OECD Environmental Performance Reviews Estonia 217 Simon Upton, OECD Environment Director
Estonia is a top-performing economy 2=1 2 18 16 14 12 1 Latvia 173 Estonia 165 OECD 126 Germany 118 8 6 4 2 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 Note: GDP expressed at 21 prices and purchasing power parities. 2 = 1 Source: OECD (216), National Accounts (database). 2
Energy consumption grew, while its intensity decreased Mtoe 3,5 3 2,5 2 Other 4% Services 16% Residential 31% 2 = 1 1 8 Final energy consumption intensity 6 1,5 1 Agriculture, forestry, fishing 5% Transport 26% 4,5 2 22 24 26 28 21 212 214 a. GDP in 21 PPP prices Source: IEA (216), IEA World Energy Statistics and Balances (database); OECD (216), National Accounts (database). Industry 2% 2 3
The most carbon-intensive economy in the OECD CO 2 emissions per unit of GDP, 213 t/1 USD,6,5,4,3,2,1 4
GHG emissions are decoupled from economic growth, but still increasing 2 = 1 18 16 GDP 14 12 TPES GHG 1 8 6 4 2 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 Note: GDP is expressed in 21 PPP prices Source: IEA (216), IEA CO 2 Emissions from Fuel Combustion Statistics (database); IEA (216), IEA World Energy Statistics and Balances (database); OECD (216), National Accounts (database). 5
Third-highest growth in GHG emissions 6 Top twenty OECD countries plus Estonia. Source: OECD (216), Greenhouse gas emissions by source, OECD Environment Statistics (database)
Energy is by far the largest GHG emitter Transport 11% Waste 2% other 4% Agriculture 6% Energy 77% Source: IEA (216), IEA World Energy Statistics and Balances (database) 7
Transport is where emissions increased the most GHG emissions, change by sector, 2-14 Waste Fugitive emissions from fuels Industrial processes Manufacturing and construction Agriculture Energy industries Energy Transport -5% -4% -3% -2% -1% % 1% 2% 3% 4% Source: IEA (216), IEA World Energy Statistics and Balances (database); OECD (216), National Accounts (database). 8
Oil shale provides 7% of energy supply 7 6 5 4 Renewables Natural gas Oil 3 2 Oil shale 1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 Million tons of oil equivalent Sources: IEA (216), IEA CO2 Emissions from Fuel Combustion Statistics (database); OECD (216), National Accounts (database). 9
The share of renewables in electricity production remains low 1% Share of renewables in electricity production, 215 9% 8% 7% 6% 5% 4% 3% 2% 1% % Source: IEA (216), IEA World Energy Statistics and Balances (database); OECD (216), 1
Subsidies support renewable energy Sources: MoE, 215; Elering, 215. 11
Air pollution is decreasing in most regions 1 tonnes of air emissions 12 1 97 8 6 4 43 33 41 SO x 32 NO x 2 15 17 NMVOC 8 PM 2.5 2 214 SOx and NOx: total man-made emissions. Source: IEA (216), IEA World Energy Statistics and Balances (database); OECD (216), National Accounts 12
Aichi target on biodiversity protection is achieved Percentage of terrestrial area under protection, April 216. Preliminary results. Source: OECD calculations based on WDPA, 216 13
Forests are intensively used 11% 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Fellings related to annual productive capacity, 214 or latest, top ten OECD countries Source: OECD Environment Statistics (database) 14
Towards a green tax reform 4,5 Environmental Taxes as % of GDP, 214 4 3,5 3 Other Motor vehicles Energy 2,5 2 1,5 1,5 -,5 Source: OECD/EEA database on instruments for environmental policy 15
Large differences in the effective carbon rate on energy use ECR Level (in EUR/ t CO2) 35 3 Sweden Finland 25 2 Estonia 15 1 5 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% % of CO2 emissions OECD (216), Effective Carbon Rates 16
Towards a green tax reform 4,5 Environmental Taxes as % of GDP, 214 4 3,5 3 Other Motor vehicles Energy 2,5 2 1,5 1,5 -,5 Source: OECD/EEA database on instruments for environmental policy 17
Extraction and waste disposal taxes provide most environmental tax revenue Million EUR 12 1 8 6 4 Emissions into water bodies and soil Water abstraction Mineral extraction Emissions into ambient air 2 Waste disposal Other 25 26 27 28 29 21 211 212 213 214 Source: Country submission. 18
Significant increase in air and water pollution taxes 2 = 1 6 SO2 NOx Mercaptanes Air pollution taxes CO VOC CO2 2 = 1 6 Water pollution taxes BOD7 P N Solid particles Phenols Naphta, oils 5 5 4 4 3 3 2 2 1 1 Source: Country submission. 19
Disposal taxes for municipal solid waste have risen steadily EUR/tonne 35 3 25 2 15 1 5 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 Source: Country submission. 2
Public R&D spending on environment increased Trends in public R&D spending 2-14 USD million 25 prices 22 2 18 16 14 12 1 8 6 Total R&D (right axis) USD million 25 prices 3 25 2 15 1 4 2 Environment R&D (left axis) 2 22 24 26 28 21 212 214 5 Note: Data contain estimates. Source: IEA (215), IEA Energy Technology and RD&D Statistics (database); OECD (215), OECD Science, Technology and R&D Statistics (database). 21
High public R&D budget on environment Environment-related R&D budgets, percentage of total government R&D budgets, 215 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % OECD (216), Government budget appropriations or outlays for R&D (database); 22
Yet the output is limited: Estonia lags behind on green patents Patents in environment-related technology per capita, top 15 countries, average 21-12 Denmark Japan Germany Korea Finland Austria Switzerland Sweden Luxembourg Israel Netherlands France United States Norway Canada Estonia Rank in OECD: 23rd 1 2 3 4 5 6 7 8 9 patents/million persons OECD (216), "Patents: Technology development", OECD Environment Statistics (database). 23
Materials consumption increased faster than GDP 25 Domestic material consumption 2 2 = 1 GDP 15 1 5 2 22 24 26 28 21 212 214 Note: GDP - 21 PPP. Source: Eurostat (216); OECD (216) (databases). 24
Waste from oil shale: a major environmental issue In 214, Estonia produced 15 million tonnes of pure oil shale and: 6.9 million tonnes of oil shale Source: Statistics Estonia, 216 25
Oil shale has a heavy impact, particularly in Ida-Viru Source: ESTEA (216) 26
The transformation of municipal waste management Source: OECD Environment Statistics (database) 27
OECD Environmental Performance Reviews Estonia 217 http://oe.cd/epr-estonia