Following the Environment for Europe Conference of Environmental Ministers in Lucerne, Switzerland in 1993, many CEE and NIS countries, including Lithuania, formulated environmental strategies or “action plans” at the national, regional or local levels. A major weakness of these action plans has been their failure to assess costs of proposed actions and develop realistic plans for mobilizing and efficiently allocating the financial resources needed to support investments and other activities. Recognizing these shortcomings, the EAP Task Force supported the development of a pilot environmental financing strategy (EFS) in Lithuania in 1997