Estonia is currently in the initial stages of integrating sustainable finance practices. This transition is primarily driven by European Union-wide regulations rather than Estonia’s national policies. This chapter focuses on the Republic of Estonia’s unique environmental, social, and economic attributes. It provides a comprehensive overview of its key financial institutions, state support mechanisms, and specific financial tools to foster sustainable development in alignment with the Green Deal. It also highlights a European Union-funded research project under the Technical Support Instrument (TSI), which proposes the establishment of a Knowledge Hub in Estonia. This hub is intended to facilitate expert discussions and foster consensus on effective implementation strategies for sustainable finance. The chapter subsequently identifies the primary challenges Estonia faces in this area and concludes with a discussion of the main recommendations for advancing sustainable finance practices in the country.