Estonia has launched a €25 million ($28.36 million) government grant designed to encourage the reconstruction and greening of passenger and cargo ships, tugboats and other port and auxiliary vessels in Estonian ports.
The new grant, enacted by Estonia’s Minister of Infrastructure, Kuldar Leis, provides shipowners and operators with subsidies covering 15 per cent to 30 per cent of eligible retrofit costs, up to a maximum of €5 million ($5.67 million) per project.
For instance, in order to qualify for a 30 per cent 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.
For maritime companies looking to modernise their fleets, the grant reportedly creates a significant incentive to adopt greener solutions such as installing hybrid engines, adopting equipment powered by renewable fuels, or implementing exhaust gas cleaning systems.
Other innovations that reduce pollution and improve energy efficiency are also eligible for 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 Minister of Infrastructure Kuldar Leis.
“From design and technical consulting to implementation and maintenance, Estonian ports offer convenient and efficient hubs for retrofit projects.”
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“This grant program marks a key milestone in Estonia’s drive toward greener, more sustainable maritime practices,” said Kaupo Läänerand, Deputy Secretary General for Maritime and Water Affairs at the Estonian Ministry of Climate.
“By supporting the adoption of innovative technologies, we are helping maritime operators reduce their environmental footprint and prepare for future challenges.
“With the maritime sector now included in the EU Emissions Trading System, this measure helps channel revenues collected from shipowners back into supporting their transition to greener technologies.”