Environmental Policies
#17Key Findings
With a number of new programs in the early phases of implementation, Croatia falls into the upper-middle ranks (rank 17) with regard to environmental policies. Its score in this area has improved by 0.2 points relative to 2014.
The country is starting from a relatively high point in terms of emissions reduction, with 28.5% of energy consumption coming from renewable sources. It plans to phase out coal use by 2033, and reduce methane emissions by 30% below 2020 levels by 2030. It derives 10% of its electricity from nuclear power, and plans to expand this.
Some improvements have been evident in the areas of water and waste management, but an ineffective bureaucracy and poor policy have undermined overall performance. While pollution has declined, air pollution remains occasionally problematic in cities.
The country has pledged to end deforestation by 2030. While most policies point in the direction of environmental gains, some inconsistencies remain, such as the financial incentives provided to farmers for intensive cattle farming.
The country is starting from a relatively high point in terms of emissions reduction, with 28.5% of energy consumption coming from renewable sources. It plans to phase out coal use by 2033, and reduce methane emissions by 30% below 2020 levels by 2030. It derives 10% of its electricity from nuclear power, and plans to expand this.
Some improvements have been evident in the areas of water and waste management, but an ineffective bureaucracy and poor policy have undermined overall performance. While pollution has declined, air pollution remains occasionally problematic in cities.
The country has pledged to end deforestation by 2030. While most policies point in the direction of environmental gains, some inconsistencies remain, such as the financial incentives provided to farmers for intensive cattle farming.
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How effectively does environmental policy in your country protect and preserve the sustainability of natural resources and environmental quality?
10
9
9
Environmental policy goals are ambitious and effectively implemented as well as monitored within and across most relevant policy sectors that account for the largest share of resource use and emissions.
8
7
6
7
6
Environmental policy goals are mainly ambitious and effectively implemented and are monitored within and across some of the relevant policy sectors that account for the largest share of resource use and emissions.
5
4
3
4
3
Environmental policy goals are neither particularly ambitious nor are they effectively implemented and coordinated across relevant policy sectors.
2
1
1
Environmental concerns have been largely abandoned.
Primarily as a result of its EU membership obligations, Croatia has made some improvements in its water and waste management systems, and has passed several action plans. However, there is still much to be done in terms of actual enforcement and implementation. In the area of water management, substantial investment in the public water-supply network, drainage systems, and wastewater treatment systems is needed. In the capital city of Zagreb, there are steady leakages due to the poor condition of water pipes. The recycling rate for municipal waste rose from 14.9% in 2013 EU to 34.3% in 2020. However, Croatia is still among the EU’s worst performers. The key reason for this state of affairs is to be found in the ineffective bureaucracy, the lack of any coherent strategy or policy coordination, a territorial fragmentation that has hampered the achievement of economies of scale for utility companies, the lack of financial incentives tied to certain milestones, and poor urban planning.
Per capita emissions of CO2 in Croatia reached their peak of 5.7 tons annually in 2007, and dropped to 4.14 tons in 2020. Additionally, energy intensity (how much energy the country uses per unit of GDP) has steadily declined, from 1.91 kWh in 1993 to 1 kWh in 2016. Environmental pollution has declined. However, air pollution occasionally emerges as a significant local problem, especially in Zagreb.
Eurostat data for 2018 show that the share of energy from renewable sources in transport was less than 4%. Only Greece, Estonia and Cyprus showed a worse performance. Therefore, electromobility in Croatia is very limited. Croatia ranks in the middle of the EU-27 chart with regard to charging points per 100 kilometers (2.3 in 2020). On the other hand, Croatia has a less impressive score in relation to the market share of EVs (1.9% in 2020). In this particular area Croatia has plenty of space to improve, attract new investments and create new jobs. It remains to be seen whether the NewGenerationEU (NGEU) and EU budget funds will serve as a game-changer. The answer to that question will depend on the quality of planning for operational programs stretching through the 2021-2027 period, as well as on the implementation of NGEU projects already approved by the European Commission.
The readiness of Croatian businesses to embrace opportunities arising from green transition was assessed by a joint research project conducted on behalf of the Croatian Chamber of Commerce and the Apsolon consultancy firm. Their recently published research shows that more than 60% of businesses do not perceive the green transition as an opportunity. The greatest obstacles to the green transition have been identified in the fields of financing, the country’s often contradictory and complex legislative framework, as well as the slow and non-responsive public administration. However, some enterprises (e.g., Rimac Automobili) look very promising, and are transitioning rapidly.
Per capita emissions of CO2 in Croatia reached their peak of 5.7 tons annually in 2007, and dropped to 4.14 tons in 2020. Additionally, energy intensity (how much energy the country uses per unit of GDP) has steadily declined, from 1.91 kWh in 1993 to 1 kWh in 2016. Environmental pollution has declined. However, air pollution occasionally emerges as a significant local problem, especially in Zagreb.
Eurostat data for 2018 show that the share of energy from renewable sources in transport was less than 4%. Only Greece, Estonia and Cyprus showed a worse performance. Therefore, electromobility in Croatia is very limited. Croatia ranks in the middle of the EU-27 chart with regard to charging points per 100 kilometers (2.3 in 2020). On the other hand, Croatia has a less impressive score in relation to the market share of EVs (1.9% in 2020). In this particular area Croatia has plenty of space to improve, attract new investments and create new jobs. It remains to be seen whether the NewGenerationEU (NGEU) and EU budget funds will serve as a game-changer. The answer to that question will depend on the quality of planning for operational programs stretching through the 2021-2027 period, as well as on the implementation of NGEU projects already approved by the European Commission.
The readiness of Croatian businesses to embrace opportunities arising from green transition was assessed by a joint research project conducted on behalf of the Croatian Chamber of Commerce and the Apsolon consultancy firm. Their recently published research shows that more than 60% of businesses do not perceive the green transition as an opportunity. The greatest obstacles to the green transition have been identified in the fields of financing, the country’s often contradictory and complex legislative framework, as well as the slow and non-responsive public administration. However, some enterprises (e.g., Rimac Automobili) look very promising, and are transitioning rapidly.
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To what extent does the government actively contribute to the design and advancement of global environmental protection regimes?
10
9
9
The government actively contributes to international efforts to design and advance global environmental protection regimes. In most cases, it demonstrates commitment to existing regimes, contributes to their being advanced and has introduced appropriate reforms.
8
7
6
7
6
The government contributes to international efforts to strengthen global environmental protection regimes. It demonstrates commitment to existing regimes and occasionally contributes to their being advanced and/or has introduced some appropriate reforms.
5
4
3
4
3
The government demonstrates commitment to existing regimes, but does not contribute to their being advanced and has not introduced appropriate reforms.
2
1
1
The government does not contribute to international efforts to strengthen global environmental protection regimes.
Croatia is a member of the EU that is starting from a strong position when it comes to achieving the goals of decarbonization, green development and climate neutrality. Renewable energy already accounts for 28.5% of total energy consumption, which positions Croatia above the EU-27 average of 19.7%. The latest evidence of political commitment to these goals was Croatia’s pledge at the Glasgow COP26 in November 2021 to end deforestation by 2030, phase out coal by 2033 and reduce methane emissions at least 30% from the 2020 levels by 2030. The political direction of environmental protection policy in Croatia is quite obvious. However, there are still some inconsistencies that do not fit into this conclusion nicely, such as the government’s provision of financial incentives to farmers for intensive cattle farming, in spite of the EU’s proclaimed intention to support extensive farming practices.
Interestingly, at the end of 2021 Croatia joined a group of 10 European countries led by France that have put pressure on the European Commission to grant nuclear energy a “green” label under the EU’s sustainable finance taxonomy, which acts as a guide to climate-friendly investments. From the Croatian standpoint, nuclear energy is an important component for a smooth green transition. Croatia procures approximately 10% of electricity from the Krško nuclear power plant, and intends to expand its capacity alongside Slovenian partners.
Interestingly, at the end of 2021 Croatia joined a group of 10 European countries led by France that have put pressure on the European Commission to grant nuclear energy a “green” label under the EU’s sustainable finance taxonomy, which acts as a guide to climate-friendly investments. From the Croatian standpoint, nuclear energy is an important component for a smooth green transition. Croatia procures approximately 10% of electricity from the Krško nuclear power plant, and intends to expand its capacity alongside Slovenian partners.