Assessment of the macro- and socio-economic impacts of the most important additional market sector measures needed to meet climate targets for the Ministry of Climate Action

The aim of the project was to carry out a study to identify how the state can steer the Estonian peat sector in such a way as to optimise its contribution to the Estonian economy, employment in rural areas and the reduction of carbon emissions. In addition, the information generated by the study can be used to provide input for sustainable development policies and measures. The study compares measures to reduce GHG emissions from the peat sector. It will address the clean-up of production areas, the potential for additional on-site peat valorisation and cost-effectiveness, and the minimisation of emissions from peat production areas with existing mining permits until the start of mining activities. The socio-economic impact of phasing out horticultural peat extraction up to 2050 will be assessed. The impact of GHG emission reduction measures on the peat sector is compared. Macro- and socio-economic indicators including tax revenues, economic growth, exports, employment, household livelihoods are assessed.