Energy, Estonia, EU – Baltic States, Legislation

European Parliament's Green-minded deputies want to block the enforcement act of European Commission's Fuel Quality Directive. This would undermine the Estonian oil shale sector investments, public television ETV reported.

Estonian diplomats in Brussels worked hard to praise diesel fuel made of oil shale in Brussels. Former Prime Minister Andrus Ansip spent a whole breakfast with Jose Manuel Barroso last spring to discuss the topic. Despite strong opposition from the European Climate Commissioner, the European Commission eventually gave the green light to marketing shale oil.

The European Parliament's Environment Committee shot the law, that would be favourable for the Estonian oil shale, down and if the parliament's full house does the same next week, Estonia's years-long lobby work will end in fiasco next Wednesday.

"Yes, it may happen. In particular, the Greens and some of the Liberals have very much supported it," said Estonian MEP Kaja Kallas.

Marju Lauristin who represents Social Democrats in the European Parliament hopes that it is possible to explain to the MEPs what it means for Estonia. "I have to say that we have quite a lot of people who, while standing for the Green principles, forget the principles related to the main concern of Social Democrats – the concern over jobs and social security," said Lauristin.

Not all Estonian MEPs are paving the way for the sale of oil shale diesel. Indrek Tarand who represents Greens is opposed to it. "If we have the most polluting raw material in Europe, the fighting it off the market must be European climate policy action," he said.

Should the European Parliament make a negative decision next week, Estonian oil shale sector investments are in danger. Deputy Head of Estonia's Permanent Representation to the European Union, Clyde Kull said that if the directive is not approved, oil shale oil can still be produced. "The problem is that when an investor makes his plans for the development of a factory, he wants to know that he has a legal certainty for 10-15 years," says Kull.

The sensibility of shale oil production is also in question because the price of oil is in freefall at the world market.