The Chamber supports a more flexible approach to the Climate Act

In the assessment of the Estonian Chamber of Commerce and Industry, compared with earlier versions, the draft Climate-Resilient Economy Act is clearly moving towards more balanced and flexible regulation.

This more general approach ensures greater flexibility for both companies and the public sector and allows climate targets to be achieved more cost-effectively. Given that technological development and the economic environment up to 2050 cannot be predicted precisely, it is not reasonable to write all activities and obligations into law in detail today. Initially, it could be sufficient to establish the greenhouse gas reduction target and the general principles on the basis of which further steps can be shaped flexibly.

We support the direction chosen in the draft act, according to which each sector's targets and the path towards achieving them are agreed in roadmaps prepared in cooperation between the state and the sector. The preparation and implementation of such roadmaps must be voluntary for the parties, because sector-based solutions can be effective only if they are born in cooperation with entrepreneurs and take into account the actual possibilities and specific characteristics of the sectors, as well as the broader context and the overall competitive situation both in Europe and globally. In our activities, we must always take into account the situation of Estonian entrepreneurs and not knowingly place ourselves in a more negative position. The central objective must be competitiveness and, through that, economic growth.

We consider it positive that the draft act does not include additional obligations for entrepreneurs and does not entail direct additional costs for entrepreneurs. We also do not see any points in the draft act that would harm the competitiveness of the economy.

At the same time, we are concerned that the draft act places additional obligations on local authorities, especially in connection with preparing and updating energy and climate plans. This may increase the workload of local authorities and ultimately increase public sector costs. During the further proceedings of the draft act, ways must be sought to reduce both the burden on local authorities and the burden on the public sector as a whole, because ultimately this again means a cost that must be paid by the taxpayer.

We will continue analysing the draft act and, if necessary, submit additional amendment proposals during the Riigikogu proceedings.