In Pärnu County, horticultural peat producer ASB Greenworld doubled its production capacity in June with the opening of a new growing substrate manufacturing facility. Company director Jüri Tiidermann said the €6 million investment was made despite strict climate targets.

"This investment decision was actually made back in 2021, before the green fog settled over our republic. So yes, let's put it this way: since 2023, when we began construction, there have been many sleepless nights because the state essentially eliminated all investment security in the sector," Tiidermann said.

Tiidermann was referring to the draft climate law proposed by the previous government, which set emission reduction targets for the peat industry — 12 percent by 2030, 50 percent by 2040 and climate neutrality by 2050. In practice, this would have meant the shutdown of the peat industry.

However, the new planned Climate-Resilient Economy Act seems more lenient, both to Tiidermann and to Estonian Peat Association CEO Annika Päsik.

"Targets have not been set for specific sectors. There's a shared general target of climate neutrality by 2050, but the interim goals for specific years have been removed for now," said Päsik.

According to Kristi Klaas, undersecretary for the green reform at the Ministry of Climate, percentage-based targets will indeed likely be dropped. That, however, does not mean the climate goals themselves are being relaxed.

"It's probably not sensible to assign a very specific percentage to a very specific year, because natural processes don't align neatly with a given calendar year. We need to look at the broader picture over a longer period. We have no plans to ease the goals — substantively, we're moving toward mining with a smaller environmental impact," Klaas said.

Still, Tiidermann hopes the new climate law will restore investor confidence.

"Right now, speaking of the peat sector, Estonia has already lost about €20 to €25 million in additional investments that other companies decided not to make. That train has left the station. We hope the new climate law can convince businesses again that this industry still has a purpose," Tiidermann said.

According to Klaas, the planned legislation will not restrict the peat sector's operations.

"The law will steer things so that these resources are used more efficiently, with greater added value remaining in Estonia. I don't see how this law would in any way limit the continued operation of the sector," Klaas said.

Klaas added that the specific climate targets for the peat industry to be included in the draft law will be determined in the coming weeks.

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