Croatia earmarks EUR 1.6 billion for Social Plan for Climate Policy

Croatia plans to achieve an efficient and just green transition by implementing its EUR 1.6 billion Social Plan for Climate Policy.

The Ministry of Environmental Protection and Green Transition has presented the Social Plan for Climate Policy and the European Union’s upcoming Emissions Trading System 2 (EU ETS 2) in Croatia’s capital Zagreb.

The event was organized as part of the process of developing the country’s Social Plan for Climate Policy. According to the ministry, the document outlines the green transition and includes measures and investments that would benefit vulnerable households, micro businesses, and users of transportation services.

The plan is being prepared within the framework of the Social Fund for Climate Policy, which is part of the EU’s Fit-for-55 legislative package. The aim is to reduce greenhouse gas emissions by 55% by 2030 from the 1990 level.

The social plan will be funded with proceeds from EU ETS 2

The new EU ETS 2 will cover CO2 emissions from buildings, road traffic, and small firms. Funding for the social plan will be secured from proceeds from the supplementary carbon pricing mechanism.

Minister Marija Vučković noted that after the public debate is over, the Social Plan for Climate Policy needs to be sent to the European Commission for adoption.

“With more than EUR 1.6 billion, our goal is to secure an efficient and just green transition that won’t leave behind the most vulnerable members of our society – households at risk of energy poverty, micro enterprises with limited adaptation capacities, but also the citizens that have difficulties accessing public transportation,” she pointed out.

The ministry is aware of the challenges that the transition carries, so it places special focus on mitigating socio-economic consequences and preventing risks affecting the most vulnerable people, as well as on education.

The plan defines various measures

The plan includes various measures. Some examples are renovating family houses with the worst energy performances, improving the availability of public transport in suburban, rural, and remote areas, subsidizing the purchase of vehicles with zero emissions, and providing direct financial incentives.

Representatives of the ministry Ana Juras and Predrag Božac described the operation and the establishment of the new part of the Emissions Trading System and presented the sectors that it would cover. They also spoke about the first round of measures and investments from the plan.

In another presentation, the audience learned the effect of EU ETS 2 on the prices of fossil fuels, the ministry said.