Estonia 2023
Energy Policy Review
About this report
Government action plays a pivotal role in ensuring secure and sustainable energy transitions and combatting the climate crisis. Energy policy is critical not just for the energy sector but also for meeting environmental, economic and social goals. Governments need to respond to their country’s specific needs, adapt to regional contexts and help address global challenges. In this context, the International Energy Agency (IEA) conducts Energy Policy Reviews to support governments in developing more impactful energy and climate policies.
This Energy Policy Review was prepared in partnership between the Government of Estonia and the IEA. It draws on the IEA's extensive knowledge and the inputs of expert peers from IEA member countries to assess Estonia’s most pressing energy sector challenges and provide recommendations on how to address them, backed by international best practices. The report also highlights areas where Estonia’s leadership can serve as an example in promoting secure clean energy transitions. It also promotes the exchange of best practices among countries to foster learning, build consensus and strengthen political will for a sustainable and affordable clean energy future.
Online table of contents
Estonia
Explore data on energy mix, emissions, electricity, efficiency and demand, renewables, oil, gas and coal.
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.