Environmental Friendliness and Taxes

Session: 15th Riigikogu, 3rd session, press briefing.

Date: 2024-03-20 14:31

Participating Politicians:

Total Speeches: 15

Membership: 15

Agenda Duration: 15m

AI Summaries: 15/15 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The topic of the third question focused on environmental friendliness and the impact of taxes on the biofuel market, where Aivar Kokk posed questions to Climate Minister Kristen Michal, and a statement from the Estonian Transport Fuels Association highlighted the need for transparency and control over the fulfillment of bio-obligations. The discussion raised concerns about whether the public disclosure of biofuel quotas and compliance information is sufficiently accessible, and whether fair competition is ensured in the market in the event of violations. Greater risks, such as fraud and insufficient supervision, were also highlighted, along with the need for clearer mechanisms to ensure quality service and fair price comparison for consumers.

The responding minister provided an overview of the planned measures: Draft Bill 356 SE to amend the Liquid Fuel Act, which tightens supervision, shortens the control period (from annual to semi-annual), and increases fines for violations; synergistic control, including sampling of fuels imported via sea and automatic detection of non-compliance, will be directed to the Tax and Customs Board in cooperation with the Environmental Board. In addition, the Olerex court case and its potential impact on the market were discussed. In the second half of the debate, we highlighted the government's action program, which includes maintaining investments in Estonia and the principles of higher value creation in forestry, RMK policy, the ratio of protected versus managed forest, and the importance of planning long-term felling volumes. Finally, the minister drew attention to the need to ensure competition in a small market and the uniform adherence to rules to prevent situations where companies engaged in violations gain an advantage.

Decisions Made 1
Collective Decision

No decisions were taken at this sitting. Parliament has further decision-making procedures regarding the amendments to the Liquid Fuel Act (356 SE) and the related process aimed at stricter oversight of market irregularities. Work must continue on finalizing the precise mandate and the wording of the decisions.

Most Active Speaker
Aivar Kokk
Aivar Kokk

Isamaa fraktsioon

The most active speaker was Climate Minister Kristen Michal (ID VTIO4yVEz1k). Position: other (member of the government, minister), who chaired the discussion of ideas and measures concerning biofuels and oversight.

Esimees Lauri Hussar
14:31:53
AI Summary

For the third question, Aivar Kokk is addressing Climate Minister Kristen Michal with a question on the topic of environmental friendliness and taxes.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
14:32:09
AI Summary

Aivar Kokk contacted the Minister of Climate, drawing attention to the fact that the biofuel mandate, which has been in effect since May 1, 2008, combined with the Environmental Board's lapse in oversight, has created widespread suspicions regarding violations in the liquid fuels market. He presented ten proposals, including the public disclosure of biofuel additive rates and clarification on whether fraud is taking place.

Esimees Lauri Hussar
14:34:22
AI Summary

The main message of the speech is that it is your time.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
14:34:24
AI Summary

He suggests that this could put an end to many disputes, and asks whether these ten questions will also receive positive responses.

Esimees Lauri Hussar
14:34:29
AI Summary

He thanks and submits a request to the minister.

Kliimaminister Kristen Michal
14:34:31
AI Summary

Climate Minister Kristen Michal stated that, in order to reduce greenhouse gases in the transport sector, amendments to the Liquid Fuel Act (356 SE) will be adopted. These changes will strengthen supervision, shorten the inspection period to six months, increase the fines imposed for violations, add control samples from fuel batches imported by sea, and introduce an updated reporting system. The measures are aimed at ensuring common market surveillance and high-quality service, while the Minister also referenced Olerex’s previous monetary fines and the ongoing criminal case proceedings.

Esimees Lauri Hussar
14:37:26
AI Summary

Chairman Lauri Hussar offered his thanks and then asked Aivar Kokk for a clarifying question.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
14:37:28
AI Summary

Addressing the context of the biofuel mandate and quotas, Aivar Kokk points out that a single company could theoretically defraud the state of up to 40 million euros (with the corresponding fine being only 10 million). This action harms competitors and demands stricter legislation going forward, as well as a more comprehensive discussion with the Environmental Board and the government.

Esimees Lauri Hussar
14:39:37
AI Summary

The address is a brief call to action, simply stating: your time has come.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
14:39:39
AI Summary

Aivar Kokk asks the minister to clarify further.

Kliimaminister Kristen Michal
14:39:41
AI Summary

In a small market, it is crucial that competition is fair and regulations are adhered to, which is ensured by current and future measures, including shortening the inspection period, increasing penalties, and considering restrictions on the consumption of Olerex fuels, to ensure law-abiding conduct and more environmentally sustainable development in the market.

Esimees Lauri Hussar
14:42:23
AI Summary

The Chairman thanked [the attendees] and requested one more question, inviting Arvo Aller to ask his question.

Arvo Aller
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
14:42:25
AI Summary

The focus of Arvo Aller's speech is criticism regarding why Estonia lost the 700 million euro Fibenol investment to Latvia, and what steps the government, including the Ministry of Climate, took to ensure the investment remained in Estonia, promoting biomass valorization and preserving jobs in the timber sector.

Kliimaminister Kristen Michal
14:43:55
AI Summary

To ensure that forestry in Estonia achieves higher added value, we will increase cooperation with Fibenol and take into account the expectations of RMK's owners. We will establish regulations for setting up fast-growing timber plantations, maintain 30% of the forest under protection, plan harvesting volumes based on a 100-year cycle, and focus on enhancing carbon sequestration capacity.

Esimees Lauri Hussar
14:46:56
AI Summary

Chairman Lauri Hussar thanked the esteemed Climate Minister and announced that he was concluding the consideration of today's third question.