Study Resource Efficiency Gains and Green Growth Perspectives in Estonia Valdur Lahtvee September 2012 n Estonia’s energy production is dominated by fossil fuels, including domestic oil-shale. The share of renewable energies(biomass, windpower) has rapidly increased since 2007. Although CO2-intensity has been falling in recent years, it still remains more than twice as high as the EU average. Both the energy sector and industry remain significant emitters of greenhouse gases. n The main potential for energy savings and increased effiency lies within the building sector: better insulation of buildings, improved transmission networks, introduction of heat metering, stricter thermal standards. Furthermore, there is a potential in the transport sector: more efficient cars, e-mobility. Measures are supported by govern­ment through credit guarantees and direct investment grants. n Estonia has implemented a range of policy measures: quantitative goals and tar­gets, new energy effiency requirements, tax reform with increased taxation of fossil fuel products, research and development. Altogether, this has raised the awareness of energy efficiency, energy saving and climate change. Most importantly, energy gained from renewables is promoted with purchase obligations and feed-in tariffs. However, the government has not yet abolished subsidies to oil-shale energy pro­duction. n Taken altogether, policy measures to support a green economy remain fragmented and mainly driven by external forces, such as the EU. Although environmental issues have been high on the society’s agenda since 1990, people’s understanding of the relations between the economy and the environment remains low.