Estonia launches green retrofit scheme

Estonia has launched a €25m ($28.3m) government grant designed to encourage the reconstruction and greening of passenger and cargo ships, tugboats and other port and auxiliary vessels in Estonian ports.

This makes Estonia one of the few countries in Europe offering direct financial support in the form of state aid for ship retrofitting. 

The new grant, enacted by Estonia’s minister of infrastructure, Kuldar Leis, provides shipowners and operators with subsidies covering 15% to 30% of eligible retrofit costs, up to a maximum of €5m per project. For instance, in order to qualify for a 30% support rate, the vessel must be converted into a zero-emission ship. Additionally, factors such as the ship’s flag state and how frequently it visits local ports also influence the rate of support. 

“Global demand for cleaner maritime transport is growing rapidly. 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,” said Leis. “From design and technical consulting to implementation and maintenance, Estonian ports offer convenient and efficient hubs for retrofit projects.”