Estonia announces $28m financial aid for eco-ship modifications
Estonia has announced a €25m ($28.31m) grant aimed at promoting the green retrofitting of maritime vessels, including passenger ships, cargo ships, tugboats, and auxiliary vessels operating in Estonian ports.
This initiative positioned Estonia among a select group of European nations providing direct financial assistance for ship retrofitting projects.
The grant, announced by Minister of Infrastructure Kuldar Leis, offers shipowners and operators subsidies ranging from 15% to 30% of eligible retrofit expenses, with a cap of €5m per project.
To qualify for the maximum support rate of 30%, vessels must undergo conversion to zero-emission status.
The support rate is also influenced by factors such as the vessel’s flag state and its frequency of visits to local ports.
Leis said: “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.
“From design and technical consulting to implementation and maintenance, Estonian ports offer convenient and efficient hubs for retrofit projects.’’
The grant aims to incentivise maritime companies to modernise their fleets by adopting environmentally friendly technologies, including hybrid engines, renewable fuel systems, and exhaust gas cleaning technologies.
As environmental regulations become more stringent, the demand for vessels equipped with hydrogen and electric propulsion systems, carbon capture technologies, and advanced software solutions is expected to increase, according to the Ministry of Climate of Estonia.
In response to this growing need, Estonia has established the Estonian Marine Greentech and Retrofit Hub, which serves as a comprehensive resource for green ship retrofitting services.
Estonian Ministry of Climate’s Maritime and Water Affairs deputy secretary general Kaupo Laanerand said: “This grant programme marks a key milestone in Estonia’s drive toward greener, more sustainable maritime practices.
“By supporting the adoption of innovative technologies, we are helping maritime operators reduce their environmental footprint and prepare for future challenges.’’
In 2020, Finnish construction company YIT secured a contract from the Port of Tallinn in Estonia to build a cruise terminal.
