The oil shale industry was pioneered in Estonia. The Kiviter process was invented here just over a century ago, and extracts shale oil by heating crushed oil shale in vertical retorts to produce oil vapor, gases, and semi-coke by-products.

Though it has many other industrial applications, the oil was long used to fire power stations, also mostly in Ida-Viru County, and the sector was a major employer.

In Lüganuse municipality, Ida-Viru County, the Kiviõli chemical industry mines and processes oil shale, while a new mine is being developed by Eesti Energia and VKG; meanwhile, in nearby Alutaguse municipality, the Eesti Energia-operated Estonia and VKG-operated Ojamaa mines are nearing depletion, "Aktuaalne kaamera" reported.

Lüganuse municipal mayor Dmitri Dmitrijev said he does not understand why Estonia needs to abandon oil shale energy so quickly.

He told "Aktuaalne kaamera": "I have always opposed setting these deadlines. We should rather have a plan for how to modernize things and make them more environmentally friendly. Not set specific deadlines for when we have to shut down a sector and only then think about what will replace it."

Marek Kullamägi, Alutaguse municipal council chair, noted that the deadlines set by the state are stifling life in Ida-Viru County.

"For both Ida-Viru County and Alutaguse municipality, this is the year when it will be over for Ida-Viru County. It is essentially a process of extinction for the region," Kullamägi said.

"For Alutaguse, this means a direct loss of revenue, people will leave, and all that will be left of us is a national park," he went on.

According to municipal leaders, the biggest concern regarding the exit from oil shale energy is the loss of jobs, as new jobs are not being created at a sufficient pace.

Kullamägi said the EU's The Just Transition Fund offers only potential jobs, far fewer than needed, with doubts about new companies' viability and competitiveness in the near term.

Prime Minister Kristen Michal (Reform) stated Monday that Estonia will continue using oil shale, but from 2040 onward, it will be restricted to producing high value-added products, with these targets outlined in the Climate Resilient Economy Act.

The Estonian government has committed to phasing out oil shale for energy by 2040 without public consultation, via a plan to end electricity production five years ahead of that – in pursuit of EU climate change goals.

The plan, which was apparently kept confidential until now, has raised concerns over job losses and economic impact, particularly in Ida-Viru County.

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