Background information

The government deems that renewable energy sources are the future of the energy transition, and such initiatives are opportunities not to be missed, given that they provide business entities with a quick and easy path to significant long-term savings, sustainability and improved competitiveness on the market.

This measure represents another step in achieving the climate neutrality goals of the European Union and in reducing dependence on fossil fuels. Croatian companies that decide to invest in renewable energy sources will not only benefit in terms of the aforementioned reduction in energy costs, but will also contribute to achieving the goals of climate neutrality and preserving the environment. The Ministry of Economic and Sustainable Development announced a grant for micro, small, medium, and large entrepreneurs to produce their own electricity from renewable resources.

It is the first announcement from the Modernisation Fund, which was established as part of the EU greenhouse gas emissions trading system. Companies in the fields of manufacturing and heating have the opportunity to receive grants from the €1 billion fund for their production plants to generate electricity from renewable sources.

Content of measure

The grant amount awarded per project ranges from €100,000 to €2 million. The initiative encourages Croatian companies to produce energy for their own needs in order to improve their own production, reduce the costs of energy, and reduce dependence on electricity from the market. The expected effects of this measure include:

• reduction of greenhouse gas emissions by 60,000 tonnes of CO2 per year.
• installed electric power from renewable sources 80 MW.
• energy savings of 140,000 MWh per year.
• installed energy storage capacity of 20 MWh.

The passing of this measure inspired domestic and foreign companies to design and construct of solar power plants in Croatia. This provided a unique opportunity for companies to reduce electricity costs and become independent of traditional energy sources. Given the availability of a significant amount of grants, the Ministry believes that the grant incentivises companies to implement electricity projects, invest in sustainability, and reduce their costs on a long-term level.

All interested business entities from the eligible sector have until 19 June 2023 to create a project, prepare documentation and submit a proposal. All necessary documentation and other information can be found on the website of the Ministry of Economy and Sustainable Development.

Use of measure

Not available.

Target groups

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

Actors and funding

Actors	Funding
National government	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

There was no social partner involvement.

Views and reactions

Social partners fully support measures directed towards environment protections. There are debates in Croatia about the impact of climate change and climate change policy on job quality. Social partners, particularly trade unions like the Union of Autonomous Trade Unions of Croatia (UATUC) and of the Independent Trade Unions of Croatia (ITUC), demand that the executive authority take initiative, hold responsibility, engage in effective dialogue, and involve trade unions in all stages of the process of adaptation.

Sectors and occupations

This case is not occupation-specific.

Sources

• 26 May 2023: Grants for production of electricity from renewable sources (nepovratna sredstva za proizvodnju električne energije iz obnovljivih izvora u prerađivačkoj industriji i toplinarstvu) (www.zgradonacelnik.hr)