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Estonia is still among the top three per capita and per GDP GHG emitters in Europe, mainly due to the carbon and energyintensive oil-shale-based energy sector, rapid growth in road freight transport and car use, low energy efficiency of the new vehicle fleet and high-energy consumption of buildings. Estonia maintains its high carbon intensity by keeping oil shale as a major energy source and the country’s shale oil dependency is not at all addressed by EU funds, in spite of the existence of a long-term decarbonisation strategy. Transport funding dedicated to road construction omitting emissions considerations, climate change mitigation in projects selection and horizontal principles are flawed. In Estonia, the national Europe 2020 targets for energy and climate change are represented by the National Reform Programme (NRP, Eesti 2020) of 2011, updated in 2012 77 . Estonia will allow non-ETS emissions to grow by a maximum of 11% by 2020 compared to 2005 levels, aim for a 25% share of renewable sources in final energy consumption and stabilise final energy consumption at 2010 levels by 2020 (2,818 ktoe). Energy generation in Estonia is mainly based on domestic fuels, particularly on oil shale, while transport fuels are entirely imported. The volume of oil shale production has not changed over the last decade – 18.7 million tonnes was produced in both 2011 and 2012. The majority of oil shale is consumed in power plants and as raw material for shale oil production. In 2008, 91% of electricity was produced from oil shale, whereas this share dropped to 85% in 2011 and to 81% in 2012. At the same time, consumption of oil shale in the oil industry increased, together with growth in shale oil production. The continued demand for shale oil in Estonia and in external markets increased the production of shale oil by about 7% compared to 2011. Nearly 80% of the shale oil is blended with naphtha fuels and exported. The oil shale sector provides 4% of Estonia’s GDP, but at the same time it is the biggest environmental polluter. Despite oil-shale users meeting the strict environmental norms of industrial emissions of the EU, this sector is responsible for 78% of total annual CO 2 emissions, up to 98% of other emissions to ambient air and 83% of total annual waste generation. CO 2 emissions in 2011 for oil-shale based electricity in Estonia were 1225 tCO 2 /GWh. Oil shale mining also has severe impacts on the landscape through opencast strip mining and pollution of ground water due to underground mining. For each tonne of oil shale extracted, about 14 – 18 m 3 of water is pumped out and wasted, and ground water is contaminated with phenols and oil residuals over an area of 436 km 2 of shale mining areas in the northeast of Estonia. Low efficiency in primary energy use in power generation from oil shale is the main reason for the fact that the energy intensity and CO 2 emissions of the Estonian economy are among the highest in the EU. In 2013, 0.51 tonnes of energy in oil equivalents (toe) was used in Estonia for the production of EUR 1,000 of GDP. The average of the EU was three times smaller (0.14 tonnes) (See Graph 6: ‘Energy intensity of the economy 2013’). In the last decade, production of electricity from renewable sources has increased significantly. In 2008 the share of electricity generated from renewable sources was only 2.1% of total electricity consumption, whereas its share was 12.7% in 2011 and 15.2% in 2012. New wood-fuel-based combined heat and power (CHP) plants have been put into operation, which has increased the share of electricity produced from biomass to two thirds of total renewable electricity production. The production of wind and hydropower energy has also increased year by year. In 2012, the production of both wind and hydro energy increased about 20% compared to 2011. In 2013, the share of renewable energy in final energyconsumption was 25.6%, exceeding the national target for 2020. The introduction of renewable sources has slightly reduced the importance of waste-intensive oil shale in electricity production. Despite the significant increase in the share of renewables in electricity production, Estonia is far from achieving the goal defined in its national energy strategy to reduce the share of oil shale in power production below 50% of the country’s total power production mix by 2020. 77 http://ec.europa.eu/europe2020/pdf/nrp/nrp_estonia_et.pdf 42 ‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’
GRAPH 21: Production of electricity from renewable energy sources in Estonia 2002-2012, GWh. GRAPH 22: Share of fossil fuels in 2013 electricity production. GWh 1000 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Wood fuel, biogas and waste Wind energy Hydro energy 9% Renewable fuels and sources 91% Fossil fuels Source: Estonian Statistics Board electronic database http://pub.stat.ee/px-web.2001/Dialog/varval.asp?ma=KE033&ti=ELEKTRIJAAMADES+ENERGIA+TOOTMISEKS+T ARBITUD+K%DCTUS&path=../Database/Majandus/02Energeetika/02Energia_tarbimine_ja_tootmine/01Aastastatistika/&lang=2 The decarbonisation of electricity production thus plays a key role for achieving a low-carbon economy. By 2014, non-ETS emissions had decreased by 5%, and Estonia is on track to meet its non-ambitious climate target for 2020. By 2013, Estonia had met its 2020 renewable target of 25% 78 . The energy efficiency target for the transport sector is set in the Estonian Transport Development Plan 2014 to 2020, which commits to stabilising the transport sector’s energy consumption by 2020 at the level of 2012 (33 million TJ) and to create a basis for reducing energy consumption after 2020. TABLE 6: Estonia’s electricity production by source in 2012 and 2013 (GWh). SOURCE (FUEL) 2012 SHARE OF TOTAL (FUEL) 2013 SHARE OF TOTAL (FUEL) Total renewables 1 477 12.34% 1 201 9.11% Incl. Wood 953 7.96% 621 4.71% Incl. Wind 434 3.63% 529 4.01% Incl. Hydro 42 0.35% 26 0.20% Incl. other renewable 48 0.40% 25 0.19% Total Fossil 10 489 87.66% 11 981 90.89% Incl. Oil shale 9 699 80.80% 11 388 86.39% Incl. Oil shale retort gas 511 4.27% 299 2.27% Incl. Oil shale oil 58 0.48% 134 1.02% Incl. Natural gas 123 1.03% 89 0.68% Incl. Peat 98 0.82% 71 0.54% Incl. Heavy fuel oil 0 0% 0 0% TOTAL 11 966 100% 13 182 100% Source: Estonian Statistics Board electronic database 78 http://ec.europa.eu/priorities/energy-union/state-energy-union/docs/estonia-national-factsheet_en.pdf ‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’ 43
Page 1 and 2: CLIMATE’S ENFANTS TERRIBLES HOW N
Page 3 and 4: TABLE OF CONTENTS EXECUTIVE SUMMARY
Page 5 and 6: safeguard mechanism, the Strategic
Page 7 and 8: SLOVAKIA HUNGARY ROMANIA CROATIA Sl
Page 9 and 10: INTRODUCTION PURPOSE OF THIS STUDY
Page 11 and 12: EU FUNDS IN CENTRAL AND EASTERN EUR
Page 13 and 14: LT RO SK HU CZ LV CEE EE PL HR 20.0
Page 15 and 16: GRAPH 7: Comparison of energy effic
Page 17 and 18: GRAPH 10: Different types of energy
Page 19 and 20: GRAPH 12: Member States’ GHG emis
Page 21 and 22: TABLE 2: Criteria for renewable ene
Page 23 and 24: What EU money can’t buy: the gree
Page 25 and 26: 25% of production respectively 30 .
Page 27 and 28: are implemented through six Nationa
Page 29 and 30: track to carbon-neutral development
Page 31 and 32: It is also worth noting, that all O
Page 33 and 34: very specific - although mostly sil
Page 35 and 36: 110 billion in the optimal renovati
Page 37 and 38: whose ROP clearly prioritises commu
Page 39 and 40: aimed at modernising and building n
Page 41: The long and rocky path away from s
Page 45 and 46: CLIMATE ACTION: THE CASE FOR EU FUN
Page 47 and 48: GRAPH 23: Investment areas of Cohes
Page 49 and 50: could play a major role in replacin
Page 51 and 52: The missing pathway to long-term de
Page 53 and 54: intensity has decreased over the la
Page 55 and 56: achieving policy objectives. Such i
Page 57 and 58: change. Nevertheless, no specific c
Page 59 and 60: Considering the fact that renewable
Page 61 and 62: equires a more comprehensive assess
Page 63 and 64: A ‘green’ veneer, but at what c
Page 65 and 66: NATIONAL GHG EMISSIONS The transiti
Page 67 and 68: monopoly (which imports Russia`s ga
Page 69 and 70: GRAPH 36: Cargo traffic by mode of
Page 71 and 72: than that of deforestation, some ex
Page 73 and 74: GRAPH 41: Energy efficiency allocat
Page 75 and 76: Bring on the money, don’t ask for
Page 77 and 78: GRAPH 43: Energy mix of the Czech R
Page 79 and 80: Regarding the Europe 2020 emissions
Page 81 and 82: the renewables share to 35%, the Cz
Page 83 and 84: of commitment of public authorities
Page 85 and 86: GRAPH 53: Share of transport modes
Page 87 and 88: TABLE 12: Renewable energy output i
Page 89 and 90: 2007-2013 2014-2020 In the Enterpri
Page 91 and 92: GRAPH 55: The different types of en
Page 93 and 94:
Finance for the energy transition -
Page 95 and 96:
ENERGY SECTOR OF SLOVAKIA: STEADY W
Page 97 and 98:
strategy until 2030, in 2012, but t
Page 99 and 100:
This support is very welcome as it
Page 101 and 102:
environmentally-friendly production
Page 103 and 104:
participation in assessment procedu
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The Integrated Infrastructure OP se
Page 107 and 108:
THE DARK SIDE IS IN THE DETAILS Cli
Page 109 and 110:
GRAPH 60: Climate targets, scenario
Page 111 and 112:
GRAPH 64: Total climate allocations
Page 113 and 114:
EXPECTED COMPLEMENTARY FINANCING MO
Page 115 and 116:
Recommendations for the mid-term re
Page 117 and 118:
Notwithstanding a few exceptions, t
Page 119 and 120:
c) Renewable energy sources Eligibl
Page 121 and 122:
enewables in transport, as this tas
Page 123 and 124:
Annex II - Complementary financing
Page 125 and 126:
Going ‘super-green’, but not ri
Page 127 and 128:
GRAPH 67: Energy mix 2013 - Gross i
Page 129 and 130:
OVERVIEW OF EUROPEAN STRUCTURAL AND
Page 131 and 132:
cogeneration systems, monitoring sy
Page 133 and 134:
pollution levels and poor air quali
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line with the Europe 2020 targets a
Page 137 and 138:
esidential sector and the usage of
Page 139 and 140:
In the preparation phase, the mains
Page 141 and 142:
of the Thematic Objective or progra
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Land of unfulfilled clean energy po
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hydropower plants (94%), and the ot
Page 147 and 148:
points to a need for the developmen
Page 149 and 150:
and adaptation, disaster resilience
Page 151 and 152:
significant biomass growing fields.
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ports (EUR 140 million), new and im
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RECOMMENDATIONS FOR PLANNING, MONIT
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ENFANTS TERRIBLES

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