Progress is measurable, but we have to keep up the momentum in order to achieve the 2030 targets and ensure long-term security and competitiveness.
Croatia today finds itself in a more stable and financially stronger position than five years ago. This is the result of a clear policy and continuity of the work of the Government of the Republic of Croatia, for Diplomacy&Commerce says Marija Vučković , minister of Environmental Protection and Green Transition of Croatia. A total of €1.58 billion in grants will be allocated to projects that reduce emissions and modernise the energy and transport sectors. The funds are earmarked for the general public, businesses and the public sector, depending on the area of investment, says minister Vučković.
- Environmental protection and green transition are very demanding and complex areas that you head as part of the Government of the Republic of Croatia. Where do you see Croatia today, when it comes to green transition, in relation to 5 years ago and in relation to other EU countries?
Today, as regards green transition, Croatia is in a much stronger and more mature position than it was five years ago – both in terms of investment and the quality of our policies. This is the result of a clear strategic direction that the Government of the Republic of Croatia has made a priority – as well as continuity in implementation. Five years ago, the transition was often driven by individual projects. Today it is implemented systematically – through strategic documents, stable funding sources and stronger implementation capacities.
For example, revenues from auctions of EU ETS allowances are dedicated to climate and energy programmes. Since 2020, Croatia has secured more than €620 million from this source, and the funds are used for climate and energy purposes, where necessary to reduce the risk of energy poverty, largely through programmes and public calls by the Environmental Protection and Energy Efficiency Fund – aimed at the general public, businesses and the public sector. Another important step forward is the Modernisation Fund. Calls and programmes worth more than €300 million have been launched since 2021. However, here we should also highlight the need to accelerate the use of this source to increase energy efficiency, generate renewable energy and reduce negative emissions into the environment and the air.
In addition, 37% of the funds from the Recovery and Resilience Facility and 30% of cohesion funds are focused on climate and environmental objectives, which further reinforces the investment cycle in Croatia. In terms of results, Croatia is consistently reducing greenhouse gas emissions as compared to 1990. In the sectors covered by the EU ETS, in particular electricity, we see a steady emission reduction trend due to a high share of renewables. In sectors such as transport, buildings and waste, progress is somewhat slower, which is why we are further directing resources into energy renovation of buildings, modernisation of transport and reducing dependence on fossil fuels.
Compared to other EU Member States, Croatia is situated somewhere in the middle, however with important advantages – exceptionally preserved natural resources and a very high share of renewable electricity, which amounted to 73.6% in 2024 as well as a strong potential for further development of sustainable solutions, especially in the fields of energy, water management, climate change adaptation and nature protection.
- An indicative plan for the publication of calls and tenders of the Ministry of Environmental Protection and Green Transition and the Environmental Protection and Energy Efficiency Fund for 2026 was recently published, with a total grant amount of EUR 1.58 billion. Who is it intended for, and what does the concrete implementation plan look like?
With the publication of the indicative plan for 2026, we want to send a clear message as regards to who the money is intended for and what specifically we intend to finance. A total of €1.58 billion in grants will be allocated to projects that reduce emissions and modernise the energy and transport sectors. The funds are earmarked for the general public, businesses and the public sector, depending on the area of investment.
First – transport. The focus is on those segments of the population who use vehicles daily and a lot, i.e. businesses, public services and state institutions with larger vehicle fleets. Through the Modernisation Fund funds we will secure favourable loans and leasing models for the procurement of zero-emission vehicles. This means that, for example, micro, small, medium-sized and large enterprises, as well as state administration bodies and state-owned companies, will be able to gradually replace existing vehicles with electric or other vehicles without emissions. The goal is to reduce emissions where they are highest – in heavy traffic.
Second – heating and heating systems. This means district heating and larger heating systems. We will finance companies that wish to switch from fossil fuels to renewables, modernise equipment and reduce network losses. In practice, this means more efficient heating, less energy consumption and more stable costs for users in the long term.
Third – national and nature parks. The public institutions managing them will be able to invest into renewables and the procurement of zero-emission vehicles. In doing so, we want to the most valuable natural areas to be an example of sustainable management.
Fourth – water management. Besides water utility projects in agglomeration, we have investments into smaller public water supply systems, i.e. public drainage and wastewater treatment, but also into disaster risk reduction projects in the water management sector. This trend of investment will continue, and we are about to approve new agglomeration projects for which €914 million are available. A call from the NRRP is currently open, providing €50 million for the construction of smaller parts of the public water supply and drainage system. At the same time, projects that reduce disaster risk in the water management sector are also financed from the NRRP, with an additional €39.5 million dedicated to their implementation.
Ultimately, these are concrete investments that will be perceptible to citizens and the economy – through lower energy costs, more modern infrastructure and a cleaner environment.
- Local self-government units, cities, counties play a major role in the realization of the Ministry’s plans. What would you single out as some of the biggest and most important projects that are being realized in the area of green transition, but also environmental protection in Croatia?
Local and regional self-government units – cities and counties –play a key role in the realization of our plans. They are familiar with the needs of their communities and the development potential of their territories and are thus crucial for the success of projects in green transition and environmental protection. As regards nature conservation, we have made great steps forward in habitat and species restoration. Investments are now focusing on active nature restoration measures, in line with the Nature Restoration Regulation. We are working intensively on the National Nature Restoration Plan. But even before its adoption we have launched investments through the CCP. There has already been a great response from public institutions – parks, local and regional self-government units, who have already submitted projects worth more than €70 million. The call has been repeated, and in the coming period we expect the total allocation for nature restoration to exceed €80 million. A particularly interesting project is the restoration of grassland habitats in cooperation with Croatian Forests, for which about €7 million of funds have been secured. This project has a triple effect: it contributes to nature protection (restoring valuable grassland), restoring extensive livestock production and contributing to reducing fire risk.
Waste management projects are also important in the environmental sector. In line with the Waste Management Plan of the Republic of Croatia for the period 2023-2028, we plan to construct the remaining Waste Management centres (WMC) in the total value of €760 million. At the moment, four WMCs are in operation (Kaštijun, Marišćina, Bikarac and Biljane Donje), one is in trial operation (Babina gora), three are being constructed (Lećevica, Piškornica and Lučino razdolje), and two new ones are planned for approval this year, namely Orlovnjak and Šagulje, while WMC Zagreb is in preparation. This means more effective waste treatment and less burden on the environment.
In the area of climate transition and adaptation, the Social Climate Fund (SCF) is of particular importance. A total of €1.68 billion are earmarked to help vulnerable groups – for energy renovation of low-income households, replacement of inefficient heating systems, reduction of energy costs and development of sustainable mobility. Local and regional self-government units are crucial here because they are best acquainted with the needs of their communities and can provide targeted support where it is most needed. The process of developing the Social plan was very thorough and inclusive. Over the previous period, we undertook informal consultations with the European Commission, in which as many as four versions of the draft Plan were considered and discussed in detail. Such an approach has allowed us to gradually align the plan with European rules, in particular as regards targeted vulnerable groups, the financial framework and performance indicators. We are currently in the final stages of preparation –the document is being technically and financially finalised and harmonised with other line ministries. We intend to formally submit the Social Climate Plan to the European Commission for approval by the end of March 2026. A public consultation was also held during the drafting, in which just over 50 comments were received. Most of the proposals that were in line with the legal and financial framework and the clearly defined target groups have already been incorporated into the Plan. However, some comments could not be included as the Regulation establishing a SCF lays down strict criteria regarding the eligible target groups (vulnerable households, transport users, micro-enterprises), types of measures and investments allowed and the manner in which funds are allocated and used. It is important to emphasise that this is strictly dedicated funding with a clear social and climate objective. The Plan is therefore designed to meet national needs to the greatest possible extent, while fully respecting the European regulatory framework.
Ultimately, the SCF is at a high level of completeness. It is the result of months of close cooperation with the European Commission, the relevant authorities and local stakeholders, all with a clear objective – timely submission and effective implementation, in particular under the new ETS2 system. One of the major projects is the establishment of an NFP for the coordination of climate change adaptation measures. It will serve as a point of connection between competent authorities, expert institutions and local self-government, provide advice and support, and assist in strategic and practical planning of adaptation measures. As part of this, an integrated information system will be developed – one system that will consolidate all data and tools that help cities and counties to plan and implement adaptation measures more effectively.
In addition, we are upgrading the early fire detection system. It will cover 25 new sites, including national and nature parks, which will further increase the level of nature protection and the safety of local communities. The system should be operational as early as this summer, in the coming fire season. Improved flash flood risk maps for the southern part of Croatia, as well as for pluvial flooding, will be developed in cooperation with Croatian Waters. These are extremely important for more effective spatial planning, for the reduction of damage, but also for the protection of human life and health, especially given the increasing frequency of extreme precipitation.
Special care is also taken of major cities and heat island models, which will help us develop green and sustainable urban solutions. As regards water management, we are dealing with large investments that are mostly financed by EU funds, together with national co-financing. During the term of office of this Government from 2016 to 2025, €5.22 billion were invested in water management projects.
In addition to large agglomeration projects, investments are also made into smaller systems of public water supply, drainage and wastewater treatment, as well as into disaster risk reduction. In this way the quality of life of citizens is enhanced and preconditions are created for further economic development. During the term of office of this Government, from 2016 until today, approximately 130 thousand inhabitants gained access to water and around 500 thousand inhabitants gained improved water supply, with investments amounting to around €640 million. Owing to government policies, today the possibility of connecting to public water supply in Croatia amounts to impressive 96%, while the actual rate of connection is 91% – one of the highest percentages of connection to public water supply in the European Union.
During the same period, about 515 thousand people gained access to public drainage, while around 2.3 million inhabitants had access to an improved water drainage and treatment system, with investments amounting to around €3 billion. Today, 60% of the population can be connected to public drainage, while 59% are actually connected. More than 190 thousand people use flood protection measures. The trend of investing into water management continues. There are new agglomerations projects with €914 million available, and calls are under way for NRRP – €50 million for construction of smaller parts of the public water supply and drainage system and €39.5 million for “Continuation of funding of disaster risk reduction projects in the water management sector within the framework of the National Recovery and Resilience Plan 2021-2026”. All these activities demonstrate that green transition and environmental protection are not abstract goals, but concrete projects implemented by the Government of the Republic of Croatia in partnership with local self-government and expert institutions.
- How do you see the role of your Ministry in cooperation with other ministries, such as economy, in terms of development, bringing in new investments, etc.? How important is interconnection and cooperation in boosting the overall economic policy?
Cooperation with other ministries is essential and crucial. Today, green transition is not just an environmental policy – it is both a development and economic opportunity. Without good interdepartmental coordination, it is not possible to achieve climate objectives and at the same time foster competitiveness, investment and growth. We work closely with the Ministry of Economy on decarbonising industry – adaptation of industrial installations to EU ETS, modernisation of production processes and stimulation of investments into low-carbon technologies, as well as utilisation of funds from the Modernisation Fund and other EU instruments. Cooperation is equally important in the energy sector – from the development of renewable sources and the strengthening of grid infrastructure to security of supply and diversification of sources. We work closely with the Ministry of the Sea, Transport and Infrastructure, as transport has the highest increase in emissions in the last decade. There is a need for coordination on the development of alternative fuels infrastructure, electrification of public and private transport, investment into rail and sustainable urban mobility. We also cooperate with the Ministry of Physical Planning, Construction and State Assets in energy renovation of buildings, setting energy efficiency standards, planning of space for renewable energy sources and inclusion of climate goals in spatial plans. Good interconnections and coordination between ministries directly reinforce overall economic policy. Investors are looking for a stable and predictable framework, clear development priorities and security. Coordinated work between ministries is precisely what allows climate action to go hand in hand with industrial, energy and transport policies, thus increasing the competitiveness of the economy and opening up room for new investments, innovation and sustainable development.
- Where do the biggest issues in the implementation of the Ministry’s programmes and plans lie in your opinion and what are they and how do you resolve them?
First, I would like to highlight the issue we share at the EU level – the need to simplify the overall legislative, strategic and implementation structure and the need to measure the effects of policies. Green transition will succeed if we are committed to both preventing energy and transport poverty and preserving the competitiveness of our economy.
Secondly, the Ministry needs to make significant progress in digitalising processes and procedures, as well as achieving clarity regarding the implementation of environmental procedures. Waste management, i.e. the achievement of the objectives transposed from European legislation and set out in the multiannual Waste Management Plan, is a major challenge. Work on amendments to the Act, as well as the adoption of instructions for the information system and the strengthening of cooperation in the control and monitoring system is under way. On the other hand, we are accelerating investment into entrepreneurial projects related to circular economy, and I personally detect here additional demand-specific objectives.
Finally, when we talk about issues which are often referred to as challenges, allow me to conclude that our work is particularly aimed at reducing emissions from transport and supporting the economy in these changes that require innovation, speed, responding to questions about risks around the procurement market, maintaining competitiveness in very challenging international conditions. Such support also requires reforms in administration, which comprehends that it must have a shorter and clearer timeline from the adoption of a legislative and strategic package to the actual implementation that positively affects citizens and the economy.
- The policies you implement are in line with those of the EU, and they concern both the environment and climate change. How do you see the United States of America withdrawing from the Paris Agreement and how much does this affect policies in Europe and Croatia?
While the decision made by the US to withdraw from the Paris Agreement creates uncertainty globally, it does not change the fundamental direction of policies in Europe and Croatia. We are committed to reducing climate risks and improving the state of our most valuable resources. Demographic progress and maintenance of biodiversity, soil, air and water conservation are prerequisites for any other type of progress. Each year we witness the effects of extreme weather events. Reducing energy dependence and investing in alternative sources are essential policies, as resources are scarce globally, Europe has very few and the geopolitical circumstances continue to cause concern. Croatia, as an EU Member State, continues to implement policies in accordance with European legislation and national plans. In doing so, different opinions and discussions on these and many other issues should not be prevented, because discussions, if you want to call them doubt on certain theories, proof and research, are the basis of progress of every modern community. At European level, the objectives are long-term and legally binding – through the European Climate Law, the Fit for 55 package and the commitment to climate neutrality by 2050. We have built a certain regulatory and investment framework that includes an emissions trading system (EU ETS, Modernisation Fund, Innovation Fund and other instruments that are part of the internal market and the strategic development of the Union.
For Croatia, this means that we shall continue to reduce emissions, increase the share of renewable sources and strengthen energy efficiency. It is particularly important to ensure the supply of energy through domestic generation and to reduce dependency on imports. We have demonstrated that we are aware of this, because in the past several years we have constructed a key energy facility in Central and South Eastern Europe, we play an active role at the international level, we are committed to the development of a sustainable energy mix of low-carbon energy sources and, last year we have reached a milestone in the generation of electricity from renewable sources, in particular owing to the combination of hydro, wind and solar power