Croatia unveils €1.68bn plan to shield households as climate policies tighten

Croatia has announced a €1.68bn social climate plan aimed at protecting vulnerable households and helping citizens shoulder the cost of the green transition, as the country prepares for new EU carbon pricing rules affecting buildings and transport.

The plan, presented on November 25 at a session of the National Council for Sustainable Development, includes funding from the EU’s Social Climate Fund and national contributions linked to the incoming ETS2 emissions trading system.

Prime Minister Andrej Plenković said the blueprint would guide Croatia’s energy, social and infrastructure policies over coming decades, arguing that the shift away from fossil fuels is as much about economic stability and national security as it is about environmental goals.

“Such dependence also means vulnerability,” Plenković said, noting that Croatia imports nearly 90% of its oil and over two-thirds of its gas. Investing in renewables, insulation and domestic energy capacity was “a policy of strengthening our independence,” he added.

Under the plan, more than 7,000 of the most vulnerable households will receive full state financing for energy renovation, including insulation, new windows and heating system upgrades. Additional schemes will support solar rooftop installations and heat pump replacements, which officials say could sharply reduce heating and electricity bills.

Plenković called home energy retrofits “the strongest social measure we can adopt this decade,” saying poorly insulated buildings currently drive high household energy spending. Two-thirds of Croatian homes fall into the lowest energy efficiency categories.

The programme also targets transport poverty — particularly acute in rural areas — with investment in electric buses, trains, cycling infrastructure and subsidies to help households switch to electric vehicles. Officials said 188 kilometres of new cycling routes and on-demand rural mobility services are planned.

Environment and Green Transition Minister Marija Vučković said the draft plan was submitted to the European Commission last month and will undergo public consultation before formal approval. Of the €1.68bn total, €1.26bn will come from EU funds and €420mn from national sources tied to ETS2 revenues.

Plenković said delaying action would risk higher long-term costs as fossil fuels become scarcer and more expensive. “Countries that prepare now will be successful. Those that wait will pay higher prices,” he said.