Overview
Estonia’s energy efficiency measures aim to reduce energy consumption, lower carbon emissions, and improve sustainability across all sectors. These policies align with EU energy directives and national energy targets, ensuring a transition towards a more energy-efficient and climate-neutral economy by 2030.
Estonia has incorporated the European Union’s Energy Efficiency Directive into its national legislation through the Energy Sector Organization Act and related regulations. Domestically, Estonia's Energy Sector Development Plan 2030 targets final energy consumption of 32-33 TWh per year and a 14% reduction in primary energy use compared to recent peaks (~60 TWh/a).
To achieve these goals, Estonia has adopted concrete energy-saving policies in key sectors. In the housing sector, renovation subsidies support apartment buildings and single-family homes, alongside tax incentives and minimum energy performance standards (MEPS) for rented and sold properties. The service sector benefits from state support for public and commercial building renovations, CO₂ taxation, and energy-efficient real estate incentives. The industrial sector promotes voluntary agreements, resource-efficient technologies, and investment support for energy-intensive businesses. In transport, Estonia prioritizes electric and biogas vehicles, charging infrastructure, and modernized public transport. These measures align with Estonia’s commitment to the EU’s Renovation Wave and climate neutrality objectives, ensuring a more sustainable and energy-efficient future.
Summary of measures
Measures include renovation incentives, taxation policies, and infrastructure improvements to drive energy savings.
Key initiatives include renovation subsidies for homes, public buildings, and commercial properties, alongside mandatory energy performance standards (MEPS) for buildings. Tax incentives and CO₂ taxes encourage energy-efficient investments. In transport, Estonia prioritizes electric and biogas vehicle infrastructure, improved public transport, and congestion charges. The industrial sector benefits from resource-efficient technology funding and voluntary energy-saving agreements.
Housing Sector
Primary energy consumption in residential buildings must be reduced by at least 16%. By 2035, this reduction target increases to 20–22%, with the ultimate goal of achieving a climate-neutral building stock by 2050. To guide this transition, Estonia will develop a National Renovation Plan by the end of 2026. Additionally, a Renovation Passport is being developed to help building owners plan upgrades step by step, leading to zero-emission buildings. From 2030 onward, all newly built structures must be zero-emission buildings.
Service Sector
Estonia promotes energy efficiency in the public and commercial sectors through renovation subsidies for government and municipal buildings, as well as investment grants for private businesses to improve insulation, heating, and lighting. CO₂ taxes on commercial properties encourage businesses to cut energy waste, while minimum energy performance standards mandate efficiency improvements in non-residential buildings. Additionally, property tax incentives are offered for energy-efficient commercial properties, further driving the transition to a more sustainable built environment. By 2030, 16% of the least energy-efficient non-residential buildings must be renovated.
Industrial Sector
The industrial sector benefits from voluntary agreements where companies commit to energy savings in exchange for government incentives. Businesses investing in green technologies and resource-efficient equipment receive financial support, and energy-intensive industries get targeted aid to reduce consumption and improve sustainability. Specific measures also include investment support for food industry energy security, helping critical production facilities transition to more efficient and low-carbon energy sources.
Transport Sector
Energy efficiency in transport focuses on electrification, alternative fuels, and public transport improvements. Government fleets must adopt energy-efficient vehicles, while subsidies promote public transport and micromobility options like cycling. Investments in EV charging infrastructure, biomethane, and hydrogen fueling stations support cleaner transportation. Higher taxes for polluting vehicles and congestion charges in major cities encourage greener choices, while rail electrification, new tram and bus routes, and biofuel incentives modernize Estonia’s transport network for a low-carbon future.
Competent authorities
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Ministry of Climate
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Ministry of Economic Affairs and Communications
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Estonian Development Fund
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Local municipalities
