Estonia Expands Maritime Decarbonization Efforts with €25 Million Retrofit Grant

Estonia’s Ministry of Climate has announced a €25 million government grant to accelerate the maritime sector’s green transition. The initiative offers financial support for retrofitting passenger and cargo ships, tugboats, and port vessels with cleaner technologies. Eligible projects can receive subsidies covering 15% to 30% of retrofit costs, up to €5 million per vessel. The highest support rate is reserved for conversions to zero-emission ships, with additional criteria such as flag state and port visit frequency influencing the final amount.

This grant adds to ongoing efforts to decarbonize the maritime sector in Estonia, including the implementation of the EU's FuelEU Maritime Regulation, effective from January 1, 2025. This regulation mandates that ships over 5,000 gross tonnage monitor and report emissions of CO₂, methane, and nitrous oxide, promoting the use of renewable and low-carbon fuels.

Additionally, the Port of Tallinn is advancing its sustainability goals by installing shore-side electrical equipment, allowing ships at berth to use shore-side electricity, thereby reducing emissions, noise pollution, and fuel consumption. The port has also transitioned to consuming only green electricity produced in Estonia, aiming to achieve climate neutrality by 2050.

Through the grant scheme, the government aims to stimulate ship retrofitting activities within the country, potentially attracting projects worth up to €200million. It is expected that this will support the local economy by creating jobs and improving the competitiveness of Estonian ports and shipyards.