The Estonian government has launched a €25 million grant program to support the retrofitting and greening of passenger and cargo vessels in domestic ports. Announced by Minister of Infrastructure Kuldar Leis, the initiative aims to provide subsidies covering 15-30% of eligible retrofit costs, with a cap of €5 million per project. Ships must meet specific criteria, such as converting to zero-emission operations, to qualify for the highest support rate.
Estonia is among the few European nations offering direct financial aid for ship retrofitting, addressing the growing global demand for cleaner maritime transport. Leis emphasized that Estonian companies possess the expertise to facilitate this transition, offering services from design to maintenance. The funding is seen as a significant incentive for maritime operators to modernize their fleets with sustainable technologies, including hybrid engines and exhaust gas cleaning systems.
The initiative aligns with Estonia’s broader goals of decarbonizing its maritime sector. Recently, Estonia and Finland signed a Memorandum of Understanding to establish a green shipping corridor in the Gulf of Finland, furthering their commitment to climate neutrality. With increasing environmental regulations, the demand for advanced propulsion systems and emission-reducing technologies is expected to rise, positioning Estonia as a leader in maritime sustainability.
