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ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN CROATIA

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INTERNATIONAL COOPERATION

No information is available.

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TRADE

Decision-Making: Coordinating Bodies    

In Croatia there is so far no institutional mechanism with an official mandate for integrating trade and environment issues, which might include also identification of possible " hot spots".

Decision-Making: Legislation and Regulations 

No information is available

Decision-Making: Strategies, Policies and Plans   

No information is available

Decision-Making: Major Groups Involvement   

No information is available

Programmes and Projects   

No information is available

Status   

Foreign trade activities of the Republic of Croatia in the period 1991-1998 show a relatively low growth rate, whereas the important rate is significantly higher, which has influenced the increase in foreign trade deficits. In the above period, exports have increased by 38 percent, and imports by 119 percent. As the goods trade structure is concerned, the exports by statistical sectors of foreign trade in the period 1996-1999 have decreased in almost all sectors: chemical products (plastic materials, fertilisers etc.), mineral fuels and lubricants (oil and oil derivatives, gas, electricity), etc. The only sector where exports have increased in the same period was the sector of machines and transport devices. Such export trends in Croatia could not have influenced the increase of environmental problems at the local or national levels.

In the period 1994-1997, the average economic growth rate in Croatia was a little above 6 percent, whereas in 1998 the growth rate declined to only 2.5%. The growth rates as such were not adequate, along with the relatively modest growth rates of export of goods and services. Growth rates for goods import were significantly higher than goods export, only to decline in 1998 and 1999. In the period 1994-1997, the actual turnover in retail sector was annually increasing in the range between 3-16 percent. In 1998, however, the increase was only 2.2 percent, which was most likely caused by the increase of the costs of living and a high unemployment rate. Due to economic retardation, we could again conclude that no environmental pressures have been observed during that time. Development of the concept of sustainable production and consumption patterns in Croatia is going on steadily.

The process of poverty assessment, in the frameworks of other projects in Croatia, is currently underway, carried out by governmental authorities in cooperation with the World Bank. The results of the project are expected to provide the answers to such questions as linkages between poverty and trade and investment.

Challenges  

No information is available

Capacity-building, Education, Training and Awareness-raising 

No information is available

Information   

No information is available

Research and Technologies 

No information is available

Financing   

No information is available

Cooperation

The Republic of Croatia began preparations for accession to GATT in 1993. The Joining procedure has been under way since then, with a view to Croatia's becoming a permanent member of GATT and the World Trade Organization (WHO), respectively. The beginning of April 1997 saw the first session of the Working Group for the Reception of Croatia into WHO, which initiated multilateral negotiations.

The Republic of Croatia undertook the obligation of elaborating the custom concessions proposal, which is an essential condition for the commencement of bilateral negotiations on tariff amounts for individual goods. Further, the government finds it necessary to open bilateral negotiations on custom concessions for goods and on access to service markets.

Croatia bases its market policies on both politics and the implementation of agreements settled within the Uruguay Round of GATT negotiations. In this connection, the new Law on Trade, in force since the beginning of 1996, represents the implementation of market policy measures, particularly in the part concerning protection against dumping and subsidies, and other modes of protection.

Croatia is in the process of accession to the WTO. The Ministry of Economic Affairs is in charge of all preparatory activities, including also coordination of harmonizing the legislation. Our institution and the Ministry of Economic Affairs have both considered the requirements on trade and environmental legislation, imposed by the WTO. Minor adjustments of Croatian environmental legislation have been made. The adjustments refer to the By-Law on Quality Standards for Liquid Oil Fuels and to the Law on Administrative Fees, which prescribes among others environmental fees for getting approval for import of waste to Croatia. On the other side, there was no change in trade legislation in response to the possible negative impacts of trade on the environment.  There was no derogation of any environmental legislation or regulation due to the reason above mentioned.

 

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This information was provided by the Government of Croatia to the 5th and 8th Sessions of the United Nations Commission on Sustainable Development. Last Update: March 2000.

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies    

There are several governmental bodies in Croatia dealing with some aspects of sustainable consumption and production patterns, each in their respective domain. These bodies include:

At the local and provincial levels, the responsible administrative bodies include:

Decision-Making: Legislation and Regulations 

Sustainable production and consumption has not been dealt with in an integrated and systematic fashion, neither legally nor strategically. Sustainable production and consumption are supported by general principles.

Some aspects of sustainable production and consumption patterns are dealt with in the following regulations and policies:

ISO standards in the 9000 series, adopted as Croatian standards discourage unsustainable practices and promote sustainable production patterns.

The following ISO standards in the 14000 series have been adopted as Croatian standards:

Adoption of the 14020 standard: Environmental labels and declarations - Basic principles of environmental labeling - is currently underway.

Other guidelines available include:

Examples of environmental standards within various regulations are:

 There are also:

Certain industries, especially those within multinational companies or those forced by international requirements to introduce standards and codes of good practice that take into consideration sustainable production and consumption.

Mandatory codes of practice, standards or guidelines include:

Those that are voluntary include:

In energy sector such codes of practice, standards or guidelines have not yet been established but this activity is planned within the NEP.

By enacting fundamental laws in the field of taxation, such as the Income Tax Law, the Profit Tax Law, and the Value Added Tax Law of January 1, 1998, the Croatian taxation system was reformed, and fully harmonised with European legislation. The introduction of value added tax, with a single 22% rate, aggravated the position of ecological activities, which were, pursuant to the provisions of the former Law on Taxes on Turnover of Products and Services exempt from taxes on turnover of environmentally friendly equipment and its components used for environmental purposes, and on environmentally sound packaging.

It also needs to be mentioned that there are several excise taxes, intended for expanding the State budget, i.e. they are not eco-taxes, although they indirectly affect the environment. These include: excise tax on oil derivatives, where the tax on leaded petrol exceeds the tax on unleaded petrol; excise tax on tobacco products; excise tax on passenger cars and other motor vehicles and aircraft produced, imported or sold in Croatia.

The implementation of new foreign trade regulations in 1994, of the Law on Commercial Companies and the Law on Trade, marked the liberalization of import and export activities. Liberalization was promoted by reducing the import-export products of which is determined by contingents and permits. The liberalization of conditions for doing business in Croatia has a special objective concerning incentives for foreign investments. Ecological activities have retained their allowances and exemptions from customs duties, on the basis of an approved customs contingent for imported equipment:

Apart from tax allowances valid until the end of 19997 and customs allowances still in force (customs exemptions/lower customs rates), in Croatia there are no other incentive environmental economic instruments so far. However, it is important to say that fundamental Croatian environmental legislation allows the possibility of the development of a system of incentive economic instruments.

The Law on Environmental Protection (as well as the Law on Air Quality Protection):

Regarding the economic instrument of environmental charges, there are only a few entirely or partially ecological charges in Croatia, although certain sectors have developed entire systems of charges. Certain charges are revenues of public enterprises from individual sectors, while others are State or local budget revenues.

Water management sector has a particularly developed system of charges, within which actually only the water protection charge has exclusively ecological purpose, while other charges are intended for financing other water management activities.

Apart from those characteristic for the water management, there are other types of charges which include: municipal; forest management; and agriculture and mining. Several charges from the sectors listed have ecological significance are used in environmental protection financing.

Apart from the above mentioned main economic instruments, applied in environmental policy, the Croatian legal system comprises many regulatory and control economic instruments. These are predominantly non-compliance fees in the field of nature and environmental protection legislation. They are contained both in fundamental environmental laws (Law on Environmental Protection, Law on Air Quality Protection, Law on Waste, Law on Nature Protection) and in special laws (Law on Waters, Law on Physical Planning, Law on Noise, Law on Forests etc.), certain provisions of which regulate nature and environmental protection issues.

The new Penal Law for the first time in the history of Croatian legislation, deals with criminal offences against the environment, i.e.:

Apart from the fees, the Penal Law anticipates imprisonment, depending on the severity of injury, while serious criminal offences against the environment have been separately regulated.

Based on international treaties, the Republic of Croatia enacted in the meantime two acts, the implementation of which helps the development of sustainable production and consumption patterns: By-Law on Quality Standards for Liquid Oil Fuels ( Official Gazette No. 76/97, 66/96 ) and By-Law on Substances the Deplete the Ozone Layer (Official Gazette No. 7/99, 20/99).

Regarding the liability for environmental pollution, legal provisions are specific as concerns implementation of the ‘polluter pays’ principle, an issue that national and international environmental law have in common. The polluter is financially liable for pollution-related expenses, where expenses caused by pollution and clean-up and damage costs are included, following the principle of objective liability (causality), pursuant to the general rules of the Law on Obligations. There are also subsidies for traditional farming practices.

In the legislative field, the single regulation directly targeted at sustainable production and consumption is the Rule Book on Environmental Label and Packaging Waste.

Decision-Making: Strategies, Policies and Plans   

The concerns of sustainable consumption and/or production patterns have not been addressed in an integrated fashion in any of the national strategic or policy documents in Croatia. Individual aspects of sustainable consumption and production patterns have been generally and taxonomically listed within certain sectoral documents.

After 1990 Croatia faces substantial changes in the taxation policy and taxation system, in foreign trade - especially customs - system, in monetary and credit policy and other segments of the national economic policy. The changes in the taxation and system of protective customs duties had a significant and direct influence on ecological activities.

The Economic Development Strategy for the Republic of Croatia is planned for this year and is expected to include an integrated approach to the above mentioned concerns.  Moreover, Croatia is in the process of developing an Environmental Strategy. It is expected that this document would address the issue of sustainable production and consumption in an appropriate manner.  The Draft Croatian Energy Strategy covering the period up to the year 2010 sets the main strategic goals while integrating basic principles of sustainable development. It addresses the following issues:

The above strategic goals are intended to be achieved through the following means (among others):

The above mentioned Draft also stresses that permanent concern about energy efficiency is one of the basic components of sustainable development. Energy efficiency can significantly contribute to the decrease of negative impacts on the environment, to higher employment rates and to better competitiveness of national economy.

Organized and systematic measuring of energy efficiency improvement will be carried out in Croatia on the basis of National Energy Programmes. The Programmes cover all significant consumption segments and they can contribute to significant energy efficiency improvements in each area of consumption.

The main objectives of energy efficiency in buildings are outlined in KUENzgrada programme which gives proposals and solutions for energy savings in design, construction and use of new buildings and settlements, as well as in repairs and reconstruction of existing buildings. This would enable creation of a favorable micro-climate within buildings and apartments, and decrease negative environmental impacts.

Energy Efficiency Programme for industry, services and public sectors is elaborated in MIEE, and outlines actions that could contribute to increased energy efficiency in the mentioned sectors.

In the area of co-generation, proposals for energy efficiency improvement are presented in KOGEN programme which provides incentives for construction and use of co-generation plants in all facilities where it would be technically and economically feasible. Centralized district heating systems (KUENcts Programme) in larger settlements and towns, particularly those with high consumer density, or where there is a need for both heat and power, will be promoted by providing incentives for the construction and upgrading of district heating systems. Particular attention will be given to upgrading efficiency of the existing systems.

Transport is the sector with highest growth rate of potential and actual energy demand. As this is directly connected to increased emission of pollutants, including "greenhouse" gases, the Government of Croatia will initiate a national energy programme for transport, titled TRANCRO.

Setting up of Efficiency Promoting Centres at INA Oil Industry and Croatian Electricity Company (CEC), as large consumers and producers of energy, is expected to ensure the implementation of energy efficiency programmes within these enterprises.

Pursuing the practice of developed countries, certain market measures are planned to be introduced. Equipment would be marked with "energy labels" with the aim to create a transparent policy that favors rational energy use and environmental protection.

Energy production and consumption have significant adverse effects on global and local environments. For this reason, future development of energy sector in the Republic of Croatia should be based on energy production and consumption in compliance with requirements related to the protection of human health, preservation of biological and landscape diversity and quality of local, regional and global environments. Environmental protection goals are defined in line with this principal direction. The main guidelines could be summarized as follows:

Energy production, transmission and consumption in Croatia is to be brought into compliance with environmental protection principles

Increase energy efficiency and the share of renewable energy resources in all sectors of economy, buildings and district heating.

Develop technological, regulatory, institutional, economic and legal bases, and establish international cooperation for reducing energy sector’s negative impacts on the environment

Develop and sustain scientific foundations on which concern for the environment in energy sector will be based

The Croatian Physical Planning Strategy, adopted in 1997, sets foundations of physical planning upon principles of sustainable development, rational use and protection of the space.

Proposal of the Croatian Transport Development Strategy sets sustainable development of the Republic of Croatia as one of its objectives. As one of the general social and economic development goals, the document points to the importance of transport development in the sense of:

Environmental objectives in transport can at the same time be achieved through appropriate planning and construction practices and, within exploitation, through appropriate restrictions, technical requirements and prohibitions. Certain general orientations, such as promoting the use of public transport and limiting the use of passenger vehicles, and a large-scale general development policy concerning distribution of economic activities, which goes hand in hand with population distribution, may contribute to the reduction of basic communication requirements and of transport loads. The Republic of Croatia is interested in developing modern, environmentally sound transport technologies.

Industrial Strategy, currently in the final elaboration stage, anticipates economic policy measures capable of supporting sustainable production and consumption patterns. These are principles and measures of direct incentives to regional development through the promotion of new technologies. Improvement of the state of existing technologies is expected to lead to improvement of the situation in the industrial sector.

"The Agriculture in Croatia - A Strategy for Development", approved by the Croatian Parliament in 1995, has mandated the Government to promote the development of family farming within the framework of market economy. The objective of the Government’s agricultural policy is to overcome the legacy of large-scale agro-businesses and promote efficiency of private production and marketing.

There is Cleaner Production Declaration and Cleaner Production Strategy in Croatia (not as official Government documents). Cleaner Production Initiative Committee has been founded, with the tasks of promoting cleaner production and other prevention methods and technologies.

The specific issues related to production and consumption patterns addressed or planned to be included in the aforementioned strategies and policies (already adopted or in preparation) include:

    -     increasing energy and material efficiency in production processes;
    -     reducing wastes from production and promoting recycling;
    -     promoting use of new and renewable sources of energy;
    -     using environmentally sound technologies for sustainable production;
    -     reducing wasteful consumption;
    -     increasing awareness for sustainable consumption.

Major concerns in the strategies that are in preparation or have been adopted are seen as:

The aforementioned Cleaner Production Strategy lists the following basic objectives:

  1. Minimization of hazardous and other waste and harmful emissions by engaging industrial stakeholders into cleaner production projects.
  2. Improvement of existing practices of management of waste and other environmentally harmful emissions. Shift from the treatment of already generated waste towards avoidance of its generation (preventive approach).
  3. Inclusion of the maximum possible number of economic subjects into cleaner production projects.

Decision-Making: Major Groups involvement

The Major Groups recognized in Agenda 21 are involved to the extent in which they participate in decision-making to promote sustainable consumption and production. The public to a certain extent participates in law-making procedures and development of plans and programmes promoting sustainable production and consumption.

For the successful implementation of the Montreal Protocol obligations, the National Phase-out Team was established in 1996. The National Phase-out Team members are representatives of the relevant governmental bodies and NGOs. The National Phase-out Team has a role in developing phase-out action plans and passing decisions, e.g. establishing the phase-out policy measures.

Local authorities, non-governmental organizations as well as business and industry could make better use of the rights and possibilities offered by the legislative system. For example, according to their constitutional right local authorities can develop environmental protection programmes. NGOs could also stress or deal to a greater extent with the sustainable production and consumption within the scope their activities.

Programmes and Projects   

The ten National Energy Programmes (NEPs), carried out by the Hrvoje Požar Energy Institute, under the Government instruction are:

    - MIEE, industrial energy efficiency network;
    - KOGEN, for the promotion of the co-generation;
    - MAHE, for small hydropower plants;
    - SUNEN, for solar energy;
    - BIOEN, for energy from bio-mass;
    - ENWIND, for wind energy;
    - GEOEN, for geothermal energy;
    - KUENzgrada, for energy efficiency in buildings;
    - KUENcts, for increase of the district heating efficiency;
    - PLINCOR, for development of gas network.
    - PROHES - Programme of Development and Organization of Croatian Energy Sector dealing with renewable energy, energy efficiency, co-generation and gas network development.

Additional programmes of relevance include:

All of the above mentioned programmes highlight or focus on environmental, economic, social or cultural aspects of sustainable consumption and production. In particular, the programme on Capacity Building for Cleaner Production is definitely oriented towards environmental and economic aspects of sustainable production and development, as it puts the emphasis on the preventive approach.

National energy programmes are focused on environmental, economic and general aspects, tending to remove obstacles and prepare necessary features for the implementation.  Agricultural programmes are also focused on environmental aspects because the specific objectives under these projects are to achieve compliance of the implementation of project components with Croatian and European environmental rules and procedures.

Status

General estimation: electric power consumption could be decreased by up to 10-20%, heat consumption by 20-30%.

The national targets for enhancing energy and material efficiency, waste reduction, recycling, public transport and quality of life are set out within sectoral legislation and are carried out within the mentioned programmes and projects or will be carried out on the basis of the mentioned strategies to be approved.

Elaboration of waste management studies for towns and Counties of the Republic of Croatia.
Mobilization of a primary recycling system for the Greater Zagreb area.  The following methods and processes have been adopted by industry to attain more sustainable production, mostly on a voluntary basis:

There are three Croatian Companies that have ISO 14000 certificate. These are: Split Ship Management, Viktor Lenac Shipyard and Koromačno Cementworks. They have adopted the EMS (Environmental Management Systems: ISO 14000). There are 15 companies with the right to use the environmental label of the Republic of Croatia. The ecolabelling programme is voluntary and run by the State Directorate for the Protection of Nature and Environment.

Design for Environment in Ericsson Nikola Tesla, a telecommunications company.

PLIVA Incorporated (Pharmaceutical Industry), KRAŠ Chocolate Factory, Koromacno Cementworks, Vetropak - Straža, Ericsson Nikola Tesla, are among the companies that are implementing methods and processes based on the LCA, eco-efficiency, cleaner production and similar approaches, in accordance with their individual orientations and needs, i.e. on voluntary basis. These orientations are often due to international demand, strongly influenced by international market, or to export orientation of the respective company or to the demands of international financing institutions (EBRD, WB).

Each of the above mentioned NEPs is preparing one or more pilot projects. For example:

A number of companies that have sent their experts to the cleaner production courses have, in their premises, carried out activities aimed at promoting sustainable production and consumption (See the attached tables). These are individual projects and programmes without external support; pursuant to management decisions, the experts are sent for training, with plans to use their own resources afterwards for conducting certain activities in their companies. These projects and activities were encouraged only through training, workshops and education courses.

The following projects have been carried out in the energy sector: fuel switch from fuel oil to gas in hotels and industrial objects, mostly LPG while expecting the development of natural gas network.

Waste timber fuelled hot water boilers in timber industry, etc.

The LURA GROUP Dairy Industry has introduced a waste water treatment and dredge handling plant, operated by the method of composting, in the Sirela Dairy Factory.

Challenges  

Priority constraints to implementing effective programmes to address the issues related to promoting sustainable consumption and production include:

Capacity-building, Education, Training and Awareness-raising 

Courses on introduction of the ISO standards of 14000 series, organized by the Croatian Chamber of Economy, Croatian Employers Association etc.

Presentation of the concept of cleaner production in Croatia and work on the project Capacity Building for the Cleaner Production, for example, involve:

Within energy sector, this is planned as activities of NEPs, the Government and appointed institutions to carry them out.

The projects Eco Schools of the NGO "Lijepa NASA" with the support of the State Directorate for the Protection of Nature and Environment is determined to the young people in awareness raising and environmental education. The environmental education project "Blue Flag" has been conducted since 1997 for the beaches and marinas which protect environment and manage their resources sustainable.

The project "Improving Environmental Education within the Croatian Schooling System", that includes seminars for headmasters, teachers and instructors in Croatian educational institutions. Project execution agencies are the Ministry of Education and Sport in conjunction with the Ministry of Reconstruction and Development, the State Directorate for the Protection of Nature and Environment, Greater Zagreb Town Office for Education and Sport, and ZGO - Municipal Waste Management and Environmental Protection Company.

The project "Integrated Waste Management System" includes organization of seminars for the business sector (Intercontinental Hotel, Sheraton Hotel, Konzum -chain of stores, ZET - Public Transportation Company, Pliva Incorporated - Pharmaceutical Industry, public markets). Project execution agency: ZGO.

The project "Town and the Environment" includes citizens seminars. Project execution agencies are Susedgrad Cultural and Educational Centre, Zagreb, in collaboration with ZGO, Town Office for Development Planning and Environmental Protection, Environmental Journalists Convention, Šumarija Zagreb (Zagreb Forestry) etc.

Waste Management Project, carried out as a series of eight 30-minute TV programmes. Project execution agencies are Croatian National Television and ZGO othere avenue is a 30-minute weekly programmes broadcast throughout 4 years. Project execution agencies are ZGO and Open Television.

The project "All there is to it", carried out in the form of TV-commercials - eco-messages (more than 60 video-clips so far), radio-commercials - eco-messages (more than 200 messages so far), and through cooperation with all the radio-stations (more than 50 of them).

Projects of education and communicating with the public as parts of the Waste Management Project have been developed for the Counties of Osijek-Baranja, Lika-Senj, Dubrovnik-Neretva, Split-Dalmatia and Šibenik-Knin, as well as for the towns of Belišće, Bol na Braču, Hvar, Lipik, Mali Lošinj, Našice, Nova Gradiška, Osijek, Pakrac, Pula, Samobor, Slavonski Brod, Zlatar.

The ZGO projects in conjunction with AIESCOM - international student association at the Faculty of Economy in Zagreb, carried out through seminars for students from different faculties.

Long-term cleaner production training and seminars include governmental, industrial, academic and other representatives. Apart from two long-term training courses, a number of branch and regional seminars has been organised in cooperation with the Croatian Chamber of Economy, promoting (as well as in long-term training courses) a concept of cleaner production as a preventive environmental strategy, methodology for assessing cleaner production potentials in industry, and cleaner production technologies.

Training in "Farmer Extension Services Project", trainings within the mentioned agricultural projects.

In the Agreement of Cooperation signed with ZGO d.o.o., Konzum d.d., a large chain of retail stores has defined its priorities within the context of sustainable development, which means a harmonised relationship of economy and the environment. These priorities are:

The company has produced its eco-symbol containing the message "You are also part of the environment! What have you done for yourself today? Preserve the environment, shape our future!". The message has been published as a leaflet distributed to the consumers, and posted in public transportation vehicles in Zagreb, as well as in discount product catalogues distributed via the popular newspapers and magazines and in stores. The eco-message can also be found on paper bags and on the envelope that is currently on the market.

Awareness campaigns carried out by non-governmental organizations: Blue Flag, an environmental award for marinas that cover: marina quality, safety, services and facilities and environmental education and information.

Information 

In Croatia, there are number of channels of information available to assist both decision-makers and industry managers to plan and implement appropriate policies and programmes in the above mentioned areas.

Concerning legislative issues, "Narodne novine" of the Republic of Croatia publish its "Official gazette", which can also be found on the Web pages.

For radio and television broadcasts and the press, certain aspects of this issue could be identified in business-oriented special editions and programmes.

Written information is featured in specialized magazines. Articles found there include those brought from the leading international expert magazines (The Economist, etc.).

State Directorate for the Protection of Nature and Environment has its own web-site containing texts of the environmental legislation, all issues of the monthly magazine "Environment" (87 issues), the Environmental Status Report from 1997, etc.

Auditing or monitoring system in place to oversee enforcement of relevant laws, regulations and standards are:

The relevant information is made available to potential users through general information.

All legislative acts approved by the Government are available on the website: www.nn.hr

Certain other governmental bodies have their own websites, for example:

    -    State Directorate for the Protection of Nature and Environment:
    -    Ministry of Agriculture: 
    -    ZGO:
    -    Croatian Bureau of Statistics: 

Surveys are currently carried out within the MIEE programme to see the actual consumption, state of the energy use and actual potential for measures in the sectors of tourism, hospitals and industry.

Research and Technologies 

It is expected that the Croatian Economic Strategy, to be adopted this year, and the Industrial Strategy, which has reached its final stage of elaboration, would by support measures for new technologies promote clean and environmentally sound technologies.

Clean and environmentally sound technologies are promoted in expert magazines, on expert conferences, within their realisation programmes. It is expected that, in relation to industry, these activities should be integrated by the Croatian Sustainable Development Business Council (established in 1997).  The following approaches are used to promote cleaner production: 

-   "train the trainers" approach;
-   methodology of assessment of cleaner production potentials in industry.

The State Directorate for the Protection of Nature and Environment runs the eco-labeling programme and grants annual awards for environmental achievements each year on 5 June, on the occasion of the World Environment Day.

The Law on Organic Production is expected to form the basis of such production.

Companies Pliva Incorporated and Koromacno Cementworks have their own incineration plants used for energy generation.

In the agricultural field, a number of issues are expected to be solved by the "Wholesale market project" intended for fresh agricultural products.

The Ministry of Science and Technology has developed a scientific support project for environmental groups. Within the scientific and technological/technical community there is a number of research projects; however, most of them are never carried out.

Financing 

Activities in this area are through the following means:

Cooperation

The bilateral, public or private, multilateral and international cooperation in which the government participates in order to further activities related to promoting sustainable consumption and production patterns include:

"Farmer Support Service Project" also undertaken by the World Bank and the Republic of Croatia. Under this Project "there is a component market information system" which provides prices of agricultural products. Other five components are supporting agricultural production.

The GLOBE Project (Global Legislators Organization for a Balanced Environment), that includes seminars for GLOBE-schools programme leaders. The project execution agencies: Ministry of Education and Sport in collaboration with the State Directorate for the Protection of Nature and Environment, ZGO, Greater Zagreb Town Office for Education and Sport.

During preparations for the project between UNIDO and the Croatian Government (Capacity Building for Cleaner Production), an introductory half-day seminar on marketing was organized in June 1997, with approximately 200 participants, mostly decision-makers and representatives of top management of industrial companies.

The Government of the Republic of Croatia on 24 July 1997 signed the Acceptance Agreement for the UNIDO project: Capacity Building for Cleaner Production (TF/CRO/97/001). The Project is in Croatia run by the Ministry of Economic Affairs and the State Directorate for the Protection of Nature and Environment, and implemented by APO - Hazardous Waste Management Agency. The Project is financed by the Government of the Czech Republic through the Multilateral Assistance Development Fund, as a part of the UNEP/UNIDO programme of creating a network of national cleaner production centers. On the side of the Government of the Czech Republic, the Project is implemented by the Czech Cleaner Production Center.

The Environmental Protection Strategy dealing with industry and cleaner technologies will be elaborated with the World Bank IDF support.  All other aforementioned bilateral, public or private, multilateral and international cooperation in which the Government participates.

Most of the specific governmental programmes are carried out on the basis of adopted international treaties. For instance, the Republic of Croatia has acceded to the Vienna Convention for the Protection of the Ozone Layer, Montreal Protocol on Substances that Deplete the Ozone Layer and its London and Copenhagen Amendments. The Montreal Protocol Amendment of 1997 will be considered at a later date.  Since Croatia operates as an Article 5 country under the Montreal Protocol, the Country Programme was prepared and subsequently finalized in July 1996 and approved at the 20th Meeting of the Executive Committee of the Multilateral Fund.

The Croatian Government in 1998 signed an agreement with UNDP/GEF for implementation of the project Removing Barriers to Implementation of Energy Efficiency Measures in Croatia. This project is planned to be carried out within one year and the energy efficiency and renewable energy sources. The appointed governmental executing agency is Hrvoje Polar Energy Institute.

Another project to be undertaken in co-operation between the Croatian Government and UNDP/GEF will be signed in the near future. This project will enable Croatia to prepare its first national communication in response to its commitments to the UNFCCC. Beside the preparation of the national communication, the project is expected to enhance general awareness and knowledge on climate change related issues in Croatia and to strengthen the dialogue, information exchange and co-operation among all the relevant stakeholders including governmental, non-governmental, academic, and private sectors. The appointed governmental implementing agency is the State Directorate for the Protection of Nature and Environment.

The prevailing presence of the issue is related to international market demands or requirements of international organizations (OECD, WTO).

 

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This Information was provided by the Government of Croatia to the 5th and 7th Sessions of the United Nations Commission on Sustainable Development. Last update: August 1999.

 

FINANCING

Decision-Making: Coordinating Bodies    

No information is not available

Decision-Making: Legislation and Regulations 

No new environmental taxes, levies of charges have been introduced in the meantime, but the existing excise taxes on Oil Derivatives, Passengers Cars, other Motor Vehicles and Aircraft and Tobacco Products were increased starting from July, 1999.

The use of complete mineral fertilizers (nitrate-phosphorus-potassium) in agriculture has been stimulated from the State Budget to increase crop yields. This incentive instrument at one-side helps (probably only on short-term basis) the crop production increase, and at the other side has an adverse effect on soil / environment in case that the types and quantities of complete fertilizer (NPK) used do not comply with the soil types. This issue will be a subject of future investigation and harmonization with EU directives.

Legal framework for foreign investment are contained first and foremost in the following:

Law on Commercial Companies (1993), Law on Concessions (1992) as well as in the special law regulating the issue of concessions on individual estates and activities and establishing of joint commercial companies, where the Law on Public Utility Management should be mentioned (1995). Those laws are also legal framework for more environmentally friendly direct foreign investments.

Pursuant to the Law on Public Utility Management (a) unit(s) of local self-government has a right to find a commercial company ( public company, limited partnership, joint stock or limited responsibility company) for performing municipal services. The foreign investor may act as a minor stockholder. This model of combining public and private capital motivates foreign investors to invest in municipal infrastructure development and environmental protection in Croatia.

It is of extreme importance to point out that the foreign investor, when founding or acting as a partner in founding of a commercial company in Croatia, under presumed reciprocity conditions, acquires rights and position equal to domestic partner. The Law on Concessions gives a foreign individual, by means of a concession contract, the right to economic use of natural resources and other goods of interest to the Republic of Croatia, as well as the right to reform activities of legal interest for the Republic of Croatia, and construction and use of facilities and plants necessary for the performance thereof. Both the Law on Concessions and the Law on Public Utility Management have obviously created new, wider possibilities of attracting private domestic and foreign capital, and encouraged introduction of new financing strategies and forms for infrastructure development and environmental protection in Croatia.  

Decision-Making: Strategies, Policies and Plans   

The priorities for financing should be defined by the National Environmental Action Plan (NEAP), which is under preparation in the Ministry of Environmental Protection and Physical Planning with the support of the World Bank/ IDF Grant.

Recently, the draft UN Environmental Performance Review by the Ministry of Environmental Protection and Physical Planning was completed. The final document was published in the end of last year (1999).

The Government has been also taking measures to increase the living standard of retired persons. A new Pension Insurance Act entered into force in January 1999. It defines the pension index by growth of salaries and costs of living. One of priorities in the economic policy for the year 2000 is the pension system reform, due primarily to the fact that the number of retired persons has rapidly increased.

Decision-Making: Strategies, Policies and Plans  

No information is available

Programmes and Projects 

No information is available

Status

In 1998 the Government of the Republic of Croatia initiated a series of measures earmarked for the reduction of labor costs, as well as stimulation of employment of new personnel. These government measures, together with the credit financing of exporters and small and medium-size business sector by the Croatian Bank for Reconstruction and Development, should increase employment in the duly period.

In 1998 the Government undertook also measures to improve the living standard of employees and to reduce the tax burden on labor, as follows: the 0.8 percent water contribution on gross salaries was eliminated, the non-taxable income share increased, the deductory coefficient for dependent family members also increased, etc.

The nominal growth of net salaries in 1998 accounted for 12.8 percent nominally or 6.1 percent in real terms. The average monthly net wages and salaries amounted to HRK 2,681.00.

At the end of 1997 the practice of paying the so-called thirteenth salary or "Christmas allowance" started. A regulation on non-taxable payment of one-off allowance in the amount of HRK 1,000.00 was adopted in December 1998.

Croatia is an open market for foreign investors opting for an open economy, based on the principles of free market and private entrepreneurship. Croatia in its constitutional provisions expresses its interest in and supports foreign investment. 

Challenges  

No information is available

Capacity-building, Education, Training and Awareness-raising   

The Ministry of Environmental Protection and Physical Planning has raised a project "Strengthening environmental capacity in Croatia" , which should produce the best mechanism for collecting and managing funds for stimulating and financing projects/ programmes for the protection of nature and the environment. 

Information

The Ministry of Environmental Protection and Physical Planning (former State Directorate for the Protection of Nature and Environment) submitted in 1998 the National Report on Environmental Economic Instruments to the Regional Environmental Center for Central and Eastern Europe /REC/, Szentendre Hungary. The Report contains a part of the 1997-98 Work Program of the Sofia Initiative on Economic Instruments ( SIEI ). SIEI was approved by the 1995 Environment for Europe Ministerial Conference in Sofia, as well as supported by the 1998 Ministerial Conference in Aarhus. Among many countries, the Republic of Croatia also approves SIEI.

The Report can be found in the Sourcebook on Economic Instruments in CEE countries, published by REC, Ady Endre ut 9-11,2000 Szentendre, Hungary, Phone: (36-26) 311-199, Fax: (36-26) 311-294, E-mail: Error! Reference source not found., Website: www.rec.org .

All laws, by-laws and other legal regulations that prescribe environmental charges, levies and excises are published in Official Gazette (‘Narodne novine’) of the Republic of Croatia. Address of the national World Wide Web Site : http://www.nn.hr .

Each year the last December issue of Official Gazette contains an overview of the Central Government Budget Revenues and Expenditures in the coming year. The expenditure side includes also data on environmental and nature protection expenditures. 'Narodne novine' No. 167/98 contains data for 1999. Web address: see above.

The submission of data on economic instruments to the REC also continued in 1999, and is envisaged for 2000 as well.

Statistical Yearbooks, published by the Central Bureau of Statistics of the Republic of Croatia contain data on: gross fixed capital formation ( gross investment ) in new fixed assets including investments in environment protection ( waste disposal, water and air protection, etc.) according to the NCEA. Internet address : http://www.dzs.hr .

The Ministry of Finance monthly statistical reviews and yearly review (containing basic macroeconomic information) are regularly sent to all international financial institutions.

The Croatian National Bank bulletin, containing also information on economic trends, is sent to all international financial institutions.

Available on the Internet: Ministry of Finance : www.mfin.hr

Croatian National Bank: www.hnb.hr

Croatian Investment Promotion Agency (CIPA) published one yearly general information on potential investment projects in Croatia. E-mail address: hapn@hapn.tel.hr .

Research and Technologies   

No information is available

Financing 

Investments in Environmental Protection According to the Type of Investor *(in US$)

 

1993

1994

1995

Realized investments      
A - Total Investments 1,319,841,368 1,605,434,283 2,003,493,549
B - Investments for environmental protection 27,498,810 23,108,254 39,336,571
Percentage of all investments (B/A x 100)

2.09%

1.44%

1.97%

Manufacturing and Mining

5,107,285

3,108,204

6,456,150

Agriculture and Fishing

114,455

50,493

87,396

Forestry

20,717,705

12,920,440

18,881.646

Water Management

172,852

-

173,972

Building Engineering

68,792

-

14,715

Transport and Communications

25,455

207,461

29,330

Trade

114,548

160,988

 

Tourism

454,618

14,184

 

Intellectual Services, Crafts

22,162

23,987

 

Utility Services

700,938

6,617,572

13,553,918

Education and Culture

-

4,925

139,444

Recalculation: average exchange rate of the National Bank of Croatia
Source: The State Bureau of Statistics  
*Gross fired capital formation in environmental protection includes investment in land, facilities, equipment and tools for collection, transportation, processing, storage and disposal of waste, investment in reducing or protection of surface water from waste waters, investment in reducing, avoiding or eliminating noise; investment in eliminating avoiding or reducing polluting substances from waste gases in the air, investments in protection of soil and surface water and protection of nature and landscape.

Environmental Financing from the State Budget
US $

STATE BUDGET

1996

1997

1998

1999

Total State Budget

5,492,086,000

5,729,221,885

6,268,350,146

7,850,796,000

Share for Environmental Protection:
  • amount

20,904,993

20,319,818

27,405,176

97,373,850

  • percentage %

0.38

0.35

0.43

1.23

Source: - Official gazette of the Republic of Croatia, "Narodne novine" # 9/96; 111/96; 141/97; 167/98
- 1998 Statistical Yearbook of the Republic of Croatia
- Bulletin of the Croatian National Bank # 34/01/99; 41/09/99

Cooperation

The Ministry of Environmental Protection and Physical Planning also submits data on economic instruments and environmental expenditures in Croatia to the UN Economic Commission for Europe/ Committee on Environmental Policy.

* * *

This information was provided by the Government of Croatia to the 5th and 8th Sessions of the United Nations Commission on Sustainable Development. Last Update: March 2000.

For information on participating States in the Global Environment Facility, click here:
For information about issues and projects in Eastern Europe and Central Asia from the World Bank, click here:

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TECHNOLOGY

Decision-Making: Coordinating Bodies    

No information is available

Decision-Making: Legislation and Regulations 

No information is available

Decision-Making: Strategies, Policies and Plans  

The introduction of environmentally sound technologies (EST), as well as sustainable development in Croatia's economic development scheme, is an integral part of science and technology policy which is under the responsibility of the Ministry of Science and Technology (MOST). This policy is concentrated mainly on environmental protection, monitoring and the introduction, transfer and commercialization of new environmentally friendly technologies generated in the public research sector. EST links to the policies of the business sector and industry are still very weak.

Decision-Making: Major Groups Involvement  

From the point of view of science and technology policy, the incentives for integrating EST, clean technologies and sustainable development in shaping the global future of Croatia are given in the National Science and Research Programme for the period of 1996-98. The Programme was approved by the Croatian Parliament in February 1996, and it acts as the official framework for creating and practicing technology policy based on clean technologies and sustainable development.

To encourage ESTs and environmental protection in general, MOST supports a number of national research projects, international cooperative projects, and more than 30 study programmes of environmental protection at universities.

Programmes and Projects   

No information is available

Status

Croatia will not stop the importing of foreign technology and knowledge, but, as it is stated explicitly in the National Programme, "... all imported technologies and know-how should be environment-friendly ...", and "preferably institutions should be set up to assist the import or export of technology, primarily specialized agencies, for transfer which would be operated by market principles".

Challenges

No information is information

Capacity-building, Education, Training and Awareness-raising 

A special graduate study program for environmental protection at the Faculty of Chemical Engineering in Split was established at the beginning of 1982, and so far 30 graduates have acquired a diploma in Environmental Protection. Through its support to research projects and study programmes at faculties which are in close connection with eco-efficiency topics and clean production processes, the Ministry of Science and Technology is forcing an "eco-climate" in Croatia. A substantial part of eco-efficiency, like Total Quality Management (TQM) and enhancing corporate productivity, are promoted through special courses at universities and recently, at the newly established Centre for Technology Transfer. However, the steps towards eco-efficiency in Croatia, as well as in other countries, start from an inherited economic system which did not take into account sustainable development. Therefore, to make university studies, training courses and achievements in EST viable and efficient, a break with the usual business mentality is needed, as well as a tight industrial policy regarding eco-efficiency.

Technological modernization and support of technology-based small and medium-sized enterprises (SMEs) is recognized as a significant factor of the technological and economic competitiveness of Croatia. Based on the National Science and Research Programme, MOST is implementing a National Network of Technology Centres made up of a range of institutions directed towards the development, transfer, introduction, and financing of new technologies, with an emphasis on SMEs development. The Center for Technology Transfer at the Faculty of Mechanical Engineering and Naval Architecture in Zagreb has recently been established, while the two technology centers at the university centers of Spilt and Rijeka are scheduled for official registration and opening. Encouraging the development of businesses based on EST as well as on the transfer of EST from the research sphere to SMEs should be one of the primary tasks of such centers.

The programme Capacity Building for Cleaner Production is definitely oriented towards environmental and economic aspects of sustainable production and development.

Information   

No information is available

Research and Technologies   

No  information is available

Financing 

In addition, the special Fund for supporting technology-based business, similar to a seed-capital fund, will be created in the framework of a project under the name "Business-Innovation Center - Croatia".

Cooperation  

The Croatian scientific and technological community is vitally interested in international and regional cooperation for research and development of ESTs as well as the dissemination and exchange of information. Croatian scientists already cooperate in several projects related to environmental protection in the framework of COST Programme Mediterranean Action Plan and other bilateral and multilateral Programmes (e.g., EUROTRAC and CITAIR). It is worth mentioning that Croatia's scientific community is completely integrated into the international informational network through CARNet as the Croatian part of Internet. In addition, MOST has taken a part in the creation of a Programme of Development of Information Infrastructure for Environmental Management in cooperation with a number of governmental and public bodies in charge of environmental protection. All these institutions comprise a national network for environmental protection and clean technology promotion and development.

The UNIDO project: Capacity Building for Cleaner Production TE/CRO/97/001 has been carried out by the Ministry of Economic Affairs and the former State Directorate for the Protection of Nature and Environment, with the implementation agency APO-Hazardous Waste Management Agency.

* * *

This information was provided by the Government of Croatia to the 5th Session of the United Nations Commission on Sustainable Development. Last update: April 1997.

 

BIOTECHNOLOGY

Decision-Making: Coordinating Bodies    

Decision-making for biotechnology is undertaken by several governmental bodies within their respective domains, including the Ministry of Economy (Industry), the Ministry of Health, the Ministry of Science and Technology, the Ministry of Economy, the Ministry of Agriculture and Forestry, the State Directorate for Environment, and the Directorate for the Protection of Cultural and Natural Heritage under the Ministry of Culture.

Some of the legally active regulatory mechanisms governing the production and the use of living, genetically modified organisms, require that their production be reported to the competent authorities. However, no control or monitoring system concerning the release of genetically modified organisms into the environment has been established.

Decision-Making: Legislation and Regulations 

No information is available

Decision-Making: Strategies, Policies and Plans   

No information is available

Decision-Making: Major Groups Involvement  

No information is available

Programmes and Projects   

No information is available

Status 

No information is available

Challenges  

No information is available

Capacity-building, Education, Training and Awareness-raising   

No information is available

Information   

No information is available

Research and Technologies   

Croatian pharmaceutical and food industries, as well as scientific institutions, use biotechnological methods in the research and production of pharmaceuticals and food. Genetic manipulations on living organisms are also performed within those procedures.

Financing   

No information is available

Cooperation  

No information is available

 * * *

This information was provided by the Government of Croatia to the fifth session of the United Nations Commission on Sustainable Development. Last update: April 1997.

Click here for the International Center for Genetic Engineering and Biotechnology Biosafety WebPages
Click here to link to the Biosafety Information Network and Advisory Service (BINAS), a service of the United Nations Industrial Development Organization (UNIDO), which monitors global developments in regulatory issues in biotechnology.
Click here to go to the Web Site of UNEP's International Register on Biosafety.

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INDUSTRY

Decision-Making: Coordinating Bodies    

No information is available

Decision-Making: Legislation and Regulations   

Measures for organized collecting and re-use of waste have been established (The Law on Waste, 1995) with a view to reducing waste. Manufacturers' responsibility for the collection and recycling of packaging waste has been separately regulated (Rule Book on Packaging Waste, 1996). The law anticipates stimulative measures for the use of manufacturing procedures, manufacture and transport of the most environmentally acceptable products, and for the reclaim and re-use of products and packaging, together with tax, custom and other public duties exemptions (The Law on Environmental Protection, 1994). The anticipated incentive measures in the tax and customs systems are currently not feasible, since none of the implementation regulations which are needed yet exist.

The Environmental Label was created as one of the instruments for achieving a change in consumption patterns. It has been awarded since 1993 to the manufacturers of consumer goods which, in the process of manufacture, marketing, use and disposal, affect the environment in a considerably less harmful way than other uniform products (Rule Book on Environmental Label, 1996). The Environmental Label has a commercial character, with the aim of changing patterns of production and behavior of buyers of consumer goods. The Environmental Label does not affect the selling price of the product using it.

During the year 1996, the first year of peace, some important initiatives were set in motion. The Croatian Business Council for Sustainable Development was established by a group of nineteen of Croatia's leading firms and companies. Various industrial and service areas are represented on the Council. The founding companies, along with other companies, accept the principles of the Business Charter on Sustainable Development and are gradually building them into their dealings.

Technical Committee 207 (TC) was launched within the State Bureau of Standardization and Metrology. Its domain is environmental management, encompassing a number of ISO 14000 standards. The representatives of some leading Croatian organizations partake in the work of the TC. Ten companies have started the preliminary activities for the implementation of an environmental management system, and some have already obtained pre-certification according to ISO 14000.

Decision-Making: Strategies, Policies and Plans  

No information is available

Decision-Making: Major Groups Involvement  

No information is available

Programmes and Projects   

No information is available

Status   

No information is available

Challenges  

No information is available

Capacity-building, Education, Training and Awareness-raising   

A range of education and public awareness activities have been organized by Croatian and international institutions, such as workshops, seminars, symposiums on environmental management systems, eco-efficiency implementation in business, and implementation of legal regulations. In addition, many industries inform their workers on environmental and sustainable development topics through their in-house journals.

A substantial part of eco-efficiency, like Total Quality Management (TQM) and enhancing corporate productivity are promoted through special courses at universities and recently, at the newly established Center for Technology Transfer. However, the steps towards eco-efficiency in Croatia, as well as in other countries, start from an inherited economic system which did not take into account sustainable development. Therefore, to make university studies, training courses and achievements in EST viable and efficient, a break with the usual business mentality is needed, as well as a tight industrial policy regarding eco-efficiency.

Information   

No information is available

Research and Technologies   

A Cleaner Technologies Center and Center for the Transfer of Technologies, among others, were set up.  The leading Croatian organizations and degree-granting educational institutions are also involved here as well.

Financing   

No information is available

Cooperation  

No information is available

   

* * *

This information was provided by the Government of Croatia to the fifth session of the United Nations Commission on Sustainable Development. Last update: April 1997.

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TRANSPORT

Decision-Making: Coordinating Bodies   

The Ministry of Maritime Affairs, Transport and Communications is, directly and through its departments, the body responsible for making decisions and improvement of the transport system.

In accordance with the provisions of the Law on the Organization of State Administration, all competent state bodies are obliged to mutually co-operate in proposing and implementing the comprehensive development policy, legal proposals, administrative issues, issues of administrative control of the local governments and self-governments and entities with public authorities bestowed to them by the law. The Government of the Republic of Croatia has the role of a co-coordinating body in this process.

Decision-Making: Legislation and Regulations 

In the road transport sector, local government and self-government regulate with their regulations, which are in accordance with the Law on the Road Transport, the organization of the public road traffic, taxi traffic on the level of towns and municipalities, and the public road traffic on the County level.

The Republic of Croatia applies EKE norms and standards and CEMT resolutions that are aimed at reducing the vehicle emissions, noise and traffic safety. The tax rates on new vehicles are lower than the tax rates on the used vehicles, which has a considerable influence on the structure of vehicle fleet. Cars that do not comply with the homologisation standards, that is, cars older than 1991, cannot be imported into the Republic of Croatia.

The public participation in the environment-friendly transportation is secured through a dense public transport network, good free-market preconditions and competitiveness of the public transport companies, which as a consequence have lower prices of the public transport. Public transport companies must, on the other hand, be equipped with eco-vehicles and sound capital.

Decision-Making: Strategies, Policies and Plans  

In mid-December 1999, the Representative House of the Croatian Parliament has adopted the Strategy of Transport Development (came into force by publishing in the "Official Gazette" No139/99). The Strategy is the first long-term development policy document of the transport sector. The document encompasses the Chapter on the former development, which provides a general assessment of the former development of the different transport activities, precisely determines the development objectives in each transport sector and of the transport as a whole, as well as information about the coordination between the transport development and environmental protection objectives. This document is harmonized with the Strategy of Special Development.

Taking into consideration the fact that the space is the main resource and the quality of live is the main objective, there have been warnings that the space might not only be the main resource but also is, in a certain sense, a limiting factor of development. This has caused the appearance of, particularly European, environmental movements, which have contributed to the raising of public environmental awareness in Croatia. The positive outcomes have strengthened the environmental public awareness, and a large number of issues closely related to this have put the need to establish the environmental criteria in determining the strategic objectives of Croatia.

Since Croatia is a country with very valuable and preserved natural heritage, the great interest it shows in environmental protection issues is only understandable. Additionally, Croatia is also interested in the development of modern transport technologies, which will contribute to the environmental protection in the conditions of intensified domestic traffic and transit traffic. Here, it must be stressed that Croatia is a central European, Mediterranean and Danubian country, thus having an important position in the European transport. The unified Europe aims at the liberalization of transit traffic, therefore, a considerable increase in the transit traffic can be expected in the future period. This refers to the following European corridors: the corridor V, direction Rijeka-Zagreb-Goričan, the corridor X, direction Macelj-Zagreb-Bregana-Zagreb-Slavonski Brod-Koprivnica-Bajakovo and the corridor VII - Danubian corridor. The main development objectives, are thus, as follows:

-optimal use of the natural and manufactured resources and demographic potentials,

-coordination between general and specific interests, economic and social development interests

-development of large systems, such as the transport in all its sectors, the water management sector, in its widest scope, and the energy sector, by the implementation of the adequate structural changes in these areas and the harmonization of that development with the sustainable special development

-improvement of the environment and preservation of the environmental balance

In accordance with the Strategy of Transport Development, the four-year Development Programme of Public Roads Sector is being currently drafted. This document will be analyzed and adopted by the Government of the Republic of Croatia in December 2000, when the adoption of the Annual Action Plan of Construction and Maintenance of Public Roads is also expected.

Expansion of transport infrastructure (road networks, railways, etc.)

- Transport infrastructure is widened by the completion and construction of highways and motorways on the main traffic directions, congestion spots are removed and intensified maintenance has improved the public roads network

Sustainable fuel consumption

- fuel consumption of the unleaded petrol derivatives is on the increase

Reduction of vehicle emissions;

-reduction of vehicle emissions through the use of eco-vehicles (ECO 0, ECO 1, ECO 2, ECO 3 vehicles)

Development of alternative transport modes;

-alternative transport modes (road-railway traffic, road-river traffic, road-sea traffic and their combinations) have been developed on certain directions

Upgrading of vehicle fleet

- vehicle fleet is being gradually upgraded: the structure of the vehicle fleet is changing in favor of ECO vehicles with air conditions and higher safety standards.

Decision-Making: Major Groups Involvement  

The experts who are members of different chambers and organizations participate in the decision-making process through the public discussions and by presentation of spatial development plans, public surveys and the media.

One of the clearly defined objectives of the Strategy of Transport Development is the sustainable development of all counties and the sustainable development of Croatian islands.

The private sector is the majority owner in the road traffic sector, while the state is the majority owner in the smaller number of large transport companies, which are currently being restructured (Cazmatrans, Autopromet Rijeka, etc.). The objective is to finish the privatization process as soon as possible to enable the private sector to become the owner of 100 per cent shares in this sector. The private sector participates in the decision-making process of transport related issues through the parliament representatives, chambers, organizations and through their own initiative.

Programmes and Projects   

Meeting of the commercial, private, and public needs for mobility in both urban and rural areas is achieved by the introduction of modern buses and trams, developed by latest technology, as well as through the density, reliability and comfort of the public traffic network. Additionally, public traffic cost are being subsidized by the state. These measures are aimed at promoting the traffic efficiency, reducing emissions from transportation, particulate mater and volatile organic compounds.

In promoting non-motorized modes of transport, cycle ways, footways are being marked and other modes of non-motorized modes of transport and introduced in the cities.  The Strategy encompasses different studies aimed at improving the current design of the transport and traffic systems in Croatia. Additionally, every transport construction projects requires the environmental impact assessment study, for which certain research much be conducted beforehand.

Status   

The transport services to commercial, private and public demands are not adequate, especially on the islands and the areas of the special state concern, due to the insufficient or inadequate road network, a small number of inhabitants in certain areas, where the war-damaged houses and business facilities are reconstructed and the return of displaced persons is slow.

The consumption of unleaded petrol is on the continuous rise in comparison with other fuel types.  The existing regulations prevent newly-purchased non-green vehicles to participate in the traffic thus affecting the situation in the domestic road traffic. 

Croatian oil company INA supplies, processes and sells all types of oil derivatives. There are sufficient quantities of unleaded petrol and other derivatives that fulfill Croatian standards, which are somewhat lower than the European ones. This company invests considerable funds in the research and also co-operates on the research studies with foreign companies. They apply regulations and standards that do not completely comply with the European regulations. It is expected that the process of regulation harmonization will be carried out in this field as well.

Challenges  

The greatest efforts are directed towards the improvements in railway transport and inland waterways transport.  The main obstacle in adopting the more efficient transport and traffic system is the lack of funds considering that Croatia had had enormously high war damages and is currently going through the process of transition. Therefore, changes and investments are required in all the sectors and in the economy on the whole.

Although Croatia has improved the vehicle fleet structure, the establishment and liberalization of the transit will considerably increase traffic flows, which will inevitably have impact on the level of emissions in the country.  We believe that both economic and social sectors are vulnerable to ill-management of transport and traffic systems. The high costs of transport, impossibility of use or inaccessibility to transport services has an effect of a reversible process.

The road network has not been functioning quite efficiently. The domestic waterways traffic have not been established yet on all the waterways due to the required mine clearing and clearing of rubble. Despite the efforts of the Republic of Croatia to complete and upgrade the traffic network the necessary investments are much higher than Croatia can secure through the budget.

Capacity-building, Education, Training and Awareness-raising   

The public is informed about the situation in traffic through the public media, i.e. radio, television and newspapers, on daily basis. National television also airs series of national and foreign shows on the environment situation, negative impacts of the traffic, environmental catastrophes involving oil spillages, which contributes to promoting the public awareness on the impact of transport on the environment. However, these are not proper public campaigns, which would more seriously influence use of the public transport and non-motorized modes of transport (bicycles, walking, similar).

In certain cities of the Republic of Croatia, outside centers, car parks have been constructed in the vicinity of the public transport stops where people can leave their cars and continue their journeys via the public transport (buses or trams). Furthermore, cities have constructed and marked cycle ways and footways, etc.

The police under the auspices of the State Advisory Council for Road Traffic Safety and in cooperation with the pre-school institutions and primary schools, organizes lectures, school traffic patrols, etc. The Croatian Car Club organizes "bicycle days" and similar events to educate the youngest population about the traffic regulations and safety. The great assistance is given by the media through the showing of primitive clips, ads and cartoons.

Many schools organize eco-patrols, the programme of which teaches children about the need to preserve the environment from all the negative impacts, including the traffic. In secondary schools, through different subjects, pupils learn about the environment and negative impacts on the environment - pollution of air, water and soil, depletion of the ozone layer, etc.

Information   

In gathering the information and maintaining a database, systematic counting methods, surveys, installation of automatic counter and statistical processing are used in order to be able to provide the analysis and prognosis to be used in drafting the studies, plans and projects.

Certain cities or part of the cities collect data and information on the vehicle emissions and traffic conditions, which are available to the public through the Croatian Car Club and the radio. Additionally, electronic road signs (with fog, ice and visibility data sensors and billboards) are partly used. However, web sites do not exist yet.

The system of the automatic data monitoring of vehicle emissions in the country, according to sources and types of pollutants, has not been established yet. However, it is estimated that some progress has been made in this field.

Research and Technologies 

Information about all the alternative energy sources and their use is accessible in Croatia (solar cells, windmills, natural gas, bio-energy, etc.). However, one cannot say that there is a methodological approach, in which a serious use of alternative energy sources would be systematically promoted.

Almost all known technological-technical systems for a more efficient traffic management; coordinated systems of light signaling, detector systems, changeable traffic signaling, sensors and navigation technologies are used on the roads of the Republic of Croatia.

Financing   

The Strategy of Transport Development assessed that Croatia should (at the average annual growth rate of 6%) invest 5% of GDP in transport by the year 2010. It is planned that these investments will be financed from funds allocated from the state budget and budget incomes and from the budget of the local government and self-government. Direct foreign investments and private capital investments, together with foreign loans, through the concessions on construction companies and the use of infrastructure facilities, will present a major source of financing in the realization of large projects, especially in the construction of highways. Purchase and modernization of transport means is financed by the funds of the transport companies, with credits of commercial banks and state incentives when the programmes are of national interest.

Cooperation  

Within the framework of the European Conference of Ministers of Transport, the European Council, the UN Social Council for Europe and other bodies, Croatia has an active role in the creation and the implementation of regulations and standards for all the transport sectors. Furthermore, Croatia has signed bilateral agreements on the international road, air, railway and sea transport, on the Danubian traffic and telecommunications, etc. with almost all the European countries.

The Republic of Croatia has expressed a firm commitment to join the European Community. With that in regard, efforts are made to carry out a complete harmonization of regulations and also prepare the traffic economic entities for the more intensified inclusion in the global transport systems. Croatia would like to engage all its human resources potentials to participate in improving relations in the international forums aimed at the general progress and the improvement of all systems.

The transport and traffic system in the Republic of Croatia is regulated by the international conventions and agreements (bilateral and multilateral) and by laws and regulations.  In order to achieve the objective of the EU accession, a procedure of harmonization of the national legislation with the EU legislation by the incorporation of EU directives has been initiated in the Republic of Croatia. Recently, the second thorough review of all the regulations in the road transport sector has started.

As previously mentioned in the text, the Republic of Croatia allocates funds in the state budget for the transport investments. Additionally, credits are provided by the IMF, EBRD and other financial institutions, while Croatia also gives concession to attract private and foreign investments.

 

* * *

This information was provided by the Government of Croatia to the 9th Sessions of the United Nations Commission on Sustainable Development. Last Update: March 2001.

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SUSTAINABLE TOURISM

Decision-Making: Coordinating Bodies    

At the national level, the Ministry of Tourism is responsible for sustainable tourism. At the local level, each county, municipality and city authority assumes the responsibility.

Decision-Making: Legislation and Regulations 

Laws and other legislature on environmental protection are established by the Government as well as by the State Inspectorate system. Moreover, legislation or other regulatory machinery is reflected in all development plans and laws which seeks to ensure sustainable tourism, whereby specific areas or preserves are set aside for eco-tourism and nature-based tourism.

Decision-Making: Strategies, Policies and Plans  

The concept of sustainable tourism is implemented in developmental and land use plans. Croatia has a number of strategies and plans related to Sustainable Tourism:

These strategies:

In Croatia, eco-tourism and nature-based tourism is an integral part of the National Strategy on Sustainable Tourism and others identified above.

Procedures based on laws of the Republic of Croatia (which are not under the authority of the Ministry of Tourism) enable the independent implementation of laws related to sustainable tourism.

Decision-Making: Major Groups Involvement  

Local authorities participate in the activities of the Croatian Tourism Board.

Programmes and Projects   

Major programmes in effect to promote sustainable tourism include:

The Croatian Tourism Board carries out the general promotion of Croatian tourism. Based on that promotion, tourist agencies form individual products that they promote on the market. Based on the strategy of tourism development, local communities, municipalities and cities, plan the development of eco-tourism (e.g. the programme for the development of eco-tourism along the river Kupa, eco-tourism in national parks, etc.)

Status

The growth of the Croatian tourism sector was interrupted by the war in 1990. Until then, the tourism sector constituted 12% of the Croatian GDP with around 180 000 employees. Today, those figures are reduced to a half. The growth of the tourism sector is expected to reach 1990 levels in the next several years.

Croatia is traditionally a tourist country. Therefore, tourism, through its existing developmental plans, has had an impact on the planning, management, and protection of the environment.

The tourism industry puts effort into the protection of the environment (examples include: the shutting down of the coke plant in Bakarska Bay; the ecological improvement of the Kaštela Bay). In general, the industry accept ecological standards but their specific application is found to be more difficult due to financial difficulties.

A public hearing is conducted prior to the passing of land use plans that define the development of tourism. During these hearings it is necessary to respond to all questions of all participants. All complaints are taken into account and assessed. 

Challenges  

Technology-related issues related to sustainable tourism in Croatia are solid waste disposal, wastewater treatment, and water supply, for which technological solutions are clear. The only problem is the lack of finance.

Capacity-building, Education, Training and Awareness-raising 

Training on the promotion of sustainable development is provided through the Croatian education system. In universities and various workshops, there are specific programmes to educate policy makers in the concept and policy design of sustainable tourism.

The Mediterranean Action Plan-United Nations Environment Programme (Priority Actions Programme) is operating in Split. It has developed a carrying capacity programme for the island of Vis as a pilot project. A similar project has also been developed for the island of Cres.

The marketing of tourism products is specifically geared toward attracting environmental-conscious tourists. Environmental management systems are applied in some hotels.

Information

The national information available to assist both decision-makers and the tourist industry in promoting sustainable tourism relate to:

Environmental Impact Studies are conducted for larger operations. In the process of preparing these studies a public hearing is conducted, where all those who are interested are welcome to attend. The mapping and inventorying of natural resources and activities to develop sustainable development indicators related to sustainable tourism are currently. 

The relevant information on sustainable tourism in Croatia can be accessed via the press and the Croatian Tourism Boards.

Research and Technologies   

No  information is available

Financing 

Activities in the area of sustainable tourism are financed out of the national budget or by local government, economic sector, and the Croatian Tourism Boards.

Cooperation

The island of Vis can be considered as a sustainable tourism destination model in Croatia.

In Agreements on Tourist Cooperation (with some countries) there is an Article covering environmental protection. (e.g. the Agreement on Tourist Cooperation between the Republic of Croatia and the Republic of Austria).

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This information was provided by the Government of Croatia to the fifth and seventh sessions of the United Nations Commission on Sustainable Development. Last Update: August 1999.

 



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