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Even with a small territory, Estonia has large oil shale reserves and extensive forest and water resources. Its EU membership has led to the incorporation of EU directives into domestic environmental legislation and to a greater interconnection with European energy networks. Estonia has achieved considerable progress in decoupling environmental pressures from economic growth. However, its dependence on oil shale, which dominates the energy mix, makes its economy very carbon- and energy-intensive, with low material productivity. Greenhouse gas emissions have risen significantly over the last decade. Estonia will need to align its energy and climate policies to reverse this trend and comply with its commitments under the 2015 Paris Agreement.
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Estonia has made significant progress in decoupling economic growth from air pollution and energy consumption. However, its economy is the most carbon intensive and the third most energy intensive in the OECD, largely due to its heavy reliance on oil shale. In 2014, oil shale accounted for nearly three-quarters of the total primary energy supply and almost 90% of electricity generation. Use of renewable sources of energy has increased by more than 80% since 2000 due to extensive use of biomass in the heating sector and has almost reached the OECD average. However, the country’s overall greenhouse gas (GHG) emissions increased by 23% between 2000 and 2014, with the energy sector remaining the largest GHG emitter.
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The Assessment and recommendations present the main findings of the Environmental Performance Review of Estonia and identify 30 recommendations to help Estonia make further progress towards its environmental policy objectives and international commitments. The OECD Working Party on Environmental Performance reviewed and approved the Assessment and recommendations at its meeting on 7 November 2016.
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