Croatia needs to consider support to investment in renewables, energy efficiency - EC

Croatia needs to consider measures supporting investment in renewables, sustainable transport and energy efficiency, the European Commission said.

The Commission has invited Croatia to consider these measures based on the country's final National Energy and Climate Plan (NECP) and the investment and reform priorities identified for Croatia in the European Semester, the EU's executive body said on Wednesday in its assessment of the final NECP of the Adriatic country for the period 2021-2030.

Croatia could support investments in renewables through a stable legislative framework, including a functioning and competitive electricity market, while sustainable transport could be supported through developing sustainable urban and inter-urban mobility and investments promote a shift from road to rail, the Commission said.

At the same time, measures to support investments in energy efficiency should include renovation of public buildings with focus on schools, hospitals and social housing, while targeting households at risk of energy poverty.

The Commission also said it considers as sufficiently ambitious Croatia's target to contribute 36.4% to the EU’s 2030 renewable energy target in gross final energy consumption, which is above the EU's common target of 32%.

In June 2019, the Commission issued nine recommendations to Croatia on its draft integrated NECP for 2021-2030, and now notes that most of these recommendations have been only partially addressed in the final NECP.

On renewables, Croatia failed to address the recommendations to include more detailed and quantified policies and measures and increase the level of ambitions in the heating and cooling and transport sectors.

On energy efficiency, it did not address the recommendation to increase its ambition towards reducing both final and primary energy consumption via policies and measures that would deliver additional energy savings by 2030.

"In relation to the internal energy market, Croatia partially addressed the recommendation to set forward-looking objectives and measurable targets for market integration, in particular measures to develop liquid and competitive wholesale and retail markets, by fostering competition within the country and progressing towards fully market based prices and by eliminating barriers to cross-border trade," the EC noted.

On research, innovation and competitiveness, the country partially addressed the recommendation to further develop national objectives and funding targets, and has set no national targets for financing public and private research and innovation related to the Energy Union.

The Commission noted that Croatia largely addressed the recommendation to continue regional cooperation efforts as part of the Central and South-Eastern Europe Energy Connectivity (CESEC) High-Level Group and to explore the cross-border potential, with the final NECP including new chapters on overall regional cooperation and cooperation in specific areas mentioned in the recommendations.

Croatia also partially addressed the recommendation to better integrate just and fair transition aspects and further develop the approach to addressing energy poverty issues, the EC said.

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