Ship-operators, including cruise lines and ferry operators now have a unique opportunity to modernize their fleets and meet growing sustainability standards through Estonia’s newly launched €25 million government grant for green ship retrofitting. This program is one of the most ambitious of its kind in Europe, offering direct state aid to support the greening and modernization of passenger and auxiliary vessels — including cruise ships, ferries, tugboats, and support craft — in Estonian ports.
Eligible projects can receive up to €5 million in funding, with support rates ranging from 15% to 30% of eligible retrofit costs. Vessels that transition to zero-emission operation may qualify for the highest support rate. Additional criteria, such as the ship’s flag state and frequency of port calls in Estonia, can influence the final support level.
“Global demand for cleaner maritime transport is accelerating. Estonian marine industry companies stand ready to deliver world-class retrofit solutions,” said Kuldar Leis, Minister of Infrastructure. “Estonian ports offer efficient, full-service hubs for ship retrofitting — from technical design to implementation.”
The Port of Tallinn, Estonia’s leading port operator and a key player in maritime green transition, together with Estonian shipbuilders welcomes cruise lines and maritime operators to explore retrofit options at its Muuga Harbour and Old City Harbour. These modern port facilities are well-suited for wet-dock retrofitting works, offering convenient access, expert services, and a collaborative approach to innovation and sustainability.
“Estonia is fully committed to supporting the green transition of the maritime sector,” said Kaupo Läänerand, Deputy Secretary General for Maritime and Water Affairs. “This grant enables operators to invest in future-ready technologies — and by working with ports like Tallinn, they gain access to top-tier infrastructure and expertise.”
The grant supports a wide range of green technologies, including:
Hybrid or fully electric propulsion systems
Equipment powered by renewable fuels
Exhaust gas cleaning systems (scrubbers)
Carbon capture technologies
Energy efficiency upgrades and smart software solutions
The initiative is part of Estonia’s broader strategy to position itself as a Northern European hub for green maritime technologies and ship retrofitting — and with the maritime sector now part of the EU Emissions Trading System, this grant reinvests carbon revenues back into sustainable solutions.
Whether you’re planning ahead for upcoming environmental regulations or looking to meet customer expectations for greener travel, Estonia and the Port of Tallinn are ready to support your transition.
Learn more and apply via the Estonian Environmental Investment Centre’s website.
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