EU Plans Threaten Estonia's Oil Shale Industry with Unprofitability by 2031

Oil shale producers in Estonia are warning that EU plans to reduce free carbon quotas for industry could make oil production unprofitable within five years. In a letter to Prime Minister Kristen Michal, the CEOs of Eesti Energia and VKG (Viru Keemia Grupp) noted that the proposed changes would require companies to invest in reducing emissions, which is extremely difficult.

Eesti Energia's CEO Andrus Durejko said that free quotas do not actually disappear but must be invested in the same facility as a mandatory requirement, making it unreasonable in terms of production cost. He added that oil inevitably contains carbon and cannot be eliminated.

The companies want an exemption for Estonia that would remain in place as long as the European Union imports liquid fuels. If this is not granted, they predict that tax burdens will multiply at the beginning of the next decade.