Business leaders warn Estonia's climate bill is unclear
The Estonian government is reviving a climate-resilient economy bill meant to set national climate goals, but business leaders say the plan still lacks clarity and direction.
The draft sets targets for cutting Estonia's greenhouse gas emissions by 50 percent over the next 15 years, compared with 2022 levels. Reduction goals vary by sector — deeper cuts are planned for energy production, with smaller ones in agriculture.
Minister of Energy and the Environment Andres Sutt (Reform) said the bill has been shortened and made more specific since the version proposed by his predecessor, though its overall direction remains the same.
"This new version is shorter and more concrete," Sutt said, adding that all the prior groundwork has also helped Estonia prepare for EU climate negotiations.
He said the law is needed both for environmental protection and to provide "investment security" for businesses. The bill was on the government's agenda Thursday, though no decisions are expected yet.
Kai Realo, vice president of the Estonian Employers' Confederation (ETK) Council, said now is not the right time to move forward, noting that the EU only just last week decided to ease its own climate targets. That shows, she said, how quickly the policy landscape is shifting.
"Everyone has realized that introducing European requirements at this pace, companies can't stay globally competitive," Realo said.
The climate law would set general climate goals while separate sectoral "roadmaps" would lay out how to achieve them. Sutt said those roadmaps are still being developed in parallel with the bill.
"The roadmap's big advantage is that it's practical and can be revised over time," he said.
The minister also noted that Estonia is one of few EU states that hasn't yet adopted a climate law.
Climate Ministry deputy secretary general Kristi Klaas said discussions with stakeholders will continue.
"By the time substantial debates on the climate law begin, we want concrete roadmaps alongside it so we can discuss which solutions will work and which won't," she said.
Acknowledging that the lack of roadmaps was the previous bill's main flaw, Realo warned against further delays.
She argued the ministry hasn't sufficiently involved businesses in the process and that many questions remain unanswered, especially for the industrial sector.
"If we're already setting sector-based targets without a clear picture of what the state expects or how restrictions and compensation will work ... then we're actually missing the entire framework right now," she said.
Sutt said he hopes the climate law will be adopted before the end of the current Riigikogu's term.
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Editor: Mari Peegel, Aili Vahtla
