Background About 95% of electricity produced in Estonia is based on oil shale, a solid fossil fuel. The oil-shale energy production is a strategic industry in Estonia that utilises extensive amounts of natural and human resources. The share of oil shale extraction and treatment waste in waste generation in 2001 totalled 77% of all waste and 97% of all hazardous waste. Oil shale-based energy production is responsible for air pollution and land destruction through extraction of mineral sources. Furthermore, the oil-shale industry’s share of total emissions in Estonia was 87.9% of SO2 emissions, 91.8% of total CO2 emissions and 94.5% of total solid particle emissions. Reduction of the negative environmental impact of energy production is one of the ten priorities set out in the Estonian Environmental Action Plan. The beneficiary, Eesti Energia, must also meet the requirements of the Integrated Product Policy Directive and, to this end, has conducted a full-scale Oil Shale Electricity Life Cycle Assessment (LCA). LCA is a technique for analysing and assessing the environmental performance of products or services and provides numerical and comparable data. Prior to the project, LCA had never been used to determine the environmental performance of any product in Estonia due to lack of knowledge and international cooperation. Objectives The project aimed at introducing, implementing and demonstrating Life Cycle Assessment methodology and the Integrated Product Policy approach in Estonia, in order to facilitate the future implementation of LCA by both the public and private sectors. The objective was to carry out a full-scale LCA for oil shale electricity production and energy intensive products. By providing a comparative study of different energy production profiles (Estonia, Finland, Poland, EU average, future scenarios including renewable energy sources), the project aimed to provide valuable information for future energy generation profiles in Estonia and to demonstrate the impact of different energy profiles on the environmental performance of products. For that purpose LCA databases from different EU countries were to be analysed, their applicability determined and guidelines elaborated for wide-scale use. A specific life cycle assessment of an example product manufactured in Estonia was planned. Planned dissemination activities included organising national and international seminars and producing publications and presentations, in order to promote “life cycle thinking”, explain the product chain approach and the meaning of “green procurement”, and meet the requirements of the Integrated Pollution Prevention and Control (IPPC) Act in Estonia. Results OSELA was the first large-scale application of LCA in Estonia. The project did not aim to produce a direct reduction of emissions or decrease in environmental impact of the energy sector, but it sought to demonstrate the benefits of “life cycle thinking” and the use of an integrated product policy approach. The project has had a timely effect on the debate on environmental benefits and the cost of electricity generation using various raw materials, providing comparative studies and scenarios and promoting full-scale environmental management. Key stakeholders and enterprises as well as the main identified target group were included. Available LCA databases were examined in order to establish conditions for extensive application of the methodology in Estonia. The environmental performance of oil-shale electricity was compared with that of the hard coal and biomass energy. Possible future energy scenarios were drawn up and their environmental impacts were assessed using LCA tools. At the time of the project proposal, LCA was virtually unknown in Estonia. In order to rectify this situation, dissemination activities formed a significant part of the project. A handbook for Estonian enterprises was compiled. The implementation of the IPPC act, adopted by the Estonian Parliament in 2001, directly involves the beneficiary. For the full-scale LCA, a wooden, painted weatherboard was chosen as an example product. The environmental impact of the energy-intensive product on the production process was successfully demonstrated. The results of the impact assessment, for example, showed that to a large extent the environmental performance of the weatherboard depends on external factors (electricity and other supply materials) and can greatly vary depending on the company’s purchase decisions. In the future, it is expected that the project results will support the information spreading of the "life cycle thinking" in Estonia and other accession countries. The results of the LCA for oil-shale electricity will be used in the EMAS and environmental reporting by the beneficiary. Furthermore, the project will help Estonia to take part in international LCA cooperation and will contribute to the development of future energy generation profiles in Estonia. Information will be distributed to different stakeholder groups across Europe, helping with the development of future energy production trends, requirements and legislation. The project also expanded knowledge of various aspects of oil shale. The beneficiary will continue to examine the environmental aspects of energy production and has embarked on drafting follow-up projects on the Life Cycle Costing issue and composing an Environmental Product Declaration for oil-shale electricity production.