According to Minister of Economic Affairs and Industry Erkki Keldo (Reform), the extended deadline ensures that all investment projects receiving support from the Just Transition Fund can be completed in full.

"Nearly 30 new factories, hotels or other businesses will be built or expanded in Ida-Viru County over the next few years, boosting the local economy and creating a significant number of new jobs in the region. Large-scale projects often depend on many factors that can put pressure on timelines. Flexibility from the state and the extension of the deadline give businesses the opportunity to carry out all planned activities," Keldo said.

The largest-budget support measure under the Just Transition Fund is aimed at implementing major investments to diversify the economy of Ida-Viru County, develop new high value-added production and thereby create new jobs and value chains in the region.

The total volume of support was €177.8 million, with an average grant of €5.9 million per project. All support decisions have now been made.

Sigrid Harjo, a member of the management board of the Estonian Business and Innovation Agency (EIS), highlighted some examples of the first completed projects. These include Fortaco Estonia, which manufactures steel structures and opened a new facility with updated equipment in mid-May. In the same month, a topping-out ceremony was held for the Peipsi Nature Spa Hotel, and a magnet factory is set to open in September.

In mid-June, the world's largest axe-throwing center, which also received support from the Just Transition Fund in the amount of €61,084, opened in Mäetaguse, Ida-Viru County.

"Most projects were funded in the second half of 2024, and these are very large-scale investments. Including the companies' own contributions, the total cost is around €15 million per project. As a result, it's important to understand that many activities will take time and most projects will reach the finish line starting in 2026," Harjo said.

As a result of the changes, the eligibility period for the projects now ends no later than August 31, 2029.

Since the transition to a more environmentally sustainable economy will have the greatest impact on Ida-Viru County, the focus of the European Union's Just Transition Fund in Estonia is specifically on supporting the region's economy, people and environment in order to address the resulting socioeconomic challenges.

--

Follow ERR News on Facebook, Bluesky and X and never miss an update!