Finance ministers meeting in Luxembourg on Tuesday agreed on the Economic and Financial Affairs Council's (ECOFIN) position on the REPowerEU proposal, a plan to phase out EU dependence on Russian fossil fuel imports. Minister of Finance Keit Pentus-Rosimannus (Reform) said that REPowerEU will give Estonia the additional opportunity to invest €83 million in renewables and energy savings.
"Our main goal is to accelerate renewable energy development in Estonia, and the addition of new capacities, which would also help bring prices down," Pentus-Rosimannus said according to a ministry press release. "This means substantially faster state administration and a faster planning, permitting and coordination process. REPowerEU will provide an opportunity to fund this."
The Estonian government is set to discuss the domestic allocation of the entire package within the next few weeks. According to the finance minister, on top of the acceleration of renewables development, other possible major financing decisions are related to energy efficiency investments in industry and business as well as network reinforcements.
"Businesses' and industrial investments in energy efficiency have a significant impact on overall consumption," Pentus-Rosimannus said. "As REPowerEU money can be used through 2026, the government must definitely consider before making a decision which investments will spur the most progress and have the biggest effect."
#ECOFIN | Finance ministers agreed their position on the #RePowerEU part of EU member states' economic recovery plans. It'll help funding the transition away from Russian fossil fuels. Negotiations can now start with @Europarl_EN.— EU2022_CZ (@EU2022_CZ) October 4, 2022
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Click here for more details regarding REPowerEU, Tuesday's ECOFIN agreement as well as the financing of the additional €20 billion.
The final version of the proposal's text must be confirmed by the European Parliament.
Editor: Aili Vahtla