LITHUANIA —Vilnius is advancing the decarbonisation of its public transport network through a €110 million financing package from the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). Each institution will provide a €55 million loan to Vilniaus Viešasis Transportas (VVT), the municipal operator responsible for the Lithuanian capital’s bus services.
The investment programme covers the deployment of electric and hydrogen-powered buses, installation of 145 charging stations and modernisation of existing depots. The new vehicles will replace older buses powered by diesel and liquefied petroleum gas. The project is expected to be completed by the end of 2027 and forms part of VVT’s wider effort to modernise the city’s transport fleet and supporting infrastructure.
The programme is intended to improve service quality while reducing transport-related greenhouse gas emissions, local air pollution and traffic noise. These outcomes are relevant to Vilnius, a city of more than 600,000 residents that has set a climate-neutrality target for 2030. Replacing conventional buses with zero-emission alternatives will also require reliable charging facilities, depot capacity and operational planning to maintain service frequency as the fleet changes.
The financing forms part of a broader European investment effort to modernise Vilnius’s public transport. The European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB) are separately supporting renewal of the city’s trolleybus fleet. Together, the initiatives represent cooperation among four international financial institutions on public transport investment in the Baltic region, combining support for buses, trolleybuses and the infrastructure needed to operate them.
For municipal authorities and transport operators elsewhere in Europe, the project illustrates how long-term development-bank lending can help fund capital-intensive fleet transitions that may be difficult to deliver through local budgets alone. The combination of vehicle procurement and depot and charging upgrades is particularly significant because fleet electrification depends on infrastructure readiness as well as the availability of low-emission vehicles. Hydrogen deployment will likewise depend on suitable refuelling arrangements and operating systems.
VVT operates public transport services in Vilnius and is the municipal entity implementing the fleet-modernisation programme. The EIB finances projects supporting EU policy priorities, including sustainable infrastructure and climate action, while the CEB focuses on investments with social objectives. Their joint financing links urban decarbonisation with public-service accessibility, including the mobility needs of older people, people with disabilities and lower-income residents. The project’s delivery and operating performance will be important indicators of how effectively the city can translate climate targets into lower-emission public transport.
