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Ecological, energy transition opportunity for sustainable economic growth - conference

ZAGREB, Jan 28 (Hina) - The ecological transition offers an opportunity for a sustainable growth of our economy, which should be based on the development of advanced technologies and innovation, Prime Minister Andrej Plenkovic said at the conference "Energy 2020, Green New Deal for Croatia" in Zagreb on Tuesday.

The debate within the European Green Deal, which has been launched by the new European Commission, coincides with Croatia's EU presidency and will mark it with regard to legislative activities at the Council level, Plenkovic said at the conference, organised by the Jutarnji List daily and PwC Hrvatska.

He stressed that Croatia would have a key role in encouraging discussion and reaching agreement between member states about the EU's new, ambitious journey towards climate neutrality.

"Climate neutrality is slowly becoming a dominant issue in all policies and all western member states. The same processes will happen fast in Croatia as well, which is why it is important for political parties to assume leadership on these topics."

He said that the European Green Deal consisted of 47 key measures, to be adopted gradually. Many of those measures refer to energy, decarbonisation, encouraging the use of renewable energy sources and energy efficiency, and the development of new technologies.

The EC last week presented an investment plan for the European Green Deal. "In the next ten years it will mobilise at least a trillion euros worth of investments in the field of environmental protection and climate. That is the investment pillar of the Green Deal," said Plenkovic.

The EC has proposed increasing the budget share for dealing with climate change and environmental protection in the next seven years from 20 to 25%. In the next ten years, as much as €503 billion would be mobilised for that purpose, plus €114 billion of national funds for environmental projects, said the PM.

The investment plan includes the creation of favourable conditions and incentives for sustainable investments by adopting a green budget and green public procurement, and it also envisages simplifying procedures for obtaining state support for regions which need a just transition.

A part of the plan is also the Just Transition Mechanism, which in the period it covers - the Multiannual Financial Framework 2021-2027, which is being negotiated, will mobilise €100 billion, said Plenkovic.

The Mechanism will cover three main sources of financing - the €7.5 billion Just Transition Fund, the InvestEU programme, with up to €45 billion of investments, and a credit instrument, which includes the involvement of the European Investment Bank and the possibility of additional investments in the amount of €25 to 30 billion.

Plenkovic said that Croatia, as a country of great natural resources, recognised the importance of the ambitious European Green Deal.

The plan highlights the goals that are already largely covered by Croatia's Energy Development Strategy for the period until 2030, with projections for the period until 2050, and the Integrated National Energy and Climate Plan for the period until 2030.

"On the one hand, emphasis is put on energy supply security and on the other, there is clear commitment to sustainable energy development, reduction of consumption and reduction of greenhouse gas emissions," said Plenkovic.

Speaking of energy supply security, he mentioned several strategic energy projects - the LNG terminal on the island of Krk, Plinacro's system of pipelines for shipping gas, the Ionian-Adriatic gas pipeline, the construction of a new gas storage facility in Grubisno Polje, a recent inauguration of the first compressor station on the Croatian gas transport system at Velika Ludina, projects designed to connect Croatia's gas transport system with neighbouring countries' systems, energy plants and biomas-fuelled co-generation plants, and wind farms.

"Advantage in the development of the energy potential should be given to the sources Croatia is rich in... wind, sun and geothermal energy," said the PM.

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