G/SCM/N/284/EU/Add.8  
 
10 May 2016  
(16-2562)  Page: 1/27  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to subsidy programmes 
of Estonia . 
 
_______________ 
 
 G/SCM/N/284/EU/Add.8 
 
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  ESTONIA  
 
TABLE OF CONTENTS 
  
1   AID FOR RESEARCH  AND DEVELO PMENT ..................................................................... 3
 
1.1   R & D Financing Programme ........................................................................................ 3  
1.2   Risk Capital Scheme .................................................................................................. 4  
2   OTHER HORI ZONTAL AID ............................................................................................ 5  
2.1   Support for the Participation of Entrepreneurs in Trade Fairs ............................................ 5  
2.2   Training Progra mmes for Comp anies ............................................................................ 6  
2.3   Guarantee Sche me for Comp anies ............................................................................... 6  
2.4   Start-Up Programme .................................................................................................. 8  
2.5   Employ ment Aid ........................................................................................................ 9  
2.6   Loan Scheme  for Comp anies ...................................................................................... 10 
2.7   Consulta ncy Programme ............................................................................................ 10 
3   REGION AL AI D .......................................................................................................... 12  
3.1   Programme of Investment Support ............................................................................. 12 
4   ENVIRONM ENTAL AID ............................................................................................... 13  
4.1   Substitution of the Pollutio n 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 
5   DOMESTIC SUPPOR T IN AGRICULTURE ..................................................................... 17  
5.1   Genera l Services ...................................................................................................... 17 
5.2   Public Stockholding Fo r Food Security  Purposes ............................................................ 18 
5.3   Domestic food AID .................................................................................................... 19 
5.4   Decoupled income support ......................................................................................... 20 
5.5   Government financial participation in income insurance and income safety- net 
programmes ................................................................................................................... 21 
5.6   Payment for Relief from Natural Disast ers .................................................................... 22 
5.7   Structural Adjustment Assistance  Provided Through Investment Aids ............................... 22 
5.8   Payment Under En vironmental Programs ..................................................................... 23 
5.9   Payment Under Region al Assistance  Programs .............................................................. 24 
5.10   Fuel Tax Exemption ................................................................................................. 25 
5.11   Short-Term LOAN Guarantees ................................................................................... 26 
5.12   Transitional Na tional Aid (coupled) ............................................................................ 27 
 
  G/SCM/N/284/EU/Add.8 
 
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  1  AID FOR RESEARCH AND DEVELOPMENT 
1.1  R & D Financing Programme 1. Period covered by the notification 
 
2013, 2014.   
 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 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 17 of 19 April 2011. 
Regulation of the Minister of Education No 71 of 3 December 2010. Regulation of the Minister of Education No 17 of 31 March 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. 
 
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 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 innovative 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. 
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 subsidies ar e provided for businesses who 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 50 per cent of eligible costs, 
which may increase up to 80 per cent in specia l cases (SMEs, cross-bord er cooperation, wide 
dissemination of the results etc).   G/SCM/N/284/EU/Add.8 
 
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  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.   
 
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 2013 - 0,940 Mio EUR. Fiscal year 2014 - 1,536 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.  
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.   
 
1.2  Risk Capital Scheme  
1. Period covered by the notification 
 
2013, 2014.    2. Policy objective and/or purpose of the subsidy 
 The objectives of the Development Fund 's investment actions are to give a positive 
impetus to the development of Estonia 's venture capital market. 
 
3. Background and authority for the subsidy 
 
Estonian Development Fund (EDF). 
 4. Legislation under which subsidy is granted 
 
Estonian Development Fund Act, Estonian Development Fund Investment Strategy.   
 5. Form of the subsidy 
 
Investments in equity capital.    
6. To whom and how the subsidy is provided 
 
EDF invests in small and medium-sized enterprises, which are not be listed on the official list of a stock exchange or on an unlisted securities market of a stock exchange. The aid is restricted to 
initial investments into SMEs in their seed and start-up stage. 
 EDF provides equity investments or quasi-equity. The total maximum size of investment tranche 
per target SME shall not exceed 1,5 Mio EUR over each period of 12 months. The tranche includes 
both the investments of EDF and the private co-inv estments. At least 30% of the investment will 
be made by independent private investors, EDF investments will not exceed 70% of the total 
investment. 
 Participation of the EDF, acquired as a result of an investment, must not be less than 10% and more than 49% of the share capital of the investee company. G/SCM/N/284/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 2013 – 0,175 Mio EUR. 
Fiscal year 2014 – 0,0 Mio EUR. 
 8. Duration of a subsidy and/or any other time limits attached to it 
 The programme was valid till 31 December 2013.    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 
 
2013, 2014.    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 ( SA Tallinna Ettevõtlusinkubaatorid ). 
 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 23 January 2014 ; Regulation of 
Tallinn City Council No 12 of 5 February 2014. 
 
Regulation of Tallinn City Council No 13 of 14 June 2012   
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 2013 – 0,085 Mio EUR. Fiscal year 2014 – 0,051 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 assessment of the trade effects of a subsidy 
 N/A.   G/SCM/N/284/EU/Add.8 
 
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  2.2  Training Programmes for Companies  
1. Period covered by the notification 
 
2013, 2014.   
 
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).  3. Background and authority for the subsidy 
 Tallinn City Enterprise Department. Incubator Tallinn ( SA Tallinna Ettevõtlusinkubaatorid ). 
Foundation Archimedes. 
 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 Tallinn City Council No 13 of 14 June 2012. 
Regulation of Minister of Education No 27 of 6 February 2009. 
 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 2013 – 0,036 Mio EUR. 
Fiscal year 2014 – 0,020  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 
 
2013, 2014.    2. Policy objective and/or purpose of the subsidy 
 To promote mainly small and medium sized enterp rises by supporting their access to capital by 
securing their bank loans.   
 
3. Background and authority for the subsidy 
 
Foundation KredEx. 
Rural Development Foundation.  G/SCM/N/284/EU/Add.8 
 
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  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 working loans, bank guarantees and start-up loans 
approved by the Decree of the Head of Foundation No 25-üld of 17 March 2011 ; Conditions for 
guaranteeing SMEs loans approved by the Decr ee of the Head of Foundation No 21-üld of 
12 March 2014   
 
Rural Development and Agricultural Market Regulation Act; Decision of Supervisory Board of Rural Development Foundation of 20 November 2008; Decision of Supervisory Board of Rural Development Foundation of 6 December 2012;  Decision of Supervisory Board of Rural 
Development Foundation of 7 November 2013  
 5. Form of the subsidy 
 Loan and leasing 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 per cent 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 pers onal surety. In case of surety, KredEx will take 
second responsibility. That means that if a business plan fails and the businessman 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 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 leasing starts from 1,7% 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 entrepreneur shall not have tax arrears 
or any financial difficulties and is able to perform the obligations arising from the loan agreement. 
 The extent of the guarantee necessary for a particular loan is decided by the bank which also 
submits a corresponding application to the Rural Development Foundation. The guarantee does not 
release the entrepreneur from proprietary liability - the entrepreneur holds primary liability for the loan obligation which must be also secured with one's own property or a personal surety must be 
provided to the bank. If for any reasons the bu siness of the entrepreneur fails and the pledged 
property of the borrower is not sufficient for deleting the loan residue, the Rural Development Foundation will pay the bank the agreed amount of the guarantee.  
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 2013 – guarantee amount 33,774 Mio EUR ( aid element 0,901  Mio EUR). 
Fiscal year 2014 – guarantee amount 38,198 Mio EUR ( aid element 1,282 Mio EUR). 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
The programmes are valid till 2020.    G/SCM/N/284/EU/Add.8 
 
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  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 
 
2013, 2014.   
 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 surv ival ratio of new enterprises.   
 
3. Background and authority for the subsidy 
 
Enterprise Estonia (Foundation).  
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 
 
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 170 of 22 December 2011; 
Government Regulation No 174 of 12 December 2013.  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.   
 
6. To whom and how the subsidy is provided 
 An applicant may be a sole proprietor or underta king 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 an d 80 per cent 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 unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2013 – 4,522 Mio EUR. 
Fiscal year 2014 – 5,221 Mio EUR. G/SCM/N/284/EU/Add.8 
 
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  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 
 
2013, 2014.   
 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 effi ciency and quality of labour market services; to 
stimulate job-creation.   
 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 Market Services and Benefits Act; Government Regulation No 170 of 22 December 2011; 
Government Regulation No 174 of 12 December 2013.  Regulation of Tallinn City Council No 16 of 14 May 2009. 
 
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 pr oprietors for recruitment of disadvantaged and 
disabled workers, to cover additional costs of em ployment of disabled workers (adapting premises 
or equipment) and for creating social jobs for registered unemployed persons.    
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 6 months.   
 Subsidy for the adaptation of premises and equi pment is provided in case of recruitment of 
disadvantaged workers. The size of the subsidy is  50 per cent of the cost of the adjustment but 
not in an amount exceeding the upper limit established for support.   
 For entrepreneurs in the City of Tallinn 2/3 of the wage cost is covered.   
 
For entrepreneurs in the City of Narva the support is based on percentage of the additional income 
tax of the project. 
 G/SCM/N/284/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 2013 – 4,123 Mio EUR. 
Fiscal year 2014 – 1,998 Mio EUR. 
 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 
 
2013, 2014.   
 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 4 December 2014; Decision of Supervisory Board of Rural 
Development Foundation of 4 December 2014. 
 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 year 2013 – loan amount 0,0 Mio EUR. Fiscal year 2014 – loan amount 0,171 Mio EUR ( aid element 0,007 Mio EUR ). 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 The program of Rural Development Foundation is valid till 31 December 2015.  
 
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 
 
2013, 2014.   G/SCM/N/284/EU/Add.8 
 
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  2. Policy objective and/or purpose of the subsidy 
 
To enable to purchase consultations from professional consultants or to prepare applications.    
3. Background and authority for the subsidy 
 
Estonian Unemployment Insurance Fund (Töötukassa). 
Estonian Research Council. 
Incubator Tallinn.  Enterprise Estonia (Foundation). Foundation Innove. 
Tallinn City Enterprise Department. 
 4. Legislation under which subsidy is granted 
 Labour Market Services and Benefits Act; Government Regulation No 170 of 22 December 2011; Government Regulation No 174 of 12 December 2013. 
 
Instructions approved by the Decision of the Management Board of Estonian Research Council of 13 August 2012; Instructions approved by the De cision of the Management Board of Estonian 
Research Council of 11 June 2014. 
 
Regulation of Tallinn City Council No 13 of 14 June 2012.  
Regulation of Minister of Economic Affair s and Communications No 5 of 27 January 2009. 
 Regulation of Minister of Social Affairs No 59 of 2011. 
 
Regulation of Tallinn City Council No 3 of 28 January 2010.  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 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 3 835 EUR. 
 
In case of Incubator Tallinn the support will cove r 100% of the costs of consultancy in the frames 
of incubation services. 
 
In case of Enterprise of Estonia the aim is to support SMEs for consultancy aimed at innovation.  
In case of foundation Innove the subsidy is provided for risk analysis of working environment. The 
support will cover 70% of eligible costs.  In case of Tallinn City Enterprise Department the maximum amount of support is 2 600 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 2013 – 0,270 Mio EUR. Fiscal year 2014 – 0,171 Mio EUR. 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 Different time limits apply to different subsidies.   
 G/SCM/N/284/EU/Add.8 
 
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  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 
 
2013, 2014.    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.   
 
3. Background and authority for the subsidy 
 
Enterprise Estonia. 
Agricultural Registers and Information Board (ARIB). For City of Narva - Department for Development and Economy. Ministry of Education and Research. 
 
4. Legislation under which subsidy is granted 
 
Decree of the Minister of Regional Affairs No 1-4/234 of 14 December 2011. 
 Estonian Rural Development Plan; Regulation of the Minister of Agriculture No 20 of 
12 March 2008; Regulation of the Minister of Ag riculture No 119 of 22 December 2010; Regulation 
of the Minister of Agriculture No 120 of 22 De cember 2010; Regulation of the Minister of 
Agriculture No 59 of 12 June 2008; Regulation  of the Minister of Agriculture No 75 of 
21 September 2012. 
 
Budget of City of Narva 2013.  
Contract between Ministry of Education and Research and OÜ Keel 24 of 27 June 2014. 
 5. Form of the subsidy 
 Grant.    6. To whom and how the subsidy is provided 
 
In case of service centers support program  the applicants can inter alia be sole proprietors and 
companies. Maximum amount of support is 20 000 EUR. 
 
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 and handicrafts, provision of services for the economy and inhabitants of rural areas (small towns) and production of non-agricultural products etc. Up to 50% of the eligible costs may be covered. In case of 
Agricultural Registers and Information Board program (Leader) up to 100% of eligible costs can be 
covered.  
Ad hoc support is granted by the Department for Development and Economy of City of Narva. 
 Ad hoc support is also granted by the Ministry of Education and Research. G/SCM/N/284/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 2013 – 3,886 Mio EUR. 
Fiscal year 2014 – 2,740 Mio EUR. 
 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.    
4  ENVIRONMENTAL AID 
4.1  Substitution of the Pollution Charge  
1. Period covered by the notification 
 
2013, 2014.    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 ( XR 53/07 ).   
 5. Form of the subsidy 
 Pollution charge substitution with investments in environmental protection.    
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 ensu re the reduction of pollutants over the 
course of 3 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 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 the 
environmental protection measures.   
 
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 2013 – 0,039 Mio EUR. Fiscal year 2014 – 0,200 Mio EUR. G/SCM/N/284/EU/Add.8 
 
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  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 was valid till 31 December 2013. A new program started from 2014, 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 
 
2013, 2014.    
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). 
Rural municipality government ( Mäetaguse Vallavalitsus ). 
Private Forest Centre Foundation. Foundation KredEx. 
Agricultural Registers and Information Board (ARIB). 
 4. Legislation under which subsidy is granted 
 2007-2013 Structural Assistance Act; Ambient Air Protection Act; Government Order No 65 of 4 March 2010; Regulation of the Minister of  Environmental Affairs No 14 of 24 March 2009; 
Regulation of the Minister of Environmental Affairs No 42 of 30 August 2009. 
 
Regulation of the Minister of Economic Affa irs and Communications No 85 of 15 October 2010. 
 
Forest Act; Regulation of the Minister of Environment No 11 of 11 February 2009. 
 Regulation of the Minister of Economic A ffairs and Communications No 69 of 12 July 2011. 
 
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 
meet the criteria of Environmental Investment Centres measure "Wider use of renewable energy 
sources for energy production" (Regulation of the Minister No 14 and 42) and national environmental programmes inter alia for demolition of old buildings and the conversion of boiler houses to renewable energy. Rural municipality government of Mäetaguse  co-financed its boiler 
house to renewable energy. 
 In case of the Regulation of Minister Economic  Affairs and Communications No 85, the subsidy is 
provided in the frames of green investment scheme to invest in plants using wind energy to 
produce electricity. The maximum amount of grant is 20 Mio EUR, up to 80 per cent of eligible costs can be supported. 
 
Subsidies for promotion of forests are granted in accordance with the relevant conditions of Private Forest Centre Foundation.  G/SCM/N/284/EU/Add.8 
 
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  In case of the Regulation of Minister Economic  Affairs and Communications No 69, the subsidy is 
provided in the frames of green investment scheme to buy electric cars. The applicants can inter 
alia be companies. The maximum amount of grant is 18 000 EUR, up to 50% of eligible costs can 
be supported. 
 
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 where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2013 – 17,689 Mio EUR. 
Fiscal year 2014 – 14,210 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 re newable sources and efficient cogeneration  
1. Period covered by the notification 
 
2013, 2014.   
 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 on the basis of 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 2013 – 57,801 Mio EUR. 
Fiscal year 2014 – 64,781 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 produce electricity. G/SCM/N/284/EU/Add.8 
 
- 16 - 
 
  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 the notification 
 
2013, 2014.    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 10c(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 th e 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 de creased by 10% each year, with free allowances 
being thus phased out completely in 2020. The quan tity 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 possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2013 – 0,0 Mio EUR. Fiscal year 2014 – 74,460 Mio EUR. 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
The subsidy is paid on during th e 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/284/EU/Add.8 
 
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  5  DOMESTIC SUPPORT IN AGRICULTURE 
5.1  General Services  
1. Period covered by the notification 
 
2013; 2014. 
 2. Policy objective and/or purpose of the subsidy 
 The programme aims at providing services and be nefits to agriculture or the rural community.  
 3. Background and authority for the subsidy 
 The Ministry of Agriculture.  
4. Legislation under which is granted 
 
- State Budget Act of 2013; 
- State Budget Act of 2014; 
- Rural Development and Agricultural Market Regulation Act of 19 June 2008; 
- European Union Common Agricultural Policy Implementation Act, 2009; 
- Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
- National Programme "Conservation and Utiliz ation of Plant Genetic Resources for Food 
and Agriculture 2007-2013";  
- National Programme "Conservation and Utiliz ation of Plant Genetic Resources for Food 
and Agriculture 2014-2020";  
- National Programme Applied Research and Development in Agriculture 2009-2014; 
- The Estonian Organic Farming Action Plan 2007-2013 (OFAP 2007-2013); 
- The Estonian Organic Farming Action Plan 2014-2020 (OFAP 2014-2020); 
- National Programme for Plant Breeding 2009-2019; 
- National Apiculture Programme 2010-2013, 
- National Apiculture Programme 2013-2016.   
 
5. Form of the subsidy 
 
Grants. 
 6. To whom and how the subsidy 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 animal s and conservation and utilization of plant 
genetic resources.  
 (b) The support for pest and disease control is prov ided to institutions for developing pest and 
disease control measures. The compensation of removal and destruction of fallen stock is 
also included. 
 
(c) The support for training services includes practical training support, education support, 
technical aid (seminars) from RDP 2007-2013, OFAP (2007-2013, 2014-2020) and the National Apiculture Programme (periods 01.09.2010-31.08.2013, 01.09.2013-31.08.2016). 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 ad vice 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 functioning of the G/SCM/N/284/EU/Add.8 
 
- 18 - 
 
  agricultural advisory system, including the communication of information about state 
measures and the availability of quality ad vice (training plans, advisory tools, and 
analyses, advertising the advisory service, and looking for new advisers). The Ministry of Agriculture 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 promotion activiti es; 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, pr oduct 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 infrastructure 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 annual 
amount budgeted for the subsidy 
 
Fiscal year 2013 - grants of EUR 28.89 milli on from the Estonian state budget. 
Fiscal year 2014 - grants of EUR 27.03 milli on 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, Development Plan Gathering and 
Storing the Genetic Resources of Agricultural  Cultures 2007-2013 (new 2014-2020) and for 
National Programme Applied Research and Development in Agriculture 2009-2014, the 
Estonian Organic Farming Action Plan 2007-2013 (new 2014-2020), National Apiculture 
Programme 2010-2013 (new 2014-2016), National Programme Variety Breeding 2009-2019. For state aid measures, the validation period is the end of 2014 (The new similar measures will 
start 2015). 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 Stockholding For Food Security Purposes  
1. Period covered by the notification 
 
2013; 2014. 
 
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 Agriculture.  
4. Legislation under which it is granted 
 
- State Budget Act of 2013; 
- State Budget Act of 2014; G/SCM/N/284/EU/Add.8 
 
- 19 - 
 
  - 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 Agriculture has agreements 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 2013 - grants of EUR 0.02 million from Estonian state budget. Fiscal year 2014 - grants of EUR 0.02 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 
 
2013; 2014.  
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. 
 Stock for the benefit of the most deprived persons in the Community is distributed by Charitable 
Organizations. They distribute macaronis and othe r cereal products to the most deprived persons 
and are also the ones responsible for communication with the beneficiaries of the programme i.e. those referred to as most deprived.  
 
3. Background and authority for the subsidy 
 
The Ministry of Agriculture. 
 4. Legislation under which it is granted 
 
- State Budget Act of 2013; 
- State Budget Act of 2014; 
- European Union Common Agricultural Policy Implementation Act 2009. 
 
5. Form of the subsidy 
 
Grants. 
 G/SCM/N/284/EU/Add.8 
 
- 20 - 
 
  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 
encourage healthy eating habits and thereby promote the consumption of milk, milk products, 
fruits and vegetables. Support may be granted fo r educational institutions (school/kindergarten), 
milk product providers, city governments/local m unicipalities or legal persons (e.g. non-profit 
organizations) which represent school/kindergarten.  
 Stock for the benefit of the most deprived persons in the Community are distributed to the most deprived persons.  
 
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 2013 - grants of EUR 1.15 million from the Estonian state budget. Fiscal year 2014 - grants of EUR 1.17 million 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. For stock for the 
benefit of the most deprived persons the program period ended 2014. The new similar program 
will start 2015.  
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 
 
2013; 2014. 
 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 2009; 
- Commission Decision C (2010) 2925 of 07 May 2010 and C (2012) 807 final 
14 February 2012. 
 
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.  
 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. 
 G/SCM/N/284/EU/Add.8 
 
- 21 - 
 
  The TNA for 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 dealing 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 cows crossbreed based on 
the determined animal livestock units in 2006.  The TNA for milk (decoupled) is provided to th e person dealing with agricultural activities 
according to the TNA entitlements for milk which are based on the milk quota on his name as of 
31
st March 2007.  
 
The TNA for ewes (decoupled) is provided accord ing to TNA entitlements for ewes based on the 
determined number of animals in 2007 taking into  account the minimum size of herd (10 ewes). 
 
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 2013 - grants of EUR 19.09 milli on from the Estonian state budget. 
Fiscal year 2014 - grants of EU R 0.06 million from the Estonian  state budget (payments on 2013 
applications).  
8. Duration of a subsidy and/or any other time limits attached to it 
 
The TNA could be paid until 2014 (included). 
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A. 
 
5.5  Government financial participation in in come insurance and income safety- net 
programmes  
1. Period covered by the notification 
 
2013; 2014. 
 
2. Policy objective and/or purpose of the subsidy 
 The insurance support measure was implemented to partially compensate (up to 50% or up 
to 80%) the insurance premiums for agricultural crops, agricultural animals, poultry and bees 
insurance payments for small and medium-sized agricultural enterprises (SMEs). The purpose is to offer a sustainable solution to agricultural producers, in order to manage the losses caused by 
adverse weather conditions, climatic events and an imal and plant diseases or pest infestations. 
 3. Background and authority for the subsidy 
 The Ministry of Agriculture.  4. Legislation under which it is granted 
 - State Budget Act of 2013, granted as state aid according to Commission Regulation (EC) 
No 1857/2006; 
- State Budget Act of 2014, granted as state aid according to Commission Regulation (EC) 
No 1857/2006; 
- Rural Development and Agricultural Market Regulation Act of 19 June 2008. 
 G/SCM/N/284/EU/Add.8 
 
- 22 - 
 
  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 2013 – grants of EUR 0.01 million from the Estonian state budget. 
Fiscal year 2014 – grants of EUR 0.01 million 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 2014.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   
 
5.6  Payment for Relief from Natural Disasters  
There were no grants of payment for relief fr om natural disasters awarded in 2013 and 2014. 
 
5.7  Structural Adjustment Assistance Provided Through Investment Aids  
1. Period covered by the notification 
 
2013; 2014.  2. Policy objective and/or purpose of the subsidy 
 The programme aims at assisting producers by  offering financial restructuring aid.  
 
3. Background and authority for the subsidy 
 
The Ministry of Agriculture, Rural Development Foundation (RDF). 
 
4. Legislation under which it is granted 
 - Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
- European Union Common Agricultural Policy Implementation Act 2009; 
- Rural Development and Agricultural Market Regulation Act of 19 June 2008;  
- State Budget Act of 2013, granted as state aid according to Commission Regulation (EC) 
No 1857/2006; (EC) No 1535/2007; 
- State Budget Act of 2014, granted as state aid according to Commission Regulation (EC) 
No 1857/2006; (EC) No 1408/2013. 
 
5. Form of the subsidy 
 Grants, guarantees. 
 
6. To whom and how the subsidy is provided 
 
Through the RDP 2007-2013 following subsidies are provided: 
  Measure 1.2 - Setting up of young agricultural producers, support to younger than 40 year 
old agricultural producers for setting up new holdings. Target is to relief the difficulties of changing 
the generations. G/SCM/N/284/EU/Add.8 
 
- 23 - 
 
   Measure 1.4 - Modernisation of agricultural holdings, support for micro agricultural 
holdings with the target to enlarge the competitiven ess of agricultural production via diversification 
of agricultural 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 competitiveness 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 and in forest management.   
 Measure 1.6 – Adding value to agricultural an d 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 agricult ural and non-wood forestry produce processing 
enterprises (improvement of general economic indi cators, decrease in environmental load, growth 
of export potential, etc.), and to ensure their long-term sustainability.  
 Measure 1.8 - Infrastructure of agriculture and forest management, support for land 
improvement activities of land im provement associations via preserving 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. 
 RDF guarantees to farmers and other rural entrepre neurs and non-profit organisations for different 
purposes are provided since 2008. 
 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 2013 – grants of EUR 14.83 million fr om the Estonian state budget (including the 
amount of reduced guarantee fee EUR 0.02 million). 
 
Fiscal year 2014 – grants of EUR 8.87 million from the Estonian state budget (including the amount of reduced guarantee fee EUR 0.01 million). 
 
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, for state aid measures the 
validation period ends 2014 (new similar measures since 2015 with validation period of 2020) and 
de minimis measures, the validation period is the end of 2020.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A. 
 
5.8  Payment Under Environmental Programs  
1. Period covered by the notification 
 
2013; 2014. 
 2. Policy objective and/or purpose of the subsidy 
 Support under the RDP is provided for environm entally friendly and sustainable production 
methods. It is also provided for the afforestation of agricultural land that is unsuitable for 
agricultural production and is out of use.  
 The compensation of damages caused by wild animals and birds (protected by the Nature 
Conservation Act) is provided to compensate fo r the loss of yield for agricultural producers. G/SCM/N/284/EU/Add.8 
 
- 24 - 
 
  3. Background and authority for the subsidy 
 
The Ministry of Agriculture, the Environmental Board.  
4. Legislation under which it is granted 
 
- European Union Common Agricultural Policy Implementation Act 2009; 
- Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
- Nature Conservation Act of 21 April 2004. 
 5. Form of the subsidy 
 Grants.  
6. To whom and how the subsidy is provided  
 
The aim of the support provided by the  RD P 2007-2013 (measure 2.3) is to introduce 
environmentally friendly production methods and increase the share of organic farming in 
traditional agriculture that will promote sustainabili ty of the environment by restricting the use of 
fertilizers and pesticides in the handling of organic 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 
and additional costs resulting from the given ac tions 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 2007-2013 
(measure 2.4) since 2010. The objective of this me asure 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 and other associations of persons without the status of a legal person). Support is paid with regard 
to cattle, sheep, goats and horses, if the stocking density is up to 0.5 LU/ha. 
 The compensation of damages caused by wild  animals and birds (protected 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 resowing 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 2013 - grants of EUR 9.15 million from the Estonian state budget. 
Fiscal year 2014 – grants of EUR 9.32 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 the RDP 2007-2013, for de minimis aid, 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  Payment Under Regional Assistance Programs  
1. Period covered by the notification 
 
2013; 2014.  
2. Policy objective and/or purpose of the subsidy 
 
General objective of the measure is to secure cont inuous land use in less-favoured areas (LFA) and 
NATURA 2000 areas. G/SCM/N/284/EU/Add.8 
 
- 25 - 
 
  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 2009; 
- Estonian Rural Development Plan 2007-2013.  
 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 agricu ltural 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 in LFA and NATURA 2000; this 
compensation is given RDP 2007-2013 (measures 2.1 and 2.2).  
 Also, RDP 2007-2013 measure 2.7 NATURA 2000 support for private forest land is provided under 
regional assistance areas. The overall objective of this measure is to contribute to the sustainable 
use of private forest land located in NATURA 2000 areas.  
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 2013 - grants of EUR 2.78 million from the Estonian state budget. 
Fiscal year 2014 - grants of EUR 2.81 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 the RDP 2007-2013.  
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
5.10  Fuel Tax Exemption  
1. Period covered by the notification 
 
2013; 2014. 
 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. 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 Agriculture. 
 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 2007-2013; G/SCM/N/284/EU/Add.8 
 
- 26 - 
 
  - 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 produces 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 experts estimations on the amount of diesel fuel used in agriculture and the difference between th e normal excise duty rate and reduced excise 
duty rate of diesel fuel marked with fiscal marker. 
Fiscal year 2013 – tax exemption is calculated in the amount of EUR 26.55 million. Fiscal year 2014 – tax exemption is calculated in the amount of EUR 24.28 million.  
8. Duration of a subsidy and/or any other time limits attached to it 
 
Duration of tax exemption validation period ends 2014 (new similar measure since 2015 with 
validation period of 2020). 
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  5.11  Short-Term LOAN Guarantees  
1. Period covered by the notification 
 
2013; 2014. 
 
2. Policy objective and/or purpose of the subsidy 
 
The Guarantee Scheme is aimed at or facilitating SMEs access to financial resources. Short-term 
loan guarantees as 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 can not be met. 
 3. Background and authority for the subsidy 
 Rural Development Foundation.  
4. Legislation under which it is granted 
 
Rural Development and Agricultural Market Regulation Act of 19 June 2008.  
5. Form of the subsidy 
 
Reduced guarantee fee. 
 
6. To whom and how the subsidy is provided  
 
The deposit exemption is for agricultural produces  using short-term loan guarantees given by the 
RDF.  G/SCM/N/284/EU/Add.8 
 
- 27 - 
 
  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 2013 – deposit exemption EUR 0.005 million. 
Fiscal year 2014 – deposit exemption EUR 0.031 million. 
 8. Duration of a subsidy and/or any other time limits attached to it 
 For de minimis measure, the validation period is the end of 2013 and since 2014 end of 2020.  
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  
5.12  Transitional Nation al Aid (coupled)  
1. Period covered by the notification 
 
2013; 2014. 
 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 the Animal 
Register. For application the number of ewes mu st be at least 10. It does not foresee the 
production growth and the support amount is neither linked to production volumes nor to price or income levels.  
 
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, 2009. 
- Commission Decision C (2010) 2925 of 07 May 2010 and C (2012) 807 final 
14 February 2012. 
 
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 amount or the annual amount 
budgeted for the subsidy 
 Fiscal year 2013 – EUR 2.81 million from the Estonian state budget. Fiscal year 2014 – EUR 0.00 million from the Estonian state budget. 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
The coupled TNA could be paid until 2014 (included). 
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.    
__________