In the 2021 Recovery and Resilience Plan, the Estonian government made a commitment to the European Commission to phase out the use of oil shale in electricity production by 2035 and in energy production by 2040.

Head of Viru Keemia Group (VKG) Ahti Asmann wrote in spring that, despite this document, to the best of VKG's knowledge, there are no deadlines for the cessation of oil shale power and oil production in Estonia, either in the laws currently in force or in the draft laws pending before the Riigikogu.

The use of oil shale is regulated in Estonia's Energy Sector Development Plan until 2035 and also in the Climate Act, said Rein Vaks, head of the energy department at the Estonian Ministry of Climate.  

"Today, we do not have any valid document or valid commitment to end the production of shale oil as a whole in the energy sector by 2040. The first valid document and commitment of this kind is the Climate Resilient Economy Act, the draft of which is now circulating and is still under discussion. This discussion will reach the Riigikogu, where the legislator can decide for itself what we will and will not do with oil shale energy from the perspective of oil production," said Vaks.

Prime Minister Kristen Michal said that the oil shale sector will disappear on its own without the need for any deadlines.    

"Shale-produced electricity, in the simplest terms, is very expensive, it simply cannot get onto the market. The state doesn't even have to regulate anything major there, shale electricity will fall out of production anyway, because cheaper and cheaper electricity will come in," Michal said.

However, no one has banned the use of oil shale, and no one intends to do so, Michal said.

"In the future, oil shale can be used primarily in low-emission, or fine chemical applications. It will be up to these companies – Eesti Energia, VKG, whoever wants to do it – to come up with a proposal on how to do that and what it should look like. The Climate Resilient Economy Act states that oil shale can be used in the future for cleaner products with higher added value, in other words, fine chemicals," Michal said.

Asked what will happen to the commitments made to the European Commission in the recovery plan, the prime minister said: "Estonia has certainly said in various documents and development positions that the share of oil shale electricity will decrease, and this is a factually correct statement because it will decrease."

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