Starting from May 22, shipping companies can apply for funding to make their ships more environmentally friendly. The support measure aims to reduce greenhouse gas emissions from maritime transport and strengthen the development of Estonia’s marine industry.

Eligible applicants include legal entities that own or operate civilian ships with a gross tonnage of at least 300 GT—such as passenger ships, cargo ships, and port service vessels. The funding can be used to retrofit ships with technologies like hybrid engines, equipment running on green fuels, exhaust gas scrubbers, or shore power systems. The goal is to improve energy efficiency and reduce the environmental impact of ships.

Minister of Infrastructure Kuldar Leis emphasized the importance of the funding for Estonia’s maritime sector: the global demand for cleaner maritime transport is rapidly increasing. Estonian marine industry companies already have the skills and experience to offer world-class retrofitting services to shipowners and to contribute to making ships more environmentally friendly. This creates jobs, increases tax revenue and economic growth, and strengthens Estonia’s position in international maritime affairs.

Kristjan Kalda, head of energy and mobility at the Environmental Investment Centre, added that maritime traffic has steadily grown over recent decades, leading to a rise in greenhouse gas emissions from the shipping sector. Therefore, it is important to encourage investments that help ships transition to cleaner technologies, such as electric motors and hybrid systems.

The funding comes from the European Union Emissions Trading System. The first call for applications has a budget of five million euros, and the total budget for the measure over four years is 25 million euros. The maximum support per project is five million euros, with a co-financing rate between 15% and 30%, depending on the type of investment and the vessel’s connection to Estonia.

Applications can be submitted through the e-support portal until the funds are exhausted. Specific eligibility requirements are outlined in the official regulation.