Estonia will receive €3.5 billion Cohesion Policy funding to support economic, social and territorial cohesion in 2021-2027 in the framework of the Partnership Agreement between the Commission and Estonia. This Agreement will also support the implementation of key EU priorities such as the green and digital transition and contribute to competitive, innovative and export-oriented growth.

Fair green transition

€781 million from the European Regional Development Fund (ERDF) and the Cohesion Fund will support the circular economy in businesses, ensuring less waste and more resource efficiency. The funds will also promote energy eOfficiency, renewable energy, and an increased use of recycled materials.

€354 million from the Just Transition Fund (JTF) will help Estonia's transition to a greener and more competitive industry while maintaining employment and upskilling workers in the Ida-Viru county.

Up to €521 million from the Cohesion Fund will promote the shift from road to rail transport for both passengers and freight. This will help reducing commuting times and CO2 emissions. Investments will also be made to complete the road network, necessary for the Core TEN-T, which should be ready by 2030.

A smarter, digital and connected economy

€742 million of the ERDF will improve cooperation between businesses and research institutions and will be invested in small and medium businesses to boost productivity, innovation and competitiveness in line with smart specialisation. These funds will also speed up the digitalisation of the economy, the development of public digital services and high-speed internet.

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