The Estonia Carbon Tax, implemented in 2000, increased to €25 per ton of CO2 on July 1, 2024. It applies to CO2 emissions from fossil fuel combustion in the industry and power sectors, particularly for thermal energy generation. Thermal energy generators under the EU ETS are now exempt from the tax, along with other operators already exempt through the EU ETS. The tax aims to complement the EU ETS by covering emissions not captured under the system.