Estonia has ratified the Paris Agreement 31.10.2016.

In conclusion, the key points of Estonia´s INDC are:

• Change of per-capita emissions from 2010 to 2030 (average): -39%
• Per-capita emissions in 2030 (average): 9.7 t CO2/eq
• Global rank of national emissions excluding land use (out of 195 countries): #114 in 2010 and #143 in 2030.

In order to reduce climate change, Estonia has set goals to reduce CO2 emissions, raise energy efficiency and fund further innovation. The key policy instruments to achieve these goals include:

• Enhancing efficiency in oil shale production;
• Supporting electricity generated from a renewable energy source or in an efficient cogeneration regime from biomass, waste, peat or carbonization gas obtained as a result of oil shale processing;
• Increasing the usage of biofuels in the transport sector;
• Encouraging the use of public transport and discourage use of cars in cities;
• Encouraging sustainable forest management and agriculture that is able to capture GHGs;
• Improving energy efficiency in buildings (imposing minimum standards on nearly zero-energy buildings, renovating public and private offices)

The long-term target of Estonia is to reduce the emission of greenhouse gases by 2050 by 80% in comparison with the emission levels of 1990. As the country moves towards this target, emissions will be reduced by about 70% by 2030 and by 72% by 2040 in comparison with the 1990 emission levels.

There is no specific legislation or policy that limits or prohibits use of fossil fuels, but the issue of oil shale is in focus. Oil shale is seen as the nationally strategic domestic energy source. Although EU-level policies demand a reduction in energy produced by oil shale, the strategic target of the “National Development Plan for the use of Oil Shale, 2016-2030“ is to increase the efficiency of the use of oil shale and reduce negative environmental impacts but not cease or significantly reduce production. However, it is planned to review this position and possibly implement measures to reduce the use of oil shale with a goal to stop production by 2050.

4.2 01.01.2017 Atmospheric Air Protection Act entered into force. The Act provides requirements set for affecting ambient air by chemical and physical pollutants, measures for maintaining and improving the quality of ambient air; requirements for the protection of ozone layer; measures for mitigation of climate changes and reduction of greenhouse gas emissions; the organization of state supervision over compliance with the requirements provided for in this Act and the liability for failure to comply with the requirements provided for in the Act.

4.1 15.07.2016 Energy Sector Organisation Act entered into force. The aim of the act is to provide measures for achieving the national target of energy efficiency. The measures include inter alia improving the energy performance of public bodies' buildings, promotion in efficiency in heating and cooling and requirements for measuring energy consumption and for provision of information in order to improve final customers’ energy efficiency.

4.3 01.06.2013 Industrial Emissions Act entered into force. The aim of the act is to minimize emissions into air, water and soil and generation waste generated as a result of industrial activities.

4.3 16.12.2007 Environmental Liability Act was adopted. The act regulates the prevention and remedying of damage caused to the environment based on the polluter pays principle.

4.4 According to Section 20 (1) of the State Budget Act, the general principles of policy-making shall be approved by the Riigikogu either on its initiative or on the proposal of the Government of the Republic. The Riigikogu adopted a decision on General Principles of Climate policy until 2050, that sets the aims to reduce GHG by 2050 80 % compared to 1990.

Yes. Estonia is part of the following schemes:

Trading with EUA´s (European Union Allowance). In 2020 Estonia earned 142 263 965 euros from trading EUA´s.

Trading with EUAA´s (European Union Aviation Allowance).

Trading with AEA´s (Annual Emission Allocation Unit). Estonia has not yet sold any units, but it is expected that starting from 2021 and until 2030, the trading between countries will become more active.

Trading with the AAU´s (Assigned Amount Unit) according to the Kyoto protocol. Estonia traded with AAU´s for 369 million euros but for now, Estonia has stopped trading.

From 2021, the LULUCF (land use, land-use change and forestry) regulation applies and each Member State must then ensure that accounted emissions from land use are entirely compensated by an equivalent removal of CO2.

Yes. There is a pollution charge stated in the Environmental Charges Act. Pollution charge is imposed on the holders of the pollution permit and for emitting sulfur dioxide, carbon monoxide, carbon dioxide, particles, nitrogen oxides and other inorganic nitrogen compounds, volatile organic compounds (except methane), mercaptans and heavy metals or compounds of heavy metals.

No legislation has been adopted regulating CCS. Estonia has adopted several strategic documents, where encouraging carbon capture is set as a priority, especially in agriculture and forestry (namely Low Carbon Strategy until 2050, National Energy and Climate Plan 2030).

There are support schemes for electricity generated from a renewable energy source or in an efficient cogeneration regime from biomass, waste, peat or carbonization gas obtained as a result of oil shale processing.

Producers are entitled to receive support from the transmission network-operated support. The specific terms and conditions of the support are regulated with section 59 of the Electricity Market Act.

The previous rather generous support scheme was changed in 2018. Since 2018 support is only paid for the amount of energy necessary to reach the national goals of increasing the part of renewable energy in energy production. The refund rate is now calculated by a reverse auction.

Biomethane support is also paid under the Atmospheric Air Protection Act section 161 (3) to the producers of biomethane.

For the built environment the next measures are planned until 2030:

• reconstruction of public and private sector office buildings
• reconstruction of private houses and apartment buildings
• imposing minimum standards on nearly zero-energy buildings
• setting standards to the energy efficiency of buildings.

For the transport sector the following measures are planned until 2030:

• increasing the weight of biofuels in the transport sector;
• increasing fuel efficiency of the transport sector;
• promoting economical driving;
• encouraging an efficient and economical transport system by well-integrated planning of settlements and transport management.
• developing a comfortable modern public transportation system.

Some measures are still being considered, such as:

• traffic jam tax in Tallinn.

For the industry sector the following measures are planned until 2030:

• implementation of technologies with a low emission factor of CO2;
• adopting legislation that would motivate the industry to mainly use fuels and production input with low carbon dioxide emissions;
• In the use of oil shale, the industry will move towards enhancing energetic value and the production of products with higher added value to minimize the emission of greenhouse gases in the oil shale treatment process in a way that does not entail an increase in other negative environmental impacts;
• preferred research, development and innovation fields will facilitate the development of efficient energy technologies

For the agricultural sector the following measures are planned until 2030:

• promoting organic farming;
• supporting environmentally-friendly management;
• encouraging and supporting efficient fertilization technologies
• reducing pollution created by production of agricultural nutrients.

For the energy sector the following measures are planned until 2030:

• placement of the industrial sector, including directly related business and service sector companies, near energy production units will be enhanced and connecting major consumers and manufacturers with the electricity grid will be encouraged via a supportive legal environment
• when planning, building, managing and reconstructing grids within energy systems, the economical and energy efficiency of the complete system will be considered with the aim of achieving maximum energy and resource efficiency
• legislation will be used for facilitating efficient and sustainable operation of energy and heat networks
• smart network technologies and consumption control technologies will be developed and their implementation will be facilitated in the context of increasing market volatility and increasing the variability of energy sources.

National financial institutions have issued statements stating that they value the importance of reducing GHG emissions and carbon footprint.

LHV Bank offers two different green pension funds to its customers. The funds’ assets are invested in solar, wind and other renewable energy companies and in other enterprises focused on sustainability.

SEB Bank has developed a concept of Green Bonds and Green Loans. Green Bonds offer the opportunity to invest in projects oriented to improving the environment and the climate. Green Bonds’ proceeds are used to offer loans to low-carbon and sustainable companies. 

There are no prominent climate change litigation cases to report.

The government has announced its plans to alter several fundamental documents concerning Estonia’s climate strategy before the end of 2021, yet no specific steps have been taken. It is expected that the National Development Plan of the Energy Sector until 2030 and the General Principles of Climate policy until 2050 will both be reviewed and renewed by that time. No specific information about the possible alterations is known yet, but the general aim is to help achieve carbon neutrality by 2050.

According to the government’s action plan, the National Development Plan for the use of Oil Shale, 2016-2030 will be renewed by November 2022.

A decision has been made to create a new development plan for the environmental field until 2030. The purpose of this document will be to coordinate climate actions between different areas of work and to establish implementing measures for climate activities.