Estonia launches green retrofit scheme

Estonia has launched a significant €25 million ($28.3 million) government initiative aimed at promoting the retrofitting and modernization of passenger and cargo vessels in its ports. This program positions Estonia among the few European nations providing direct financial incentives for ship upgrades, focusing on environmental sustainability. The grant, announced by Infrastructure Minister Kuldar Leis, offers substantial support to shipowners looking to transition to greener maritime operations.

Substantial Financial Support for Vessel Upgrades

The newly established grant provides shipowners and operators with subsidies ranging from 15% to 30% of the eligible retrofit costs, capped at €5 million per project. To qualify for the maximum support of 30%, vessels must be converted to zero-emission ships. Other factors, such as the ship’s flag state and its frequency of visits to local ports, also play a role in determining the level of financial assistance available.

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Minister Kuldar Leis emphasized the growing global demand for cleaner maritime transport, stating, “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.” He highlighted that Estonian ports serve as efficient hubs for various retrofit projects, offering a comprehensive range of services from design and technical consulting to implementation and maintenance.

This initiative not only aims to enhance the sustainability of Estonia’s maritime sector but also seeks to establish the country as a leader in eco-friendly shipping practices in Europe. With the backing of this grant, Estonia is poised to make significant strides towards reducing the carbon footprint of its maritime activities and promoting a greener future for shipping.