- related risk estimates, how central banks can assess the impact of their reserves on the co2 emissions, as well as the possibility of mitigating the effects of climate change on local financial markets through central bank investment portfolios. dear all, we are at a point of no return. there is only a way forward, and that way must be green. the coronavirus pandemic has demonstrated that people can change their habits, if needed. governments can take determined actions that change economic prospects. we can green our economies as well as manage the risks of transformation to a more climate - friendly economy. we know that we can identify the employees and regions most affected by such an economic transformation and we must create compensatory mechanisms, ensure effective retraining, and create new jobs in climate - friendly activities. however, economies cannot become entirely green until the green thinking does not prevail in our societies. environmental, economic, and financial literacy here plays a crucial role. therefore, we have set economic and financial education as one of strategic objectives at the bank of lithuania. it ’ s symbolic that today, during our main yearly economic conference, we present a gold collector coin dedicated to the social sciences. this coin completes the ‘ lithuanian sciences ’ series. the design of the coin reflects the multidisciplinary nature and interconnectedness of social sciences, economics being their integral part. the reverse of the coin, which contains a carved geometric symbol of separate cubes, forming the common societal construction, demonstrates that only by acting together, we can overcome the challenge of climate change and implement the vision of a sustainable future. 4 / 5 bis central bankers'speeches today ’ s discussions bring together many competent and professional participants from lithuania and abroad. i am glad that this topic draws the attention of the representatives of seimas, ministries, and non - governmental organisations. i believe that our conversation can give an impetus to make better use of emerging opportunities when creating pathways towards the green economy. thank you for your attention and i wish you a meaningful discussion. 1 17 % directly and 14 % through land use. 5 / 5 bis central bankers'speeches

economic models created an opportunity for countries to return to the starting line. to thrive, we must have a clear policy vision and help businesses discover new profitable business models that would reflect the green needs of the consumer and be a part of a circular economy. we must make every effort to ensure that the green transition in lithuania is a success story. we must ensure that the funding under the eu recovery and resilience facility – almost 1 billion euros earmarked for lithuanian green goals – is absorbed fully and in a targeted way, bringing lithuania among the leaders of sustainable economic growth. the topics of the economic aspects of the green transformation will be covered during the second session of the conference this afternoon. ms rasa tumaseviciute and ms jurgita girzadiene will share their insights on how the lithuanian businesses can become more competitive in seeking green solutions, and the honourable minister of environment of the republic of lithuania simonas gentvilas will give a more in - depth explanation of a long - term vision for curbing climate change and energy policy. ms rasa and jurgita, honourable minister, i am glad you agreed to join our discussions today. dear colleagues, the transformation of the economy is only feasible with the creation of an adequate incentive system. international institutions, including the international monetary fund, claim that taxes, especially the co2 - related taxation is the most efficient tool for combating climate change. unlike investments or the regulation of pollution, the benefits of taxation on exhaust gasses are twofold : they not only correct the market failures but also generate tax revenues. the co2 - type of taxation is not yet in place in lithuania. on the contrary, we have quite a few tax reliefs for fossil fuels. i will be honest : to achieve our climate targets, lithuania must explore ways to change its taxation system and impose a bigger levy on pollution. it is important to stress here that all taxes must be imposed in compliance with the principles of justice and promoting sustainable economic growth. on the other hand, taxes will only be effective provided the possibility to manipulate them is curbed. for that the eu contribution is vital. in particular, we have to agree on the carbon border adjustment mechanism ( cbam ) of the eu. i am thrilled that today mr ian parry, principal environmental fiscal policy expert of the international monetary fund, will tell us more about the role of fiscal policy in mitigating climate change. although fiscal measures play the main role in fighting the global warming