G/SCM/N/315/EU/Add.8  
 
17 July 2017  
(17-3843) Page: 1/31 
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  ARTICLE 25 OF THE AG REEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to su bsidy programmes 
of Estonia . 
 
_______________  
 
 G/SCM/N/315/EU/Add.8  
 
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  ESTONIA  
 
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  ................................ ................................ ................................ ..........  9 
2.6   Loan Scheme for Companies  ................................ ................................ ........................ 10 
2.7   Consultancy Programme  ................................ ................................ .............................. 11 
3   REGIONAL AID  ................................ ................................ ................................ ..........  12 
3.1   Programme of Investment Support  ................................ ................................ ............... 12 
4   ENVIRONMENTAL AID  ................................ ................................ ...............................  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   Modern isation 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 
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  ................................ ................................ ................................ ......20 
5.4   Decoupled income support  ................................ ................................ ........................... 21 
5.5   Government financial participation in income insurance and income safety - net 
programmes  ................................ ................................ ................................ ...................... 22 
5.6   Payment for Relief from Natural Disasters ................................ ................................ ......22 
5.7   Structural adjustment assistance provided through resource retirement programmes  ......... 23 
5.8   Structural Adjustment Assista nce Provided Through Investment Aids  ................................ 23 
5.9   Payment Under Environmental Programs  ................................ ................................ .......25 
5.10   Payment Under Regional Assistance P rograms  ................................ .............................. 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 
 G/SCM/N/315/EU/Add.8  
 
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  1  AID FOR RESEARCH AND  DEVELOPMENT  
1.1  R&D Financ ing Programme  
1. Period covered by the notification  
2015, 2016  
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 new 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.  
4. Legislation un der which subsidy is granted  
Procedure  of the Management Board of E nterprise Estonia of 2 May 2012  
Procedure  of the Management Board of Ente rprise Estonia of 18 March 2013  
 
Regulation  of the Minister of Education No. 17 of 19 April 2011  
Regulation  of the M inister of Education No. 71 of 3 December 2010  
Regulation  of the Minister of Education No. 13 of 1 April 2011  
Regulation  of the Minister of Education No. 46 of 16 September 2011  
Regulation  of the Minister of Education No. 27 of 28 August 2012  
 
Regulation  of the Minister of Agriculture No. 29 of 16 March 2010  
 
Decree  of Minister of Defence No. 407 of 28 October 2014  
Decree  of Minister of Defence No. 319 of 4 June 2016  
5. Form of the subsidy  
Grant.  
6. To whom and how the subsidy is provided  
In case of Enterp rise Estonia:  
The subsidies are provided to SME 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 i nnovative companies.  
Maximum amount of support is 0.7 Mio EUR.  
In case of support from foundation Archimedes the subsidies are provided to SMEs, large 
companies and R&D institutions, which undertake fundamental research and  industrial research 
projects.  
In case of fundamental research projects can be supported up to 95% of eligible costs.  G/SCM/N/315/EU/Add.8  
 
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  In case of industrial research projects can be supported up to 60% of eligible costs.  
Maximum amount of support is 1.3 Mio EUR.  
In case of support from ARIB the subsidi es are provided for businesses which produce or process 
TFEU Annex 1 products or forest products and which undertake industrial research and 
experimental development projects.  
Generally the industrial research projects can be supported up to 5 0% of eligib le cos ts, which may 
increase up to 80%  in special cases (SMEs, cross -border cooperation, wide dissemination of the 
results etc .). 
Experimental development projects can in general be supported up to 25%, which may reach up 
to 60% in certain cases.  
Maximum amount of support is 0.32 Mio EUR.  
In case of Ministry of Defence subsidies provided 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 projects can be supported up to 
50% 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 2015 – 1.966 Mio EUR  
Fiscal year 2 016 – 1.303 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
The programme of Enterprise Estonia was valid till 31 December 2013, payments could be made 
later.  
The programmes of Archimedes Foundation were valid till 31 December 2013, payments could be 
made later.  
The programme of ARIB was valid till 31 December 2013, payments could be made later.  
The programme of Ministry of Defence is valid till 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  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
To organise and support the participation of entreprene urs in trade fairs.  
3. Background and authority for the subsidy   
Tallinn City Enterprise Department.  G/SCM/N/315/EU/Add.8  
 
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  For City of Narva – Department for Development and Economy  
4. Legislation under which subsidy is granted  
Regulation of Tallinn City Council No. 50 of 13 December 2007  
Regulation of Tallinn City Council No. 3 of 13 January 2010  
Regulation of Tallinn City Council No. 3 of 2 3 January 2014  
Regulation of Tallinn City  Council No. 12 of 5 February 2014 
Regulation of Narva City Council No. 10 of 14 February 2008  
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 co ver up to 100% of th e expenses.  
For City of Narva subsidy is paid for SMEs or sole proprietors up to 50% of participation, stand 
rental or similar costs. The maximum sum will be 1600 euros.  
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 2015 – 0.074 Mio EUR  
Fiscal year 2016 – 0.068 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
No time limits are attached to the programme.  
9. Statistical data permitting an ass essment of the trade effects of a subsidy  
N/A.  
2.2  Training Programmes for Companies  
1. Period covered by the notification  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
The aim of the training support is to promote the in -service training and k nowledge of start -ups 
(in the frames of incubation services).  
3. Background and authority for the subsidy  
Tallinn City Enterprise Department . 
Incubator Tallinn . 
Estonian Unemployment Insurance Fund . 
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  G/SCM/N/315/EU/Add.8  
 
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  Regulation of Tallinn  City Council No. 13 of 14 June 2012  
Labour  Market Services and Benefits Act; Government Regulation No. 174 of 12  December 2 013.  
Government  Regulation No. 93 of 17 September 2015  
 
Decree of Minister for Health and Labour No. 222 of 4 December 2014  
Decree of Minister of Social Protection and Minister of Health and Labour No. 57 of 27  March 2015  
Decree of Minister of Social Prot ection and Minister of Health and Labour No. 198 of 
17 December  2015 
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 2015 – 0.027 Mio EUR  
Fiscal year 2016 – 0.060  Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
No time limits are attached to the  programmes.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A.  
2.3  Guarantee Scheme for Companies  
1. Period covered by the notification  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
To promote mainly small and  medium sized enterprises by supporting their access to capita l 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 Associa tion of Foundation KredEx  
Support of Enterpris e and State Loan Guarantees Act  
Conditions for guaranteeing SMEs loans approved by the Decree of the Head of Foundation 
No. 21-üld of 12 March 2014  
Conditions for guaranteeing business loans approved by the Dec ree of the Head of Foundation 
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  G/SCM/N/315/EU/Add.8  
 
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  Agreement  of 30 March 2015 amending Management Contract No. 297 between Ministry of Rural 
Affairs and 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 recipien t 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 responsibility. That means that if a business plan fails and the bus inessman 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 Mio EUR  and the 
maximum guarantee amount for  big enterprises is 1.5 Mio EUR.  The guarantee amount decreases 
proportionally with the decreasing of the loan/leasing amount.  
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 Mio 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 2015 – guarantee amount 84.014 ( aid element: 1.201 ) Mio EUR     
Fiscal year 2016 – guarantee amount 91.379 ( aid element: 1.788 ) Mio EUR  
8. Duration of a subsidy and/or any other time limits a ttached to it  
The programmes are valid till 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  
2015, 2016  
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.  G/SCM/N/315/EU/Add.8  
 
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  3. Background and authority for the subsidy  
Enterprise Estonia (Foundation).  
Estonian Unempl oyment Insurance Fund.  
Tallinn City Enterprise Department.  
For City of Narva - Department for Development and Economy.  
4. Legislation under which subsidy is granted  
Conditions of Programme for Start -up and Growth Support approved by the Management Board of  
Enterprise Estonia on 1 August 2011  
Conditions of Programme for Start -up and Growth Support approved by the Management Board of 
Enterprise Estonia on 17 March 2011  
Labour Market Services and Benefits Act  
Government Regulation No. 174 of 12 December 2013  
Decree of Minister for Health and Labour No. 222 of 4 December 2014  
Government Regulation No. 93 of 17 September 2015  
Decree of Minister of Social Protection and Minister of Health and Labour No. 57 of 27  March 2015  
Decree of Minister of Social Protection a nd Minister of Health and Labour No. 198 of 
17 December  2015 
Regulation of Tallinn City Council No. 38 of 1 Decembe r 2011  
Regulation of Narva City Council No. 25 of 28 June 2007  
5. Form of the subsidy  
Grant.  
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 applicant 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 8 0% 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. The amount of the subsidy is up 
to 4474 EUR.  
7. Subsidy per un it, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
Fiscal year 2015 – 2.266 Mio EUR  
Fiscal year 2016 – 1.839 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
Different ti me limits apply to different subsidies.  G/SCM/N/315/EU/Add.8  
 
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  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  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
The aim of the p rogramme 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.  
3. Background and authority for the subsidy  
Estonian Un employment Insurance Fund.  
For City of Narva - Department for Development and Economy.  
4. Legislation under which subsidy is granted  
Labour Market Services and Benefits Act  
Government Regulation No. 174 of 12 December 2013  
Government Regulation No. 93 of 1 7 September 2015  
Decree of Minister for Health and Labour No. 222 of 4 December 2014  
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 Narva City Council No. 9 of 11 March 2010 .  
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 for employing unemployed persons, who belong in 
risk groups (e.g. long -term unemployed, ex -prison ers). 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 6 months.  
Subsidy for the adaptation of premises and equipment is provided in case  of recruitment of 
disadvantaged workers. The size of the subsidy is 5 0% of the cost of the adjustment but not in an 
amount exceeding the upper limit established for support .  
For entrepreneurs in the City of Narva the support is based on percentage of the  additional income 
tax of the project.  G/SCM/N/315/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 2015 – 2.327 Mio EUR  
Fiscal year 2016 – 2.574 Mio EUR  
8. Duration of a subsidy an d/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  
2015, 2016  
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 Agr icultural Market Regulation Act . 
Decision of Supervisory Board of Rural Development Foundation of 4 December 2014  
Decision of Supervisory Board of Rural Development Foundation of 4 December 2014  
Decision of Supervisory Board of Rural Development Foundation  of 7 August 2015  
Decision of Supervisory Board of Rural Development Foundation of 7 May 2015  
Financial Agreement No. 10 for managing Rural Development Plan 2014 -2020 Endowment Fund  
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 500 000 EUR for 5 years maximum.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
Fiscal y ear 2015 – loan amount 1.995 Mio EUR ( aid element: 0.392 ) 
Fiscal year 2016 – loan amount 1.750 Mio EUR ( aid element 0.090 Mio EUR ) 
8. Duration of a subsidy and/or any other time limits attached to it  
The program of Rural Development Foundation is valid til l 31 December 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A.  G/SCM/N/315/EU/Add.8  
 
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  2.7  Consultancy Programme  
1. Period covered by the notification  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
To enable to purchase consult ations from professional consultants, to prepare applications  or to 
get information regarding Intellectual Property.  
3. Background and authority for the subsidy  
Estonian Unemployment Insurance Fund . 
Estonian Research Council.  
Enterprise Estonia (Foundation ). 
Tallinn City Enterprise Department.  
Estonian Intellectual Property and Technology Transfer Centre.  
4. Legislation under which subsidy is granted  
Labour Ma rket Services and Benefits Act  
Government Regulation No. 174 of 12 December 2013  
Government Regula tion No. 93 of 17 September 2015  
Instructions approved by the Decision of the Management Board of Estonian Research Council 
of 5 January 2015  
Instructions approved by the Decision of the Management Board of Estonian Research Council 
of 11 June 2014  
Regulat ion of Minister of Economic Affairs and Communi cations No. 5 of 27 January 2009  
Decree of Minister of Foreign Trade and Entrepreneurship No. 15-0094 of 31 March 2015  
Regulation of Tallinn City Council No. 3 of 28 January 2010  
Decision of the Managing Boar d of EIPTTC  No. 14-005 of 6 November 2014  
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 person s who have got support for starting business. 
The maximum amount for consultancy is 959 EUR.  
In case of support from Estonian Research Council maximum grant amount is 3 600 EUR.  
In case of Enterprise of Estonia the aim is to support SMEs for consultancy, i nter alia aimed at 
innovation.  
In case of Tallinn City Enterprise Department the maximum amount of support is 2 600 EUR.  G/SCM/N/315/EU/Add.8  
 
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  In case of EIPTTC  aid is provided for individual consultancy on Intellectual Property for companies 
who have got the support for starti ng business. The maximum amount of subsidy 
is 1 050 EUR. 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 2015 – 0.147 Mio EUR  
Fiscal year 2016 – 0.19 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limit s apply to different subsidies.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A.  
3  REGION AL AID  
3.1  Programme of Investment Support  
1. Period covered by the notification  
2015, 2016  
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 div ersification of economic activities in these areas.  
3. Background and authority for the subsidy  
Agricultural Registers and Information Board (ARIB).  
For City of Narva - Department for Development and Economy.  
Rural Development Foundation.  
Lääne -Nigula Rur al Municipality Government.  
4. Legislation under which subsidy is granted  
Regulation of the Minister of Agriculture No. 20 of 12 March 2008  
Regulation of the Minister of Agriculture No. 119 of 22 December 2010  
Regulation of the Minister of Agriculture No. 75 of 21 September 2012  
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 
 
Budget of City of Narva  
Rural Development and Agricultural Market Regulation Act  
Decision of Supervisory Board of Rural Development Foundation of 4 December 2014  
Regulation of Lääne -Nigula Rural Municipality Government No. 6 of 24 March 2015  
5. Form of the subsidy  
Grant or capital injection.  G/SCM/N/315/EU/Add.8  
 
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  6. To whom and how the subsidy is provided  
In case of A RIB 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 rura l areas or small 
towns. Subsidy is provided for investments related to the promotion of tourism and 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.  
Ad hoc support is granted by the Department for Development and Economy of City of Narva.  
In case of Rural Development Foundation capital injection up to 200  000 EUR. Subsidy has to be 
repaid afterwards to the Foundat ion. 
In case of Lääne -Nigula Rural Municipality subsidy provided to sole proprietors, companies, 
foundations and non -profit organisations in order to promote business environment in 
Lääne -Nigula Rural Municipality.  
7. Subsidy per unit, or in cases where th is is not possible, the total amount or the annual 
amount budgeted for the subsidy  
Fiscal year 2015 – 1.056 Mio EUR  
Fiscal year 2016 – 0.640 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
Different time limits apply to differe nt programmes.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
4  ENVIRONMENTAL AID  
4.1  Substitution of the Pollution Charge  
1. Period covered by the notification  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
The programme aims at decreasing pollution by encouraging voluntary environmental protection 
investments.  
3. Background and authority for the subsidy  
Ministry of Environment.  
4. Legislation under which subsidy is granted  
Environmental Charges Act, Articles  48-55 
Decree of Minister of Environment No. 919 of 4 October 2012  
Decree of Minister of Envi ronment 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 i n environmental p rotection or energy efficiency.  G/SCM/N/315/EU/Add.8  
 
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  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 th e 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 3 years by not less than 15% in comparison with th e 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 3 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 3 years.  
The extent to which the pollution charge is substituted shall not exceed the cost of t he 
environmental protection measures.  
In certain cases the applicant has to undertake energy efficiency measures for substitution. 
Subsidy could be granted up to 6 5% 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 2015 – 0.225 Mio EUR  
Fiscal year 2016 – 0.750 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of support for applicant is up to 3 years, the program is valid till 2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A.  
4.2  Environmental Programme  
1. Period covered by the notification  
2015, 2016  
2. Policy objective and/or purpose of the subsidy  
To preserve the stability of en vironment.  
3. Background and authority for the subsidy  
Environmental Investment Centre (Foundation).  
Tori Rural Municipality Government.  
Private Forest Centre Foundation.  
Agricultural Registers and Information Board (ARIB).  
4. Legislation under which subs idy is granted  
Regulation of Minister of Environment No. 13 of 17 February 2006  G/SCM/N/315/EU/Add.8  
 
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  Terms of granting regional aid approved by the Decision of the Council of Environmental 
Investment Center No. 607 of 29 April 2009 . 
Terms of granting state aid on the basis of block exemption regulation approved by the Decision of 
the Council of Environmental Investment Center . 
Terms of financing environmental program approved by the Council of Environmental Investment 
Center of 12 December 2011 . 
Terms of granting de minimis  aid approved by the Council of Environmental Investment Center 
No. 1-4/729 of 11 July 2014 and No. 1-4/781 of 17 February 2015 . 
Order of Tori Rural municipality government No. 192 of 15 October 2016; No. 42 of 4 March 2015; 
No. 3 of 21 January 2015; No. 75 of 17 April 2015; No. 164 of 17 June 2015 . 
Forest Act  
Regulation of the Minister of Environment No. 11 of 11 February 2009  
Regulation of the Minister of Environment No. 10 of 14 April 2014  
Regulation of Minister of Agriculture No. 50 of 11 July 2013  
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 15 Mio EUR.  
In case of Tori Rural Municipality subsidy is mostly granted to co -finance the reconstruction of 
municipality 's water and sewage infrastructu re. 
Subsidies for promotion of forests are granted in accordance with the relevant conditions of Private 
Forest Centre Foundation. Maximum subsidy amount is up to 200  000 EUR.  
In case of Regulation of Minister of Agriculture No. 50, the subsidy is provided  for young and micro 
entrepreneurs in rural areas for investments in bio energy (heat, electricity and gas produced from 
biomass). The maximum amount of grant is 512  000 EUR, up to 50% of eligible costs can be 
supported.  
7. Subsidy per unit, or in cases wh ere this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
Fiscal year 2015 – 6.296 Mio EUR  
Fiscal year 2016 – 7.461 Mio EUR  
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  
2015, 2016  G/SCM/N/315/EU/Add.8  
 
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  2. Policy objecti ve 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 th e 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 on the basis of applicat ions 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 2015 – 71.686 Mio EUR  
Fiscal year 2016 – 69.327 Mio EUR  
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 pr oduce electricity.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A.  
4.4  Modernisation of electricity generation installations through transitional free 
allocation of greenhouse gas emission allowances  
1. Period covered by th e notification  
2015, 2016  
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 allo wances to these 
installations pursuant to Article 10(c)(5) of the EU ETS Directive, 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 G/SCM/N/315/EU/Add.8  
 
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  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 g reenhouse 
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 y ear, 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 investments 
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 possib le, the total amount or the annual 
amount budgeted for the subsidy  
Fiscal year 20 15 – 31.383 Mio EUR  
Fiscal year 2016 – 20.284 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
The subsidy is paid on during the transitional perio d 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.  
4.5  Exemption on Excise Duty for Biogas used as Fuel  
1. Period covered by the notification  
2015, 2016  
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 Affairs and Communication.  
4. Legislation under which subsidy is granted  
Alcohol, Tobacco, Fuel and Electricity Excise Duty Act § 27(1)(28)  
Decree of Minister of Economic Affairs and Infrastructure No. 15-0031 of 28 January 2015  
5. Form of the subsidy  
Grant.  G/SCM/N/315/EU/Add.8  
 
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  6. To whom and how the subsidy is provided  
Exemption of bioga s 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 2015 – 0.714 Mi o EUR  
Fiscal year 2016 – 0.299 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
The program is valid till 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  
2015; 2016  
2. Policy objective and/or purpose of the subsidy  
The programme aims at providing services and benefits to agri culture 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 2015;  
 State Budget Act of 2016;  
 European Union Common Agricultural Policy Implementation Act, 2014;  
 Rural Development and Agricultural Market Regulation Act of 19 June 2 008; 
 Infectious Animal Disease Control Act 16 June 1999;  
 Estonian Rural Development Plan 2007 -2013 (RDP 2007 -2013);  
 Estonian Rural Development Plan 2014 -2020 (RDP 2014 -2020);  
 National Programme "Conservation and Utilization of Plant Genetic Resources for F ood 
and Agriculture 2014 -2020"  
 National Programme "Applied Research and Development in Agriculture 2015 -2021" 
 The Estonian Organic Farming Action Plan 2014 -2020 (OFAP 2014 -2020);  
 National Programme for Plant Breeding 2009 -2019;  
 Action Plan for the Sustaina ble Use of Plant Protection Products for 2013 -2017 
 Development plan of seed business  2014-2020 
 National Apiculture Programme 2013 -2016 
 Strategic document " Estonian Food 2015 -2020" 
5. Form of the subsidy  
Grants, subsidized services . G/SCM/N/315/EU/Add.8  
 
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  6. To whom and how the s ubsidy is provided   
(a) Support for research  is provided to the various institutions for development of agricultural 
policies, applied research for plant and livestock production, research related to breeding, 
incl. support for the breeding of farm animals  and conservation and utilization of plant 
genetic resources from RDP 2007 -2013 and 2014 -2020 and from different national 
programmes. Also support for cooperation, which will contribute to cutting -edge research 
and technology and farmers, businesses and ad visory services strengthening the link 
between them, is included.  
(b) The support for pest and disease control  is provided to institutions for developing pest 
and disease control measures. The compensation of removal and destruction of fallen stock 
and com pensation of eradicating costs of African swine fever are also included.  
(c) The support for training services  includes practical training support, education support, 
technical aid (seminars) from RDP 2007 -2013 and 2014 -2020 and from different national 
programmes. Practical training support is provided to agricultural producers for partial 
compensation of the expenses incurred with the supervision and organisation of practical 
training in the enterprise for studying agricultural specialities.  
(d) Extension and advisory services  include advice 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 advisory 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 functioni ng 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). T he 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 veterinary and food 
control, food  quality and safety inspection programmes.  
(f) Marketing and promotion services  are aimed at supporting the marketing and promotion 
activities for agricultural producers and processors through participating in exhibitions and 
trade fairs and other joint pr omotion 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 mark et research, product development, promotional activities, 
training, competitions and fairs, quality assurance etc .).  
(g) The support for infrastructural services  involves the maintenance of amelioration 
structures, aiming at promoting the development of i nfrastructure in rural areas.  
(h) Under other types , the support for the replacement of agricultural producer during the 
vacation period and illness is implemented.  
7. Subsidy per unit, or in cases, where this is not possible, the total amount or the annua l 
amount budgeted for the subsidy  
Fiscal year 2015  - 27.690 Mio EUR from the Estonian state budget  
Fiscal year 2016 - 30.303 Mio EUR 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 2007 -2013(the payments in 2015 according 
the demands of the measure conditions) and new 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 -2019, the G/SCM/N/315/EU/Add.8  
 
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  Estonian Organic Farming Action Plan 2014 -2020, National Apiculture Programme 2013 -2016, 
National Programme for Plant Breeding 2009 - 2019, Action Plan for the Sustainable Use o f Plant 
Protection Products for 2013 -2017, Development plan of seed business 2014 - 2020, Strategic 
document „Estonian Food " 2015-2020. For state aid measures, the validation period is the end of 
2020. Other grants, subsidies and measures have no time limit s attached to them.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.2  Public Stockholding For Food Security Purposes  
1. Period covered by the notification  
2015; 2016  
2. Policy objective and/or purpose of the subsidy  
The p rogramme 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 2015;  
 State Budget A ct of 2016;  
 Emergency Act of 15 June 2009.  
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 ag reements with private enterprises, which act like partners of state 
to be prepared for urgency.  
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 2015 - grants of 0.547  Mio EUR from Estonian state budget  
Fiscal year 2016 - grants of 0.560 Mio EUR 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 o f the trade effects of a subsidy  
N/A. 
5.3  Domestic food AID  
1. Period covered by the notification  
2015; 2016  G/SCM/N/315/EU/Add.8  
 
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  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 encourage healthy eating habits and thereby promote the 
consumption of milk and milk products.  
The school fruit scheme provides school children (and since September 2012 also kindergarten 
children) with fruit and vegetables, aiming thus to encourage good eating habits in young people.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs . 
4. Legislation under which it is granted  
 State Budget Act of 2015;  
 State Budget Act of 2016;  
 European Union Common Agric ultural 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 an d vegetables by school pupils, as well as to 
encourage 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 provider s, city governments/local municipalities or legal 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 2015 - grants of 1.009 Mio EUR from the Estonian state budget  
Fiscal year 2016 - grants of 1.152 Mio EUR from the Estonian state budget  
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  
 2015; 2016  
There was no decoupled income support granted from Estonian na tional budget on period covered 
by the notification. All measures were granted from European Union budget.  G/SCM/N/315/EU/Add.8  
 
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  5.5  Government financial participation  in income insurance and income safety - net 
programmes  
1. Period covered by the notification  
2015; 2016  
2. Policy objecti ve 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). Th e purpose is to offer a sustainable solution 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 2015, granted as state aid according to Commission Regulation 
(EC) No. 702/2014;  
- State Budget Act of 2016, granted as state aid according to Commission Regulation 
(EC) No. 702/20 14; 
- 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 un it, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy   
Fiscal year 2015 – grants of 0.009 Mio EUR from the Estonian state budget . 
Fiscal year 2016 – grants of 0.008 Mio EUR from the Estonian state budget . 
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. 
5.6  Payment for Relief from Natural Disaster s  
There were no grants of payment for relief from natural disasters awarded in 2015 and 2016.  G/SCM/N/315/EU/Add.8  
 
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  5.7  Structural adjustment assistance provided through resource retirement 
programmes  
1. Period covered by the notification  
2015; 2016  
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 Affairs, Rural Development  Foundation . 
4. Legislation under which it is granted  
-  State Budget Act of 2015, granted as state aid according to Commission Regulation 
(EC) No. 702/2014;  
-  State Budget Act of 2016, granted as state aid according to Commission Regulation 
(EC) No. 702/201 4; 
- 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  affected by African Swine fever.  
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 2015 – grants of 0.625 Mio EUR from the Estonian state budget . 
Fiscal year 2016 – grants  of 0.079 Mio EUR from the Estonian state budget . 
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 subsi dy 
N/A. 
5.8  Structural Adjustment Assistance Provided Through Investment Aids  
1. Period covered by the notification  
2015; 2016  
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.  G/SCM/N/315/EU/Add.8  
 
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  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 2007 -2013 (RDP 2007 -2013);  
 European Un ion Common Agricultural Policy Implementation Act 2009;  
 Estonian Rural Development Plan 2014 -2020 (RDP 2014 -2020);  
 European Union Common Agricultural Policy Implementation Act 2014;  
 Rural Development and Agricultural Market Regulation Act of 19 June 2008;  
 State Budget Act of 2015, granted as state aid according to Commission Regulation 
(EC) No. 702/2014; (EC) No. 1408/2013;  
 State Budget Act of 2016, granted as state aid according to Commission Regulation 
(EC) No. 702/2014; (EC) No. 1408/2013.  
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 production -oriented 
agricultural sector which is competitive, resource -efficient, an d with sustainable age structure.  
Through the RDP 2007 -2013  following subsidies are provided in 2015:  
 Measure 1.2 - Setting up of young agricultural producers, support to younger than 40 year 
old agricultural producers for setting up new holdings. Target i s to relief the difficulties of 
changing the generations.  
 Measure 1.4 - Modernisation of agricultural holdings, support for micro agricultural holdings 
with the target to enlarge the competitiveness of agricultural production via diversification of 
agricul tural activities.  
 Measure 1.5 - Improving the economic value of forests and adding value to forestry 
products, the overall objective of the support for improving the economic value of forests 
and adding value to forestry products is to improve the competit iveness of private forest 
owners (both natural persons and legal persons governed by private law), non -profit 
associations and commercial associations (forestry associations) of forest owners, and 
micro -enterprises active in industrial production of wood a nd in forest management.  
 Measure 1.6 – Adding value to agricultural and non -forestry products, the overall objective 
is to improve the competitiveness of agricultural and non -wood forestry sector through the 
improvement of the general performance of agric ultural and non -wood forestry produce 
processing enterprises (improvement of general economic indicators, decrease in 
environmental load, growth of export potential, etc.), and to ensure their long -term 
sustainability.  
 Measure 1.8 - Infrastructure of agric ulture and forest management, support for land 
improvement activities of land improvement associations via p reserving the operation of 
drainage systems on agricultural land.  
 Measure 2.5 - Non-productive investments, the objective of the support for the 
establishment and restoration of stonewalls is to contribute to the establishment and 
restoration of stonewalls as traditional elements of agricultural landscapes, having high 
historic, cultural and landscape value.  G/SCM/N/315/EU/Add.8  
 
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  Through the RDP 2014 -2020  following subsidi es are provided:  
 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 ma intenance of agricultural and 
forestry infrastructure.  
 Measure 6 - Farm and business development, included support of setting up of young 
farmers, development of small farms and support for the diversification of rural economy 
towards non -agricultural acti vities.  
 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 fores t fires, 
natural disasters and disasters and support for improving the viability and economic value of 
forests.  
 For better implementation of sub -measures 4.1 (Investments into improving the 
performance of agricultural holdings), 4.2 (Investments into proce ssing and marketing of 
agricultural products) and 6.4 (Support for the diversification of rural economy towards non -
agricultural activities) of RDP 2014 -2020, the following financial instruments are available 
via RDF since February 2016:  
 The growth loan fo r micro and small enterprises;  
 Long-term investment loan.  
The target of the financial instruments is to ensure the better access to capital. The target group of 
the measure are small and medium size enterprises.  
RDF guarantees and loans to farmers and othe r rural entrepreneurs and non -profit organisations 
from its own budget for different purposes are provided several years. In 2015 and 2016, the RDF 
continued to grant loans and guarantees to farmers and other rural entrepreneurs and non -profit 
organisation s for different investments.  
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 2015 – grants of 5.634 Mio EUR from the Estonian state budget (including the amount 
of red uced guarantee fee and loan interest concession 0.288 Mio EUR)  
Fiscal year 2016 – grants of 5.324 Mio EUR from the Estonian state budget (including the amount 
of reduced guarantee fee and loan interest concession 0.463 Mio EUR and RDP 2014 -2020 financial 
instruments 0.047 Mio EUR)  
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of a subsidy is the validation period of RDP 2007 -2013 (the last payments in 2015) and 
RDP 2014 -2020. For state aid measures and de minimis measures, th e 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.  
5.9  Payment Under Environmental Programs  
1. Period covered by the n otification  
2015; 2016  G/SCM/N/315/EU/Add.8  
 
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  2. Policy objective and/or purpose of the subsidy  
Support under the RDP is provided for environmentally friendly and sustainable production 
methods. The compensation of damages caused by wild animals and birds (protected by the 
Natur e 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 Comm on Agricultural Policy Implementation Act 2014;  
 Estonian Rural Development Plan 2007 -2013 (RDP 2007 -2013);  
 Estonian Rural Development Plan 2014 -2020 (RDP 2014 -2020);  
 Nature Conservation Act of 21 April 2004.  
 State Budget Act of 2015, granted as state aid according to Commission Regulation 
(EC) No. 1408/2013  
 State Budget Act of 2016, 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 pro vided by the RDP 2014 -2020 (measure 10, before in RDP 2007 -2013 
measure 2.3) is to introduce environmentally friendly production methods that will promote 
sustainability of the environment by restricting the use of fertilizers and pesticides in the handlin g 
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 annually 
and is calculated on the basis of income foregone an d 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, plant protection products or other inputs.  
The aim of the support provided by the RDP 2014 -2020 (mea sure 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 organic farming in traditional agriculture that will promote sustainability of 
the environment by rest ricting the use of fertilizers and pesticides in the handling of organic 
foodstuffs. Support is granted annually and is calculated on the basis of income foregone and 
additional costs resulting from the given actions and the need to provide an incentive. P ayments 
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 objecti ve of this measure is to improve 
animal welfare, to maintain and improve biological and landscape diversity and to improve the soil 
fertility of cultural grasslands.  This support is available for farmers (natural and legal persons, civil 
law partnerships a nd 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 stocking density is up 
to 1.0 LU/ha.  
The compensation of damages caused by wild animals and birds (pr otected by Nature 
Conservation Act) is financed by the Environmental Board 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 amount or the annual 
amount budgeted for the subsidy   
Fiscal year 2015 - grants of 9.652 Mio EUR from the Estonian state budget  
Fiscal year 2016 – grants of 11.424 Mio EUR from the Estonian state budget  G/SCM/N/315/EU/Add.8  
 
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  8. Duration of a subsidy and/or any other time limits attached to it  
Duration of a subsidy is the validation period of RDP 2007 -2013 (the last payments in 2015) and 
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.  
5.10  Payment Under Regional Assistance Programs  
1. Period covered by the notification  
2015; 2016  
2. Policy objective and/or purpose of the subsidy  
General objective of the measure is to secure continuous land use in less -favou red areas (LFA) and 
NATURA 2000 areas.  
3. Background and authority for the subsidy  
The Ministry of Rural Affairs  
4. Legislation under which it is granted  
 European Union Common Agricultural Policy Implementation Act 2014;  
 Estonian Rural Development Plan 200 7-2013;  
 Estonian Rural Development Plan 2014 -2020.  
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided   
The aim of the measure is to secure the continuous land use in less -favoured areas. According to 
the estimation, there are about 465 000 ha of agricultural land in Estonia that falls under the 
category of less -favoured areas  
Considering the need to maintain biological and landscape diversity, it is necessary to ensure areas 
the agricultural lands compensation for the restrictions i n LFA and NATURA 2000 ; this 
compensation is given RDP 2007 -2013 (measures 2.1 and 2.2 - last implementation year 
was 2015).   
Also, RDP 2007 -2013 measure 2.7 NATURA 2000 support for private forest land  is provided under 
regional assistance areas. The overal l objective of this measure is to contribute to the sustainable 
use of private forest land located in NATURA 2000 areas . 
In RDP 2014 -2020 the similar support measure for NATURA 2000 areas was provided 
(measure  12). 
7. Subsidy per unit, or in cases where th is is not possible, the total amount or the annual 
amount budgeted for the subsidy   
Fiscal year 2015 - grants of 1.164 Mio EUR from the Estonian state budget  
Fiscal year 2016 - grants of 1.140 Mio EUR from the Estonian state budget  G/SCM/N/315/EU/Add.8  
 
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  8. Duration of a subsidy  and/or any other time limits attached to it  
Duration of a subsidy is the validation period of the RDP 2007 -2013 (last payments in 2015) and 
new RDP 2014 -2020.  
9. Statistical data permitting an assessment of the trade effects of a subsidy  
N/A. 
5.11  Fuel Tax Exe mption  
1. Period covered by the notification  
2015; 2016  
2. Policy objective and/or purpose of the subsidy  
Tax exemption is for agricultural produces using diesel fuel marked with fiscal markers  in the 
machinery used in the agricultural production 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 Directive 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 a nd 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 produces  using diesel fuel marked with fiscal markers  in the 
production process.  
7. Subsidy pe r 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.  
During the period 1st of January 2015 till 31st of January 2016 the subsidy per unit (1000 liter) was 
291.97 EUR and during the period 1st of February till 31st of December in  2016, 327.00 EUR.  
Fiscal year 2015 – tax exemption is calculated in the amount of 36.270 Mio EUR  
Fiscal year 2016 – tax exemption is calculated in the amount of 47.664 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
Duration o f tax exemption validation period ends 2020.  G/SCM/N/315/EU/Add.8  
 
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  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  
2015; 2016  
2. Policy objective and/or purpose of the subsi dy 
The short -term loans (not for investments) with interest concession and the Guarantee Scheme 
are aimed to facilitating SMEs access to financial resources. Short -term loans and loan guarantees 
as state aid or de minimis  are given by the Rural Development  Foundation (RDF) for agricultural 
produces. 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.  
In the  context of low prices for milk and financial difficulties in the milk sector, the Member States 
have exceptionally been given (by Commission Implementing Regulation (EU) 2015/517) the 
possibility to collect the surplus levy related to the milk quota year 2014/15 under a three year 
instalment scheme at zero interest rate. Estonia was one of the countries allowing producers to 
use this instalment scheme.  
3. Background and authority for the subsidy  
Rural Development Foundation, Ministry of Rural Affairs . 
4. Legisl ation under which it is granted  
 Rural Development and Agricultural Market Regulation Act of 19 June 2008;  
 State Budget Act of 2015, granted as state aid according to Commission Regulation 
(EC) No. 1408/2013 ; 
 State Budget Act of 2016, granted as state aid a ccording to Commission Regulation 
(EC) No. 1408/2013 and (EC) No. 702/2014;  
 Commission Implementing Regulation (EU) 2015/517;  
 European Union Common Agricultural Policy Implementation Act 2014.  
5. Form of the subsidy  
Reduced guarantee fee, loan interest conces sion. 
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 . 
The surplus levy related instalment scheme at zero i nterest rate was for milk producers who 
collected the surplus levy related to the milk quota year 2014/15.  
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 2015 – deposit e xemption 0.049 Mio EUR and instalment the milk quota surplus levy 
at 0% interest 0.172 Mio EUR  G/SCM/N/315/EU/Add.8  
 
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  Fiscal year 2016 – deposit exemption 0.010 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
For de minimis measure, the validation pe riod is the end of 2020. The surplus levy de minimis 
validation period is 1st October 2015 till 1st October 2017 . 
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  
2015; 2016  
There was no coupled income support granted from Estonian national budget on period covered by 
the notification. All measures were granted from European Union budget.  
5.14  Exceptional market support measures  
1. Period covered by the notifi cation  
2015; 2016  
2. Policy objective and/or purpose of the subsidy  
The objective of exceptional aid to livestock farmers was to compensate deteriorated livestock 
market situation throughout 2014 and 2015.  
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  
 The Commission Delegated Regulation (EU) No. 2015/1853  
5. Form of the subsidy  
Grant . 
6. To whom and how the subsidy is provided   
The exception al aid to livestock farmers was paid to pig meat and milk producers per animal 
(pig or dairy cow) in Agricultural Register and Information Board (ARIB) animal register.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annua l 
amount budgeted for the subsidy  
Fiscal year 2015 – grants of 3.000 Mio EUR  
Fiscal year 2016 – grants of 4.002 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it  
Duration of validation period ends 30th of June, 2016.  G/SCM/N/315/EU/Add.8  
 
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  9. Statistical dat a permitting an assessment of the trade effects of a subsidy  
N/A. 
 
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