Estonia’s Minister of Infrastructure, Kuldar Leis, has signed a regulation launching a new government support scheme to help shipping companies retrofit their vessels and make these more environmentally friendly if the work is carried out in Estonia.

“Global demand for cleaner maritime transport is growing rapidly. Estonian marine industry companies have the expertise and experience to provide world-class retrofit services and support shipowners in making their fleets more environmentally friendly. This not only creates jobs in our industrial sector, but also boosts tax revenue, drives economic growth, and strengthens Estonia’s position in the international maritime arena,” said Minister of Infrastructure Kuldar Leis.

“Estonian companies are well-positioned to deliver sustainable and innovative solutions, from general contracting and design to building local supply chains and executing the full scope of work.”
Kaupo Läänerand, Deputy Secretary General for Maritime and the Aquatic Environment at Estonia’s Ministry of Climate

The initiative is backed by a €25 million budget, financed through revenues from the EU Emissions Trading System (ETS). According to the Ministry, the scheme could generate up to €170 million in shipbuilding and retrofit projects in Estonia.

Grants of up to €5 million per project will be available, covering 15% to 30% of total costs, depending on the size of the investment and the vessel’s ties to Estonia.

Shipping companies can obtain a refund for retrofit projects in Estonia

“This support helps shipping companies transition their vessels to more environmentally friendly technologies — resulting in lower emissions and cleaner air, both at sea and along the coast. Estonian companies are well-positioned to deliver sustainable and innovative solutions, from general contracting and design to building local supply chains and executing the full scope of work,” said Kaupo Läänerand, Deputy Secretary General for Maritime and the Aquatic Environment at Estonia’s Ministry of Climate.

FACTS
Estonia has 4000 kilometres of coastline.
500 maritime companies exporting, ranging from software and manufacturing to modern shipbuilding, complex maritime and offshore projects.
Estonia has 222 harbors, marinas, and cargo ports with capacity to host vessels up to
200 000 gt with 2500 registered seafarers in the industry.

The program targets civilian passenger and cargo ships, as well as various support and port vessels, including tugs. Eligible upgrades include hybrid engines, green fuel technologies, exhaust gas scrubbers, shore power systems, and solutions that reduce vessel weight or improve overall energy efficiency.

In essence, the funding is designed to support innovations that reduce emissions and enhance the energy performance of ships.

GOOD TO KNOW

Services offered by the Estonian Marine Greentech & Retrofit Hub:

• Consulting and project management – helping shipping companies choose the appropriate green technology and make a plan, including assistance in applying for support.
• Ship retrofit work – main contracting, subcontracting, interior and exterior design, supply chain management, integration, shore, dock, and port services.
• Installing energy and electrical systems – offering shore power solutions, battery systems, engines, drives, connections, etc.
• Selection of technology and digital solutions – digital solutions related to CO2 savings and/or energy savings.
• Testing and certification – ensuring everything meets international requirements.

Source: Estonian Maritime Cluster

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