  
  
G/SCM/N/343/EU/Add.8  
 
13 August 2019  
(19-5262) Page: 1/35 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF  
THE GATT 1994 AND AR TICLE 25 OF THE AGRE EMENT ON  
SUBSIDIES AND COUNTE RVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to subsidy programmes of 
Estonia.  
_______________  
  G/SCM/N/343/EU/Add.8  
 
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  Table of Contents  
1   AID FOR RESEARCH  AND DEVELOPMENT  ................................ ................................ .... 3 
1.1   R & D Financing Programme  ................................ ................................ ........................  3 
2   OTHER HORIZONTAL  AID ................................ ................................ ...........................  4 
2.1   Support for the Participation of Entrepreneurs in Trade Fairs  ................................ ............  4 
2.2   Training Programmes for Companies  ................................ ................................ .............  5 
2.3   Guarantee Scheme for Companies  ................................ ................................ ................  6 
2.4   Start-Up Programme  ................................ ................................ ................................ ... 7 
2.5   Employment Aid  ................................ ................................ ................................ .........  8 
2.6   Loan Scheme for Companies  ................................ ................................ ........................  9 
2.7   Consultancy Programme  ................................ ................................ ............................  10 
3   REGIONAL AID  ................................ ................................ ................................ .........  11 
3.1   Programme of Investment Support  ................................ ................................ .............  11 
4   ENVIRONMENTAL AI D ................................ ................................ ..............................  13 
4.1   Substitution of the Pollution Charge  ................................ ................................ ............  13 
4.2   Environmental Programme  ................................ ................................ ........................  14 
4.3   Support for electricity produced from renewable sources and efficient cogeneration  ..........  15 
4.4   Modernisation of electricity generation installations through transitional free  
allocation of greenhouse gas emission allowances  ................................ ................................  16 
4.5   Exemption on Excise Duty for Biogas used as Fuel  ................................ ........................  17 
4.6   Subsid y for Biomethane Production  ................................ ................................ .............  17 
5   DOMESTIC SUPPORT  IN AGRICULTURE  ................................ ................................ .... 18 
5.1   General Services  ................................ ................................ ................................ ...... 18 
5.2   Public Stockholding For Food Security Purposes  ................................ ............................  20 
5.3   Domestic food AID  ................................ ................................ ................................ .... 21 
5.4   Decoupled income support  ................................ ................................ .........................  22 
5.5   Income insurance and income safety -net programmes  ................................ ..................  23 
5.6   Government financial participation in income insurance and income safe ty-net 
programmes  ................................ ................................ ................................ ....................  24 
5.7   Payment for Relief from Natural Disasters ................................ ................................ .... 24 
5.8   Structural adjustment assistance provided through resource retirement programmes  ....... 24 
5.9   Structural Adjustment Assistance Provided Through Investment Aids  ..............................  25 
5.10   Payment Under Environmental Programs  ................................ ................................ ... 27 
5.11   Fuel Tax Exemption ................................ ................................ ................................ . 28 
5.12   Short -Term Loans and LOAN Guarantees  ................................ ................................ ... 29 
5.13   Transitional National Aid (coupled)  ................................ ................................ ............  30 
5.14   Exceptional market support measures  ................................ ................................ ....... 30 
6   DOMESTIC SUPPORT  IN FISHERIES SECTOR  ................................ ............................  31 
7   EUROPEAN MARITIM E AND FISHERIES FUND  (EMFF) 2014 -2020 SU PPORT  .............  32 
8   FUEL TAX EXEMPTI ON ................................ ................................ ..............................  34 
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  1  AID FOR RESEARCH  AND DEVELOPMENT  
1.1  R & D Financing  Programme  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The programme aims at increasing the competitiveness of companies and research and development 
institutions through the support of  R&D projects leading to n ew technologies, products, processes 
and services.  
 
3. Background and authority for the subsidy  
 
Enterprise Estonia (Foundation).  
Archimedes Foundation.  
Agricultural Registers and Information Board (ARIB).  
Ministry of Defence.  
Ministry of Economic Affairs and Communications . 
 
4. Legislation under which subsidy is granted  
 
Procedure of the Management Board of Enterprise Estonia of 2 May  2012.  
Procedure of the Management Board of Enterprise Estonia of 18 March 2013 . 
Regulation of the Minister of Education No 40 of 21 August 2015 . 
Regulation of the Minister of Agriculture No 84 of 26 August 2015 . 
Decree of Minister of Defence No 319 of 4 June 2016 . 
Agency contract of Ministry of Economic Affairs and Communications No 1.9 -8/17-139-1. 
Agency contract of Ministry of Economic Affairs and Communications No 1.9 -8/18-144-1. 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
In case of Enterprise Estonia:  
 
The subsidies are provided to SMEs and large companies, which undertake  experimental 
development projects up to 75% of project's eligible costs. Subsidies are also provided for industrial 
property rights costs for SMEs up to 35% and for young innovative companies.  
Maximum amount of support  is 0.7 Million EUR. 
 
In case of support from foundation Archimedes, the subsidies are provided to SMEs and l arge 
companies, which undertake industrial research and experimental development. In case of industrial 
research, projects can be supported up to 7 0% of eligible costs and in case of experimental 
development up to 45% of eligible costs.  
Maximum amount of support is 2 Mi llion EUR. 
 
In case of support from ARIB the subsidies are provided for innovation activities of a cluster up to 
600 000 euros per ac tivity.  
 
Ministry of Defence provides subsidies for experimental development projects and for SME 
innovation. Experimental development projects can be supported up to 25% of eligible costs, which 
may reach up to 45% in certain cases. SME innovation project s can be supported up to 50% of 
eligible costs.  
 
Ministry of Economic Affairs and Communications provides support in the frames of 2 agency 
contracts to conduct industrial research up to 60% of eligible costs.  
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  7. Subsidy per unit or in cases where this is  not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 0.356 Mi llion. 
Fiscal year 2018 – EUR 0.493 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The programme of Enterprise Estonia was valid until 31 December 2017, payments could be made 
later.  
The programmes of Archimedes Foundation is valid until 31 December 2020.  
The programme of ARIB is valid until 31 December 2020.  
The programme of Ministry of Defence is valid  until 31 December 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
2  OTHER HORIZONTAL AID  
2.1  Support for the Participation of Entrepreneurs in Trade Fairs  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy  objective and/or purpose of the subsidy  
 
To organise and support the participation of entrepreneurs in trade fairs.  
 
3. Background and authority for the subsidy  
 
Tallinn City Enterprise Department.  
 
Incubator Tallinn . 
 
4. Legislation under which subsidy w ill be granted  
 
Regulation of Tallinn City Council No 3 of 23 January 2014 . 
 
Regulation of Tallinn City Council No 13 of 5 May 2016 . 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
Subsidy is paid to the participating company (or sole proprietor) as a payment for participation costs, 
stand rental and other similar expenses. The subsidy can cover up to 100% of the expenses.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the  annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 0.079 Mi llion. 
Fiscal year 2018 – EUR 0.074 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Different time limits apply to different subsidies.  
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  9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
n.a. 
 
2.2  Training Programmes for Companies  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The aim of the training support is to promote the in -service training and knowledge of start -ups (in 
the frames of incubation services) and other companies.  
 
3. Background and authority for the subsidy  
 
Tallinn City Enterprise Department . 
Incubator Tallinn . 
Estonian Unemployment Insurance Fund ( Töötukassa ). 
Ministry of Environmental Affairs . 
 
4. Legislation under which subsidy is granted  
 
Regulation of Tallinn City Council No 46 of 11 December 2008; Regulation of Tallinn City Council 
No. 35 of 15 August 2012.  
 
Regulation of Tallin n City Council No . 13 of 14 June 2012 ; Regulation of Tallinn City Council No . 13 
of 5 May 2016.  
 
Labour Market Services and Benefits Act.  
Government Regulation No . 93 of 17 September  2015 ; Government Regulation No . 130 of 
17 November 2016 ; Government Regulation No . 58 of 23 February  2017. 
Decree of Minister for Health and Labour No . 222 of 4 December 2014 ; Decree of Minister for Health 
and Labour No . 88 of 15 November 2018.  
 
Decree of Minister of Social Protection and Minister of Health and Labour No . 57 of 27 March 2015; 
Decree of Minister of Social Protection and Minister of Health and Labour No . 198 of 
17 December  2015.  
 
Decree of Minister of Environmental Affairs No . 1-2/18/96 of 22 February 2018 . 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
The subsidy is provided to companies to cover up to 100% of eligible costs.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017  – EUR 0.10 9 Million. 
Fiscal year 2018 – EUR 0.181  Million. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
No time limits are attached to the programmes.  
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  9. Statistical data permitting an assessment of the trade effects of a subsid y 
 
N.a. 
 
2.3  Guarantee Scheme for Companies  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
To promote mainly small and medium sized enterprises by supporting their access to capital by 
securing their bank loans.  
 
3. Background and authority for the subsidy  
 
Foundation KredEx.  
Rural Development Foundation.  
 
4. Legislation under which subsidy is granted  
 
The Articles of Association of Foundation KredEx; Support of Enterprise and State Loan Guarantees 
Act; 
Conditions for guaranteeing SMEs loans ( de minimis aid scheme ) approved by the Decree of the 
Head of Foundation No . 21-üld of 12 March 2014 ; Conditions for guaranteeing business loans 
(de minimis aid scheme ) approved by the Decree of the Head of Foundati on No . 72-üld of 
25 August  2015. 
 
Rural Development and Agricultural Market Regulation Act . 
Decision of Supervisory Board of Rural Development Foundation of 5 February 2015 . 
 
Rural Development and Agricultural Market Regulation Act ; Decision of Supervisory Board of Rural 
Development Foundation of 8 December 2017 . 
 
Agreement of 30 March 2015 amending Management Contract No 297 between Ministry of Rural 
Affairs a nd Rural Development Foundation.  
 
5. Form of the subsidy  
 
Loan and lease guarantees.  
 
6. To whom and how the subsidy is provided  
 
The guarantees of Foundation KredEx  are meant for companies whose value of the collateral property 
or self -financing is not sufficient for getting a bank loan or who do not have a long history of 
operation. Guarantees are mainly provided to small and medium sized companies (SMEs), loans are  
secured up to 75 % of the loan amount.  
 
The loan recipient takes the primary responsibility for the loan, guaranteeing the loan with his 
property and/or that of third persons, and/or a personal surety. In case of surety, KredEx will take 
second responsibil ity. That means that if a business plan fails and the businessperson will not be 
able to manage his/her loan, the loan guarantee property shall be disposed at first. The guarantee 
of KredEx shall be realised, if the income obtained from the realisation of guarantee property is not 
sufficient to fulfil the claims of the bank.  
 
The maximum guarantee amount for small and medium -sized enterprises is 5 Million EUR and the 
maximum guarantee amount for  big enterprises is 1 .5 Million EUR. The guarantee amount decre ases 
proportionally with the decreasing of the loan/leasing amount.  
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  The contract fee is 1% of the guarantee amount. Guarantee amount for loan and lease starts from 
0.8% of the guarantee balance per year and for bank guarantees from 0 .4% of the guarantee 
balance per year.  
 
Rural Development Foundation issues a guarantee for the debt obligation of an entrepreneur (loan, 
leasing, etc). A guarantee can be received by a SME. The guarantee covers not more than 80% of 
the loan and does not exceed 2 .5 Million EUR. 
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – guarantee amount : EUR 55.348 Mi llion (aid element: EUR  1.151 Mi llion). 
Fiscal year 2018 – guarantee amount : EUR 4 7.932 Million (aid element: EUR 0.554 Mi llion).  
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The programmes are valid until 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
2.4  Start -Up Programme  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
To provide individuals with the incentive to start business and create new jobs. Likewise, the 
programme intends to increase the survival ratio of new enterprises.  
 
3. Background and authority for the subsidy  
 
Estonian Unemployment Insurance Fund  (Töötukassa ). 
Tallinn City Enterprise Department.  
For City of Narva - Department for Development and Economy.  
 
4. Legislation under which subsidy is granted  
 
Labour M arket Services and Benefits Act.  
 
Decree of Minister for Health and Labour No 222 of 4 December 2014 ; Decree of Minister for Health 
and Labour No 88 of 15 November 2018 . 
 
Government Regulation No . 93 of 17 September 2015 ; Government Regulation No . 130 of 
17 November 2016 . 
 
Decree of Minister of Social Protection and Minister of Health and Labour No . 57 of 27 March 2015; 
Decree of Minister of Social Protection and Minister of Health and Labour No . 198 of 
17 December  2015.  
 
Regulation of Tallinn City Council No . 38 of 1 December 2011 . 
 
Regulation of Narva City Council No . 25 of 28 June 2007 . 
 
5. Form of the subsidy  
 
Grant.  
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  6. To whom and how the subsidy is provided  
 
An applicant may be a sole proprietor or undertaking being founded in Estonia or an undertaking 
that was entered into the Commercial Registry no longer than 36 months before the date of 
registration of the application. In case of City of Tallinn, the appli cant has to be located in Tallinn 
and in case of City of Narva; the applicant has to be located in Narva.  
 
The grant amount will not exceed 32  000 EUR and 80 % of eligible costs in case of Enterprise of 
Estonia, 20  000 EUR and 50% in case of City of Tallinn  or 25% of the eligible costs in case of City 
of Narva.  
 
For Estonian Unemployment Insurance Fund business start -up subsidy is for registered unemployed 
persons who want to start business activities.  
 
7. Subsidy per unit or in cases where this is not possi ble, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 1.950 Mi llion. 
Fiscal year 2018 – EUR 1.810  Million. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Different time limits apply to different  subsidies.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
2.5  Employment Aid  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The aim of the programme is the integration of unemployed people and people belonging to risk 
groups to the labour market, to increase the efficiency and quality of labour market services; to 
stimulate job -creation and recruit IT specialists.  
 
3. Background and authority for the subsidy  
 
Estonian Unemployment Insurance Fund  (Töötukassa ). 
For City of Narva - Department for Development and Economy.  
Enterprise Estonia (Foundation) . 
 
4. Legislation under which subsidy is granted  
 
Labour M arket Services and Benefits Act.  
 
Government Regulation  No. 93 of 17 September 2015 ; Government Regulation No . 130 of 
17 November 2016 . 
 
Decree of Minister for Health and Labour No . 222 of 4 December 2014 ; Decree of Minister for Health 
and Labour No . 88 of 15 November 2018 . 
 
Decree of Minister of Social Protection and Minister of Health and Labour No . 57 of 27 March 2015; 
Decree of Minister of Social Protection and Minister of Health and Labour No . 198 of 
17 December  2015.  
 
Government Regula tion No . 130 of 17 November 2016 ; Government Regul ation No . 58 of  
23 February  2017.  G/SCM/N/343/EU/Add.8  
 
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  Regulation of Narva City Council No . 9 of 11 March 2010 . 
Regulation of Minister of Entrepreneurship and Information Technology No . 18 of 19 April 2018 . 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
Subsidies are provided to companies and sole proprietors for recruitment of disadvantaged and 
disabled workers, to cover additional costs of employment of disabled workers (adapting premises 
or equipment).  
 
Wage subsidy is a benefit payable to employers fo r employing unemployed persons, who belong in 
risk groups (e.g. long -term unemployed, ex -prisoners). The size of the subsidy is 50% of the wage 
or salary of the employee but not more than the minimum monthly wage established by the 
Government. The subsidy is paid for six months.  
 
Subsidy for the adaptation of premises and equipment is provided in case of recruitment of 
disadvantaged workers. The size of the subsidy is 50 % of the cost of the adjustment but not in an 
amount exceeding the upper limit establish ed for support . 
 
For entrepreneurs in the City of Narva the support is based on percentage of the additional income 
tax of the project.  
 
In case of subsidy of Enterprise Estonia, the support is provided for companies to recruit IT -
specialists from foreign countries . Maximum support is 2000 EUR per specialist.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 3.253 Mi llion. 
Fiscal year 2018 – EUR 3.71 4 Million. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Different time limits apply to different subsidies.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
2.6  Loan Scheme for Companies  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The loan is aimed at improving the access of SMEs to capital.  
 
3. Background and authority for the subsidy  
 
Rural Development Foundation  
 
4. Legislation under which subsidy is granted  
 
Rural Development and Agricultural Market Regulation Act . 
 
Decision of Supervisory Board of Rural Development Foundation of 7 May 2015 . 
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  Decision of Supervisory Board of Rural Develop ment Foundation of 14 July 2016;  Agreement of 
30 March 2015 amending Management Contract No . 297 between Ministry of Rural Affairs and Rural 
Development Foundation . 
 
Decision of Supervisory Board of Rural Development Foundation of 8 June 2018 . 
 
5. Form of the subsidy  
 
Loans.  
 
6. To whom and how the subsidy is provided  
 
Loans are meant for sustainable SMEs for investment and working capital in the sum of up to 
EUR 500,000 for 5 years maximum.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted fo r the subsidy  
 
Fiscal year 2017 – loan amount : EUR 1.642 Mi llion (aid element: EUR 0.088 Mi llion). 
Fiscal year 2018 – loan amount : EUR 0.660 Mi llion (aid element EUR 0.037 Mi llion). 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The program of Rural Development Foundation is valid until 31 December 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
2.7  Consultancy Programme  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
To enable to purchase consultations from professional consultants, to prepare applications  or to get 
information regarding Intellectual Property and to organise conferences.  
 
3. Background and authority for the subs idy 
 
Estonian Unemployment Insurance Fund  (Töötukassa ). 
Estonian Research Council.  
Enterprise Estonia (Foundation).  
Estonian Intellectual Property and Technology Transfer Centre.  
Ministry of Finance.  
 
4. Legislation under which subsidy is granted  
 
Labour M arket Services and Benefits Act . 
 
Government Regulation No . 93 of 17 September 2015 ; Government Regulation No . 130 of 
17 November 2016 . 
 
Decree of Minister of Social Protection and Minister of Health and Labour No . 57 of 27 March 2015 . 
Decree of Minister of Social Protection and Minister of Health and Labour No . 198 of 
17 December  2015 . 
 
Instructions approved by the Decision of the Management Board of Estonian Research Council of 
5 January 2015 . 
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  Instructions approved by the Decision of the Manage ment Board of Estonian Research Council of 
11 June 2014 . 
 
Decree of Minister or Education and Science of 30 December 2015.  
Norway Grants Green ICT program  2014-2021. 
 
Decision of the Managing Board of EIPTTC  No. 14-005 of 6 November 2014 . 
 
Contract between Minister of Finance and Tartu University No . 1.9-8/296 -1 of 15 June 2018. 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
In case of Estonian Unemployment Insurance Fund, the subsidy is provided for individual consultancy 
or consultancy in mentor club for persons who have support for starting business.  
 
In case of support from Estonian Research Council maximum grant amount is up to EUR 200,000. 
In case of Enterprise Estonia, th e aim is to support feasibility studies, market research and other 
preparatory activities of companies for Green ICT projects. The maximum amount of subsidy is 
EUR 20,000 and maximum aid intensity is 75% of eligible costs.  
 
In case of EIPTTC,  aid is provid ed for individual consultancy on Intellectual Property for companies 
who have the support for starting business. The maximum amount of subsidy is  EUR 1050. The 
support covers  100% of the costs of consultancy.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 0.067 Mi llion. 
Fiscal year 2018 – EUR 0.1 41 Million. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Different time limits apply to different subsidies.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
3  REGIONAL AID  
3.1  Programme  of Investment  Support  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
To create non -agricultural jobs and revive the life in rural and other areas through the investment 
support of the diversification of economic activities in these areas.  To promote business environment 
outside large cities.  
 
3. Background and  authority for the subsidy  
 
Agricultural Registers and Information Board (ARIB).  
Lääne -Nigula Rural Municipality Government.  
Enterprise Estonia (Foundation).  
State Shared Service Centre (SSSC) ( Riigi Tugiteenuste Keskus) . G/SCM/N/343/EU/Add.8  
 
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  Rõuge Rural Municipality Governmen t. 
Health and Welfare Information Systems Centre (HWISC) ( TEHIK).  
 
4. Legislation under which subsidy is granted  
 
Regulation of the Minister of Rural Affairs  No. 11 of 23 October  2015. 
Regulation of the Minister of Agriculture  No. 25 of 13 March  2015. 
 
Regulation of Lääne -Nigula Rural Municipality Government No . 6 of 24 March 2015.  
Regulation of Lääne -Nigula Rural Municipality Government No . 11 of 22 February  2016. 
Regulation of Noarootsi Rural Municipality Goverment No . 73 of 17 October 2016.  
 
Regulation of Minister of Entrepreneurship and Information Technology No . 30 of 6 June 2017 . 
 
Decree of Minister of Public Administration No . 145 of 17 June 2016.  
 
Regulation of Rõuge Rural Municipality Government No . 31 of 18 September 2018.  
 
Decree of Mi nister of Finance No . 1.1-4/18 of 17 October 2017.  
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
In case of ARIB program the subsidy is provided to the companies diversifying or expanding 
activities, to the agricultural producers who start non -agricultural activities in rural areas or other 
companies (or activity groups whose members are companies) active in rural areas or small towns. 
Subsidy is provided for investments related to the promotion of tourism an d handicrafts, provision 
of services for the economy and inhabitants of rural areas (small towns) and production of non -
agricultural products etc. Up to 100% of the eligible costs may be covered.  
 
In case of Lääne -Nigula Rural Municipality subsidy is provi ded to sole proprietors, companies, 
foundations and non -profit organisations in order to promote business environment in Lääne -Nigula 
Rural Municipality.  
 
In case of Enterprise Estonia and SSSC, the subsidy is provided to companies outside the City of 
Tallinn and City of Tartu or certain other regions for building connection to electricity, water, sewage 
or communication grids necessary for entrepreneurship. Maximum amount of subsidy is 
EUR 100,000 and maximum aid intensity is 60% of eligible costs.  
 
In cas e of Rõuge Rural Municipality Government subsidy is granted to sole proprietors, companies 
in order to start, expand or re -organise business in Rõuge Rural Municipality.  
 
In case of HWISC, several ad hoc  subsidies were provided to companies for development  of secure 
IT solutions.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 1.448 Mi llion. 
Fiscal year 2018 – EUR 1.926 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Different time limits apply to different programmes.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
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  4  ENVIRONMENTAL  AID 
4.1  Substitution  of the Pollution Charge  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The programme aims at decreasing pollution by encouraging voluntary environmental protection 
investments.  
 
3. Background and aut hority for the subsidy  
 
Ministry of Environment.  
 
4. Legislation under which subsidy is granted  
 
Decree of Minister of Environment No . 259 of 16 March 2015.  
 
Decree of Minister of Environment No . 87 of 26 January 2015 . 
 
5. Form of the subsidy  
 
Pollution charge substitution with investments in environmental protection or energy efficiency.  
 
6. To whom and how the subsidy is provided  
 
According to the Environmental Charges Act, companies have to pay a charge for the release of 
pollutants or waste into the environment. According to Article 48 of the Environmental Charges Act, 
the obligation to pay the pollution charge can be substituted by investments if:  
 
- the polluter implements measures, which ensure the reduction of pollutants over the course 
of three years by not less than 15% in comparison with the last accounting period prior to 
the implementation of such measures;  
- in case of hazardous waste, the eliminator of such waste implements over the course 
of three  years measures, which allow the former hazardous waste to be treated as non -
hazardous waste;  
- in case of hazardous waste, which technically cannot be recycled, the eliminator of the waste 
builds a waste disposal site for such waste over the course of three  years.  
 
The extent to which the pollution charge is substituted shall not exceed the cost of the environmental 
protection measures.  
 
In certain cases, the applicant has to undertake energy efficiency measures for substitution. Subsidy 
could be granted up to 65 % of eligible costs.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 1.525 Mi llion. 
Fiscal year 2018 – EUR 1.916 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits att ached to it  
 
Duration of support for applicant is up to 3 years, the program is valid until 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
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  4.2  Environmental  Programme  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
To preserve the stability of environment.  
 
3. Background and authority for the subsidy  
 
Environmental Investment Centre (Foundation).  
 
Tori Rural Municipality Government . 
 
Private Forest Centre Foundation.  
 
Foundation Kredex . 
 
4. Legislation under which subsidy is granted  
 
Regulation of Minister of Environment No . 13 of 17 February 2006 . 
Terms of granting regional aid approved by the Decision of the Council of E nvironmental Investment 
Centre No. 607 of 29 April 2009 . 
 
Terms of granting state aid based on block exemption regulation approved by the Decision of the 
Council of Environmental Investment Cent re. 
 
Terms of granting de minimis  aid approved by the Council of Environmental Investment Cent re 
No. 1-4/729 of 11 July 2014 and No . 1-4/781 of 17 February 2015 . 
 
Order of Tori Rural Municipality Government No . 126 of 21 July 2017.  
 
Forest Act; Regulation of the Minister of Env ironment No . 10 of 14 April 2014.  
 
Regulation of Minister of Entrepreneurship and Information Technology No . 16 of 10 April 2018 . 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
In case of Environmental Investment Centre, the subsidy is provided to applicant's projects, which 
are targeted at environmental protection, inter alia for infrastructure projects. Subsidies are granted 
mostly for investments up to 100% of eligible costs. The maximum amount of subsidy can be 
EUR 15 million . 
 
In case of Tori Rural Municipality subsidy is mostly granted to co -finance the reconstruction of 
municipality’s water and sewage infrastructure.  
 
Subsidies for promotion of forests are granted in accord ance with the relevant conditions of Private 
Forest Centre Foundation. Maximum subsidy amount is up to EUR 200,000. 
 
In case of foundation Kredex subsidy is provided to companies, non -profit organisations etc. to invest 
in solar panels used for the product ion of energy. Maximum amount of subsidy is EUR 30,000. 
 G/SCM/N/343/EU/Add.8  
 
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  7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 11.680 Mi llion. 
Fiscal year 2018 – EUR 12.517 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Different time limits apply to different programs.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
4.3  Support for electricity  produced  from renewable sources and efficient cogeneration  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The purpose of the subsidy scheme is to eliminate the market barrier for producers using renewable 
sources to produce electricity and to produce electricity in efficient cogeneration mode.  
 
3. Background and authority for the subsidy  
 
Elering AS (Transmission System Operator) . 
 
4. Legislation under which subsidy is granted  
 
Electricity Market Act § 59.  
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
The subsidy is paid monthly based on applications from producers who produce electricity using 
renewable sources or producers who produce electricity in efficient cogeneration regime.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 77.472  Million. 
Fiscal year 2018 – EUR 84.036 Mi llion. 
 
8. Duration of a subsidy and/or  any other time limits attached to it  
 
The subsidy is paid on monthly basis for 12 years beginning from the date when the producer first 
started to produce electricity.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 G/SCM/N/343/EU/Add.8  
 
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  4.4  Modernisation of electricity generation  installations through transitional free 
allocation of greenhouse gas emission allowances  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The purpose of the subsidy scheme is to support investments in the modernisation of electricity 
generation installations through the free allocation of greenhouse gas emission allowances to these 
installations pursuant to Article 10(c)(5) of the EU ETS Dir ective, with the aim to reduce greenhouse 
gas emissions.  
 
3. Background and authority for the subsidy  
 
Ministry of Environment.  
 
4. Legislation under which subsidy is granted  
 
Ambient Air Protection Act . 
Regulation of the Minister of Environmental Affairs No. 53 of 18  August  2011. 
 
5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
At its inception, in 2013, total free allowances will not exceed 70% of the verified greenhouse gases 
emissions in the period 2005 -2007 from electricity installations for the amount corresponding to the 
gross final national consumption of Estonia. The total transitional free allowances are then planned 
to be steadily decreased by 10% each year, with free allowances being thus phased out completely 
in 2020.  The quantity of transitional free emission allowances will be deducted from the quantity of 
allowances that Estonia will auction.  
 
The costs of eligible investments are limited to the total investment costs (tangible and intangible 
assets) irrespective of  operating costs and benefits of the corresponding installation. The market 
value of the free allowances shall not exceed the total investment costs. The monitoring and 
enforcement mechanism ensures that the allowances allocated are clearly mirrored by inv estments 
in the modernisation of the electricity generation sector and therefore the aid does not exceed  100% 
of the eligible costs.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 14.437  Million. 
Fiscal year 2018 – EUR 28.450 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The subsidy is paid on during the transitional period of allocation of free greenhouse gas emission 
allowances  (2013 -2019).  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 G/SCM/N/343/EU/Add.8  
 
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  4.5  Exemption on Excise  Duty for Biogas used as F uel 
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The purpose of the subsidy scheme is to promote the usage of biogas as fuel.  
 
3. Background and authority for the subsidy  
 
Ministry of Economic Affai rs and Communications.  
 
4. Legislation under which subsidy is granted  
 
Alcohol, Tobacco, Fuel and Electricity Excise Duty Act § 27(1) (287). 
Decree of Minister of Economic Affairs and Infrastructure No 15 -0031 of 28 January 2015 . 
 
5. Form of the subsidy  
 
Tax advantage.  
 
6. To whom and how the subsidy is provided  
 
Exemption of biogas from excise duty is targeted at companies or private persons who use biogas 
(CN 2711 29 00) as a fuel.  
 
7. Subsidy per unit or in cases where this is not possible, the  total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 0.611  Million. 
Fiscal year 2018 – EUR 0.449 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The program is valid until 2020.  
 
9. Statistical  data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
4.6  Subsidy  for Biomethane  Production  
1. Period covered by the notification  
 
2017, 2018.  
 
2. Policy objective and/or purpose of the subsidy  
 
The purpose of the subsidy scheme is to increase the share of biomethane in transport and in energy 
by promoting the production of biomethane.  
 
3. Background and authority for the subsidy  
 
Elering AS (Transmission System Operator).  
 
4. Legislation under which subsidy is granted  
 
Regulation of Minister of Economic Affairs and Infrastruc ture No 50 of 18 September 2017.  
 G/SCM/N/343/EU/Add.8  
 
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  5. Form of the subsidy  
 
Grant.  
 
6. To whom and how the subsidy is provided  
 
Subsidy is granted to biomethane producers for producing biomethane that will be used in transport 
and en ergy. Subsidy is paid once per the following month of production  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – EUR 0.0  Million. 
Fiscal year 2018 – EUR 2.530 Mi llion. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The program is valid until the end of 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5  DOMESTIC  SUPPORT  IN AGRICULTURE  
5.1  General  Services  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The programme aims at providing services and benefits to agriculture or the rural community.  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs . 
 
4. Legislation under which is granted:  
 
- State Budget Act of 2017;  
- State Budget Act of 2018;  
- European Union Common Agricultural Policy Implementation Act, 2014;  
- Rural Development and Agricultural Market Regul ation Act of 19 June 2008;  
- Sustainable Development Act of 22 February 1995;  
- Organisation of Research and Development Act of 26 March 1997;  
- Infectious Animal Disease Control Act 16 June 1999;  
- Regulation (EU) No 652/2014 lays down the procedures gove rning the Union financial 
contribution for programmes for the eradication, control and monitoring of animal diseases 
and zoonoses ; 
- Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of 
aid in the agricultural and forestry  sectors and in rural areas compatible with the internal 
market in application of Articles 107 and 108 of the Treaty on the Functioning of the 
European Union;  
- Regulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 
2014 o n information provision and promotion measures concerning agricultural products 
implemented in the internal market and in third countries and repealing Council Regulation 
(EC) No 3/2008;  
- Estonian Rural Development Plan 2014 -2020 (RDP 2014 -2020);  
- Nation al Programme "Conservation and Utilization of Plant Genetic Resources for Food and 
Agriculture 2014 -2020" ; G/SCM/N/343/EU/Add.8  
 
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  - National Programme for Plant Breeding 2009 -2019;  
- National Programme "Applied Research and Development in Agriculture 2015 -2022"; 
- National Apiculture Programme 2017 -2019; 
- Strategic document "Estonian Food 2015 -2020". 
 
5. Form of the subsidy  
 
Grants, subsidized services . 
 
6. To whom and how the subsidy is provided  
 
(a) Support for research.  There are several national funding programmes for development of 
agricultural policies, applied research for plant and animal production, etc. Such as the 
national programme "Conservation and Utilization of Plant Genetic Resources for Food and 
Agriculture  (2014 -2020), National programme for plant breeding (2009 -2019), National 
Programme "Applied Research and Development in Agriculture 2015 -2022", the latter includes 
participation in JPI and ERA -Net projects. In addition,  support f rom farm  animal breeding a nd 
National Agr iculture programme are in force.  
(b) The support for pest and disease control to institutions for developing pest and disease 
control measures are provided. The compensation of removal and destruction of fallen stock 
and compensation of eradicat ing costs of African swine fever are also included (only in 2017, 
there were no cases in 2018).  
(c) The support for training services includes practical training support, education support, 
technical aid (seminars, trainings) and measure 1 (knowledge transfer and information 
actions) from RDP 2014 -2020 and training services support from different national 
programmes. Support is provided mainly to agricultural producers, but also to food industry 
and forestry sector.  
(d) Extension and advisory services include advi ce and information costs of information 
collection, publications, brochures, cross compliance materials, thematic seminars for farmers 
and entrepreneurs in forest and food sector, and consultation services for farmers and forest 
holders. The aim of the adv isory and extension services is to support the setting up of farm 
advisory service systems and to support the provision of farm advisory and extension services. 
Advisory centres have been designated to ensure the functioning of the agricultural advisory 
system, including the communication of information about state measures and the availability 
of quality advice (training plans, advisory tools, and analyses, advertising the advisory service 
and looking for new advisers). The Ministry of Rural Affairs of the  Republic of Estonia has 
subscribed to surveys about assessing and planning advisory activities and training services.  
(e) The support for inspection services includes services concerning production, veterinary 
and food control, and food quality and safety ins pection programmes.  
(f) Marketing and promotion services are aimed at supporting the marketing and promotion 
activities for agricultural producers and processors. This is through participating in exhibitions 
and trade fairs and other joint promotion activities , gathering market information, granting 
support for activities related to improving the production, processing or marketing agricultural 
produce and introducing the latest research and development findings into production 
(including market research, produ ct development, promotional activities, training, 
competitions and fairs, quality assurance etc.). The RDP supports participation in quality 
schemes for agricultural products and foodstuffs (measure 3).  
(g) The support for infrastructural services involves the  maintenance of amelioration 
structures, aiming at promoting the development of infrastructure in rural areas. This includes 
support for cooperation, which will contribute to cutting -edge research and technology and 
farmers, businesses and advisory service s strengthening the link between them, is included. 
The RDP 2014 -2020 supports innovation cooperation between farmers/agricultural processors 
and research and development institutions. Support for pilot projects and the development of 
new products, practic es, processes and technologies (M16.1, 16.2) includes support for cross -
border activities of European Innovation Partnership (EIP) operational groups, whereas the G/SCM/N/343/EU/Add.8  
 
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  innovation clusters can include several sub -measures of M16 (16.0, 16.2, 16.3, 16.5, 16.9) 
and have a more strategic and broader approach (one cluster per sector). A cluster is a non - 
profit organization with at least 10 farmers or agricultural processors as its members, plus 
relevant partners (research and development organizations, etc.), that h as submitted a 
coherent action plan targeted to innovation.  
(h) Under  other types , the support for the replacement of agricultural producer during the 
vacation period and illness and other support is provided.  
7. Subsidy per unit, or in cases, where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 - EUR 33.60 3 Million from the Estonian state budget . 
Fiscal year 2018 – EUR 38.080 Million from the Estonian state b udget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Duration of a subsidy is according to the validation period of different programmes:  
RDP 2014 -2020, National Programme "Conservation and Utilization of Plant Genetic Resources for 
Food and Agriculture 2014 -2020 and for National Programme Applied Research and Development in 
Agriculture 2015 -2022, National Programme for Plant Breeding 2009 -2019, the Estonian Organic 
Farming Action Plan 2014 -2020, Action Plan for the Sustainable Use of Plant Protection Products for 
2013-2017, National Apiculture Programme 2017 -2019, Strategic document "Estonian Food " 
2015- 2020, Programme for Estonian eco -economy 2018 -2021. For state aid measures, the 
validation period is the end of 2020. Other grants, subsidies and measures have no time limits 
attached to them.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.2  Public Stockh olding For Food Security Purposes  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The programme covers the expenditures for purchasing and storing reserve stocks of different 
foodstuffs.  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs . 
 
4. Legislation under which it is granted  
 
- State Budget Act of 2017 ; 
- State Budget Act of 2018 ; 
- Emergency Act of 8 February 2017 . 
 
5. Form of the subsidy  
 
The establishment, storage and replenishment of the stockpile are financed in accordance with  
relevant agreements.  
 
6. To whom and how the subsidy is provided  
 
Ministry of Rural Affairs has agreements with private enterprises, which act like partners of state to 
be prepared for urgency.  
 G/SCM/N/343/EU/Add.8  
 
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  7. Subsidy per unit or in cases, where this is not possible, the total amount or the annual amount 
budgeted for the subsidy   
 
Fiscal year 2017 - grants of EUR 0.020  Million from Estonian state budget . 
Fiscal year 2018 - grants of EUR 0. 020 Million from Estonian state budget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
No time limits are attached to it.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.3  Domestic  food AID  
1. Period covered by the notification  
 
2017; 2018  
 
2. Policy objective and/or purpose of the subsidy  
 
The objective of granting school milk support is to increase the consumption of milk by school pupils 
and kindergarten children, to enco urage healthy eating habits and thereby promote the consumption 
of milk and milk products.  
The school fruit scheme provides schoolchildren (and since September 2012 also kindergarten 
children) with fruit and vegetables, aiming thus to  encourage good eating  habits among  young 
people.  The school fruit, vegetables and milk scheme (school scheme) is applicable since autumn 
2017. The school scheme combines the two previous schemes (school fruit and vegetable scheme 
and milk scheme) under a single legal framework .  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs  
 
4. Legislation under which it is granted  
 
- State Bud get Act of 2017 ; 
- State Budget Act of 2018 ; 
- European Union Common Agricultural Policy Implementation Act 2014.  
 
5. Form of the subsidy  
 
Grants . 
 
6. To whom and how the subsidy is provided  
 
The school milk support and school fruit scheme are common market organization measures aimed 
to increase the consumption of milk or fruits and vegetables by school pupils, as well as to enc ourage 
healthy eating habits and thereby promote the consumption of milk, milk products, fruits and 
vegetables. Support may be granted for educational institutions (school/kindergarten), milk product 
providers, city governments/local municipalities or lega l persons (e.g. non -profit organizations) 
which represent school/kindergarten.  
 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy   
 
Fiscal year 2017 - grants of EUR 1.368  Million from  the Estonian state budget . 
Fiscal year 2018 - grants of EUR 1.157  Million from the Estonian state budget . 
 G/SCM/N/343/EU/Add.8  
 
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  8. Duration of a subsidy and/or any other time limits attached to it  
 
No time limits are attached to school milk support and school fruit scheme.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.4  Decoupled income  support  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
Support is provided as decoupled Transitional National Aid at 2013 (TNA) to the Single Area Payment 
Scheme (SAPS).  
 
3. Background and authority for the subsidy  
 
The Ministry of Agriculture  
 
4. Legislation under which it is granted  
 
- European Union Common Agricultural Policy Implementation Act 2014;  
- Commission Decision C  (2013) 2278 of 25 April 2013 . 
 
5. Form of the subsidy  
 
Grants . 
 
6. To whom and how the subsidy is provided  
 
Decoupled TNAs are provided to the applicant based on TNA entitlements. The level of budget was 
in 2017 65% and in 2018 60% of allowed budget in 2013.  
 
These payments act as supportive measures to ensure the basic reproduction of the sector and to 
prevent further growth of unused lands, which is also a supplementary effect of the measures.  
 
The TNA f or arable crops (decoupled) is provided to the person who applies SAPS and who has TNA 
entitlements for arable crops based on the determined number of hectares of arable crops in 2006 
or/and 2008.  
 
The TNA  for seeds (decoupled) is provided to the person de aling with agricultural activities according 
to the TNA entitlements for seeds based on the determined hectares of seeds in 2006.  
 
The TNA for cattle (decoupled) is provided for dairy cattle or for dairy cow s crossbreed based on the 
determined animal lives tock units in 2006.  
 
The TNA for milk (decoupled) is provided to the person dealing with agricultural activities according 
to the TNA entitlements for milk, which are based on the milk quota on his name as of 31st March 
2007. 
 
The TNA for ewes (decoupled) is provided according to TNA entitlements for ewes based on the 
determined number of animals in 2007 taking into account the minimum size of herd (10 ewes).  
 
All other decoupled income measures (single area payment scheme (SAPS), payment for agricultural 
practices beneficial for the climate and the environment, the young farmer scheme) were granted 
from European Union budget.  
 G/SCM/N/343/EU/Add.8  
 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 - grants of EUR 17.468 Million from the Estonian state budget . 
Fiscal year 2018 - grants of EUR 16.687 Million from the Estonian state budget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The TNA could be paid unt il 2020 (included).  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
(a) N.a. 
 
5.5  Income insurance and income safety -net programmes  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The purpose of the aid is to enable companies whose production a dangerous pest  or a particularly 
dangerous animal disease has damaged to regain their agricultural production potential . 
 
3. Background and authority for the subsidy  
 
The Ministry of Ru ral Affairs . 
 
4. Legislation under which it is granted  
 
- European Union Common Agricultural Policy Implementation Act 2014;  
- Estonian Rural Development Plan 2014 -2020 (RDP 2014 -2020) . 
 
5. Form of the subsidy  
 
Grants . 
 
6. To whom and how the subsidy is provided  
 
The support is provided to producers whose production has been damaged by a dangerous pest or 
a particularly dangerous animal disease for buying live animals or purchase of perennial plants. In 
the case of an infectious animal disease, the aid ca n be applied for the purchase of an animal and 
the animal purchased may be of the same species as the affected animal or another species. Support 
may be applied for the purchase of animals in a volume not exceeding the number of animals killed 
due to the o ccurrence of an infectious animal disease, killed or killed under the precept, including 
the number of animals slaughtered.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy   
 
Fiscal year 2017 – no grants . 
Fiscal year 2018 – grants of EUR 0.158 Million from the Estonian state budget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Validation period is according to RDP 2014 -2020.  
 
9. Statistical data permitting a n assessment of the trade effects of a subsidy  
 
N.a. G/SCM/N/343/EU/Add.8  
 
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  5.6  Government financial  participation in income insurance and income safety -net 
programmes  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The insurance support measure was implemented to partially (65%) compensate the insurance 
payments for agricultural crops, agricultural animals, poultry and bees to small and medium sized 
agricultural enterprises (SMEs). The purpose is to offer a sustainable s olution to agricultural 
producers to manage the losses caused by adverse weather conditions, climate disasters and animal 
and plant diseases or pest infestations.  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs . 
 
4. Legislation under which it is granted  
 
- State Budget Act of 2017 , granted as state aid according to Commission Regulation 
(EC) No. 702/2014;  
- State Budget Act of 2018 , granted as state aid according to Commission Regulation 
(EC) No. 702/2014;  
- Rural Development and  Agricultural Market Regulation Act of 19 June 2008.  
 
5. Form of the subsidy  
 
Grants . 
 
6. To whom and how the subsidy is provided  
 
The insurance support is provided for small and medium -sized agricultural enterprises (SMEs).  
 
7. Subsidy per unit  or in cases where this is not possible, the total amount or the annual  amount 
budgeted for the subsidy  
 
Fiscal year 2017 – grants of EUR 0.010 Million from the Estonian state budget . 
Fiscal year 2018 – grants of EUR 0.004 Million from the Estonian state b udget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
The validation period is the end of 2018.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.7  Payment for Relief from Natural  Disasters   
There  were no grants of payment for relief from n atural disasters awarded in 2017  and 2018. 
 
5.8  Structural adjustment assistance  provided through resource retirement programmes  
1. Period covered by the notification  
 
2017; 2018 . 
 G/SCM/N/343/EU/Add.8  
 
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  2. Policy objective and/or purpose of the subsidy  
 
Compensation was paid to those pig farm owners whose herds were culled and feed and equipment 
were destroyed due to the diagnosis of African swine fever.  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affai rs 
 
4. Legislation und er which it is granted  
 
- State Budget Act of 2017 , granted as state aid according to Commission Regulation (EC) 
No. 702/2014 ; 
- Infectious Animal Disease Control Act 16 June 1999 ; 
- Rural Development and Agricultural Market Regulation Act of 19 June 2008.  
 
5. Form of the subsidy  
 
Grants . 
 
6. To whom and how the subsidy is provided  
 
The support is provided for pig farm owners whose herds were affected by African Swine fever.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the a nnual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – grants of EUR 0.313  Million from the Estonian state budget . 
Fiscal year 2018  – no grants . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
For state aid measures, the validation period is the end of 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.9  Structural Adjustment  Assistance Provided Through Investment Aids  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The programme aims at assisting producers by offering financial restructuring aid and the better 
access to capital.  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs, Rural Development Foundation (RDF) . 
 
4. Legislation under which it is granted  
 
- Estonian Rural Development Plan 2014 -2020 (RDP 2014 -2020); 
- European Union Common Agricultura l Policy Implementation Act 2014 ; 
- Rural Development and Agricultural Market Regulation Act of 19 June 2008;  
- State Budget Act of 2017 , granted as state aid according to Commission Regulation  
(EC) No. 702/2014; (EC) No . 1408/2013;  
- State Budget Act of 2018 , granted as state aid according to Com mission Regulation 
(EC) No. 702/2014; (EC) No . 1408/2013.  G/SCM/N/343/EU/Add.8  
 
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  5. Form of the subsidy  
 
Grants, guarantees, loans, interest concession . 
 
6. To whom and how the subsidy is provided  
 
The objective of the measures is to develop viable and sustainable food productio n-oriented 
agricultural sector which is competitive, resource -efficient, and with sustainable age structure.  
 
Through the RDP 2014 -2020  following subsidies are pr ovided : 
 
• Measure 4 - Investments in physical assets, included support of investments into improving 
the performance of agricultural holdings, investments into processing and marketing of 
agricultural products and investments into development and maintenance of agricultural and 
forestry infrastructure.  
• Measure 6 - Farm and busin ess development, included support of setting up of young farmers, 
development of small farms and support for the diversification of rural economy towards non -
agricultural activities.  
• Measure 8 - Investments in forest area development and improvement of the  viability of 
forests, included support for prevention and elimination of damages to forests and restoration 
of damaged forests, support for elimination damage caused by forest fires, natural disasters 
and disasters and support for improving the viability and economic value of forests.  
• Measure 9 – Setting up of producer groups and organisations to increase the competitiveness 
of agricultural operators and private forest owners and to increase market power through the 
promotion of their joint economic activi ty.  
• For better implementation of sub -measures 4.1 (Investments into improving the performance 
of agricultural holdings), 4.2 (Investments into processing and marketing of agricultural 
products) and 6.4 (Support for the diversification of rural economy tow ards non -agricultural 
activities) of RDP 2014 -2020, the following financial instruments are available via RDF since 
February 2016:  
• The growth loan for micro and small enterprises;  
• Long-term investment loan.  
The target of the financial instruments is to ens ure the better access to capital. The target 
group of the measure are small and medium size enterprises.  
 
RDF guarantees and loans to farmers and other rural entrepreneurs and non -profit 
organisations from its own budget for differe nt purposes are  provided  for several years. In 
2017 and 2018 , the RDF continued to grant loans and guarantees to farmers and other rural 
entrepreneurs and non -profit organisations for different investments.  
 
7. Subsidy per unit or in cases where this is not possible, the total am ount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – grants of EUR 7.017  million from the Estonian state budget and EUR 0.248 Million 
as reduced guarantee fee and loan interest concession (for investments), totally EUR 7.265 Million.  
 
Fiscal  year 2018 – grants of EUR 8.300  million from the Estonian state budget and EUR 0.075 million 
as reduced guarantee fee and loan inter est concession (fo r investments), totally EUR 8.347 million.  
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Duration of a subsidy is t he validation period of RDP 2014 -2020.  For state aid measures and de 
minimis measures, the validation period is the end of 2020.  Duration of the financial instrument 
validation period ends 2023.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a 
 G/SCM/N/343/EU/Add.8  
 
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  5.10  Payment Under Environmental  Programs  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
Support under the RDP is provided for environmentally friendly and sustainable production methods  
and to secure the continuous land use in NATURA 2000 areas . The compensation of damages caused 
by wild animals and birds (protected by the Nature Conservation Act) is provided to compensate for 
the loss of yield for agricultural producers.  
 
3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs, the Environmental Board . 
 
4. Legislation under which it is granted  
 
- European Union Common Agricultural Policy Implementation Act 2014;  
- Estonian Rural Development Plan 2014 -2020 (RDP 2014-2020);  
- Nature Conservation Act of 21 April 2004 ; 
- State Budget Act of 2017, granted as state aid according to Commission Regulation (EC)  
No. 1408/2013 ; 
- State Budget Act of 2018 , granted as state aid according to Commission Regulation (EC) 
No. 1408/2013 . 
 
5. Form of the subsidy  
 
Grants  
 
6. To whom and how the subsidy is provided   
 
The aim of the support provided by the RDP 2014 -2020 (measure 10, before in RDP 2007 -2013 
measure 2.3) is to introduce environmentally friendly production methods that wi ll promote 
sustainability of the environment by restricting the use of fertilizers and pesticides in the handling 
of foodstuffs, and facilitates the preservation of the natural fertility of the soil, the assurance of 
biological diversity and the continued use of semi -natural grasslands.  Support is granted annuall y 
and is calculated on  income foregone and additional costs resulting from the given actions and the 
need to provide an incentive. Payments are based on the limitations on the use of fertilizers, p lant 
protection products or other inputs.  
 
The aim of the support provided by the RDP 2014 -2020 (measure 11, Conversion and maintaining 
the organic farming, before in RDP 2007 -2013 measure 2.3.2) is to introduce organic farming and 
increase the share of or ganic farming in traditional agriculture that will promote sustainability of the 
environment by restricting the use of fertilizers and pesticides in the handling of organic foodstuffs. 
Support is granted a nnually and is calculated on  income foregone and a dditional costs resulting 
from the given actions and the need to provide an incentive.  Payments are based on the limitations 
on the use of fertilizers, plant protection products or other inputs.  
 
The support for grazing animals (animal welfare) is provided through the RDP 2014 -2020 
(measure  14, before in RDP 2007 -2013 measure 2.4). The objective of this measure is to improve 
animal welfare, to maintain and improve biological and landscape diversity and to improve the soil 
fertility of cultural grass lands.  This support is available for farmers (natural and legal persons, civil 
law partnerships and other associations of persons without the status of a legal person). Support is 
paid with regard to cattle, pigs, sheep, goats, hens and horses, if the stoc king density is up to 1.0 
LU/ha.  
 
Support for Natura 2000 and Water Framework Directive payments is provided through the RDP 
2014-2020 (measure 12, before RDP 2007 -2013 measure 2.7 NATURA 2000 support for private 
forest land  is provided under regional assistance areas). The objective is co nsidering the need to G/SCM/N/343/EU/Add.8  
 
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  maintain biological and landscape diversity, it is necessary to ensure areas the agricultural lands 
compensation for the restrictions in NATURA 2000.  
 
The Environmental Board finances the compensation of damages caused by wild animals  and birds 
(protected by Nature Conservation Act) as de minimis for agricultural producers. The aim of support 
is to compensate yield or animal losses or re -sowing of arable crops.  
 
 
7. Subsidy per unit  or in cases where this is not possible, the total amo unt or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 - grants of EUR 13.154  Million from the Estonian state budget . 
Fiscal year 2018 – grants of EUR 8.498  Million from the Estonian state budget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Duration of a subsidy is the validation period of RDP 2014 -2020. For de minimis measure the 
validation period ends 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.11  Fuel Tax Exemption  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
Tax exempt ion is for agricultural producers  using diesel fuel marked with fiscal markers  in the 
machinery used in the agricultural pro duction process and in grain dryer. The aim is  to reduce the 
tax burden of the agricultural sector.  
 
3. Background and authority for the subsidy  
 
The Ministry of Finance, Ministry of Rural Affairs . 
 
4. Legislation under which it is granted  
 
- Council Direc tive 2003/96/EC of 27 October 2003 Restructuring the Community Framework 
for the Taxation of Energy Products and Electricity;  
- Community Guidelines for State Aid in the Agriculture and Forestry Sector 2014 -2020 
- Alcohol, Tobacco and Fuel Excise Duty Act of 4 December 2002;  
- Rural Development and Agricultural Market Regulation Act of 19 June 2008.  
 
5. Form of the subsidy  
 
Tax exemption . 
 
6. To whom and how the subsidy is provided  
 
Tax exemption is for agricultural produce rs using diesel fuel marked with fiscal markers  in the 
production process.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Tax exemption is calculated taking into account amount of diesel fuel bought  for use in agriculture 
and the difference between the normal excise duty rate and reduced excise duty rate of diesel fuel 
marked with fiscal marker.  G/SCM/N/343/EU/Add.8  
 
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  During the period 1st January 2017  until 31st January 2017  the subsidy per unit  (1000  liter) was EUR 
327 and during the period 1st February until 31st December in  2018, the subsidy per unit (1000 liter) 
was EUR 360. 
 
Fiscal year 2017  – tax exemption is c alculated in the amount of EUR 56.492  million . 
Fiscal year 2018  – tax exemption is ca lculated in the amount of EUR 54.513  million . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Duration of tax exemption validation period ends 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.12  Short -Term Loans and LOAN Guarantees  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
Rural Development Foundation (RDF) gives t he short -term loans (not for investments) with interest 
concession and guarantees for loans with reduced fee and are for facilitating SMEs (included 
agricultural SMEs) access to financial resources. Interest concessions of short -term loans and 
reduced fee of loan guarantees are amounted as state aid or de minimis.  The guarantee extends 
only to the debtor's principal obligation to the debtor's liability, and supplements. The Foundation is 
responsible only, if the claim against the principal debtor could not be met.  
 
3. Background and authority for the subsidy  
 
Rural Development Foundation, Ministry of Rural Affairs . 
 
4. Legislation under which it is granted  
 
Rural Development and Agricultural Market Regulation Act of 19 June 2008;  
- Rural Development and Agri cultural Market Regulation Act of 19 June 2008;  
- State Budget Act o f 2017 , granted as state aid according to Commission Regulation (EC) 
No. 1408/2013 ; 
- State Budget Act of 2018 , granted as state aid according to Commission Regulation (EC) 
No. 1408/2013 a nd (EC) No . 702/2014 . 
 
5. Form of the subsidy  
 
Reduced guarantee fee, loan interest concession  
 
6. To whom and how the subsidy is provided  
 
The deposit exemption and loan interest concession are for agricultural producers using short -term 
loans and loan guarantees given by the RDF as de minimis . 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – deposit exemption EUR 0.036  Million. 
Fiscal year 2018  – deposit exemption EUR 0.029  Million. 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
For de minimis measure, the validation p eriod is the end of 2020.  
 G/SCM/N/343/EU/Add.8  
 
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  9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
5.13  Transitional National Aid (coupled)  
1 Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
Coupled TNAs are provided to the applicant, who grows suckler cows or ewes.  
The TNA for suckler cows and ewes is provided to the producers equally, according to the number 
of animals the producer keeps. The animals have to be identified and registered in t he Animal 
Register. For application the number of ewes must be at least 10. It does not foresee the production 
growth and the support amount is linked neither to production volumes nor to price or income levels. 
The level of budget was in 2017 65% and in 2 018 60% of allowed budget in 2013.  
 
3. Background and authority for the subsidy  
 
Ministry of Rural Affairs . 
 
4. Legislation under which it is granted  
 
- European Union Common Agricultural Policy Implementation Act 2014 . 
- Commission Decision C  (2013) 2278 of 25 April 2013 . 
 
5. Form of the subsidy  
 
Grant . 
 
6. To whom and how the subsidy is provided  
 
The subsidy is provided to agricultural producer who grows suckler cows or ewes.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amo unt or the annual  
amount budgeted for the subsidy  
 
Fiscal year 2017 – EUR 1.768  Million from the Estonian state budget.  
Fiscal yea r 2018 –EUR 1.643  Million from the Estonian state budget.  
 
Two measures (Support for keeping dairy cows and support for growing fruit and vegetable) were 
granted from European Union budget.  
 
5.14  Exceptional market support  measures  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The objective of exceptional adjustment aid to milk producers and farmers in other  livestock sectors 
(milk and pig producers) was to compensate deteriorated livestock  market situation. Exceptional 
adjustment aid was granted for potatoes and vegetable  producers as de minimis  aid. The o bjective 
of the aid was to provide compensation to  potato and vegetable producers for hectares of land, in 
which the heavy rainfalls and  flooding occurred between August and October 2017.  
 
3. Background and authority for the subsidy  
 
Ministry of Rural Affa irs. G/SCM/N/343/EU/Add.8  
 
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  4. Legislation under which it is granted  
 
- European Union Common Agricultural Policy Implementation Act 2014 ; 
- Commission Delegated Regulation (EU) 2016/1613 of 8 September 2016 providing for 
exceptional adjustment aid to milk producers and farmers in other livestock sectors  
- State Budget Act of 2018, granted as de minimis according to Commission Regulation (EC) 
No. 1408/2013 . 
 
5. Form of the subsidy  
 
Grant . 
 
6. To whom and how the subsidy is provided   
 
In 2017, the exceptional aid to livest ock farmers was paid to pig meat and milk producers per animal 
(pig or dairy cow) in Agricultural Register and Information Board (ARIB) animal register.  
In 2018, exceptional adjustment aid was granted for potatoes and vegetable producers.  
 
7. Subsidy per u nit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – grants of EUR 7.797 Million from the Estonian state budget . 
Fiscal year 2018 – grants of EUR 0.467 Million from the Estonian state budget . 
 
Other exceptional measures (temporary exceptional support measures for the fruit and  vegetable 
sector and exceptional aid for winter crops) were financed from EU budget.  
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Duration of validation period ends for exceptional adjustment aid for milk and pig producers 
31 December 2017 and for potatoes and open field vegetables producers 31  December 2018.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
6  DOMESTIC SUPPORT IN FISHERIES SECTOR  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The programme aims at providing s ervices and benefits to fisheries and aquaculture sector.  
 
3. Background and authority for the subsidy  
 
Rural Development Foundation; Unemployment fund; Environmental Board; Estonian Agricultural 
Registers and Information Board.  
 
4. Legislation under which it is granted  
 
- State Budget Act of 2017;  
- State Budget Act of 2018;  
- Commission Regulation no 717/2014 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid in the fishery and aquaculture 
sector;  
- Commission Regulation no 651/2014 declaring certain categories of aid compatible with the 
internal market in application of Articles  107 and 108 of the Treaty;  G/SCM/N/343/EU/Add.8  
 
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  - Commission Regulation no. 1388/2014 declaring certain categories of aid to undertakings 
active in the production, processing and marketing of fishery and aquaculture products 
compatible with the internal market in application of Articles 107 and 108 of the Treaty on the 
Functioning of the European Union;  
- Practice grant for producer or processor of fishery or aquaculture products;  
- Training grant  for producer or processor of fishery or aquaculture products;  
- Fisheries Market Organ ization Act;  
- The Employment Program 2016 -2017;  
- The Employment Program 2017 -2020;  
- Labour Market Services and Benefits Act;  
- Methods for assessing the amount of damage caused by an animal, the specified scope and 
procedure for the compensation of damage, and the specified scope and procedure for the 
compensation of damage preve ntion measures;  
- Agreement of 30 March 2015 amending Management Contract No 297 between Ministry of 
Rural Affairs and Rural Development Foundation.  
 
5. Form of the subsidy  
 
Grants, compensations, guarantee (collateral).  
 
6. To whom and how the subsidy is provided  
 
(a) Compensation for damage caused by animals. Compensation for damage caused by seals and 
eagles.  
(b) Training or practice aid for fish producers and fish processors.  
(c) Employment services. Improving access to the labo ur market and preventing early retirement 
(2016 -2020).  
(d) Employment program 2016 -2017 and 2017 -2020. 
(e) Support from employment programs 2016 -2020.  
(f) Provision of labo ur market services to ensure better opportunities for participation in 
employment 2015 -2020.  
(g) Guarantee for pur chase fishing gear.  
(h) Guarantee for purchasing a fishing quota.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
- Fiscal year 2017 – state aid of EUR 0,0075304 million from the Estonian state budget . 
 
- Fiscal year 2018 – state aid of EUR 0,0097088 million from the Estonian state budget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
9. Statistical data permitting an assessment of the trade effects of a su bsidy  
 
N.a. 
 
7  EUROPEAN MARITIME AN D FISHERIES FUND (EM FF) 2014 -2020 SUPPOR T 
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
The overall objective of the policy is to ensure that fishing activities contribute to the creation of 
environmental conditions capable of being sustained long -term which are necessary for economic 
and social development. Moreover, it should contribute to increased productivity, a fair standard of 
living for the fish eries sector and stable markets, and it should ensure the availability of resources 
and that supplies reach consumers at reasonable prices.  
 G/SCM/N/343/EU/Add.8  
 
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  3. Background and authority for the subsidy  
 
The Ministry of Rural Affairs  
 
4. Legislation under which it is grante d 
- European Union Common Fisheries Policy Regulation (EU) No . 1380/2013;  
- European Union Common Provisions Regulation (EU) No . 1303/2013;  
- European Maritime and Fisheries Fund Regulation (EU) No . 508/2014;  
- Estonian EMFF Operational Programme 2014-2020 (EMFF OP 2014 -2020) . 
 
5. Form of the subsidy  
 
Grants . 
 
6. To whom and how the subsidy is provided  
 
Beneficiaries can be operators (natural  or legal persons  who operate  or hold any undertaking  
carrying  out any of the activities  related  to any stage  of production,  processing,  marketing,  
distribution  and retail chains  of fisheries  and aquaculture  products), fishermen or organisations of 
fishermen.  
Rules of eligibility are set out in the regulation of measures financed under EMFF.  
Estonia implemen ts following articles of EMFF:  
 
• Article 26 – Innovation in fisheries . 
• Article 28 – Partnerships between scientists and fishermen . 
• Article 38 - Limitation  of the impact  of fishing  on the marine  environment  and adaptation  of 
fishing  to the protection  of species . 
• Article 40 - Protection  and restoration  of marine  biodiversity  and ecosystems  and compensation  
regimes  in the framework of  sustainable  fishing  activities . 
• Article 41 - Energy efficiency and mitigation of climate change . 
• Article 43 - Fishing ports, landing sites, auction halls and shelters . 
• Article 47 – Innovation in aquaculture . 
• Article 48 – Productive investments in aquaculture . 
• Article 50 – Promotion of human capital and networking . 
• Article 51 – Increasing the potential of aquacultu re sites . 
• Article 56 – Animal health and welfare measures . 
• Article 62 - Support from the EMFF for community –led local development . 
• Article 63 - Implementation of community –led local development strategies . 
• Article 64 – Cooperation activities . 
• Article 66 - Production and marketing plan . 
• Article 67 – Storage aid . 
• Article 68 – Marketing measures . 
• Article 69 - Processing of fishery and aquaculture products . 
• Article 76 – Control and enforcement . 
• Article 77 – Data collection . 
• Article 78 – Technical a ssistance . 
• Article 80 – Integrated Maritime Policy . 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
Fiscal year 2017 – grants of EUR 3.018 million from the Estonian state budget . 
Fiscal year 2018 – grants of EUR 3.843 million from the Estonian state budget . 
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
Validation period is according to EMFF OP 2014 -2020.  
 
9. Statistical data permitting an assessment  of the trade effects of a subsidy  
 
N.a. 
 G/SCM/N/343/EU/Add.8  
 
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  8  FUEL TAX EXEMPTION  
1. Period covered by the notification  
 
2017; 2018 . 
 
2. Policy objective and/or purpose of the subsidy  
 
Tax exemption is for inland fisheries using diesel fuel marked with fiscal markers  in the vessels used 
in the inland fisheries. The aim is to reduce the tax burden of the fisheries sector (inland fisheries).  
 
Energy  excise duty exemption allows commercial fishing free of excise duty. It means that diesel 
fuel in commercial marine fishing is free of excise duty.  
 
3. Background and authority for the subsidy  
 
The Ministry of Finance, Ministry of Rural Affairs . 
 
4. Legislation under which it is granted  
 
- Council Directive 2003/96/EC of 27 October 2003 Restructuring the Community Framework 
for the Taxation of Energy Products and Electricity;  
- Alcohol, Tobacco and Fuel Excise Duty Act of 4 December 2002;  
- Fiscal Marking of Liquid Fuel Act;  
- Maximum permitted amount of excise duty free fuel for fishing per calendar year.  
 
5. Form of the subsidy  
 
Tax exemption . 
 
6. To whom and how the subsidy is provided  
 
Tax exemption is for inland fisheries using diesel fuel marked with fiscal markers  I the production 
process.  
 
According to the energy excise duty exemption, commercial fishing is free of excise duty. It means 
that diesel fuel in commercial marine fishing i s free of excise duty.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual  amount 
budgeted for the subsidy  
 
In case of coastal fisheries and trawlers, there is a Government Regulation which states that 
maximum permitted amount of duty -free fuel for a fishing vessels. In case of vessels belonging to 
a segment offshore (Baltic Sea trawlers) it is 180 liters per on e tone of fish.  
The maximum permitted amount of duty -free fuel for a fishing vessel of coastal areas in Baltic Sea 
or inland fisheries is 50 liters per kilowatt for a fishing vessel with a main engine not exceeding 
50 kilowatts.  
The maximum permitted amoun t of duty -free fuel for a fishing vessel of coastal areas or inland 
fishing is 35 liters per kilowatt for a fishing vessel with a main engine power greater than 
50 kilowatts.  
 
Fuel exemptions  issued to professional fishermen in 2017 and in 2018  
Year SEGMENT  Fuel consumption in liters  Number of users  
2017 Offshore Baltic sea  2 787 085  16 
2017 Coastal boats (marine)  1 000  1 
2018 Offshore Baltic sea  2 833 540  16 
2018 Coastal boats (marine)  6 394  2 
 
In case of inland fisheries, the tax exemption calculation takes into account amount of diesel fuel 
bought for use in inland fisheries and the difference between the normal excise duty rate and reduced G/SCM/N/343/EU/Add.8  
 
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  excise duty rate of diesel fuel marked with fiscal mar ket. During the period from 1 to 
31 January  2017 the subsidy per unit  (1000 liter) was 360 EUR and during the period from 
1 Februar y to 31  December 2018 the subsidy per unit (1 000 liter) was 360 EUR.  
 
Fiscal year 2018 – tax exemption in inland fisheries is calculated in the amount of 19  494 EUR.  
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy  
 
N.a. 
 
__________  
 