Estonia rolls out EUR 25 million grant scheme for green ship retrofits

Estonia has launched a EUR 25 million state-backed grant programme to accelerate the green retrofitting of vessels operating in its ports, positioning itself as one of the few EU nations offering direct financial aid for maritime decarbonisation.

Announced by Infrastructure Minister Kuldar Leis, the scheme supports the retrofitting of passenger, cargo, tug, and auxiliary vessels, with grants covering between 15% and 30% of eligible project costs, capped at EUR 5 million per vessel. Vessels converting to zero-emission status will qualify for the maximum 30% rate, while factors such as flag state and port call frequency influence support levels.

"Global demand for cleaner maritime transport is growing rapidly. Estonian marine industry companies have the expertise and experience to deliver world-class retrofit services and support shipowners in making their fleets more environmentally friendly," said Minister Leis. "From design and technical consulting to implementation and maintenance, Estonian ports offer convenient and efficient hubs for retrofit projects."

Retrofits may include hybrid engines, exhaust gas cleaning, renewable-fuel systems, and carbon capture. The initiative also supports Estonia’s newly launched Marine Greentech & Retrofit Hub, offering end-to-end retrofit services.

“With the maritime sector now included in the EU Emissions Trading System, this measure helps channel revenues collected from shipowners back into supporting their transition to greener technologies,” added Kaupo Läänerand, deputy secretary general for Maritime Affairs.