In a Nutshell
- The updated National Energy and Climate Plan forecasts emissions reductions of up to 95% by 2050, the remaining emissions being compensated.
- The Earth’s Crust Act currently prohibits geological CO2 storage in Estonia. The country also still needs to ratify the amendment to Article 6 of the London Protocol regarding the trans-border transport of CO2 for under-seabed geological storage.
- Estonia has no geological formation suitable for CO2 storage. The country has not yet made plans to develop a national CO2 transport infrastructure.
- A Climate Act is supposed to be finalised by the end of summer 2025, with a view to be adopted in the second quarter of 2026. A sectoral decarbonisation roadmap for industry is to be included.
Role for carbon removal in national climate policy
Estonia has a climate neutrality objective by 2050. This objective is embodied in the “Fundamentals of climate policy until 2050” policy document, which was updated in 2023 and sets the overall direction of the path towards climate neutrality. It provides sectoral guidelines for the energy and industry, transportation, agriculture, and land-use, land-use change and forestry (LULUCF) sectors. Increasing carbon stocks in soils and preserving land areas with significant carbon stocks are key objectives for the agriculture sector. Regarding the LULUCF sector, increasing the carbon sequestration capacities of forests, as well as the long-term carbon stocks in forests are identified as key objectives, as well as the increased use of wood as a building material. Restoring peatlands and wetlands are also mentioned.
Relevant legal frameworks
While Estonia still does not have a climate law, a Climate Act is being draftedand should be adopted in the second quarter of 2026. It should contain emissions reduction targets for 2030, 2040 and 2050, and create a legal accountability framework around these goals. It will contain measures to increase carbon sequestration in the land use sector while also developing sectoral decarbonisation roadmaps.
The Forest Act, which includes reforestation measures after harvest and natural disasters, sets the country’s legal framework around forestry. The Forest Development Plan 2025-2035 is still in the process of being drafted, but will also include provisions to increase carbon sequestration.
Support for R&D and Innovation
In the draft NECP, CCU is indirectly mentioned several times as one of 30 research priorities, including Power-to-X applications – using CO2 to produce fuels for example – and CO2 utilisation more broadly. CCS and CCUS are labelled as important for Estonia to support innovation. Moreover, Estonia also sees a need for greater clarity on CCS and CCUS accounting methodology, which, according to them, should be supported by the upcoming EU Carbon Removal Certification Framework.
On the horizon
The Climate Act is supposed to be finalised by the end of summer 2025, with a view to be adopted by the second quarter of 2026.
The Ministry of Economic Affairs and Communications is developing a decarbonisation roadmap for energy-intensive industries, including financial instruments for its realisation.