EBRD Charts Course for Croatia’s Green Economy Transition and Competitiveness

EBRD Charts Course for Croatia’s Green Economy Transition and Competitiveness

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has approved a five-year strategy for investment in Croatia. The strategy focuses on supporting competitiveness through innovation and good governance, accelerating Croatia’s transition to a green economy, and enhancing resilience through inclusion and stakeholder engagement. The EBRD will assist in improving corporate governance, promoting energy diversification, and providing support for green post-earthquake reconstruction and urban regeneration programs. Over the past 30 years, the EBRD has invested €4.4 billion in Croatia’s economy, with a significant focus on the private sector and sustainable infrastructure. The bank’s technical assistance and advisory services in Croatia receive support from international donors, including the European Union.

(PRESS RELEASE) LONDON, 15-May-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, announces that its Board of Directors has given the green light to a comprehensive strategy aimed at guiding investment in Croatia over the next five years (2023-2028).

In collaboration with other international financial institutions and donors, the EBRD has identified key strategic priorities to be pursued during this period:

1. Supporting competitiveness through innovation, digitalization, and good governance.
2. Accelerating Croatia’s transition to a green economy in line with the Paris Agreement.
3. Enhancing resilience through inclusion and stronger stakeholder engagement.

Since its inception in 1993, the EBRD has been actively involved in Croatia, investing €4.4 billion in the country’s economy and providing financing and advisory services to over 850 companies. In recent years, the bank has increased its support for policy reforms, addressing critical needs in Croatia.

Victoria Zinchuk, EBRD Director for Central Europe, said: “Since becoming the latest member of the EU, Croatia has made remarkable progress on its path to deeper integration and a more sustainable private-sector economy. However, the country still faces structural challenges compared with its regional peers, amid low economic diversification and modest productivity growth. The triple shock of the 2020 earthquakes, the pandemic and, more recently, the war on Ukraine has shown the need to improve the country’s overall resilience and capability to withstand external and internal vulnerabilities. Our new country strategy will support Croatia in achieving this goal through strengthened resilience and a more competitive, diversified and sustainable private sector.”

Marko Primorac, Croatia’s Minister of Finance and the country’s representative on the EBRD Board of Governors, said before the strategy’s approval: “I see the EBRD as a key institution that will continue to support the strengthening of the competitiveness of the private sector and the economy as a whole.”

The first priority focuses on enhancing private sector competitiveness, building on the EBRD’s earlier efforts. The bank will continue to promote corporate governance improvements and efficiency in state-owned enterprises. It will also assist small and medium-sized enterprises in adopting innovative practices and products, forging partnerships with incubators and accelerators to bolster support for start-ups.

As the second priority, the EBRD will intensify efforts to drive Croatia’s transition to a green economy and align with the Paris Agreement. This includes diversifying the energy mix, expanding renewable energy capacity, improving energy efficiency, and building climate resilience. The bank will provide further support for renewable energy projects and lay the groundwork for the development of offshore wind and agri-solar potential.

The EBRD’s third priority involves supporting green post-earthquake reconstruction and urban regeneration programs, with a focus on engagement with local municipalities and communities. The bank will prioritize access to skills, employment, and finance, paying particular attention to the integration of refugees and vulnerable segments of the population.

Over the past three decades, the EBRD’s investments in Croatia have predominantly targeted the private sector, with over 70% of total investments allocated to this area. Additionally, more than €1 billion has been invested in sustainable infrastructure, contributing to the country’s development. In 2022 alone, the EBRD invested €300 million in Croatia.

The EBRD’s technical assistance and advisory services in Croatia receive support from international donors, including the European Union, Taipei China, and Japan, as well as multi-donor funds and the bank’s internal resources.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD