Estonia earned €256.5 million from carbon quota sales last year
Estonia's share from the 2025 auction of carbon dioxide units totaled €256.5 million, the Climate Ministry said.
Since 2013, Estonia has received more than €2.3 billion in revenue.
Since the launch of the European Union auction platform, most of Estonia's revenue has gone to transportation and mobility — €1 billion — followed by €446 million for improving building energy efficiency and €175 million for developing renewable energy and energy efficiency. Nearly €164 million has been allocated for monitoring, research and development, and €37 million for climate adaptation and nature conservation.
The ministry said last year's quota funds continued to support Rail Baltica construction, railway electrification and the purchase of six new electric trains, which are expected to arrive in Estonia by the end of 2026.
Work also continued on building shore‑power infrastructure at the Virtsu and Kuivastu ports so they can serve a new electric ferry.
To improve building energy efficiency, local government and central government buildings were renovated and nearly zero‑energy buildings were constructed.
In the renewable energy and energy efficiency sector, radars enabling wind farm development in Northeast Estonia were completed, and work continued on renewable energy solutions on Vaindloo Island.
Theater and performance venue lighting costs were significantly reduced. Funding also supported monitoring of Lake Võrtsjärv and the sea, compiling a climate atlas, developing geothermal pilot plants, and flood‑risk reduction projects in Paide, Sindi, Pärnu, Haapsalu, Keila, Kuressaare and Hiiumaa, as well as climate cooperation projects in Ukraine and developing countries.
Revenue from CO2 unit sales comes from the European Union Emissions Trading System (ETS). Under the system, companies that emit greenhouse gases must pay for those emissions, encouraging investment in cleaner technologies and lower‑emission production.
A portion of the revenue from sold CO2 units goes to Estonia, which uses it by law to fund climate and energy projects.
The system currently covers 37 major industrial and energy companies in Estonia and one aviation company. Since 2024, maritime transport has also been included, and by mid‑2026, 16 Estonian shipping companies with a total of 53 vessels will participate.
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Editor: Valner Väino, Argo Ideon
