On Monday, the European Commission approved the territorial plan for a just transition, on the basis of which Estonia will receive 354 million euros from the European Union budget to end the use of oil shale in energy production in Ida-Virumaa. The plan includes investments in green energy production and subsidies to mitigate the social impact of the transition from polluting energy sources.

"This is an opportunity to reorganize the economy on a more sustainable basis, encourage new investments and increase the competitiveness of companies," said Prime Minister Kaja Kallas Estonian politician. at the press conference after the announcement of the plan.

Estonia has set the goal of ending the production of electricity from oil shale by 2035, gradually ending the use of oil shale in energy production by 2040, and achieving climate neutrality by 2050.

"During the transition to climate neutrality, Estonia has committed to gradually end energy production from oil shale. This has a great impact on the economy and people of Ida-Virumaa. The just transition plan will help Estonia meet its goals in a fair and inclusive way," said Ursula von der Leyen, president of the European Commission, who visited Narva City in the NE of Estonia (pop.54,000). on Monday. 

The plan envisages investments in the restoration of abandoned and polluted industrial areas, the introduction of solar, wind and hydropower and hydrogen produced from renewable sources, as well as the development of heating solutions based on renewable energy.

With the help of the support, Estonia should create a new business environment based on the circular economy in Ida-Virumaa, which supports research and development activities in cooperation with local educational and research institutions.

According to the plan, about 11,000 workers in Ida-Virumaa mainly working in the oil shale industry will be retrained and they will be offered opportunities to work in new, environmentally sustainable companies.

Companies operating in the oil shale sector in Ida-Virumaa generate more than 50 percent of Estonia's total greenhouse gas emissions.

The European Union's Just Transition Fund supports the territories most affected by the transition to a climate-neutral economy. These territories have been identified in the Territorial Plans for the Just Transition following a dialogue with the European Commission 2021-2027. during the negotiations on partnership agreements and related programs.