Croatia’s recovery and resilience plan

Category: Executive

Document Type: Plan

Role: Annex

EU Council Approves Croatia's €6.3 Billion Recovery and Resilience Plan with 40% Climate Focus in July 2021

This document is a Council Implementing Decision approving the assessment of Croatia's national recovery and resilience plan (RRP). The decision is based on Regulation (EU) 2021/241, which established the Recovery and Resilience Facility (RRF) in response to the economic impact of the COVID-19 pandemic. The RRF provides financial support to EU Member States to implement reforms and investments aimed at fostering recovery, addressing challenges identified in the European Semester (particularly 2019 and 2020 country-specific recommendations), advancing the green and digital transitions, and enhancing economic and social resilience. Croatia's RRP, which was positively assessed by the European Commission, is set to receive €6.3 billion in grants from the RRF. The plan outlines reforms and investments to be implemented by the end of 2026. A significant portion, 40% of the total allocation, is dedicated to supporting climate objectives. Key affected sectors and investments include: * **Energy efficiency and post-earthquake reconstruction of buildings:** Allocating €789 million to renovate at least 225,000 square metres of residential buildings and 593,000 square metres of public buildings. * **Sustainable mobility:** Investing €728 million in upgrading railway lines, developing autonomous electric taxi services with accessible infrastructure, installing 1,300 electric vehicle charging stations, and introducing zero-emission vehicles and vessels. * **Low-carbon energy transition:** Providing €658 million to modernise energy infrastructure to integrate 1,500 MW of renewable energy capacity, support the production of advanced biofuels and renewable hydrogen, and finance innovative carbon capture and storage projects. * **Support to businesses for green transition and energy efficiency:** Directing €542 million towards projects boosting the green economy, sustainable tourism, and investments in green technologies.

Council of the
European Union
Brussels, 20 July 2021
(OR. en)
10687/21
Interinstitutional File:
2021/0222 (NLE)
ECOFIN 722
CADREFIN 371
UEM 211
FIN 592
LEGISLATIVE ACTS AND OTHER INSTRUMENTS
Subject: COUNCIL IMPLEMENTING DECISION on the approval of the assessment
of the recovery and resilience plan for Croatia
10687/21 SH/NT/en
ECOMP.1.A EN

COUNCIL IMPLEMENTING DECISION
of …
on the approval of the assessment of the recovery and resilience plan for Croatia
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council
of 12 February 2021 establishing the Recovery and Resilience Facility1, and in particular Article 20
thereof,
Having regard to the proposal from the European Commission,
1 OJ L 57, 18.2.2021, p. 17.
10687/21 SH/NT/en 1
ECOMP.1.A EN

Whereas:
(1) The COVID-19 outbreak has had a disruptive impact on the economy of Croatia. In 2019,
the gross domestic product (GDP) per capita of Croatia was 42,7 % of the Union average.
According to the Commission’s spring 2021 forecast, the real GDP of Croatia declined
by 8,0 % in 2020 and is expected to decline by 3,4 % cumulatively in 2020 and 2021.
Long-standing aspects with an impact on medium-term economic performance include a
cumbersome business environment, skills mismatches and labour shortages as well as low
investment in research and development (R&D) and digital infrastructures, all of which
contribute to low potential growth. Moreover, Croatia needs to improve the efficiency of
its public administration in order to better design, coordinate, implement and evaluate
public policies and to ensure the capacity to absorb Union funds, in view of the potential
inflow of Union financing amounting to around 40 % of GDP in the period until the end
of 2027.
10687/21 SH/NT/en 2
ECOMP.1.A EN

(2) On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Croatia in
the context of the European Semester. In particular, the Council recommended Croatia to
take all measures necessary, in line with the general escape clause of the Stability and
Growth Pact, to effectively address the pandemic, sustain the economy and support the

Tags: Biofuels, Buildings, Carbon Capture And Storage, Circular Economy, Climate Change, Compliance, Covid 19, Deadline, Digital Transition, Disaster Risk Management, E Buses, Electricity, Electromobility, Energy Efficiency, Energy Transition, Evs, Finance, Funding, Governance, Grant, Green Investments, Hydrogen, Industry, Infrastructure, Investment, Mitigation, Policy, Rail, Regulation, Renewable Energy, Stimulus Plan, Tourism, Transport

Sector: Buildings;Economy-wide;Energy;Transport

Original Source