Aas, who was minister at the time in question, was responding to Prime Minister Kristen Michal's (Reform) recent comments that Estonia could have exited the system at that time, adding that this would have been the better move in combating current soaring energy prices – but that it cannot be done at this point in time.

According to Aas, Estonia did attempt to stabilize carbon allowance prices through proposals made to the EU, but these did not find support from other member states.

Speaking at the regular Thursday government press conference this week, the prime minister said that Estonia had held the option to leave the ETS, until 2019.

He argued that if it had then done so, the state could have used free CO2 allowances for energy sector investments.

However, the Center-EKRE-Isamaa government of the time chose not to pursue this path, he added.

Aas however said that Michal overstated the scope for leaving the system in 2019.

He said: "It was certainly not viable at that time. Michal, who was also active in politics back then, surely remembers that. If it had been possible, then Michal, as an opposition politician at the time, could have made such a proposal himself."

The former minister went on to explain that the government did make investments in the energy sector during the period in question, though the first priority remained to address defense-related concerns by upgrading radar systems.

According to Aas, this was essential to facilitate the development of wind energy in Estonia – at the time it was argued that planned wind turbines were of a height which would interfere with defense radar systems.

"The revenue from the sale of carbon allowances went into this project. Back then, one of Estonia's biggest problems was related to the Ministry of Defense, which is again an issue now. It was a significant issue then too. Thus, the first thing to invest in was to ensure that Estonia could use its land for wind energy development. For that, we needed to acquire radars and place them in a way that wind energy would not interfere with their operation," Aas continued.

While Aas acknowledged that the ETS system became increasingly costly for consumers over time, he emphasized that the government at the time sought ways to stabilize the carbon price.

He said he personally raised this issue at EU energy minister meetings in Brussels.

"Those proposals did not receive support in Europe," Aas said.

Estonia proposed capping carbon allowance prices to shield consumers from sudden hikes, Aas went on.

The rising CO2 price turned from an incentive into a penalty for consumers, prompting the proposal.

Addressing EKRE's proposal to exit the ETS wholesale, Aas clarified that that wasn't feasible without leaving the EU.

Reflecting on Estonia's current energy issues, he noted similarities with the 2019-2020 crisis, citing rising natural gas prices.

Aas also hit out at EU energy policies, particularly Germany's nuclear shutdown, which he said led to higher energy imports and prices.

The former minister concluded that Estonia's government had limited influence but aimed to curb costs and promote renewables.

Taavi Aas left the Center Party in 2023.

The EU Emissions Trading System (EU ETS), launched in 2005, is a major carbon market requiring polluters to pay for emissions, covering key sectors across EU countries and beyond to reduce greenhouse gases and fund the green transition.

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