EMEA News
Estonia Launches €25 Million Grant to Boost Green Ship Retrofitting
Estonia has unveiled a €25 million ($28.5 million) government grant program aimed at accelerating the retrofitting of ships with greener technologies.
This makes Estonia one of the few European countries to offer direct state aid for maritime decarbonisation.
Introduced by Kuldar Leis, Estonia's minister of infrastructure, the initiative provides subsidies covering between 15% and 30% of eligible retrofit costs, with a cap of €5 million per project, the Ministry of Climate said in a statement on its website on Thursday.
To qualify for the highest level of support, i.e. 30%, vessels must be converted into zero-emission ships.
Other criteria, including flag state and frequency of port calls in Estonia, will also influence the level of support.
"Global demand for cleaner maritime transport is growing rapidly, Leis said.
"Estonian marine industry companies have the expertise and experience to deliver world-class retrofit services and support shipowners in making their fleets more environmentally friendly."
The grant applies to a wide range of vessels operating in Estonian ports, including passenger and cargo ships, tugboats and port service vessels.
Eligible projects could include the installation of hybrid engines, renewable fuel systems, exhaust gas cleaning equipment, and other energy efficiency technologies.
"With the maritime sector now included in the EU Emissions Trading System, this measure helps channel revenues collected from shipowners back into supporting their transition to greener technologies," Kaupo Läänerand, Deputy Secretary General for Maritime and Water Affairs at the Estonian Ministry of Climate, said.
Estonia anticipates growing demand for ships capable of running on hydrogen, powered by electricity, or equipped with carbon capture technologies, as global regulations to decarbonise the shipping sector continue to tighten.
