Jüri Tiidermann, head of Eesti turbaliit, the nationwide association of peat cutting industries, told AK: "Without a doubt producers cannot be satisfied with the change."

"On the one hand, we are talking about adding value to local resources and a new economic policy; on the other, we are imposing new taxes and essentially sector restrictions on industries which are viable, growth-oriented, and capable of attracting investment," Tiidermann went on.

The association says that significant resources have been restricted which could otherwise generate income.

However, Jüri-Ott Salm, project manager at the Estonian Fund for Nature (Eestimaa Looduse Fond), welcomed the news, saying: "This is a positive initiative from the climate ministry, setting certain limits on the expansion of potential cutting areas."

"However, whether it will also restrict cutting volumes and the extent of peat cutting in Estonia, bearing in mind that existing permits allow for decades of continued extraction at current levels, is still up for debate. We need to consider how to further limit peat cutting activities in Estonia," Salm added.

Under the new changes, the zones designated for peat extraction have been reduced from 140,000 hectares in size, to 25,000 hectares.

This means that instead of 267 wetland areas previously available for peat cutting, only 83 such areas remain.

Outlining the rationale behind the changes, Aveliina Helm, scientific advisor at the climate ministry, said: "This is part of a broader policy on peat, concerning how to proceed with peat cutting in Estonia, at what volumes, and how to balance out environmental and economic considerations."

"It is the case that peat extraction is currently quite emission-intensive, accounting for about 10 percent of Estonia's total greenhouse gas emissions," Helm added.

Peat cut in Estonia is mostly for export. Major western European destination countries include Germany, the Netherlands and Belgium, making the economic sector a not insignificant one.

Pärnu County in southwestern Estonia is one of the most significant areas where peat is extracted.

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