Background information

Estonia is in the process of drafting the Climate-Resilient Economy Act, commonly referred to as the climate law, which aims to guide the country toward climate neutrality by 2050. The Ministry of Climate began drafting this legislation in early 2024, with initial outlines presented on May 8, 2024.

Social partners are consulted on the drafts of the Act. Employers Confederation, peak level social partner, has provided their positions in writing and has assembled a working group to provide feedback on the drafts.

Content of measure

The Estonian Employers' Confederation opposes the Climate Law because it believes the draft lacks clarity and fails to provide the legal certainty necessary for sustainable business operations and investment security. Kai Realo, head of the confederation’s council, stated that while businesses support sustainability, the draft does not address how climate goals will be achieved without jeopardizing export competitiveness, employment, incomes, or causing a socioeconomic crisis.

Key concerns include:

Insufficient clarity and coordination: The implementation provisions, alignment with other laws, and societal agreements are unclear or incomplete. Lack of impact assessment: The socioeconomic effects on various sectors and society as a whole have not been adequately evaluated. Premature consultation: Opinions were sought from stakeholders before clarity was reached on critical issues, such as the national energy plan and forestry and land-use regulations. Regulatory uncertainty: It is unclear how the government plans to regulate businesses to meet climate targets.

The confederation argues that this approach contradicts the government’s objective to enhance economic competitiveness, which requires legal certainty and clarity.

Use of measure

Not applicable.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Employers' organisations	No special funding required

Social partners

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

	Trade unions	Employers' organisations
Role	Unknown	Agreed (outcome) incl. social partner initiative
Form	Not applicable	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

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

• Only employers' organisations
• Main level of involvement: Peak or cross-sectoral level

Involvement

This is a view of the Employers Organisation.

Views and reactions

This is a view of the Employers Organisation.

Sources

• 05 December 2024: Tööandjad soovitavad kliimaseadusest loobuda (employers.ee)