Transport support - Infrastructure

• Transport and Mobility Development Plan 2021–2035 (TLAK) – Establishes long-term targets for rail electrification, road infrastructure modernization, and public transport investments, aiming for a 12% reduction in energy consumption by 2035​.
• Transport and Mobility Program 2024–2027 (Transpordi ja liikuvuse programm 2024–2027) – Defines specific infrastructure projects such as tram network expansion, railway upgrades, ferry modernisation, and alternative fuel infrastructure development​.
• Modernisation Fund (MKM Regulation) – Allocates funding for electric bus infrastructure, including charging stations and fleet conversion, with €15 million designated for 2026​.
• National Alternative Fuel Infrastructure Support (Riiklik alternatiivkütuste taristu toetus) – Supports the expansion of electric vehicle (EV) charging networks, hydrogen refueling stations, and biomethane infrastructure​.
• Heavy-Duty Vehicle Road Toll Regulation – Introduces road toll differentiation to promote low-emission freight transport, directing revenues toward infrastructure improvements for sustainable mobility​.
• Public Transport Investment Program (Ühistranspordi investeeringute programm) – Provides financing for rail electrification, tram system expansion, and ferry terminal modernization, ensuring improved low-emission transport options​.
• Estonian Road Administration Act (Teeseadus) – Regulates road infrastructure development to support cycling lanes, pedestrian zones, and traffic reorganization for enhanced sustainable urban mobility​.
• Rail Electrification and Freight Development Initiative – Invests in electrifying key railway corridors, developing intermodal logistics hubs, and shifting freight from road to rail to reduce emissions and improve transport efficiency​.

Estonia is actively supporting decarbonisation in transportation infrastructure through targeted investments and policies, with a strong focus on rail, maritime, and alternative fuel infrastructure. The Transport and Mobility Development Plan 2021–2035 sets ambitious goals, including a 12% reduction in transport energy consumption by 2035 and increasing the renewable energy share in transport to 24%. Key initiatives include rail electrification, the development of alternative fuel refueling networks, and transitioning public and freight transport to low-emission alternatives​.

In maritime transport, efforts are being made to decarbonize ferry operations. A new low-emission hybrid ferry is under construction to serve the biggest islands Saaremaa and Hiiumaa, replacing diesel-powered vessels. Investments are also directed at shore power infrastructure in ports, allowing ships to use electricity instead of fuel while docked. The long-term goal is to fully transition island ferry transport to zero-emission solutions​.

Estonia is expanding alternative fuel infrastructure nationwide, including biomethane production and hydrogen refueling stations. The government is supporting EV charging networks in regional and island communities to ensure that electrified transport solutions are viable beyond major urban centers. The country is also improving rural and inter-island connectivity by integrating low-emission public transport options with efficient ferry and rail services​.

The subsidy is addressed at the following: 

1. Local governments, public transport centers, or other competent authorities regulating public transport under the Public Transport Act.
2. Carriers serving urban routes with a valid public service contract of at least five years as of 2 August 2021 (or with confirmation from the competent authority if shorter).

Beyond these, Estonia’s transport decarbonisation support extends to:

• National authorities such as the Ministry of Climate (KLIM) and Estonian Transport Administration, responsible for infrastructure projects, rail electrification, and alternative fuel network expansion.
• County and municipal governments, including island authorities (Saaremaa, Hiiumaa, Vormsi, Kihnu, Ruhnu, Muhu), benefiting from hybrid ferry projects and sustainable transport initiatives.
• Public and freight transport operators, including Eesti Raudtee (Estonian Railways), Rail Baltica Estonia, and Riigilaevastik, receiving funding for rail electrification, ferry modernization, and alternative fuel fleet adoption.
• Private sector stakeholders, such as logistics companies and renewable energy producers, eligible for biomethane, hydrogen, and EV infrastructure support.

• Ministry of Climate 
• Ministry of Regional and Agricultural Affairs
• Estonian Transport Administration
• Environmental Investment Centre
• State Shared Service Centre
• County and Municipal Governments, including island authorities
• State Fleet
• Public Transport Operators