"This would add certainty that these would not be revisited with each new government," Realo outlined.

Realo cautioned that without this, there would be unequal activity on the marketplace.

Some businesses would prepare early for changes, she said, assuming that laws must be followed, while others would wait, expecting that certain legal changes will never come into force because a new government will overturn them.

"The clearer the goals, the more certain it is that these regulations will not be revisited, and that Estonia will have a level playing field for entrepreneurs to operate," Realo went on.

Employers remain unsatisfied with the process, however.

Realo: Climate law changes mostly cosmetic

Realo also said that most changes made to the act were surface level.
"We have had a very short time to review the changes, so we cannot comment point by point, but the working group concluded that the changes were mostly cosmetic," Realo said.

She noted that the revisions primarily were cosmetic, and involved improving sentence structures and adding certain sentences.

These included the circular economy being defined more precisely—a significant area for Realo as she is also CEO of waste disposal firm Ragn-Sells.

"That said, this was mainly textual editing," Realo continued.

"The [draft] still does not address the fundamental questions of how we will meet these climate goals—what the measures are, whether we believe they will help, and what impact they will have on our economy and society," she went on.

"Unfortunately, such details cannot be seen in its current form."

Realo also suggested that the purpose of the act should be rethought.

"Perhaps we should start with a clean slate and rethink what we want to achieve with this law," she went on.

The draft also saw adjustments regarding economic measures that conflict with climate and environmental goals.

Based on feedback, these measures were deemed unclear and too broadly open to interpretation.

Notably, the clause that initially planned to end support for fossil fuels by 2035 was replaced with a goal to conduct an analysis by 2027 regarding subsidies, tax exemptions, and environmental fees that conflict with climate and environmental objectives.

Additionally, the public sector will abandon fossil fuel use by 2040, but exceptions will apply for institutions providing internal security, national defense, and medical services.

"If the law is pushed through in its current form, employers will continue to push for further changes," Realo added.

They would advocate for additional regulations to clarify the roadmap. "It is important to understand how the measures necessary for moving toward these goals are planned to be implemented in the near future," she emphasized.
The law should provide clear guidance on how the goals will be achieved and their impact on the economy and society.

Realo highlighted agriculture as a challenging sector in terms of emissions, due to the essential use of fertilizers.

"The question now is: if these measures do not help, what can we currently envision in agriculture to meet the goal? Could this lead to a) additional taxes on meat or b) limits on how many live animals can be raised?" she inquired.
"These are the kinds of things that need to be acknowledged during the process."

"We expect these changes to extend beyond three to five years," Realo concluded.

Presented to the government this week, the Climate-Resilient Economy Act has been updated with over 900 amendments, focusing on technology adoption and impact assessments, but critics, including the Social Democrats, remain concerned about unresolved issues like climate goal fulfillment and adaptation measures.

Prime Minister Kristen Michal emphasized the need for a thorough, calm debate on the act, with ongoing discussions expected to clarify its impact on businesses, while some parties, like the Social Democrats and employers, continue to call for greater ambition and clearer investment certainty.

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