On 17 July 2026, the Council of the European Union approved amendments to Estonia's recovery and resilience plan, updating two components for non-repayable financial support under the Recovery and Resilience Facility. Component 1 focuses on digital transformation of enterprises, particularly SMEs and microenterprises, with investments in e-construction, digital waybills, ICT skills reform, and export competitiveness. Component 2 targets the green transition through a Green Fund of at least EUR 90 million managed by AS SmartCap, green skills training, green technology development, and resource-efficient technologies.
The Council's decision amends the Implementing Decision of 29 October 2021, which originally approved Estonia's plan. The updated components set specific milestones and targets: for digital transformation, 230 grant award decisions by Q4 2025; for digital skills, 1,818 training confirmations by Q2 2026; and 7 business centres opened by Q2 2026. Key milestones include a call for proposals by Q2 2022, entry into force of digital skills legislation by Q2 2022, and the Green Fund implementation agreement signed by 31 December 2022.
All measures must comply with the 'Do no significant harm' Technical Guidance. The Green Fund excludes investments in fossil fuel activities, ETS assets above benchmarks, waste landfills or incinerators, and long-term waste disposal unless specific conditions are met. The approval allows Estonia to proceed with implementing these measures, which aim to boost digitalisation and green innovation in the enterprise sector.
Estonian SMEs and microenterprises stand to benefit from targeted digital and green investments, while the Green Fund's exclusion criteria may limit access for fossil fuel-related businesses. The Estonian government gains flexibility in allocating funds but must meet strict compliance requirements. EU taxpayers are indirectly affected as the measures are financed through the Recovery and Resilience Facility. The European Commission will monitor progress against the defined milestones and targets.
The Council's decision is an implementing act; the Commission will oversee disbursement of funds based on Estonia's achievement of the agreed milestones. No further Council action is required for these amendments.