On Tuesday morning at nine, a funding round facilitated through the Foundation for Enterprise and Innovation (EISA) opens, enabling private homeowners to renovate their residences. A record €30 million will be distributed for these grants, available on a first-come, first-served basis. There are no income limits for application, allowing even millionaires to participate, provided they wish to make their villas more energy-efficient.

"The state should create an environment where entrepreneurs and people can operate, and where government support goes to those at risk of poverty and in need of help. However, in practice, this is not always the case. Unfortunately, as was the case with the heater measure (another recent round of state support to partly finance renovation of stoves and furnaces – ed.), so it is with the single-family home renovation subsidy – it also benefits the wealthier," stated Riigikogu member Aivar Sõerd (Reform Party).

"Typically, the government's role is to create infrastructure, and the private sector should develop applications on top of it. Such personal subsidies are probably not the most appropriate way," noted Climate Council Chairman Kaspar Oja.

Individuals are being supported indiscriminately at a time when the government and central bank warn every week that the country is living beyond its means and must cut costs.

"The country's finances are in a very difficult position, and we are threatened with an excessive budget deficit procedure, perhaps soon, if ways are not found to make radical cuts in expenditures," Sõerd acknowledged.

"In a situation where we have to discuss whether to reduce social benefits or even cut staff in some institution, distributing such generous subsidies is of course problematic. Measures meant simply to improve living conditions – I believe people would undertake these works whether they receive subsidies or not. For instance, with the electric car subsidy, I believe these more expensive electric cars would be bought anyway, regardless of the €4,000 subsidy. That subsidy might just allow for purchasing slightly better levels of kit," Oja explained.

In addition to individuals, companies also receive subsidies for purchasing electric cars and cargo bikes. The budget for this totals €8.5 million, with €4.5 million still awaiting new applicants.

"We have supported the purchase of about 420 private cars and around 435 for entrepreneurs. There's very little difference," said Krisli Kõrgesaar, head of energy and mobility at the Environmental Investments Center.

Additionally, the first subsidy for purchasing a hydrogen car has been paid out. Two hundred individuals and businesses have received support for buying cargo bikes, split about evenly. But the state does not support the purchase of ordinary bicycles.

"We have considered supporting cargo bikes because they help replace cars, as a cargo bike allows you to go shopping, put your purchases in it, put your children in it when you take them to kindergarten. And it allows replacing a car in various aspects of life. Unfortunately, a regular bike does not do that," Kõrgesaar remarked.

"The development of the climate law has very clearly shown us where it is most sensible to focus subsidies. Various target groups have been highlighted as very important. These (subsidies) are targeted, considering those who may find it most difficult to invest," said Kristi Klaas, deputy secretary for the green reform at the Ministry of Climate.

"I think these support measures have been more accessible to those who are very aware of how to apply for and finance them. But we want them to be widely accessible to everyone," added Klaas.

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