President rejects Earth's Crust Act amendment citing constitutional concerns
President Alar Karis at the end of 2024 declined to promulgate an amendment to the Earth's Crust Act, citing constitutional issues and disproportionate restrictions on business freedoms.
The president urged clearer regulations instead of suspending mining permits.
The head of state made his decision in line with his constitutional role, to not give his assent to the bill putting in place the amendments.
The changes proposed suspending permit processing for oil shale mining until 2026.
The President argued the amendment is inconsistent with the Constitution and imposes disproportionate restrictions on entrepreneurial freedom.
The amendment, passed by the Riigikogu on December 18, sought to halt new environmental permits and impact assessments in the oil shale mining sector, which is under pressure due to EU climate goals.
The amendments' aims were to allow time to evaluate oil shale's climate impact and compatibility with Estonia's climate goals.
The president emphasized that while the state has the right to impose restrictions on natural resource use, such measures must be proportionate.
He said: "It would be less burdensome for applicants if the legislator clarified the conditions for issuing permits, rather than suspending their processing entirely."
The Riigikogu's legal department had flagged potential constitutional conflicts ahead of the bill's second Riigikogu reading. President Karis echoed these concerns, noting that fundamental rights can only be restricted if the goal cannot be achieved by less intrusive means.
The president criticized the uncertainty created by tying the suspension to future climate legislation, which may not materialize. "The parliament places businesses in an ambiguous position by anticipating potential changes in oil shale mining conditions under a future climate law," he explained. "It is unclear when, or if, such a law will take effect," he stated.
Karis also highlighted that under current laws, mining permits are already denied if they pose unavoidable environmental risks, with environmental impact assessments required to consider protection objectives. "Existing measures suffice to meet the amendment's goals without halting permit processing," the president added.
He called for clear criteria to ensure businesses can plan activities, all while aligning with climate objectives. "According to the Constitution, it is the duty of both legislative and executive powers to enable compliance with laws and use of granted rights," he concluded.
Karis' decision means the amendment returns to the Riigikogu for modification, and as noted the head of state urges clarity over suspension to balance environmental goals and entrepreneurial freedom in the context of the legal changes.
The current Earth's Crust Act is here.
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Editor: Andrew Whyte,Barbara Oja