The maritime industry is waiting to go green and become more environmentally sustainable in Estonia and globally. The International Maritime Organization (IMO) plans to reduce annual greenhouse gas emissions from international shipping by 70% by 2040 to reach climate neutrality by 2050. According to Riina Palu, chairwoman of the Estonian Maritime Cluster, these goals offer several business opportunities for Estonian companies.
 

“In the cluster membership, for example, solutions based on hydrogen technology and methanol are being developed to introduce more environmentally friendly fuels, but also solutions based on sensors and data to use existing technologies more optimally,” Palu shared possibilities. Maritime is a large and global business, so according to Palu, it is expedient for Estonian companies to focus on technologies in which we have a historical advantage or a good position in supply chains.

According to the chairwoman of the maritime cluster, the Estonian maritime sector’s strengths compared to other countries are also the highly educated and qualified workforce and the developed digital infrastructure, which creates a solid basis for the export of maritime digital solutions. Estonia´s location by the Baltic Sea is another advantage, as it allows easy access to major European markets.

Simplified regulations foster innovation in the maritime sector

According to Palu, to grow and increase exports, it is necessary to create consortia and partnerships both in Estonia and internationally to participate in larger projects. “We have achieved significant success in converting ships, for example,” she emphasised, despite Estonian companies’ small size in global competition.

“Furthermore, when financing new projects, for example, we have realised that the northern neighbours have been able to make better use of the European Union’s regulations to benefit their maritime industry. In cooperation with the Ministry of Climate, we have also started applying for exemptions from Brussels necessary for the growth of the maritime industry,” said Palu.
 

In addition, according to Palu, to promote exports, it is necessary to solve a vital bottleneck related to creating new technologies and solutions. Estonia has no simple regulation for testing innovation projects. Testing energy solutions in marine conditions is especially difficult because the pilot project is subject to the same preliminary research obligations as regular projects, she explained.

“Unfortunately, our market has also been affected by Russia’s aggressive foreign policy, due to which international shipping groups are not in a hurry to make decisions about bringing their ships to Estonia – both in terms of cruise trips and, for example, ship repairs. Here we are in the same situation as, for example, our northern neighbour Finland,” Palu pointed out another challenge affecting exports.

Learning from maritime leaders to boost exports and investments

Innovation attracts investors. Norway and the Netherlands are role models for Estonia in maritime innovation. According to Palu, it is wise to learn from the example of these countries in order to reinvigorate exports, innovation, and investments in the maritime sector.

“I am glad that the industry is again a priority for the country. Our neighbouring countries are making economically advantageous offers to attract specific strategic industries to the country. They are finding ways to support the creation of jobs and, for example, the establishment of electricity connections to new factories. We should learn from our neighbours and strive to do even better,” she pointed out one of the key factors for success.

GOOD TO KNOW

• The Estonian Maritime Cluster was established on December 13, 2023, and its membership has tripled to almost 50 companies, organisations, and private individuals.
• The Estonian Maritime Cluster is a dynamic and innovative network of maritime specialists, companies and organisations that cooperate to promote the growth and innovation of the Estonian maritime sector.
• With a strong focus on sustainability, digitalisation and competitiveness, the organisation positions Estonia as a leading maritime centre of excellence in the Baltic Sea region.
• The Estonian Maritime Cluster has launched several long-term projects with the state, such as rebuilding the Ukrainian maritime sector and the retrofit hub, which will continue to generate export income for the Estonian state for many years.
• The organisation aims to connect key players in the industry, promote collaboration, and support the development of cutting-edge solutions that address the challenges and opportunities facing the maritime sector.
• The annual turnover of the Estonian Maritime Cluster members is nearly 1.5 billion euros.

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Source: https://tradewithestonia.com/