ENThe article deals with external costs evaluation techniques and integration of environmental costs in environmental management system applying pollution charges. The Impact Pathways Assessment methodology developed for the Commission of the European Communities, Directorate General XII, Science, Research and Development Division, Joule Program. The ExtemE damage function analysis is a bottom-up impact assessment approach, consisting of four steps: 1) source characteristics (location, type, stack parameters and emitted pollutants); 2) air dispersal of pollutants (local and regional); 3) impact evaluation (human health, agricultural crops, building materials, ecosystems); 4) monetary valuation. This simplified approach can be applied in Lithuania also. Integration of external costs can be achieved setting well-founded pollution charges. Improvements of organisational structure and measures for environmental management quality improvement are proposed in the article. The issues of concern in the article are important for regional development and strengthening of county administration.