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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure HR-2023-21/3174 – measures in Croatia

Grant for manufacturing and heating companies to invest in renewable electricity sources

Proizvodnja električne energije iz obnovljivih izvora u prerađivačkoj industriji i toplinarstvu

Country Croatia , applies nationwide
Time period Temporary, 25 May 2023 – 29 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 (Faculty of Economics, Business, and Tourism (FEBT), University of Split) and Eurofound
Measure added 30 May 2023 (updated 12 July 2023)

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


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

    • Economic area Sector (NACE level 2)
      C - Manufacturing C10 Manufacture of food products
      C11 Manufacture of beverages
      C12 Manufacture of tobacco products
      C13 Manufacture of textiles
      C14 Manufacture of wearing apparel
      C15 Manufacture of leather and related products
      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
      C18 Printing and reproduction of recorded media
      C19 Manufacture of coke and refined petroleum products
      C20 Manufacture of chemicals and chemical products
      C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
      C22 Manufacture of rubber and plastic products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals
      C25 Manufacture of fabricated metal products, except machinery and equipment
      C26 Manufacture of computer, electronic and optical products
      C27 Manufacture of electrical equipment
      C28 Manufacture of machinery and equipment n.e.c.
      C29 Manufacture of motor vehicles, trailers and semi-trailers

This case is not occupation-specific.


  • 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) (


Eurofound (2023), Grant for manufacturing and heating companies to invest in renewable electricity sources, measure HR-2023-21/3174 (measures in Croatia), EU PolicyWatch, Dublin,


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