Estonia
Member country
Energy system of Estonia
Policies
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Key recommendations
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Pass a climate law that sets legally binding targets for carbon neutrality and intermediate emissions reductions, allocates responsibilities for implementation and tracking, and sets clear targets for phasing out oil shale and other fossil fuels.
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Clarify where it sees markets driving the energy transition and maintaining energy security, where economic incentives or other non-market measures are needed, and where state-owned companies will take a leading role.
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Align price signals with climate and energy goals by updating energy excise duties; increasing carbon prices; quickly introducing vehicle taxation to drive uptake of efficient vehicles, including electric vehicles (EVs); and ending support for fossil fuels. This should be done in a way that generates sufficient revenue to support a just clean energy transition.
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Develop strong measures to ensure that land use, land-use change and forestry delivers net emissions reductions in line with climate targets. This should include a robust forest inventory methodology, well-enforced biomass sustainability criteria and clear estimates on the environmentally sustainable level of biomass available.