Advancing Croatia’s Energy Goals: Recap of the 3rd National Roundtable

Date: 24.09.2024
By: MESTRI-CE
On September 12th, 2024, the 3rd National Roundtable Session took place at the Zagreb Stock Exchange, bringing together a diverse group of stakeholders from national and local authorities, commercial and development banks, and the broader finance industry. The session focused on key themes surrounding public building renovation, sustainable finance, and the implementation of the EU’s energy efficiency directives.

Keynote Highlights and Discussions

The event kicked off with a keynote address by Morana Plejić from REGEA, who provided an overview of previous roundtables and set the stage for discussions on important initiatives, including:

  • The Handbook on Energy Renovation of Public Sector Buildings.
  • Implementation of the Fit for 55 legislative package (EED and EPBD) at the national level.
  • National energy efficiency plans for 2021-2027.
  • Financing models for energy efficiency, focusing on public building renovations.

Legislative Updates and Implementation Plans

National authorities outlined the revised Energy Performance of Buildings Directive (EPBD), highlighting key milestones for compliance by May 2026. The directive introduces Minimum Energy Performance Standards (MEPS), targeting the renovation of the 16% worst-performing non-residential buildings by 2030 and 26% by 2033.

The Energy Efficiency Directive (EED), to be implemented by October 2025, mandates a 1.9% annual energy savings target for the public sector and a 3% annual building renovation obligation for public buildings. This directive aims to upgrade public infrastructure to the nZEB or ZEB standard.

Addressing Financial Challenges and Opportunities

One of the central challenges discussed was the financial gap between the renovation needs of Croatia’s aging public building stock and the available funding. While grants have been exhausted, new funding calls under the Operational Programme Competitiveness and Cohesion (OPKK) 2021-2027 will be released once existing NPOO funds are fully utilized.

The introduction of the Urban Development Fund (UDF) offers a promising financial instrument for public-commercial projects, providing upfront financing and encouraging market-driven models. UDF projects are exempt from the “State-aid” and “de minimis” rules, positioning cities and counties to attract larger investors and prepare projects for capital markets.

Green Finance and the Future

Looking ahead, the State Green Budget project, set to launch in 2026, aims to improve transparency in tracking public sector investments related to sustainability, energy efficiency, and climate initiatives. This shift will further align Croatia’s budget management with its green investment goals.

Conclusion

The roundtable concluded with key takeaways, emphasizing the pressing need for technical assistance at the local level, the importance of capacity building, and the opportunities presented by innovative financial instruments like the UDF. The discussions underscored the ambitious but necessary steps Croatia must take to meet its energy efficiency targets and ensure a sustainable future.