In a significant step toward sustainable maritime practices, Estonia’s Minister of Infrastructure, Kuldar Leis, has introduced a grant program to support green retrofit projects in the shipping industry. This initiative positions Estonia as one of the few European nations to offer direct state aid for environmentally focused ship modifications.
Subsidy Overview
The grant scheme provides 15–30% subsidies for eligible retrofit costs, capped at €5 million per project. To qualify for the maximum 30% funding, vessels must be converted to zero-emission operations. Additional selection criteria include:
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The ship’s flag state
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Frequency of port calls at Estonian ports
Strategic National Goals
Minister Kuldar Leis emphasized Estonia’s ambition to lead in sustainable maritime solutions, noting that:
“Global demand for cleaner maritime transport is growing rapidly. 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,”
He also highlighted Estonia’s strategic port infrastructure and comprehensive support services, ranging from design and consulting to implementation and maintenance.
Eligible Technologies
The grant supports a variety of green retrofit solutions, including:
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Hybrid engines
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Alternative energy systems (e.g., electric or hydrogen power)
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Exhaust gas cleaning systems
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Other technologies that reduce emissions and enhance energy efficiency
Estonia’s retrofit subsidy program is a milestone in its green transition strategy, providing shipowners with vital financial incentives to modernize fleets and reduce their environmental footprint. The initiative is expected to accelerate the maritime sector’s adoption of clean technologies and strengthen Estonia’s role in Europe’s green shipping movement.
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Source: OFFSHORE ENERGY
