Estonia Seeks Exemption from EU Emissions Rules Amid Oil Production Woes
Estonian oil shale producers Eesti Energia and Viru Keemia Grupp (VKG) have appealed to Prime Minister Kristen Michal for an exemption from EU rules on greenhouse gas emissions. The companies argue that without such an exemption, production could become unprofitable as early as 2031-2033.
Eesti Energia CEO Andrus Dureiko and VKG head Ahti Asmann claim that decarbonizing oil production is extremely difficult because oil contains carbon and is a fossil fuel. They propose retaining an exemption for Estonia for as long as the European Union imports liquid fuels.
The companies also argue that reducing free allowances for industry will make it difficult to invest in reducing emissions at existing facilities. According to Dureiko, the new plant in Auvere will be economically viable for 14 years under current legislation.