Estonia Proposes Making Biodiesel Production Tax-Free

2 February 2005

Baltic Times. Estonia’s government is proposing making the production of biodiesel tax-free. The proposal is being submitted to the European Commission, which has up to six months to either approve or reject the tax exemption.

Estonia’s initiative  is linked to an EU-sponsored mandate to increase the use of renewable energy.  According to EU regulations, by 2010 renewables such as wood, wind and biodiesel must constitute 5.75% of total energy consumption.

“Without doubt, the biodiesel sector looks promising in the macroeconomic sense,” says Kalev Lindal, owner of WBT, a Tartu-based rape-product manufacturer. “Once an oil shortage occurs, it’s unlikely that motor vehicles will get nuclear or hydrogen-based engines promptly.”