Environmental Sustainability
#15Key Findings
In the category of environmental sustainability, Estonia falls into the middle ranks internationally (rank 15).
Estonia is one of the most carbon- and energy-intensive economies in the EU. In 2020, greenhouse gas emissions were twice the EU average. Renewables use is climbing, but fossil fuels still make up 71% of the country’s energy mix.
A new Climate Ministry was created in 2023 to coordinate climate efforts. By 2030, the existing climate plan aims to reach 50% renewables use in the energy sector, along with 80% in the heat sector. Plans to protect biodiversity are underway, but the total area of forest and grassland lost in the last five years is very high.
As a small country, Estonia’s development cooperation is not focused on the environment. It participates robustly in multilateral environmental agreements, but its contributions to the Green Climate Fund are below average.
Estonia is one of the most carbon- and energy-intensive economies in the EU. In 2020, greenhouse gas emissions were twice the EU average. Renewables use is climbing, but fossil fuels still make up 71% of the country’s energy mix.
A new Climate Ministry was created in 2023 to coordinate climate efforts. By 2030, the existing climate plan aims to reach 50% renewables use in the energy sector, along with 80% in the heat sector. Plans to protect biodiversity are underway, but the total area of forest and grassland lost in the last five years is very high.
As a small country, Estonia’s development cooperation is not focused on the environment. It participates robustly in multilateral environmental agreements, but its contributions to the Green Climate Fund are below average.
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How committed is the government to the goal of achieving net zero emissions by 2050?
10
9
9
The government is clearly committed to achieving climate neutrality by 2050.
8
7
6
7
6
The government is largely committed to achieving climate neutrality by 2050.
5
4
3
4
3
The government is only somewhat committed to achieving climate neutrality by 2050.
2
1
1
The government is not at all committed to achieving climate neutrality by 2050.
The government formed after March 2023 created a Climate Ministry responsible for climate, transport, energy, mineral resources, environmental awareness, fisheries and hunting policies. One of the first priorities of the new ministry was to prepare and coordinate the process for adopting a Climate Law, a shared responsibility of the expert committee and Climate Law executive groups formed for that purpose. The law will outline the framework and ambitions for Estonia’s goals for 2030, 2040 and 2050, as well as sectoral climate contributions.
Climate actions are still following the national development plan for the energy sector, which will run until 2030. It has a long list of goals, the most concrete being to increase the proportion of total energy consumed that is supplied by renewable energy sources to 50%, generate 80% of heat energy from renewable sources and limit vehicular fuel consumption. Various efforts to increase the energy efficiency of buildings are already being implemented, with further measures planned (e.g., new buildings must conform to a near-zero-energy standard). Estonia 2035, the long-term action plan for Estonia, also has several climate-specific goals. Among them, the transition to climate-neutral energy production and energy security are emphasized, along with sustainable transportation and public environmental awareness.
The need for more focused action is pressing, as Estonia is one of the most carbon- and energy-intensive economies in the EU. In 2020, its economy’s greenhouse gas emissions intensity was twice the EU average, although the trend is decreasing. While the share of renewable sources in electricity generation saw a strong increase – from 29% in 2019 to 41% in 2021 – the share of fossil fuels in the overall energy mix remains high at 71% (EC 2023). These challenges are also indicated by relatively low scores for projected greenhouse gas emissions in 2050, adjusted emissions growth rate for carbon dioxide, adjusted emissions growth rate for methane, and the growth rate in carbon dioxide emissions from land cover. In all of these categories, Estonia ranks among the bottom five of the 30 countries compared. However, Estonia’s greenhouse gas (GHG) intensity growth rate – which serves as a signal of a country’s progress in decoupling emissions from economic growth – is relatively good.
Estonia’s land use, land-use change and forestry (LULUCF) sector has shifted to net emissions, and restoring its absorption capacity is of high importance (EC 2023). This change is mostly due to a significant decline in carbon removal capacity in forests. Therefore, the National Forestry Accounting has been prepared according to the requirements of the LULUCF Regulation.
Estonia needs to improve its collection of packaging waste and increase the recycling of bio-waste, as the country struggles to achieve the 50% target for recycling and preparing for the reuse of municipal waste set out in the EU Waste Framework Directive. Estonia recently adopted new policies, including a white paper and an action plan, to address circular economy challenges, but the country would benefit from targeted measures to improve the circularity of municipal waste. The municipal waste recycling rate was 30.5% in 2021, while the EU average stood at 48.5% (EC 2023).
The country’s Climate Change Performance Index (CCPI) ranking indicates that climate change performance is relatively good (5th in comparison), driven mainly by targets for renewables in electricity. The weakest point is shale oil emissions, which the government plans to phase out by 2035 and end by 2040. However, this goal may be halted due to the Russian war on Ukraine.
Citations:
EC. 2023. Country Report – Estonia Accompanying the Document Recommendation for a Council Recommendation on the 2023 National Reform Program of Estonia and Delivering a Council Opinion on the 2023 Stability Program of Estonia. https://economy-finance.ec.europa.eu/system/files/2023-06/ip230_en.pdf
Climate actions are still following the national development plan for the energy sector, which will run until 2030. It has a long list of goals, the most concrete being to increase the proportion of total energy consumed that is supplied by renewable energy sources to 50%, generate 80% of heat energy from renewable sources and limit vehicular fuel consumption. Various efforts to increase the energy efficiency of buildings are already being implemented, with further measures planned (e.g., new buildings must conform to a near-zero-energy standard). Estonia 2035, the long-term action plan for Estonia, also has several climate-specific goals. Among them, the transition to climate-neutral energy production and energy security are emphasized, along with sustainable transportation and public environmental awareness.
The need for more focused action is pressing, as Estonia is one of the most carbon- and energy-intensive economies in the EU. In 2020, its economy’s greenhouse gas emissions intensity was twice the EU average, although the trend is decreasing. While the share of renewable sources in electricity generation saw a strong increase – from 29% in 2019 to 41% in 2021 – the share of fossil fuels in the overall energy mix remains high at 71% (EC 2023). These challenges are also indicated by relatively low scores for projected greenhouse gas emissions in 2050, adjusted emissions growth rate for carbon dioxide, adjusted emissions growth rate for methane, and the growth rate in carbon dioxide emissions from land cover. In all of these categories, Estonia ranks among the bottom five of the 30 countries compared. However, Estonia’s greenhouse gas (GHG) intensity growth rate – which serves as a signal of a country’s progress in decoupling emissions from economic growth – is relatively good.
Estonia’s land use, land-use change and forestry (LULUCF) sector has shifted to net emissions, and restoring its absorption capacity is of high importance (EC 2023). This change is mostly due to a significant decline in carbon removal capacity in forests. Therefore, the National Forestry Accounting has been prepared according to the requirements of the LULUCF Regulation.
Estonia needs to improve its collection of packaging waste and increase the recycling of bio-waste, as the country struggles to achieve the 50% target for recycling and preparing for the reuse of municipal waste set out in the EU Waste Framework Directive. Estonia recently adopted new policies, including a white paper and an action plan, to address circular economy challenges, but the country would benefit from targeted measures to improve the circularity of municipal waste. The municipal waste recycling rate was 30.5% in 2021, while the EU average stood at 48.5% (EC 2023).
The country’s Climate Change Performance Index (CCPI) ranking indicates that climate change performance is relatively good (5th in comparison), driven mainly by targets for renewables in electricity. The weakest point is shale oil emissions, which the government plans to phase out by 2035 and end by 2040. However, this goal may be halted due to the Russian war on Ukraine.
Citations:
EC. 2023. Country Report – Estonia Accompanying the Document Recommendation for a Council Recommendation on the 2023 National Reform Program of Estonia and Delivering a Council Opinion on the 2023 Stability Program of Estonia. https://economy-finance.ec.europa.eu/system/files/2023-06/ip230_en.pdf
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How committed is the government to protecting the public from environmental health risks?
10
9
9
The government is clearly committed to the goal of protecting environmental health.
8
7
6
7
6
The government is largely committed to the goal of protecting environmental health.
5
4
3
4
3
The government is only somewhat committed to the goal of protecting environmental health.
2
1
1
The government is not at all committed to the goal of protecting environmental health.
Estonia has implemented environmental strategies for decades. The latest, the Estonian Environmental Strategy 2030, includes a section on health and quality of life, setting goals to prevent environmental pollution and associated health risks. Many of these goals are also reflected in the long-term Estonia 2035 strategy and are supported by concrete objectives.
Health and climate-related risks are addressed in two of the five sub-themes in the Estonia 2035 planning document. One goal, under the rubric of “People,” emphasizes health-conscious behavior and caring for oneself, others and the environment. Under the “Living Environment” category, goals include ensuring safe public spaces and preserving nature’s heritage. These changes will be outlined in annual government decisions and budget negotiations.
The Government Office (GO) is responsible for coordinating the preparation, implementation and amendment of the Estonia 2035 strategy in cooperation with the Ministry of Finance, primarily through development plans and programs in the respective fields. The progress of Estonia 2035 is bolstered by its close relationship with the state budget strategy process. The prime minister and line ministers meet annually to discuss the achievement of strategic goals. Additionally, a strategy day is held once a year with key partners and stakeholders. During this event, an overview of the strategy’s goal achievements is provided, best practices for addressing development needs are shared and proposals for the strategy’s implementation are made.
Based on the European Environment Agency’s report, the biggest challenge is related to the prospects for meeting the recycling target for municipal solid waste, where Estonia lags behind the 2025 target.
Health and climate-related risks are addressed in two of the five sub-themes in the Estonia 2035 planning document. One goal, under the rubric of “People,” emphasizes health-conscious behavior and caring for oneself, others and the environment. Under the “Living Environment” category, goals include ensuring safe public spaces and preserving nature’s heritage. These changes will be outlined in annual government decisions and budget negotiations.
The Government Office (GO) is responsible for coordinating the preparation, implementation and amendment of the Estonia 2035 strategy in cooperation with the Ministry of Finance, primarily through development plans and programs in the respective fields. The progress of Estonia 2035 is bolstered by its close relationship with the state budget strategy process. The prime minister and line ministers meet annually to discuss the achievement of strategic goals. Additionally, a strategy day is held once a year with key partners and stakeholders. During this event, an overview of the strategy’s goal achievements is provided, best practices for addressing development needs are shared and proposals for the strategy’s implementation are made.
Based on the European Environment Agency’s report, the biggest challenge is related to the prospects for meeting the recycling target for municipal solid waste, where Estonia lags behind the 2025 target.
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How committed is the government to preserving ecosystems and protecting biodiversity?
10
9
9
The government is clearly committed to protecting ecosystems and biodiversity.
8
7
6
7
6
The government is largely committed to protecting ecosystems and biodiversity.
5
4
3
4
3
The government is only somewhat committed to protecting ecosystems and biodiversity.
2
1
1
The government is not at all committed to protecting ecosystems and biodiversity.
Estonia has a rich biological diversity, and is home to a wide variety of wildlife species. The government’s commitment to preserving ecosystems and protecting biodiversity is outlined in the Estonian Green Transition Action Plan 2023 – 2025. This action plan focuses on three areas: reducing negative environmental impacts, shaping a modern high-quality living environment, and contributing to the development of competitive and environmentally responsible entrepreneurship. According to the plan, with EU support, at least €2 billion will be channeled into these activities in the coming years as measures contributing to the green reforms.
When comparing proposed measures, Estonia performs above average in most areas. However, Estonia has one of the worst five-year averages for the percentage of forest cover lost compared to the reference year 2000, indicating that the removal of tree cover over a given period is one of the highest. Similarly, the five-year moving average of the percentage of gross loss of grassland area shows that the total area of grassland lost has been very high in Estonia.
Forest management has become a politically salient issue due to the intersection of economic, environmental, cultural and international factors. On the one hand, the abundance of forests –Estonia ranks sixth in Europe in this measure – contributes to the country’s clean air and has made Estonians strongly connected to forests. On the other hand, forestry and the timber industry are important export items for the Estonian economy. Therefore, it is important to improve forest management and adopt an appropriate national forest development plan.
When comparing proposed measures, Estonia performs above average in most areas. However, Estonia has one of the worst five-year averages for the percentage of forest cover lost compared to the reference year 2000, indicating that the removal of tree cover over a given period is one of the highest. Similarly, the five-year moving average of the percentage of gross loss of grassland area shows that the total area of grassland lost has been very high in Estonia.
Forest management has become a politically salient issue due to the intersection of economic, environmental, cultural and international factors. On the one hand, the abundance of forests –Estonia ranks sixth in Europe in this measure – contributes to the country’s clean air and has made Estonians strongly connected to forests. On the other hand, forestry and the timber industry are important export items for the Estonian economy. Therefore, it is important to improve forest management and adopt an appropriate national forest development plan.
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To what extent is the government committed and credible in designing and promoting global environmental protection regimes and policies?
10
9
9
Government policy and institutions are fully aligned with efforts to achieve global environmental sustainability.
8
7
6
7
6
Government policy and institutions are largely aligned with efforts to achieve global environmental sustainability.
5
4
3
4
3
Government policy and institutions are somewhat aligned with efforts to achieve global environmental sustainability.
2
1
1
Government policy and institutions are not at all aligned with efforts to achieve global environmental sustainability.
Estonia’s development cooperation is not focused on the environment. This is not because the issue is seen as unimportant, but because the country is small and directs its efforts elsewhere. Still, Estonia has joined most major global and European agreements on the issue, displaying its commitment to these international targets. Estonia has ratified the Paris Agreement and is taking steps to switch to more environmentally sustainable economic and behavioral models. It agreed to the EU energy and climate goals for 2030 and is negotiating a national plan for the Fit for 55 packages. Additionally, Estonia has actively participated in the UN Climate Change Conferences of the Parties (COP26) and has co-organized several side events.
A global bottom-up civil society movement, World Cleanup Day, originated in Estonia and has become one of the largest contemporary civil society movements worldwide. In 2023, 19.1 million participants engaged in cleanup efforts across 198 countries and territories.
Greenhouse gas emissions per capita remain high and show no diminishing trend, an anomaly influenced by the Ukrainian war and reliance on Russian energy. At the same time, the terrestrial biome protection score is high, and participation in multilateral environmental agreements is relatively robust. Estonia lags behind the average in effective contributions to Green Climate Funds.
A global bottom-up civil society movement, World Cleanup Day, originated in Estonia and has become one of the largest contemporary civil society movements worldwide. In 2023, 19.1 million participants engaged in cleanup efforts across 198 countries and territories.
Greenhouse gas emissions per capita remain high and show no diminishing trend, an anomaly influenced by the Ukrainian war and reliance on Russian energy. At the same time, the terrestrial biome protection score is high, and participation in multilateral environmental agreements is relatively robust. Estonia lags behind the average in effective contributions to Green Climate Funds.