The government has decided to change the distribution of European Union funds. This is necessary because it is currently not possible to use all the funds on time. For example, it is not yet possible to start hydrogen technology projects.
Therefore, the funds were divided into two parts. The first part remains in the EU recovery plan. The second part will be financed from CO2 quota sales revenue. This money will be used to continue projects that have already started.
39 million euros will go to the reconstruction of the Rapla-Lelle railway section and construction works for the Rail Baltica Ülemiste terminal. Estonia has been allocated 953 million euros in recovery and resilience funds. Of this, 627 million euros have already been received.
The second change concerns oil shale energy. Previously, Estonia had to abandon oil shale electricity by 2035 and oil shale oil by 2040. Now Estonia does not have to give up strategic oil shale electricity production capacities. However, oil shale oil heating must be discontinued by 2040.
The recovery plan was first drafted in 2021. In 2023, changes were made to the plan because the Russian war in Ukraine, rapid inflation, and economic slowdown have changed the situation. Now the recovery plan must be changed once more before the report is submitted to the European Commission in August 2026.