EIB provides €400 million to support green and digital investments in Estonia

The EIB support for Estonia includes the co-financing of projects to ensure a just transition to a low-carbon economy in the county of Ida-Virumaa.

The European Investment Bank (EIB) gave the go-ahead for €400 million in financing for the Republic of Estonia to support green and digital investments in the country. The financing is the second and final tranche of a €700 million EIB loan to bolster the Estonian economy.

The support complements grants from the European Union and bolsters its cohesion policy in Estonia during the EU’s 2021-2027 financing programme. Around half of EIB financing in the EU is directed towards cohesion regions, where per capita income is lower.

The EIB support for Estonia includes the co-financing of projects to ensure a just transition to a low-carbon economy in the county of Ida-Virumaa.

The total volume of investment planned by the Estonian government is €5.2 billion, with around €3.4 billion to be financed by EU structural funds and the rest to be provided as national co-financing that includes the EIB loan.

“The EIB loan allows Estonia to kick-start and accelerate the implementation of the EU grant-funded projects to boost a smarter, greener and more connected society,” said EIB Director Jean-Christophe Laloux, who signed the agreement on behalf of the bank. “It is a cornerstone of the EIB´s support to the Estonian economy and implementation of the Cohesion Policy Funds programme.”

The EIB and Estonia had two similar agreements during previous financing periods: an initial one for €550 million and another for €720 million.

Minister of Finance of Estonia Mart Võrklaev said: ”Developing a more research-intensive and resource-saving economy and making a digital and green transition with only Estonian tax money would take significantly more time.  As a country with a green mindset, we will use EIB finances and EU cohesion policy funds to move faster towards carbon neutral and more digital society. The latest crises have also clearly shown the need for that and I´m glad we can use EIB help to progress faster.”