Government suspends new approval processes for oil shale mining until the end of 2025 | News

“We have approved the amendments to the Earth Crust Law and will send them to the Riigikogu, which will suspend (the issuance of new) oil shale mining permits until 2026. The Climate Ministry is in the process of drafting and discussing the climate law. This should form the basis for how Estonia, together with stakeholders, will achieve climate neutrality by 2050,” said Prime Minister Kaja Kallas (Reform) at a government press conference.

“One of the biggest obstacles to climate neutrality is greenhouse gases, and 45 percent of them come from the oil shale industry. That’s why we have to suspend the construction of new oil shale mines until the climate law is in force,” said Kallas.

Estonia’s goal is to achieve climate neutrality by 2050. For this purpose, the Climate Ministry is developing a law for a climate-resilient economy, which is intended to create a general framework for achieving the required goals. Given that 45 percent of Estonia’s greenhouse gases come from oil shale processing, the issuance of permits for new oil shale mines must be suspended while the framework for climate targets is developed. According to the government communications office, the suspension of the permitting process will not restrict the current activities of oil shale companies.

“With valid mining permits, the total amount of oil shale reserves is up to 247 million tons. Estonia’s annual production capacity is around 10 million tons. This means that the supply covered by the permits alone would be enough for oil shale companies to survive for around 25 years,” said Estonian Climate Minister Kristen Michal (Reform).

“At the same time, applications are currently underway for the right to extract around 680 million tonnes of additional oil shale reserves. That would extend well beyond 2050,” Michal added.

The companies have sufficient oil shale reserves for the period in which the approval procedures are suspended. For example, Enefit currently has 173 million tons, VKG has 62 million tons, and Kiviõli Chemical Industry has 9 million tons. Companies with lower inventories under current permits would still have up to five years’ worth of reserves, the government communications office said.

Exceptions are permitted in cases where an expansion is planned in an area adjacent to an existing mine and a permit has already been obtained. The state will also not extend the validity of permits for expansion areas until 2026. Exceptions will only be granted if they are believed to help extract oil shale from the ground more efficiently and in compliance with environmental regulations.

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