Background information

In connection to the green transition, the most affected region in Estonia is Ida-Virumaa with its oil shale sector. In 2019, greenhouse gas emissions from oil shale-related companies located in the region accounted for more than 50% of all greenhouse gas emissions in Estonia. Therefore, green transition will have the biggest impact in Estonia on this region and thus the main target area for investments from the EU Just Transition Fund.

On 21 June 2022, the Minister of Minister of Entrepreneurship and Information Technology issued a regulation 'Support for investments in Ida-Viru business'. Under the regulation, funding is provided from the EU Just Transition Fund.

Content of measure

The purpose of the support measure is to support the diversification of the economy and the competitiveness of businesses in Ida-Viru County through investments that create higher added value and new jobs.

The aim of the support is to:

1. implement an initial investment in a new economic activity to enable the creation of a new enterprise or the production of a new product or service with a higher added value;
2. implement investments in the promotion of energy generated from renewable sources (excluding investments in solar and wind farms),
3. implement the IPCEI (International Projects of Common European Interest) project.

The following activities are supported:

1. consultation, preparation of estimates, design, infrastructure development and connection to networks;
2. conducting applied research;
3. experimental development;
4. applying for the initial protection of intellectual property born as a result of the supported activity;
5. training of the employees.

At least five new jobs must be created as a result of the project.

The projects must be carried out by 30 April 2026, with a maximum period of three years. The support per applicant is minimum €500,000 and up to €19 million; the own contribution is minimum 35%. Total budget of the measure is €153 million. The total budget of the Just Transition Fund in Estonia is €340 million.

The application round was opened on 15 August 2022. It is possible to apply for the grant, but the financing decisions will be made after the just Estonian transition plan has received the approval of the European Commission (estimated: Autumn 2022).

Use of measure

It is expected that by 2026 at least 20 large-scale projects will be carried out and 1,000 new jobs will be created in the region.

The acceptance of applications has been suspended as of July 29, 2024, because the measure's budget has been fully allocated.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations Company / Companies Local / regional government EU (Council, EC, EP)	Companies European Funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Sectoral or branch level

Involvement

A just transition platform for Ida-Viru County was established in on 19 February 2020 by the General Assembly of the Union of Local Governments of Ida-Virumaa. The role of the platform is to organise discussions and engagement on the just transition. The platform will work through different opinions and formulate proposals for the just transition, which will serve as input to the steering committee and the draftsmen of strategy papers related to the process at national and regional level. The members of the platform include trade unions, business associations, companies, state representatives and other organisations.

In addition, to manage the just transition process, the Ministry of Finance has established a Just Transition Steering Committee on 12 June 2020. The steering committee consists of 18 different parties: ministries, regional bodies, representatives of employers, employees, environmental organisations, universities, etc. The role of the steering committee is to make proposals concerning just transition and monitor the achievement of the results of the territorial transition plan and to make recommendations for changes to the plan or the measures implemented under it.

Views and reactions

No information about the views regarding the specific measure.

Sectors and occupations

This case is not occupation-specific.

Sources

• 19 February 2020: Õiglase ülemineku platvorm (Just transition platform) (ivol.ee)
• 21 June 2022: Regulation: Support for investments in Ida-Viru business (eas.ee)
• 23 June 2022: Minister Sutt allkirjastas määruse Ida-Virumaa ettevõtluse investeeringute toetuse avamiseks (Minister Sutt signed a regulation on opening support for business investments in Ida-Virumaa) (mkm.ee)
• 22 July 2022: Ida-Virumaa (õiglane üleminek, juhtkomisjon jm) (Ida-Virumaa (Just transition, steering committee, etc.)) (www.fin.ee)
• 15 August 2022: Application round: Ida-Viru ettevõtluse investeeringute toetus (Support for investments in Ida-Viru business) (eas.ee)