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Environmental Financing in Estonia

Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 3, "Environmental Financing in Estonia", Madis Kareda, Developmentmanager at EIC, Estonia

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Environmental Financing in Estonia

  1. 1. Madis Kareda Development manager at EIC Environmental financing in Estonia
  2. 2. Population ca. 1,3 mil 190+nationalities, 70% estonian Area ca. 45,000 km2, 22% of territory wildlife preserves Coastline: ca. 3800 km, 2000+ islands and 1400+ lakes, Ca. 50% forest, 1/5 bogs 380+ species of birds 17% farmland is organic Digital society, 99% of Estonian public services are online Member of the EU since 2004 GDP per capita: 17,574.69 USD (2016) Introduction to Estonia
  3. 3. Nature protection areas
  4. 4. Environmental policy and targets  Estonia’s 2020 targets under EU Climate and Energy Package: - 25% share of renewables, 10% share of renewables in transport, 20% GHG emission reductions  EU Climate and Energy Framework 2020-2030 - legislation and country targets to be set in 2018  Estonia’s General Principles of Climate Policy until 2050 - 80% CO2 emission reduction  Estonia’s Energy Sector Strategy until 2030 (ENMAK) - 50% share of renewables, 50% of renewable in electricity, 80% share of renewables in heating - 10% decrease of primary energy consumption  National Climate Change Adaptation Strategy until 2030  Waste Management Plan for 2014–2020  General Principles of Earth's Crust Policy until 2050  Forestry Development plan 2011-20  Transport Development Plan 2014-20  Marine Strategy etc.  Environmental strategy until 2030
  5. 5. Keepers of tomorrow Environmental Investment Center (EIC)  We mediate Estonian and foreign funds to environmental projects in Estonia  EIC is a government foundation established by the Ministry of Finance in 2000  Our vision: Efficient cooperation between EIC and its partners has reduced Estonia’s ecological footprint.  Our mission: To ensure maximum efficiency by channelling every euro for the benefit of the Estonian people, a healthy living environment, and resource-efficient development of the country.  Over 2000-17 EIC has mediated over 1,4 bln EUR to more than 20,000 environmental projects  Webpage
  6. 6. Keepers of tomorrow EIC function Ministries: Ministry of Finance Ministry of Environment Ministry of Economy and Communictions Ministry of Interior EIC Beneficiaries: companies, municipalities, non-profit sector, foundations, private persons, government institutions • Guide and assist applicants • Evaluation of applications • Monitoring project results • Feedback related to policy and support programme design Support programmes
  7. 7. Keepers of tomorrow Structure of EIC • Total 75 persons & 5 regional offices
  8. 8. Keepers of tomorrow Loan portfolio 44,3 mln € 45,8 mln € municipality enterprices 84,5 mln € 5,6 mln € ministry of Finance (EIB) EIC`own financing On-lending of EIB loan to water enterprises and local municipalities in order to ensure self-financing for the water economy infrastructure projects supported from the Cohesion Fund.
  9. 9. Keepers of tomorrow • 2000-2017 State environmental fees, total 583 mil EUR • 2000-2013 EU structrual funds (CF, ERDF, ESF) and CO2 funds - total 850 mil EUR • 2014-20 EU structrual funds (CF, ERDF, ESF) and CO2 funds - total 588 mil EUR • Loan instruments in co-operation with EIB since 2009, total 130 mEUR EIC sources of funding
  10. 10. Keepers of tomorrow Programmes financed from EU and CO2 comparison 2007-2013 and 2014-20 Water management infrastructure Energy and resoruce efficiency in… Waste management District heating Conservation of biodiversity Preparedness for environmental… Rehabilitation of contaminated areas Energy-efficient street lighting Energy efficiency and RE at… Sustainable transportation Biomethane in transport Hydro-meteorological monitoring… Environmental education infrastructure Environmental monitoring… Renewable energy EU+CO2 funds 2007- 13, total EUR EU+CO2 funds 2014- 20, total EUR
  11. 11. Keepers of tomorrow Programmes financed from state environmental fees: - total 582 mEUR over 2000-2017 - average 1100 projects each year 0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000
  12. 12. Keepers of tomorrow EIC environmental policy • We hold the certificate of a responsible enterprise • More than 30% of our procurements are green procurements. • Annual County Ant competition since 2010. People vote for their favourite environmental project at the EIC’s Facebook. • Students’ energy and resource savings contest Negavatt We are following principles of the Green Office: EIC adheres to the principle of responsibility both in the sense of our work environment as well as environmental conservation.
  13. 13. Keepers of tomorrow • Led by MTÜ ReUse (designer Reet Aus), the UPMADE certificate was developed in relation to the upcycling method, that can be adopted by textile enterprises all over the world. • EIC funded the project from the Environmental programme with 10,034 euros. Appreciating re-use
  14. 14. Keepers of tomorrow Resource efficiency of the Estonian manufacturing industry (2017-2023) • Estonia’s low resource productivity 0,5 €/kg (2015, EU 2,0 €/kg) • We provide EU investment grants to innovative industrial projects that reduce resource use • Total 107 mEUR and max 2 mEUR per project • Min. 5% threshold for achieved resource savings • Goals 2017-23: • 700 people informed • 40 trained auditors • 300 resource use audits • 270 projects • 6 projects supported so far, average grant 0,95 mil EUR/project (wood industry, food industry etc.)
  15. 15. Independent resource use analysis Company defines project and applies for grant funding grant ≤ 7500€ or 50% of the cost Grant ≤ 2 000 000€ ≤ 50%* of the cost Resource efficiency of the Estonian manufacturing industry (2017-2023)
  16. 16. Keepers of tomorrow Biomethane use in transport • Use of domestic biomethane plays an important role to achieve 10% goal of use of renewables in transport by 2020 • Potential to produce 4.7 TWh (=483 mln m3) biomethane - grassland biomass (83%), agricultural waste (9.8%), biodegradable waste from industry, waste from waste water treatement plants, landfill gas • EIC supports establishment of filling stations - 15 projects supported, 2,7 mil EUR - max. 35% grant • EIC supports biomethane use in public transport - compensation of price difference with CNG - total programme 6 mil EUR (EU Cohesion Fund) - max. 30% grant - 1 project supported (Pärnu), 0,67 mil EUR • Natural gas network owner (Elering) supports: - certificate of origin system to verify the origin of gas - connection of biomethane filling stations to gas network - total programme 28 mil EUR
  17. 17. Madis Kareda Development manager at EIC Thank you very much for your attention