Page 12 - EurOil Week 23 2021

EurOil POLICY EurOil

Estonia risks losing €340mn in EU funding

if shale oil project goes ahead

ESTONIA AN oil plant planned by Estonia’s state-owned the basis for the EU’s 2030 and 2050 climate tar-
energy group Eesti Energia could put in jeop- gets, which call for reducing greenhouse gases
The project poses a ardy Estonia’s eligibility for €340mn in Euro- and achieving carbon neutrality.
risk to funding from the pean Union funding from the Just Transition The JTF supports the transition to climate
JTF’s Territorial Fair Fund (JTF), Vivian Loonela, spokesperson for neutrality in the most affected regions – in Esto-
Transition Fund. the European Commission on the European nia’s case, Ida-Viru County.
Green Deal, told the Estonian news website ERR According to the Commission’s explanations,
on June 3. the purpose of JTF funding is to ensure that the
“Negotiations are ongoing between the transition to a green economy is fair, socially
European Commission and Estonia on the acceptable and inclusive. The main objective
JTF’s Territorial Fair Transition Plan for East- of JTF funding is to mitigate the impact of the
Viru County, in which context Estonia has not transition.
informed the Commission about a possible Estonia expects to receive €340mn from the
investment in the construction of a new shale oil JTF and plans to direct it entirely to Ida-Viru
production plant,” Loonela said. County.
She said that the plan for such an investment The previous Estonian government decided
would raise questions about the green transi- last year to give Eesti Energia €125mn so that
tion, which could affect the approval of the Just it could build a new shale oil plant. At the
Transition Plan by the Commission, which is a beginning of May this year, the Tartu Circuit
prerequisite for the disbursement of grants from Court upheld an appeal against a court order
the fund. The Commission will now discuss the by the environmental NGO Loodusvõlu and
investment with Estonia. suspended the building permit granted to
Loonela explained that the approval of the the plant until the entry into force of a court’s
final Territorial Fair Transition Plan (TJTP) for decision.
Ida-Viru County requires that investments in the Estonia’s Prime Minister Kaja Kallas
region are in line with the objectives of the JTF (Reform) has stressed this week that the oil plant
and demonstrate a national commitment to the must not become an obstacle to obtaining the
transition to a climate-neutral economy. grant from the JTF.
The European Union’s fund for a just transi- Under current plans, the new oil plant is
tion, together with the two other pillars of the expected to be completed in 2024 and reach full
Just Transition Mechanism, are an essential part capacity a year later. The investment in the plant
of the European Green Deal. The Green Deal is is planned to amount to €286mn. ™

P12 www. NEWSBASE .com Week 23 10•June•2021