltic States, as it leads the way in sustainable urban development. This is our second investment with VVT, and it plays a key role in helping the city achieve the climate and sustainability goals outlined in its Green City Action Plan. By expanding its green public transport network, the city will reduce emissions and create a cleaner, more liveable urban environment for its residents.”

Vilius Girkontas, Senior Banker and Country Lead for Lithuania at the NIB, said: “Transport remains one of the main emitters in Lithuania, and it is important to accelerate its green transition. The investments will not only support VVT’s shift to renewable energy and reduce its maintenance costs, but will also make the journeys of Vilnius commuters much more comfortable.”

VVT plans to stop using diesel buses and shift to electric and potentially also hydrogen buses by 2030. By that time, the company aims to have reduced CO2 emissions from its vehicles to zero and to be fully reliant on renewable energy.

VVT is a city-owned public transport service provider. It was established in 2011 by merging the capital’s bus operator and trolleybus operator into a single entity. The company carries about 500,000 passengers daily.

The NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside its member countries. The NIB has been operating in Lithuania since 1994, providing around €1.8 billion in financing to more than 115 projects in the country.

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries, as well as the European Union and the European Investment Bank. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well governed, green, resilient and integrated.

The EBRD is a leading institutional investor in Lithuania, with more than €1.7 billion invested in 138 projects there to date.