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International Internet Magazine. Baltic States news & analytics Wednesday, 19.06.2024, 23:07

Shale oil could create EUR 8.2 bln in Estonian wealth in 20 yrs

BC, Tallinn, 02.12.2020.Print version
According to an analysis commissioned by the Estonian Chemical Industry Association and carried out by KPMG, shale oil production could create 8.2 billion euros of national wealth over the next 20 years, of which 7.5 billion euros would be shared between the sector's partners, the public sector, employees and the public, reports LETA/BNS.

The aim of the study was to find out the impact of European climate policy on the competitiveness and long-term sustainability of the sector, the association said. The study has analyzed only the national wealth that can be created from the conversion of oil shale into shale oil. The study does not include the impact of electricity production from oil shale.

According to the association, the biggest influencing factors in the continuation of the work of the oil shale sector are the change in the greenhouse gas trading system established by the European Union and the price of oil.

The study revealed that the EU's planned tightening of the emissions trading or carbon tax system could reduce the national wealth created by the shale oil value chain by between 1.3 and 4.5 billion euros.

According to the association, the tightening of the system may, in the most pessimistic scenario, lead to the fact that from 2031 onwards, it will no longer be economically feasible for companies in the shale oil value chain to operate.

Viru Keemia Grupp (VKG) management board chairman Ahti Asmann said it is important that Estonia stands up for its national interests in European climate discussions. "Estonia is at the forefront of reducing carbon emissions in Europe, but we have also reached a point where Estonia clearly has more to lose than to gain from further tightening of its carbon tax policy," Asmann said.

Priit Orumaa, chairman of the management board of Kivioli Keemiatoostus, said that it is possible to keep the oil shale value chain in operation for at least the next two decades without compromising Estonia's 2050 climate goals. "It would be wise to give local industrial innovation a chance, otherwise we will import this negative footprint from third countries with lower environmental requirements, but Estonian jobs and added value will be lost," he added.

The Estonian Chemical Industry Association is a non-profit association uniting chemical industry companies and established in 1991. The main goal of the association is to develop the Estonian chemical industry, increase efficiency, competitiveness and safety. At present, the association has 55 members from 10 different fields of activity.

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