Izmailova: Reform Party's anti-ETS2 populism costs Estonia hundreds of millions

Riigikogu member Züleyxa Izmailova (SDE) criticizes the Reform Party for supporting the EU's carbon quota system ETS2 abolition, arguing it deprives Estonia of approximately 186 million euros from the social climate fund and prolongs fossil fuel dependency. According to Izmailova, the Reform Party has abandoned its previous progressive values and shifted towards EKRE-style populism. The social democrat emphasizes that ETS2 abolition would harm lower-income families most, who cannot renovate their homes on their own.

Riigikogu member Züleyxa Izmailova (SDE) expressed sharp criticism of the Reform Party's climate policy direction, condemning the government's desire to abolish the EU's new carbon emissions quota system ETS2. In her view, the Reform Party has transformed into a right-wing populist party that sells irresponsible policy under the guise of social concern.

Hundreds of millions in euros lost

According to Izmailova, ETS2 abolition would mean Estonia forfeits approximately 186 million euros from the EU's social climate fund-money intended for building renovation, heating system upgrades, and relief for lower-income families' heating and transport costs. "The biggest losers would be those whose homes need insulation or a new heating solution, but who cannot afford it themselves," Izmailova emphasizes.

She points out that the previous ETS system has been financially very beneficial to Estonia: in the years 2021-2024, Estonia recovered significantly more from quota revenues than Estonian companies have had to spend on purchasing quotas, and on a net basis the country has gained nearly 800 million euros. The primary quota costs fall overwhelmingly on Eesti Energia's fossil fuel power plants, not on Estonian business as a whole.

Reform Party mimics EKRE populism

According to Izmailova, the Reform Party has shifted from valuable principles towards populism: a once liberal and progressive party has become a political force increasingly confidently mimicking EKRE's populism-first fear is sown, then a complex problem is promised to be solved with one grand "abolition." She says the same pattern is visible in the climate law, where previous ambitions have been retreated from and substantive responsibility has been deferred to vague roadmaps.

She recalls that before the previous Riigikogu elections, the Reform Party spoke of green transition as a new opportunity for Estonia's economy, but now they present it as an annoying Brussels-imposed obligation.

Prime Minister's answers hung in the air

In the programme "Prime Minister in the Studio," journalists Mirko Ojakivi and Arp Müller asked Kristen Michal directly where the money would come from for building renovation if ETS2 were abolished. The Prime Minister replied only that the money would come from the budget, without providing substantive explanation.

Izmailova points out that the state budget is gaping with emptiness: the Reform Party has driven the budget deficit to the EU-permitted maximum, the country's debt has quadrupled in six years, and by 2030 the cost of servicing state debt could reach 650 million euros.

SDE's position: the state must help

The social democrats' position is clear: the state must help people reduce costly fossil energy dependency. Izmailova emphasizes that apartment building renovation is not only climate policy-it is a matter of improving people's quality of life and health, increasing property values, and promoting regional justice. This is particularly relevant for large apartment-block areas where people have long needed genuine support from the state and local governments.

"Estonia does not need EKRE-style populism packaged by the Reform Party. Estonia needs a government that is not afraid to say that reducing fossil fuel dependency is a matter of security, the economy, and people's everyday well-being," Izmailova writes.