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Factsheet for measure HR-2022-27/2780 Updated – measures in Croatia

Transition to an energy and resource efficient economy

Potpora poduzećima za tranziciju na energetski i resursno učinkovito gospodarstvo

Country Croatia , applies nationwide
Time period Temporary, 01 July 2022 – 31 December 2023
Context Green Transition
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery into a green future
– Support for spending, stimulus packages
Author Predrag Bejakovic (IJF)
Measure added 27 August 2022 (updated 25 July 2023)

Background information

The Ministry of Economy and Sustainable Development announced a call for project proposals to support companies' transition to an energy- and resource-efficient economy. These proposals should support faster adaptation to current and future environmental requirements, mitigate the negative effects of the economy on the climate and environment, increase the sustainability of production, preserve existing jobs, create new jobs, and strengthen local and regional competitiveness. The support is awarded through an open award procedure.

Content of measure

The goal of the call for proposals is to encourage production investments of small and medium-sized, and medium capitalized private companies in energy-intensive industries. The investments relate to the promotion of the circular economy. This involves the introduction of resource efficiency in the production cycle and product life, as well as the reduction of harmful emissions from energy-intensive industries.

Acceptable activities that can be financed under this measure include:

  • initial investments in tangible and intangible assets for new technologies in business processes that result in more efficient use of resources and/or reduction of energy consumption and/or reduction of CO2 emissions
  • investments to stimulate the production of electricity/heat/cooling energy from renewable sources (sun, wind, geothermal)
  • implementation of the energy audit of companies for small and medium-sized companies
  • preparation of technical documentation, project management and project audit related to the transition to energy and resource efficient economy.

Total value of the call is HRK 1,900 million (€252.3 million). The amount of grants that can be awarded per applicant is for small and medium-sized companies from HRK 750,000 to 7,500,000 (€99,602 to 996,016), while for medium capitalized companies: from HRK 2,000,000 to 35,000,000 (€265,604 to 464,807). Eligible applicants are small and medium-sized enterprises and medium-sized private enterprises from energy-intensive industries (classes from sector C according to NACE 2007): food industry (10), textile production (13), wood processing industry (16), paper industry (17), chemical industry (20), manufacturing of non-metallic mineral products (23), and metalworking industry (24). Application period was from 1 August to 1 December 2022.

Updates

The following updates to this measure have been made after it came into effect.

09 May 2023

The activity from 2022 due to its complexity and long-term consequences extended also to 2023 and it can be expected that they will extend further. Total available fund in this call is €252,173,336. The call is still in proceeding.

Use of measure

Total value of the call: HRK 1.9 billion (€252.3 million). The amount of grants awarded per applicant for small and medium-sized companies is between HRK 750,000 to 7,500,000 (€99,602 to €996,016), while for medium capitalized companies: from HRK 2,000,000 to 35,000,000 (€265,604 to €464,807). Eligible applicants are small and medium-sized enterprises and medium-sized private enterprises from energy-intensive industries. Application period was from 1 August to 1 December 2022.

By 29 December 2022 there were 253 applications requesting €225,516,144, which represents 89% of available funds. The total value of the projects was €532,017,283. In this first phase, 143 applications were approved. In the second and third phases 121 applications were approved.

The total amount of approved grant was €104,647,256, while the remaining available funds amount to €19,580,076. The information is obtained on the demand and is not available on the Internet.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
SMEs
Does not apply to citizens

Actors and funding

Actors Funding
National government
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

Due to the nature of the measure, social partners were not involved but they always support all measures and forms of the transition to green economy.

Views and reactions

Social partners in Croatia support measures relating to the transition to green economy. The Autonomous Trade Union in Power Industry, Chemistry and Non-Metal Industry of Croatia on the conference held on 8-9 March 2022, fully supported the activities of transition to green economy, including various governments grants to green energy production. Trade unions underlined the need to adjust their activities to prepare for the future demands of the economy.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      C - Manufacturing C10 Manufacture of food products
      C13 Manufacture of textiles
      C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
      C17 Manufacture of paper and paper products
      C20 Manufacture of chemicals and chemical products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals

This case is not occupation-specific.

Sources

  • 10 March 2022: Socijalni partneri o Zelenom planu (Social partners on the Green Deal) (www.ekn.hr)
  • 01 July 2022: Potpora poduzećima za tranziciju na energetski i resursno učinkovito gospodarstvo (The support to companies for the transition to energy and resource efficient economy) (mingor.gov.hr)
  • 29 December 2022: The current results with the call for transition to energy and resource economy

Citation

Eurofound (2022), Transition to an energy and resource efficient economy , measure HR-2022-27/2780 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2022-27_2780.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.