Zagreb to invest EUR 56 million in waste management, low-emission machinery

Croatia’s capital, Zagreb, intends to invest EUR 56 million in waste management, green areas, and low-emission machinery. It expects the investment to reduce the environmental footprint of its municipal utilities and their operating costs.

Zagreb Holding (ZGH), the umbrella firm for the city’s utility companies, has requested approval from the authorities for a long-term EUR 56 million green loan agreement.

The Zagreb city assembly will decide on the request on December 16.

The green loan agreement with the International Finance Corporation (IFC) would finance investments aimed at supporting the development of circular waste management by procuring lower-emission vehicles and machinery for separate waste collection, developing green spaces, and maintaining roads.

ZGH to introduce smart waste management technologies

The loan would also be used for primary waste separation infrastructure, bio-waste treatment facilities, as well as information and communication technologies for data-driven smart waste management operations, ZGH said.

The company intends to replace its existing outdated machinery by acquiring municipal vehicles, machines, and equipment, with the aim of increasing operational efficiency and the scope of services provided to citizens.

Additionally, this investment will have a significant environmental impact by reducing greenhouse gas emissions.

NOx and PM emissions will be reduced by up to 80%

According to an analysis by ZGH, the average age of more than 300 vehicles, machines, and pieces of equipment is 14 years, which significantly exceeds the average economic service life of vehicles and machines. More than 70% of the vehicles do not meet current environmental standards (EURO 6), which leads to negative impacts on the environment and rising maintenance costs.

Thanks to the investment in EURO 6 and Stage V compliant vehicles, emissions of nitrogen oxides (NOx) and PM particles would be reduced by up to 80%, the update reads.

ZGH plans to introduce digital systems to increase the operational efficiency of its vehicles and machinery, such as monitoring fuel consumption, technical condition, and mileage.

The loan proceeds will be allocated to the city’s public utilities.

The waste utility Čistoća will receive EUR 22.2 million, road utility Zagrebačke Ceste EUR 14.9 million, green areas utility Zrinjevac EUR 16.4 million, cemetery utility Gradska Groblja EUR 861,000, the ICT Sector EUR 1.5 million, and the customer relations sector EUR 120,000.