By
Rebecca Gibson |
The Government of Estonia has launched a €25 million ($28.2 million) grant to encourage shipowners to carry out green retrofitting projects onboard their passenger, cargo and other vessels at Estonian ports. Estonia is now one of only a few European countries to offer direct financial support for ship retrofits in the form of state aid.
The grant is designed to incentivise shipowners to upgrade their vessels by installing green solutions, such as exhaust gas cleaning systems, carbon capture technologies, hybrid engines, equipment powered by renewable fuels and other solutions that increase energy efficiency or decrease pollution.
“This grant programme marks a key milestone in Estonia’s drive toward greener, more sustainable maritime practices,” said Kaupo Läänerand, deputy secretary general for maritime and water affairs at the Estonian Ministry of Climate. “By supporting the adoption of innovative technologies, we are helping maritime operators reduce their environmental footprint and prepare for future challenges. With the maritime sector now included in the EU Emissions Trading System, this measure helps channel revenues collected from shipowners back into supporting their transition to greener technologies.”
If successful in applying for the grant, shipowners and operators will receive subsidies covering 15 per cent to 30 per cent of the eligible retrofit costs, up to a maximum of €5 million per project. The government will consider factors such as the ship’s flag state, how frequently it visits Estonian ports and what work will be carried out when assigning funding. For example, a shipowner converting its vessel into a zero-emission ship would qualify for a 30 per cent subsidy.
“Global demand for cleaner maritime transport is growing rapidly,” said Kuldar Leis, Estonia’s minister of infrastructure. “Estonian marine industry companies have the expertise and experience to deliver world-class retrofit services and support shipowners in making their fleets more environmentally friendly. From design and technical consulting to implementation and maintenance, Estonian ports offer convenient and efficient hubs for retrofit projects.”
The grant is subject to the conditions outlined on the Estonian Environmental Investment Centre website.