Canadian-Estonian clean energy partnership signals deepening ties with the Baltics
Anna Robinson
A new partnership was announced in January 2026 between Canadian and Estonian institutions that focus on clean energy solutions. The new partnership sets out three research projects that have been set for 2026, bringing together the University of Victoria’s Accelerating Community Energy Transformation (ACET) initiative and the Estonian Islands Energy Agency (EISEA). The aim of the partnership is to co-design and develop vital research and practical models for island populations as it relates to clean and sustainable energy priorities for local communities, which can then be expanded to larger populations. As featured in a news release by the University of Victoria, the hope is that by “combining ACET’s research expertise with EISEA’s on-the-ground knowledge of island communities, the partnership will foster innovative clean energy solutions, enhance local capacity and create replicable approaches to community-centered energy systems on Estonian islands.” This collaboration is part of a growing trend of Canadian cooperation with the Baltics, engaging with security, social, and professional sectors. In doing so, such a partnership gives an opportunity for Canada to support Baltic defence against Russian hybrid threats by developing broader social resilience strategies and relationships.
What will the partnership look like?
Two of the three research projects will service major island communities in Estonia’s Baltic Sea. The first, on Saarema, will investigate how local organic waste can be repurposed to power the island’s heating system. On Hiiuma, the second project will track a pilot initiative on sustainable energy production, distribution, and transportation. Both will generate important lessons on developing a circular and sustainable energy economy. The third project will look broadly at the social implications of energy development, analyzing how local communities respond to new projects. This can help build fair and transparent energy planning processes.
ACET and EISEA will be blending their research and innovation skills, each bringing an important skillset. Integral to the project will be the EISEA knowledge and engagement with Estonian island communities. The Estonian universities Taltech and University of Tartu will also be participating in the studies to ensure accurate interpretations of local contexts. For ACET, the partnership is an opportunity to showcase Canadian research leadership and apply lessons learned in previous projects. In the past, ACET has worked with Canadian and First Nations communities in British Columbia to co-design energy projects, giving important insight into how to lead collaborative and sustainable research development.
Security Implications
The development of clean energy in Estonia ties directly into their security resilience. Prior to 2022, Estonia was heavily reliant on Russian gas and oil, but cut off all imports of pipeline gas and LNG after Russia’s full-scale invasion of Ukraine. While Estonia has been able to find alternative sources for LNG through Latvia and Lithuania, enhancing their own energy infrastructure will be integral to national capacity and resilience.
Previously, Estonia received LNG from Finland’s Inkoo Terminal through the Balticconnector pipeline; however, after a suspected act of sabotage by China, part of the pipeline was damaged, leading Estonia to pivot to other Baltic states. The incident was alleged to be in response to heightened tensions over Russian sanctions. This highlights the need for strengthened local and regional infrastructure to mitigate possible threats. For example, Estonia does not have its own storage capacity for gas, requiring it to store strategic reserves on Latvia. This is a vulnerability that can be exploited if there are disruptions to critical infrastructure by malign actors.
For islands in Estonia’s Baltic Sea, this is even more vital. Estonia has thousands of islands, some of which are exceptionally vulnerable due to distance from the mainland and close proximity to Russia. Last fall, the airspace of Vaindloo Island was entered by three Russian aircraft in what is assumed to be part of its larger hybrid attacks on Europe. Other incursions have occurred in Poland and Lithuania, heightening security concerns among Europeans and their allies. While Estonia is improving its capacity to defend the islands, they will also need to ward off hybrid threats such as these. This means accounting for economic, environmental, social, and other vulnerabilities outside of hard security concerns. The partnership not only addresses critical infrastructure gaps, but it is doing so in a transparent and collaborative manner with local communities. This reinforces social cohesion and self-sustainability within these smaller populations – a model that could be replicated elsewhere. Therefore, the partnership is a strong example of the comprehensive approaches NATO and its members can continue to seek out to improve its readiness and defence posture.
Canada’s approach to Baltics
This announcement is aligned with other moves Canada has recently made to deepen ties with Baltic states. Through NATO’s Enhanced Forward Presence and Operation Reassurance, Canada has bolstered its defence presence in the region. Canada’s presence in the Baltics ties into a broader national goal to be a more active global partner, particularly in the effort to improve European security. This is a noteworthy shift from the previous Trudeau government, whose values-based foreign policy at times left Canada to the periphery of important security decision-making in Europe. This recalibration signals an effort to translate normative commitments into more robust material contributions and relationships, enhancing Canada’s own strategic role within NATO while ensuring it remains reliable.
The Baltics’ proximity to Russia makes them a key target for hybrid Russian threats, emphasizing the need to improve counterresponse. Estonia in particular shares a direct land border with Russia and is within artillery range of St. Petersburg. Estonia has already partnered with NATO to improve their defence, including on the islands of Saarema and Hiiuma; however, full resilience will require a comprehensive approach that also defends critical infrastructure and community interests. Here, Canada has a strong opportunity to partner with Estonian companies and research institutions to support the development of industries and technology in preparation for a more robust counterresponse to Russian hybrid pressures.
Estonia has been making substantial investments into their energy infrastructure to modernize and diversify their networks. This has opened the opportunity for Canadian companies to connect with Estonia on renewable energy, storage capacity, and smart technologies. In 2024, Ontario went on a trade mission to Estonia to connect their industry experts and companies. Aecon also recently signed an agreement with Fermi Energia to deploy a BWRX-300 small modular reactor, which will boost their nuclear energy capacity. The work generated by ACET-EISEA will further develop these opportunities and centre them in the community while prioritizing environmental sustainability. This is where Canada can really shine, as not only a supporter but also a promoter of key values and goals of the liberal international order.
Conclusion
Looking ahead, ACET-EISEA is set to announce more collaboration in the coming months. As the projects begin in 2026, it will be important to track progress and lessons learned. The partnership is a strong example of the kinds of multinational action that is needed to address collective security and political concerns. Drawing from this experience can give strong models for other initiatives, which can in turn strengthen the development of the Transatlantic community. In doing so, these initiatives play a significant role in reinforcing the strategic cohesion necessary among the Alliance at a time when cooperation is increasingly being tested by geopolitical tension and conflict.