COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Croatia Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) (ST 10687/21 INIT; ST 10687/21 ADD 1) of 28 July 2021 on the approval of the assessment of the recovery and resilience plan for Croatia
Date: 2023-11-21
Institutions: European Commission, Secretariat-General
Subjects: Croatia, EU aid, EU loan, digital transformation, economic recovery, economic reform, energy policy, green economy, investment, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 21.11.2023  SWD(2023) 380 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Croatia Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) (ST 10687/21 INIT; ST 10687/21 ADD 1) of 28 July 2021 on the approval of the assessment of the recovery and resilience plan for Croatia {COM(2023) 744 final}  
 
 
Table of contents 
1. 

Executive summary ............................................................................................................................... 2 

2.  Objectives of the modification of the plan ........................................................................................... 2 

3. 

Summary of the assessment of the plan .............................................................................................. 4 

3.1. 

Comprehensive and adequately balanced response to the economic and social situation ........ 4 

3.2. 

Link with country-specific recommendations and the European Semester ................................. 6 

3.3.  Growth potential, job creation, economic, institutional and social resilience,  European Pillar of 
Social Rights, mitigating the impact of the crisis, and social territorial cohesion and convergence ........ 7 

3.4. 

The principle of ‘do no significant harm’ ...................................................................................... 7 

3.5.  Green transition ............................................................................................................................ 9 

3.6. 

Digital transition .......................................................................................................................... 10 

3.7. 

Lasting impact of the plan ........................................................................................................... 11 

3.8.  Milestones, targets, monitoring and implementation................................................................ 11 

3.9. 

Costing ........................................................................................................................................ 12 

3.10.  Controls and audit ....................................................................................................................... 13 

3.11.  Coherence ................................................................................................................................... 15 

3.12.  REPowerEU ................................................................................................................................. 15 

3.13.  Cross-border or multi-country dimension or effect ................................................................... 16 

ANNEX I: Climate tracking and digital tagging ........................................................................................ 18 

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1.  EXECUTIVE SUMMARY  

The Croatian economy continued growing strongly in 2022, despite the headwinds induced 
by the Russian invasion of Ukraine. Real GDP grew by 6.2% in 2022 and remained resilient in 
2023H1,  driven  largely  by  domestic  demand.  Employment  expanded  by  2.3%  in  2022  and  the 
unemployment rate dropped to 5.8% in July 2023. In the four quarters up to 2023Q2, real GDP 
and  total  employment  were  11.3%  and  1.8%  above  their  pre-COVID  level  (i.e.,  2019), 
respectively. The energy price shock and its pass-through to domestic prices, coupled with supply 
side bottlenecks resulted in record high inflation, which averaged 10.7% in 2022 and decelerated 
to 8.4% in August 2023. 

On 31 August 2023, Croatia submitted a modified Recovery and Resilience Plan along with 
a REPowerEU chapter.  For the modification of its Recovery and Resilience Plan, Croatia has 
relied on the following legal bases: Article 14(2) to include additional loan support, Article 18(2) 
to  take  into  account  the  updated  maximum  financial  contribution,  Article  21(1)  to  amend  the 
Recovery and Resilience Plan due to objective circumstances, and Article 21c to include additional 
resources from ETS revenues and from the Brexit Adjustment Reserve (BAR) for its REPowerEU 
chapter.  In  addition  to  this,  the  modified  Recovery  and  Resilience  Plan  rectifies  clerical  errors 
identified in the original plan. The submitted modified plan is worth a total of EUR 10.04 billion 
(17.2% of 2021 GDP), including the initial financial contribution of EUR 5.5 billion, EUR 4.3 
billion in additional loans, Croatia’s allocation of ETS revenues (EUR 269 million) and the amount 
transferred from the BAR (EUR 7.2 million). 

The modifications submitted by Croatia affect a total of 86 measures, of which 21 reforms 
and 65 investments. The revisions proposed under Articles 18(2) and 21(1) affect nine reforms 
and  35  investments.  Croatia’s  proposed  REPowerEU  chapter  includes  five  reforms  and  ten 
investments  for  a  total  estimated  expenditure  of  EUR  2.92  billion  (EUR  276  million  in  non-
repayable support and EUR 2.6 billion in loans). Croatia is proposing five new reforms and six 
new or scaled-up investments on the basis of Article 14(2) to account for loan support, while seven 
investments were transferred from the grant to the loan envelope.  

The  measures  included  in  the  Croatian  modified  Recovery  and  Resilience  Plan  and 
REPowerEU chapter help address Croatia’s key short- and long-term challenges. Croatia's 
request  to  modify  its  plan  under  Article  21(1)  largely  aims  to  factor  in  inflation  pressures  and 
supply chain disruptions. The REPowerEU chapter promotes the green transition with measures 
related  to  energy  security,  uptake  of  renewable  energy  sources,  energy  efficiency  of  buildings, 
transport and renewable hydrogen. Other measures under Article 14(2) aim at strengthening the 
competitiveness  of  the  economy,  improving  water  and  waste  management,  and  enhancing  the 
quality and accessibility of education. Together with the measures included in the original plan, 
the modified Recovery and Resilience Plan continues to effectively contribute to the six pillars of 
the Recovery and Resilience Facility (RRF) with robust measures and verification mechanisms, 
while addressing Croatia’s country specific recommendations. 

Based on the assessment of the submitted modifications and the REPowerEU chapter, the 
Croatian modified plan receives an A-rating on all criteria except for costing, where the plan 
receives a B-rating (unchanged from the original plan assessment).   

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(1) 
Balanced 
Response 

(2) 
CSRs 

(3) 
Growth, 
jobs… 

(4) 
DNSH 

(5) 
Green 
target 

(6) 
Digital 
target 

(7) 
Lasting 
impact 

(8) 
M & T 

(9) 
Costing 

(10) 
Control 
Systems 

(11) 
Coherence 

(12) 
REPowerEU 

(13) 
Cross-
border  

A 

A 

A 

A 

A (39.02%)  A (20.09%) 

A 

A 

B 

A 

A 

A 

A 

2.  OBJECTIVES OF THE MODIFICATION OF THE PLAN  

2.1 

 The modified plan addresses Croatia’s main newly emerged challenges 

In 2022, Russia’s invasion of Ukraine led to rising energy and production costs in Croatia, pushing 
inflation rates to their highest levels in recent decades and dragging household consumption and 
industrial  production.  The  2023  Country  Report  for  Croatia  identified  challenges  related  to  its 
reliance on fossil fuels, circular economy, business environment and skills shortages. Croatia also 
faces challenges related to accelerating the green and digital transitions, strengthening economic 
and social resilience, and improving the public administration efficiency. In this context, Croatia’s 
modified Recovery and Resilience Plan adds measures that aim to address the country’s newly 
emerged  challenges,  increases  the  level  of  ambition  of  some  measures  already  included  in  the 
initial Recovery and Resilience Plan, incorporates a REPowerEU chapter and modifies existing 
measures in line with the provisions of the RRF Regulation.   

Pursuant to Article 14(2) of Regulation (EU) 2021/241, Croatia included in the modified Recovery 
and Resilience Plan a request for loan support that would finance 6 new investments and three new 
reforms, and scale up seven existing measures. Part of the requested loan support would be used 
in seven REPowerEU measures (five investments and two reforms). 

Pursuant  to  Article 18(2) of Regulation  (EU) 2021/241,  Croatia has  requested  modifications  to 
account for the decrease of its maximum financial contribution from EUR 6.3 billion to EUR 5.5 
billion.  Croatia’s  maximum  financial  contribution  was  updated  on  30  June  2022  and  reflects 
Croatia’s  better  than  expected  economic  outcome  in  2020  and  2021.  To  take  this  update  into 
account, Croatia proposed to move three investments in energy efficiency of buildings (Earthquake 
renovation)  and  renewables  (Hydrogen  and  Biorefinery)  from  the  original  Recovery  and 
Resilience  Plan  to  the  REPowerEU  chapter  in  line  with  the  provisions  in  Article  21c(2)  of 
Regulation (EU) 2021/241, and to downsize one investment by EUR 15,927.  

The Croatian modified Recovery and Resilience Plan adds a new REPowerEU chapter pursuant to 
Article 21c of Regulation (EU) 2021/241. The REPowerEU chapter includes measures related to 
energy  networks,  gas  infrastructure,  uptake  of  and  R&D  linked  to  renewable  energy  sources, 
renovation  of  buildings,  energy  poverty,  zero-emission  transport,  green  skills  and  renewable 
hydrogen. This chapter will deliver on the REPowerEU objectives, contribute to the Croatian’s 
green  transition  and  help  address  Croatia’s  current  challenges  identified  in  the  ‘energy’ 
recommendation addressed to Croatia in the 2022 European Semester.  

Pursuant to Article 21(1) of Regulation (EU) 2021/241, Croatia has justified the modification of 
existing  measures  of  the  plan  based  on  objective  circumstances.  The  objective  circumstances 
invoked are mostly related to the need to factor in the effects of supply chain disruptions, the high 
inflation experienced in 2022 and 2023, and unforeseen legal and administrative changes. Most of 
the  proposed  amendments  relate  to  the  postponement  of  the  timeline  for  completion.  Other 

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amendments are related to the modification of targets to account for changed circumstances and 
the need to redesign the original measures as the existing ones are no longer attainable.  

In addition, errors of a clerical nature identified in the text of the Council Implementing Decision 
have been corrected.   

2.2   Overview of new and modified components 

The main elements of the modified Recovery and Resilience Plan and REPowerEU chapter are 
listed below by component:  

1.  Economy 

Component 1.1 (Resilient, green and digital economy) 

Investment  C1.1.1.  R4-I1  -  Supporting  businesses  for  the  transition  to  an  energy  and 
resource-efficient  economy:    Based  on  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia 
proposed to postpone the implementation deadline of the support scheme by nine months, due to 
the need to relaunch a second call to achieve the targeted number of SMEs and mid-caps supported. 

Reform  C1.1.1.  R5  -  Diversifying  capital  markets  and  improving  access  to  alternative 
finance: Based on Article 14(2) of Regulation (EU) 2021/241, Croatia has proposed a new reform 
whose  objective  is  to  improve  the  functioning  of  capital  markets.  The  reform  entails  a 
comprehensive review of the current state of capital markets in Croatia, resulting in a strategic 
framework and  actions with a focus on facilitating access to capital for companies, broadening 
opportunities for investment and strengthening the overall investment climate and competitiveness 
of the economy. 

Reform C1.1.1. R7 - Establishment of a platform called Sustainable Finance Support Forum: 
Based on Article 14(2) of Regulation (EU) 2021/241, Croatia has proposed a new reform that aims 
to foster sustainable finance in Croatia and strengthen the role of the financial sector in the green 
transition. The measure establishes a platform for exchange among the stakeholders, including the 
financial sector and competent authorities. The first task of the platform is to develop a strategic 
framework  and  actions  aimed  at  further  developing  the  framework  for  sustainable  finance  in 
Croatia. 

Investment C1.1.2 R3-I1 Preparation of strategic documents for the digital transformation 
of the economy and artificial intelligence: Based on Article 18(2) of Regulation (EU) 2021/241, 
Croatia  has  proposed  the  removal  of  this  measure  in  line  with  the  reduction  in  the  financial 
allocation. 

Component 1.2 (Energy transition for a sustainable economy) 

Reform C1.2 R1 - Decarbonisation of the energy sector: Based on Article 21(1) of Regulation 
(EU)  2021/241,  Croatia  proposed  to  modify  this  reform  by  changing  the  name,  qualitative 
indicator, and the description of milestone to reflect that the main objective of the measure, which 
is the certification of the gas Transmission System Operator Plinacro, is being achieved with a less 
complicated procedure than originally envisaged. 

Investment  C1.2  R1-I1  -  Revitalising,  building  and  digitising  the  energy  system  and 
supporting  infrastructure  to  decarbonise  the  energy  sector:  Based  on  Article  21(1)  of 

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Regulation  (EU)  2021/241,  Croatia  proposed  to  scale  up  this  investment  by  envisaging  an 
additional  storage  capacity  under  target  377  and  additional  smart  meters  deployed  on  top  of 
projects currently in the Recovery and Resilience Plan under target 376. Based on Article 21(1) of 
Regulation (EU) 2021/241, Croatia also proposed to provide additional funds for grid investments 
in the original Plan under targets 40, 41 and 44, due to inflation and cost increase. 

Investment  C1.2  R1-I2  -  Hydrogen  use  and  new  technologies:  Based  on  Article  21(1)  of 
Regulation (EU) 2021/241, Croatia proposed to modify this investment by postponing target 51 
from Q2 2025 to Q4 2025, due to delays in the delivery of electrolyser equipment. Based on Article 
21(1)  of  Regulation  (EU)  2021/241,  Croatia  also  proposed  to  provide  additional  funds  for 
hydrogen charging stations under target 53 and for electrolysers under target 51, due to inflation 
and  cost  increase.  Based  on  Article  18(2)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to 
modify this investment, by removing the pilot carbon capture and geological storage (CCS) project 
in milestone 54, and replace it with a set of studies for geological CO2 underground storage in 
Croatia, due to the reduction of grant allocation, and because the high gas prices triggered by the 
war in Ukraine disrupted the production in the petrochemical industrial installation of Petrokemija, 
to which the CCS installation was supposed to be connected. Consequently, the allocation for this 
investment  is  proposed  to  be  reduced  by  EUR  8  million.  This  investment,  excluding  already 
fulfilled milestones 49 and 50, is transferred from the original Recovery and Resilience Plan to the 
REPowerEU chapter due to the reduction of its financial contribution, based on Article 21c(2). 

Investment C1.2 R1-I4 – Biorefinery to produce advanced biofuels Sisak: Based on Article 
18(2)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  modify  this  investment  by  removing 
target 58 on the Pilot investment in CCS, due to the reduction of the grant allocation. The removal 
of target 58 would render obsolete milestone 56, which is therefore also proposed to be removed. 
Consequently, the allocation for this investment is proposed to be reduced by EUR 33.18 million. 
The  investment  is  transferred  from  the  original  Recovery  and  Resilience  Plan  to  REPowerEU 
chapter due to the reduction of its financial contribution, based on Article 21c(2). 

Component 1.3 (Improving water management and waste management) 

Reform C1.3. R1 - Implementation of the Water Management Programme 
Based  on  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  modify  target  61 
regarding the integration of water service providers by postponing it from Q4/2023 to Q4/2024 
due  to  procedural  difficulties  and  a  Constitutional  court  decision  which  prolonged  the  merger 
procedure.  

Reform C1.3. R3 – Further implementation of the water management programme 

Based on Article 14(2)  of Regulation  (EU) 2021/241,  Croatia proposed  to  introduce additional 
reforms to strengthen the role of the independent water regulator, adopt national and local action 
plans on reducing water losses and establish a national body for monitoring water losses. 

Investment  C.1.3  R3-I1  –  Further  investments  into  the  public  sewage  development 
programme: Based on Article 14(2) of Regulation (EU) 2021/241, Croatia proposed additional 
investments  into  the  construction  and  reconstruction  of  the  public  sewerage  network  and 
wastewater treatment plants, which also increase the total number of citizens benefiting from better 
access to appropriate wastewater treatment.  

Investment C1.3. R1-I2 - Programme for the development of public water supply: Based on 
Article 21(1) of Regulation (EU) 2021/241, Croatia proposed to modify target 71 from 673 to 517 

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kilometers  of  constructed  or  reconstructed  public  water  supply  network  due  to  increases  in 
construction prices.  

Investment  C.1.3  R3-I2  –  Further  investments  into  the  public  water  supply  development 
programme: Based on Article 14(2) of Regulation (EU) 2021/241, Croatia proposed additional 
investments into the construction and reconstruction of the public water supply network, increasing 
the final target from 956 to 1087 kilometers of constructed or reconstructed public water supply 
network. This will also increase the total number of citizens that benefit from improved access to 
water supply.   

Investment  C1.3.  R1-I3  -  Disaster  risk  reduction  programme  in  the  water  management 
sector: Based on Article 21(1) of Regulation (EU) 2021/241, Croatia proposed to postpone targets 
77 and 78 by six months due to severe weather events that delayed the construction works.  

Investment  C1.3.  R2-I1  -  Waste  disposal  reduction  programme:  Based  on  Article  21(1)  of 
Regulation (EU) 2021/241, Croatia proposed to modify this investment by amending targets 85,  
86, 87 and 89 namely as the measure is no longer totally achievable within the initial timeline and 
proposed to postpone the implementation, modify the set targets and reallocate the funds to other 
waste management infrastructure projects and additional reforms, with the aim of keeping the same 
level of ambition. 

Component 1.4 (Development of a competitive,  energy  sustainable and  efficient transport 
system) 

Investment C1.4. R1-I1 - Electronic tolling system: Based on Article 14(2) of Regulation (EU) 
2021/241, Croatia has proposed to modify this investment by expanding the project to all sections 
and highway exits of the state-owned highway company HAC (Croatian Highways), as well as 
highway concessioners BINA Istra and AZM (Highway Zagreb Macelj), thus covering the entire 
highway network in Croatia. Consequently, the allocation for this investment is proposed to be 
increased.  

Investment C1.4 R2-I1 – Reconstruction of the existing and construction of second track of 
railway section Dugo Selo - Novska, sub-section Kutina - Novska (phase D): Based on Article 
14(2),  Croatia  has  proposed  to  finance  this  investment  with  loans,  instead  of  non-repayable 
support. The measure is not changed in substance.  

Investment  C1.4.  R2-I6  -  Use  of  green  technologies  in  rail  passenger  transport:  Based  on 
Article 21(1) of Regulation (EU) 2021/241, Croatia has proposed to modify this investment, by 
postponing the implementation of the measure and of target 107, from Q4 2024 to Q4 2025, due 
to objective circumstances beyond the control of the competent ministry and the beneficiary given 
the delays due to the complexity and length of the procedure to set up fixed energy connections by 
the Croatian state-owned energy company (HEP) for the two prototype trains. 

Investment C1.4. R2-I7 - Upgrading of the IT and sales system and modernization of trains 
with the IT system: Based on Article 21(1) of Regulation (EU) 2021/241, Croatia has proposed 
to modify this investment by focusing its implementation and main objectives on the online and 
mobile ticketing system, due to recent technological advances and users’ habits on the market of 
railways IT services, and by postponing the implementation of milestone 108, from Q4 2024 to 
Q2 2026. 

Investment C1.4 R4-I1 – Procurement of alternative-fuel-powered vehicles for public urban 
and suburban regular transport: Based on Article 21(1) of Regulation (EU) 2021/241, Croatia 

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has proposed to modify this investment by postponing the implementation of the measure and of 
target 116 from Q4 2025 to Q2 2026 due to a better alternative. Namely, the public procurement 
for this investment and for the scaled-up part of the investment under REPowerEU C7.1 I1 will be 
implemented with the same public call. Due to established disruptions in supply chains, launching 
two separate public calls would increase the risk of delays when it comes to final delivery of buses, 
but would also not be efficient and could entail higher cost per unit. In addition, reference to the 
charging infrastructure is deleted since it will not be procured under this measure.  

Investment  C1.4.  R5-I1  -  Electrification  and  greening  of  the  ground  handling  and  power 
supply  system  at  the  Zadar  airport:  Based  on  Article  21(1)  of  Regulation  (EU)  2021/241, 
Croatia has proposed to  modify this investment by postponing the implementation the measure 
and of milestone 118 from Q4 2024 to Q4 2025, due to objective circumstances beyond the control 
of the competent ministry and the beneficiary given the delays due to the complexity and length 
of the procedure to set up the electric ground handling system connected with the photovoltaic 
power station. 

Investment C1.4. R5-I2  -  Research, development and production of new mobility vehicles 
and supporting infrastructure: Based on  Article 21(1) of Regulation  (EU) 2021/241, Croatia 
proposed to modify this investment by postponing milestone 119 from Q1 2024 to Q1 2025 and 
by modifying target 121 due to delays caused by disruptions in the supply chain of components 
critical for the implementation of the project, such as microchips relevant for autonomous driving. 

Component 1.5 (Improving the use of natural resources and strengthening the food supply 
chain) 

Investment C1.5. R3-I3 - Establishment of a traceability information system: In accordance 
with  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  delay  the  completion  of 
milestone 137 by one year and three months. This responds to delays caused by the need to extend 
the  scope  of  the  project  following  a  consultation  with  consumers  and  experts.  As  a  result,  the 
traceability system includes 3 new registers to collect information on the environmental status of 
products, quality labels at the European and national level, and information on the use of medicinal 
products. 

Component 1.6 (Developing sustainable, innovative and resilient tourism) 

Investment  C1.6  R1-I1  -  Regional  diversification  and  specialisation  of  Croatian  tourism 
through  investments  in  the  development  of  high  added  value  tourism  products:  Based  on 
Article 21(1) of Regulation (EU) 2021/241, Croatia proposed to postpone the deadline of awarding 
the  money  for  target  145  from  Q4  2025  to  Q2  2026.  At  the  same  time  the  authorities  are 
strengthening the commitment under the description of the investment from allocating the money 
to completing the implementation of eligible projects of the investment and providing evidence 
for the completion of projects. 

Investment C1.6 R1-I2 - Strengthening the competitiveness of businesses and fostering the 
green and digital transition of the tourism sector: Based on Article 21(1) of Regulation (EU) 
2021/241, Croatia proposed to postpone the deadline of awarding the money for target 147 from 
Q4 2025 to Q2 2026. At the same time the authorities are strengthening the commitment under the 
description  of  the  investment  from  allocating  the  money  to  completing  the  implementation  of 
eligible projects of the investment and providing evidence for the completion of projects. 

7 

 
 
 
2.  Public administration, justice and property 

Component  2.1  (Strengthening  capacity  to  design  and  implement  public  policies  and 
projects)  

Investment C2.1.R1-I2 - Strengthening capacity in strategic planning and better regulation: 
Based on Article 14(2), Croatia has proposed to finance this investment with loans, instead of non-
repayable support. The measure is not changed in substance. 

Component 2.2 (Furter improving the efficiency of public administration) 

Reform C2.2 R2 - New wage and working models in civil service and public services:  Croatia 
proposed the development of bylaws setting out detailed provisions to further increase the ambition 
of this reform through clearly defined salary grades, bands and coefficients as well as by laying 
down criteria for the evaluation of posts and the performance of civil servants as well as employees 
in the civil and public services. This has been added based on Article 14(2) of Regulation (EU) 
2021/241, to complement the original measure financed by the non-repayable support.  

Component 2.3 (Digital transition of society and public administration) 

Investment  C2.3.  R3-I4  -  Consolidation  of  the  health  information  infrastructure  system 
CEZIH: Based on Article 21(1) of Regulation (EU) 2021/241, the deadline for implementation is 
postponed by one year due to procurement issues (supply chain shortage of IT equipment). 

Investment C2.3. R3-I5 - Digital ID card project: Based on Article 21(1) of Regulation (EU) 
2021/241, due to delays in the rolling-up of the new identification system in the population, the 
deadline  for  implementation  is  extended  by  one  year,  and  the  target  amended  to  300,000 
authentications made by distinct users through the Certilia mobile application, and additionally 
100,000 certificates issued for remote qualified electronic signature.  

Investment C2.3. R3-I7 - Improvement of spatial planning systems, construction and state 
assets through digitalisation: Based on Article 21(1) of Regulation (EU) 2021/241, the deadline 
for implementation is postponed by one year due to the need to amend the relevant legislation and 
extend the time for the preparation of projects. 

Investment  C2.3  R3-I15  -  Putting  in  place  applicative  tourism  solutions  to  relieve  the 
administrative  burden  on  businesses  and  transform  the  tourism  model  towards 
sustainability:  Based  on  Article  21(1)  of  Regulation  (EU)  2021/241,  the  deadline  for 
implementation is postponed by one year due to procurement issues (supply chain shortage of IT 
equipment). 

Investment  C2.3  R3-I16  -  Digitalisation  of  processes  in  sport  and  recreation  at  local  and 
regional  level:  Based  on  Article  21(1)  of  Regulation  (EU)  2021/241  the  deadline  for 
implementation is postponed by 3 months due to procurement risks (supply chain shortage of IT 
equipment).  

Investment  C2.3  R3-I17  -  Establishment  of  the  Register  of  Population,  Family  and 
Households: Based on Article 14(2) of Regulation (EU) 2021/241, Croatia has proposed a new 
reform whose objective is to establish the Register of Population, Family, and Households, which 
shall provide data on income and assets of the population by retrieving it from different registers 
and information systems. The investment aims to provide accurate and updated statistics essential 
for the work of all public bodies, including the tax administration. 

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Component 2.6 (Preventing and combating corruption) 

Reform C2.6 R4 - Strengthening judicial redress capacity in public procurement procedures: 
In  accordance  with  Article  18  of  Regulation  (EU)  2021/21,  Croatia  proposed  to  reduce  the 
allocation of this reform and proportionally lower the numerical value of target 246 from 80 to 20 
judges  of  the  High  Administrative  Court  of  the  Republic  of  Croatia  to  be  trained  on  the 
management of corruption risks in public procurement and judicial redress in public procurement 
procedures.  

3. Education, science and research 

Component 3.1 (Reform of the education system) 

Investment C3.1. R1-I4 - Construction, upgrading, reconstruction and equipping of primary 
schools for single-shift and full-day teaching: In accordance with Article 14(2) of Regulation 
(EU) 2021/21, Croatia requested EUR one billion in loans to increase the ambition of target 271 
by raising the percentage of students attending primary one-shift schools from 70 to 100.  

Investment  C3.1.  R1-I3  -  Construction,  upgrading,  reconstruction  and  equipping  of 
secondary schools: A clerical error in the description of target 272 was rectified. To fully align 
the costing of the measure with the amended description of the target, a new target was added in 
terms  of  classrooms  built  or  renovated.  Based  on  Article  21(1)  of  Regulation  (EU)  2021/241, 
Croatia  also  requested  to  update  the  costing  of  this  investment,  while  maintaining  the  overall 
envelope, to reflect construction cost increases since the original plan was approved.  

4. Labour market and social protection 

Component 4.1 (Improving employment measures and the legal framework for a modern 
labour market and the economy of the future)  

Reform  C.4.1. R1  - Development and implementation of new targeted active employment 
policy measures for the needs of green and digital labour market transition: In accordance 
with  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  modify  target  287  by 
reducing  its  ambition  from  26,400  beneficiaries  (of  which  at  least  13,000  being  long-term 
unemployed, inactive or young people not in employment, education or training (young NEETs)) 
to  13,000  (of  which  at  least  6,000  long-term  unemployed,  inactive  or  young  NEETs).  This 
responds to a low take-up of the benefits so far resulting from a reduction of the pool of potential 
beneficiaries (unemployed) on the back of positive labour market trends and requirements related 
to  the  “green  nature”  of  eligible  jobs.  Taking  into  account  the  current  pace  of  inclusion  in  the 
measures,  Croatia  proposed  changing  the  green/digital  ratio  from  70:30  to  50:50.  Croatia  also 
proposed to revise the criteria for the award of individual measures to whether the employer, rather 
than each individual job, is eligible for the green and digital transitions.      

Reform  C.4.1.  R2  –  Strengthening  the  system  of  inclusion  and  monitoring  of  vulnerable 
groups in the labour market by improving the CES business processes: In accordance with 
Article 21(1) of Regulation (EU) 2021/241, Croatia proposed to delay the completion of milestone 
288 to Q3 2024 (from Q4 2023). This responds to the obsolescence of the data used as a basis for 
the envisaged legal amendments under the reform, following a shift in economic and labour market 

9 

 
 
 
     
trends. The proposed delay aims to allow the necessary time to update the relevant data, namely 
on unemployment benefits. 

Investment  C4.1.  R3-I1  –  Implementation  of  voucher  schemes  to  educate  employed  and 
unemployed  people:  In  accordance  with  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia 
proposed  to  scale-up  the  ambition  of  target  292  by  re-allocating  the  funds  derived  from  the 
reduction of target 287. The proposed target would increase from 30,000 beneficiaries (at least 
12,000 being long-term unemployed, inactive or young NEETs) to 40,000 to (of which at least 
12,000 being long-term unemployed, inactive or young NEETs). Given the experience with the 
implementation  so  far,  Croatia  proposed  the  funds  for  the  implementation  of  vouchers  to  be 
reallocated by focusing 60% on digital skills and 40% on green skills (instead of 30 % and 70 % 
as initially foreseen). 

Component 4.2 (Improving the pension system by improving pension adequacy) 

Reform  C4.2  -  R1  Increasing  pension  adequacy  through  continued  pension  reform:  In 
accordance  with  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  delay  the 
completion of milestone 298 to Q1 2025 (from Q1 2024) due to the extensive and complicated 
nature of coordination with other relevant bodies, which has been identified as a risk for timely 
completion  of the milestone. Additionally, contracted  preparatory  technical  assistance from  the 
World Bank was delayed and the delivery of the relevant analysis postponed. 

Component 4.3 (Improving welfare systems) 

Reform C4.3. R1 - Transparency and adequacy of social benefits in social protection systems: 
Based  on  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  postpone  the 
implementation timeline of target 304 to Q1 2026 (from Q4 2023) due to the time necessary to 
develop a better alternative to address the objective circumstances created by declining population 
and  low  unemployment  rate.  Furthermore,  it  is  proposed  to  redefine  the  target  to  include 
beneficiaries  of  the  national  elderly  support,  which  also  contributes  to  the  achievement  of  the 
overall objective of the reform. Croatia is also proposing to clarify the description of target 306 
and include an additional milestone 398 on legislative changes that contribute to the achievement 
of the targets, with completion date Q4 2023. 

5. Health 

Component 5.1 (Strengthening the resilience of the health system) 

Investment C5.1. R1-I1 - Introduction of mobile pharmacy service in primary care: Based on 
Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  postpone  the  timeline  for 
completion  of  target  320  to  Q2  2025  (from  Q3  2024)  due  to  disruptions  in  the  supply  chain 
(delivery of vehicles and boats).  

Investment  C5.1.  R1-I2  -  Mobile  ambulances:  Based  on  Article  21(1)  of  Regulation  (EU) 
2021/241, Croatia proposed to postpone the timeline for implementation of target 321 to Q4 2025 
(from Q2 2025) due to disruptions in the supply chain (delivery of vehicles). 

Investment C5.1. R1-I7 - Equipping new facilities for day hospital and one-day surgery and 
integrated emergency hospital admission and adaptation of Neurosurgery Clinic at Clinical 
Hospital  Centre  ‘KBC  Sestre  Milosrdnice’:  Based  on  Article  21(1)  of  Regulation  (EU) 
2021/241, Croatia proposed to postpone the timeline for implementation of target 326 to Q1 2024 

10 

 
 
 
(from  Q4  2023)  because  the  post-earthquake  reconstruction  project,  which  constitutes  a 
prerequisite to implement investment R1-I7, is delayed. 

Investment C5.1. R2-I1 - Procurement of equipment for prevention, diagnosis and treatment 
of  cancer  patients:  Based  on  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to 
change the description of this measure to reflect the existence of a better alternative, by revising 
the number of medical devices to be purchased for hospital centres, based on an updated analysis 
of future needs that takes into account changes in population and healthcare requirements. 

Investment  C5.1.  R3-I1  -  Central  funding  for  specialisation:  Based  on  Article  21(1)  of 
Regulation  (EU)  2021/241,  Croatia  proposed  to  change  the  description  and  timeline  for 
implementation to Q1 2026 (from Q4 2025) of target 334 due to objective circumstances related 
to an unexpected increase in the dropout rate from specialist medical training. It is proposed to add 
a  new  milestone  399  establishing  a  new  scheme  to  crowd  in  resources  for  funding  deficient 
specialist training of medical doctors such as primary healthcare and public health fields, while 
ensuring the recovery of funds from unfulfilled specialisations. 

Investment C5.1. R3-I2 - Specialist nurses’ training in emergency medicine: Based on Article 
21(1) of Regulation (EU) 2021/241, Croatia proposed to postpone the timeline for implementation 
of target  334 to Q2 2026  (from  Q4 2025)  due to  a lack of specialised medical  staff on the job 
market. It is proposed to spread out the education programme to allow the necessary time for the 
education of medical staff while ensuring uninterrupted quality healthcare provision to patients.  

Investment C5.1. R4-I1 - Central preparation of all parenteral preparations in 8 Croatian 
hospitals: Based on Article 21(1) of Regulation (EU) 2021/241, Croatia hproposed to postpone 
the timeline for implementation of target 350 to Q4 2025 (from Q4 2024) as the post-earthquake 
reconstruction project, which constitutes a prerequisite to implement investment R4-I1, is delayed.  

Investment C5.1. R4-I5 - Introduction of a treatment outcome monitoring system for non-
hospital patients with a focus on chronic patients in public pharmacies: Based on Article 21(1) 
of Regulation (EU) 2021/241, Croatia proposed to postpone the timeline for implementation of 
target 344 to Q4 2025 (from Q4 2024) as investment C2.3 R3-I4, which is a prerequisite for this 
investment, is delayed.  

Investment  C5.1.  R4-I6  -  Waste  management  in  KBC  Zagreb:  Based  on  Article  21(1)  of 
Regulation (EU) 2021/241, Croatia proposed to postpone the timeline for completion of target 345 
to Q1 2026 (from Q4 2024) as there were unpredicted implementation delays due to the need to 
develop  a  new  project  study  that  takes  into  account  changed  circumstances  in  project 
implementation. 

Investment C5.1. R5-I1 Digital integration of operating theatres and robotic surgery in KBC 
Split:  Based  on  Article  21(1)  of  Regulation  (EU)  2021/241,  Croatia  proposed  to  postpone  the 
timeline  for  implementation  of  target  347  to  Q2  2024  (from  Q4  2023)  because  of  unplanned 
additional construction work that delayed the overall investment.  

Investment C5.1. R5-I4 - Digitalisation and integration of operating rooms equipped with 
robotic surgery in Clinical Hospital Centre ‘KBC Sestre Milosrdnice: Based on Article 21(1) 
of Regulation (EU) 2021/241, Croatia proposed to postpone the timeline for implementation of 
target 350 to Q1 2024 (from Q4 2024) because the post-earthquake reconstruction project, which 
constitutes a prerequisite to implement investment R5-I4, is delayed. 

11 

 
 
 
6. Initiative: Renovation of buildings 

Investment C6.1. R1-I3 - Energy renovation of buildings with a status of a cultural good: The 
development of Guidelines for the energy renovation of buildings with the status of a cultural good 
has been added based on Article 14(2) of Regulation (EU) 2021/241, to complement the original 
measure  financed  by  non-repayable  support.  The  development  of  Guidelines  for  the  energy 
renovation of buildings with a status of a cultural good has been added as a new milestone to be 
financed by loans (C6.1. R1-I4), thereby increasing the ambition of the original measure. 

Reform C6.1. R2 - Developing a framework for ensuring adequate skills in the context of 
green jobs needed for post-earthquake reconstruction: A modification of the target has been 
proposed on the basis of Article 21(1) of Regulation (EU) 2021/241 due to legislation changes, 
replacing  50  persons  completing  expert  studies  and  education  programmes  in  the  field  of 
sustainable urban development and renovation of cultural heritage with the setting up of the new 
master programme and offering at least 30 enrollment places funded by the State budget, thereby 
increasing the ambition of the measure.   

Reform C6.1. R7  -  Circular use of construction waste from buildings with  the status of a 
cultural  good:  pilot  project  exploring  exchange  and  trade  opportunities:  Based  on  Article 
14(2)  of  Regulation  (EU)  2021/241,  Croatia  proposed  a  new  reform  through  a  pilot  project  to 
explore exchange and trading opportunities related to the circular use of construction waste from 
buildings with the status of a cultural good.  

Component 7.1 – Energy and sustainable transport and 7.2 Energy renovation of buildings 

(REPowerEU chapter) 

Under the REPowerEU chapter and based on Article 21c of Regulation (EU) 2021/241, Croatia 
included 11 investments, of which three transferred from the original plan based on Article 21c(2) 
(of which one is also scaled-up), three scaled-up and five new, and five reforms, of which four 
scaled-up and one new. 

•  Transferred from the original Recovery and Resilience Plan to REPowerEU chapter 

after the decrease in the maximum financial contribution: 

Investment C7.1 R1-I1 – Hydrogen use and new technologies. This measure in renewables will 
contribute to the REPowerEU objective under Article 21c(3)(b) of Regulation (EU) 2021/241.  

Investment C7.1 R1-I5 – Biorefinery to produce advanced biofuels Sisak, to be financed with 
loans. This measure in renewables will contribute to the REPowerEU objective under Article 21c 
(3)(b) of Regulation (EU) 2021/241.  

Investment  C7.2  I2  –  Renovation  of  buildings  damaged  in  earthquakes  with  energy 
renovation,  to  be  financed  with  loans.  This  measure  in  energy  renovation  of  buildings  will 
contribute to the REPowerEU objective under Article 21c(3)(b) of Regulation (EU) 2021/241.  

•  Scaled up measures: 

Reform  C7.1  R1  –  Decarbonisation  of  the  energy  sector:  Croatia  proposed  to  scale  up  this 
reform, by introducing a new system of self-consumption by Q1 2025, which would be a follow 
up to milestone 36 and 37 under the same  measure. The proposed measure on accelerating  the 

12 

 
 
 
uptake  of  renewables  will  contribute  to  the  REPowerEU  objective  under  Article  21c(3)(b)  of 
Regulation (EU) 2021/241. 

Investment C7.1 I1 – Procurement of alternative-fuel-powered vehicles for public urban and 
suburban  regular  transport:  Croatia  proposed  to  scale  up  this  investment,  by  including 
additional  103  electric  or  hydrogen  buses  and  one  innovative  hydrogen  generator  for  electric 
locomotives  for  trains  (HERMES  unit).  The  proposed  measure  in  zero-emission  transport  will 
contribute to the REPowerEU objective under Article 21c(3)(e) of Regulation (EU) 2021/241. 

Investment  C7.1  I2  -  Co-financing  programme  for  the  purchase  of  new  alternative  fuel 
vehicles and the development of alternative fuel  infrastructures in road transport: Croatia 
proposed to scale up this investment, by including faster electric charging stations with charging 
capacity  of  minimum  50  kW,  instead  of  the  originally  envisaged  20  kW.  The  total  cost  of  the 
measures includes the existing allocation and scale-up. The proposed measure in zero-emission 
transport will contribute to the REPowerEU objective under Article 21c(3)(e) of Regulation (EU) 
2021/241. 

Investment  C7.2  I1  -  Energy  renovation  of  buildings:  Croatia  proposed  to  scale  up  this 
investment  by  providing  additional  funds  for  1)  multi-dwelling  buildings;  2)  public  buildings 
under  ESCO  model;  3)  energy  renovation  of  public  buildings;  and  4)  energy  poverty,  to  be 
financed with loans. The proposed measure in energy renovation of buildings and tackling energy 
poverty will contribute to the REPowerEU objective under Article 21c(3)(b, c) of Regulation (EU) 
2021/241. 

Investment  C7.2  I2  –  Renovation  of  buildings  damaged  in  earthquakes  with  energy 
renovation:  Croatia  proposed  to  scale  up  this  investment  by  providing  additional  funds  for 
residential  and  public  buildings,  to  be  financed  by  loans.  The  proposed  measure  in  energy 
renovation of buildings will contribute to the REPowerEU objective under Article 21c(3)(b) of 
Regulation (EU) 2021/241. Based on Article 21(1) of Regulation (EU) 2021/241, Croatia proposed 
to change the description of the target under this measure, widening the list of eligible counties 
struck  by  the  earthquakes,  therefore  offering  a  better  alternative  for  the  implementation  of  the 
measure.  

Reform  C7.2  R1  -  Increasing  efficiency,  reduction  of  administrative  burden  and 
digitalisation of the renovation process: Croatia proposed to scale up this reform, by envisaging 
new  activities  contributing  to  raising  citizens'  awareness  on  the  green  transition.  The  proposed 
measure will contribute to the REPowerEU objective under Article 21c(3)(d) of Regulation (EU) 
2021/241. 

Reform  C7.2  R2  -  Introduction  of  a  new  model  of  green  urban  renewal  strategies  and 
implementation  of  a  pilot  project  for  the  development  of  green  infrastructure  and  the 
circular  management  of  buildings  and  space:  Croatia  proposed  to  scale  up  this  reform  by 
providing additional funds for the development of additional green urban renewal strategies and 
pilot projects. The proposed measure will contribute to the REPowerEU objective under Article 
21c(3)(d) of Regulation (EU) 2021/241. 

Reform  C7.2  R3  -  Introduction  of  a  new  model  of  green  urban  renewal  strategies  and 
implementation  of  a  pilot  project  for  the  development  of  green  infrastructure  and  the 
circular  management  of  buildings  and  space:  Croatia  proposed  to  scale  up  this  reform  by 
providing additional funds for the development of additional pilot projects, to be financed with 

13 

 
 
loans. The proposed measure will contribute to the REPowerEU objective under Article 21c(3)(d) 
of Regulation (EU) 2021/241. 

•  New measures: 

Investment C7.1 R1-I2 - Establishment of a hydrogen-based economy (through the North 
Adriatic  Hydrogen  Valley):  Croatia  proposed  a  new  investment  related  to  hydrogen  and  zero 
emissions transport including projects in 1) hydrogen projects in the context of the North Adriatic 
Hydrogen  Valley;  2)  retrofitting  of  five  diesel  locomotives  to  hydrogen;  and  3)  five  charging 
stations for buses, trains and/or maritime transport. The new measure will also include a reform 
on designating the Croatian Hydrocarbon Agency as the hydrogen coordinating body in Croatia. 
The proposed measure in hydrogen and zero-emission transport will contribute to the REPowerEU 
objectives under Article 21c(3)(b, e) of Regulation (EU) 2021/241. 

Investments C7.1 R1–I3 and C7.1 R1–I4 - Strengthening the use of renewable energy sources 
in transport and heating: Croatia proposed a new investment including projects in 1) additional 
geothermal  exploration/drilling;  2)  sustainable  biomethane  production;  and  3)  electric  buses 
infrastructure, as well as the adoption of the hydrogen development plan and program. The new 
measures will also include two reforms on adopting a geothermal potential development plan and 
establishing  certification  of  biogas.  The  proposed  measure  in  renewables  and  zero-emission 
transport will contribute to the REPowerEU objectives under Article 21c(3)(b, e) of Regulation 
(EU) 2021/241. 

Investment C7.1 R1-I6 - Strengthening the transmission and distribution capacities of the 
electricity  network:  Croatia  proposed  a  new  investment  in  improving  the  electricity  network, 
increasing electricity transmission capacity, and better evacuation of electricity from south to north 
of Croatia, to be financed with loans. The proposed measure in energy networks will contribute to 
the REPowerEU objective under Article 21c(3)(e) of Regulation (EU) 2021/241. 

Investment C7.1 I3 - Increasing the capacity of the LNG terminal on the island of Krk and 
strengthening  the  gas  infrastructure:  Croatia  proposed  a  new  investment  in  LNG  and  gas 
infrastructure including the expansion of 1) the LNG terminal KRK to 700.000 m3/h (6.1 bcm/y); 
2) the Zlobin-Bosiljevo pipeline; 3) evacuation pipelines to HU Bosiljevo – Sisak – Kozarac; and 
4) section Lučko - Zabok of the Croatia – Slovenia interconnector, where the total cost will be 
financed with loans. The proposed measure in security of supply will contribute to the REPowerEU 
objective under Article 21c(3)(a) of Regulation (EU) 2021/241. 

Reform  C7.2  R4  -  Introduction  of  a  new  model  for  the  preparation,  organisation  and 
implementation  of  adult  learning  programmes  aimed  at  developing  green  skills  and 
competences  in  the  construction  sector  for  foreign  workers  from  third  countries:  Croatia 
proposed  a  new  reform  introducing  a  new  model  of  adult  learning  programmes  aimed  at 
developing green skills and competences in the construction sector for non-EU foreign workers, 
to be financed with loans. The proposed measure in green skills will contribute to the REPowerEU 
objectives under Article 21c(3)(f) of Regulation (EU) 2021/241. 

The new and modified components of Croatia’s Recovery and Resilience Plan and their estimated 
costs are summarised in Table 1. 

Table 1: New and modified components and estimated associated costs (EUR) 

14 

 
 
 
Existing Plan  
Non-
repayable 
support 

Non-
repayable 
support 

Addendum  

Overall   

Loans  

Total  

Total  

 3,411,470,965   -265,047,729  

 575,686,177  

 310,638,448  

 3,722,109,413  

 581,120,297  

-354,685  

 338,760  

-15,925  

 581,104,372  

 995,421,063  

 -    

 1,000,000,000    1,000,000,000  

 1,995,421,063  

 276,482,845  

-525,981  

 530,891  

 4,910  

 276,487,755  

 340,261,953  

-24,884,465  

 24,884,465  

 -    

 340,261,953  

 789,037,096   -592,665,146  

 3,295,000  

-589,370,146  

 199,666,950  

 -      276,228,415  

 2,649,421,679    2,925,650,094  

 2,925,650,094  

 6,393,794,219   -607,249,591  

 4,254,156,972    3,646,907,381  

 10,040,701,600  

Component   

1 Economy 

2 Public 
administration, 
justice and 
property 

3 Education, 
science and 
research) 

4 Labour market 
and social 
protection 

5 Health 

6 Initiative: 
Building 
renovation 

7.1 and 7.2 
REPowerEU 

TOTAL 

2.3 

 Other elements not covered by assessment criteria   

The  description  of  the  elements  related  to  administrative  organisation,  consultation  process, 
security self-assessment for digital investments and the communication strategy, as set out in the 
previous SWD (2021) 197 final, remains relevant. 

In accordance with Article 18(4)(g) of the RRF Regulation, Croatia carried out a security self-
assessment for investments C7.1 R1-I6 - Strengthening the transmission and distribution capacities 
of the electricity network, and C7.1 I3 - Increasing the capacity of the LNG terminal on the island 
of Krk and strengthening the gas infrastructure, included in the REPowerEU chapter. 

Croatia  explained  that  several  REPowerEU  measures  will  have  a  positive  impact  on  gender 
equality and equal opportunities for all. This applies to energy-related projects under Reform C7.1 
R1 - Decarbonisation of the energy sector, as well as all projects and activities within the building 
renovation  initiative.  In  particular,  Reform  C7.2  R4  -  Introduction  of  a  new  model  for  the 
preparation, organisation and implementation of adult learning programmes, aimed at developing 
green skills and competences in the construction sector for workers from non-EU countries; and a 
scaled-up  measure  C7.2  R1  -  Increasing  efficiency,  reduction  of  administrative  burden  and 

15 

 
 
 
 
digitalisation of the renovation process, offer equal opportunities regardless of gender, racial or 
ethnic origin, religion or belief, disability, age or sexual orientation, in line with principles 2, 3 and 
17 of the European Pillar of Social Rights. At the same time, the development of the electricity 
system and of the hydrogen economy will contribute to reducing energy poverty and strengthen 
social rights for all. 

State aid and competition rules fully apply to the measures funded by the Recovery and Resilience 
Facility. Union funds channelled through the authorities of Member States, like the RRF funds, 
become State resources and can constitute State aid. When this is the case and State aid is present, 
these measures must be notified and approved by the Commission before Member States can grant 
the aid, unless those measures are covered by an existing aid scheme or comply with the applicable 
conditions of a block exemption regulation, in particular the General Block Exemption Regulation 
(GBER) declaring certain categories of aid compatible with the internal market in application of 
Articles 107 and 108 TFEU1. When State aid is present and it requires notification, it is the duty 
of  the  Member  State  to  notify  State  aid  measures  to  the  Commission  before  granting  them,  in 
compliance with Article 108(3) TFEU. In this respect, the State aid analysis carried out by Croatia 
in the Recovery and Resilience Plan cannot be deemed a State aid notification. In as far as Croatia 
considers that a specific measure contained in the Recovery and Resilience Plan entails de minimis 
aid or aid exempted from the notification requirement, it is the responsibility of Croatia to ensure 
full compliance with the applicable rules. 

3.  SUMMARY OF THE ASSESSMENT OF THE PLAN 

3.1. Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation 

The proposed modifications to the Croatia’s Recovery and Resilience Plan, along with the new 
measures, strengthen the commitment to a balanced approach to the improvement of the overall 
economic  and  social  situation.  The  modified  Recovery  and  Resilience  Plan  requests  EUR  5.5 
billion  in  non-repayable  support,  with  an  additional  EUR  276.2  million  in  REPowerEU  non-
repayable support, and EUR 4.3 billion in loans. The existing and new reforms and investments 
contribute  comprehensively  to  the  six  pillars  embedded  in  the  structure  of  the  Recovery  and 
Resilience Facility (Article 3).  

By meeting the requirements of the Recovery and Resilience Facility Regulation on allocation for 
green and digital transitions, Croatia’s modified Recovery and Resilience Plan contributes to the 
first  two  pillars  of  the  Recovery  and  Resilience  Facility  via  different  components.  The 
REPowerEU  chapter  contains  a  balanced  set  of  new  reforms  and  investments  that,  along  with 
several  existing  measures,  contribute  substantially  to  the  green  transition.  Contribution  to  the 
smart, sustainable and inclusive growth and social and territorial cohesion pillars is strengthened 

1Commission Regulation (EU) 2023/1315 of 23 June 2023 amending Regulation (EU) No 651/2014 declaring certain 
categories  of  aid  compatible  with  the  internal  market  in  application  of  Articles  107  and  108  of  the  Treaty  and 
Regulation (EU) 2022/2473 declaring certain categories of aid to undertakings active in the production, processing 
and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 
and  108  of 
the  Treaty,  OJ  L  167,  30.6.2023,  p.  1–90,  available  at:  https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A32023R1315.  

16 

 
 
 
 
by the introduction of new measures, such as investments transportation and energy infrastructure 
or reforms further improving business environment, and the scaling up the existing ones. Modified 
measures  from  various  components  continue  to  contribute  to  the  health,  economic,  social  and 
institutional  resilience  pilar,  while  the  scale  up  of  investments  in  education  strengthens  the 
contribution to the pillar of policies for the next generation.  

Croatia’s modified Recovery and Resilience Plan, including the REPowerEU chapter, contributes 
to all the six pillars in a manner that all pillars are covered by at least one component, while the 
majority is covered by multiple components. The contribution to the six pillars by new or modified 
components of Croatia’s Recovery and Resilience Plan is summarised in Table 2. 

Table 2: Coverage of the six pillars of the Facility by the new or modified Recovery and 

Resilience Plan components 

Green 
transition 

Digital 
transform
ation 

Smart, 
sustainable 
& inclusive 
growth 

Social and 
territorial 
cohesion 

Health, 
and 
economic, 
social and 
institution
al 
resilience 

Policies 
for the 
next 
generati
on 

● 

● 

○ 

○ 

○ 

○ 

○ 

● 

C1.1 Resilient, Green 
and Digital Economy 

● 

○ 

C1.2 Energy 
Transition for a 
Sustainable Economy 

● 

 ○ 

● 

● 

○ 

● 

C1.3 Improving Water 
Management and 
Waste Management 

C1.4 Development of a 
Competitive, Energy 
Sustainable and 
Efficient Transport 
System 

C1.5 Improving the 
Use of Natural 
Resources and 

○ 

○ 

○ 

● 

17 

 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
○ 

○ 

  ● 

○ 

● 

● 

○ 

○ 

○ 

○ 

○ 

○ 

○ 

○ 

○ 

○ 

○ 

○ 

Strengthening the 
Food Supply Chain 

C1.6 Developing 
Sustainable, 
Innovative and 
Resilient Tourism 

C2.2 Further 
Improving the 
Efficiency of Public 
Administration 

C2.3 Digital Transition 
of Society and Public 
Administration 

C2.5 Modern Justice 
Fit for Future 
Challenges 

C2.6 Preventing and 
Combating Corruption 

C3.1 Reform of the 
Education System 

C4.1 Improving 
Employment Measures 
and the Legal 
Framework for a 
Modern Labour 
Market and the 
Economy of the Future 

C4.2 Improving the 
Pension System 
Through Increased 
Pension Adequacy 

C4.3 Improving the 
Social Welfare System 

○ 

○ 

18 

○ 

● 

○ 

○ 

● 

○ 

● 

● 

● 

● 

● 

○ 

○ 

● 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C5.1 Strengthening the 
Resilience of the 
Health Care System 

C6.1 Renovation of 
Buildings 

C7.1 and 7.2 
REPowerEU Chapter 

○ 

● 

● 

● 

○ 

● 

○ 

○ 

● 

● 

○ 

○ 

● 

Key: “●” investments and reforms of the component significantly contribute to the pillar; “○” the component partially 

contributes to the pillar 

Taking into consideration all reforms and investments envisaged by Croatia, its modified Recovery 
and  Resilience  Plan  continues  to  represent,  to  a  large  extent,  a  comprehensive  and  adequately 
balanced response to the economic and social situation, thereby contributing appropriately to all 
six pillars referred to in Article 3 of the RRF Regulation, taking the specific challenges and the 
financial allocation of Croatia into account. This would warrant a rating of A under criterion 2.1 
in Annex V to the RRF Regulation. 

3.2. Link with country-specific recommendations and the European Semester  

Overall, the submitted Recovery and Resilience Plan addendum complements the initial plan in 
addressing the challenges identified in the country-specific recommendations (CSRs).  

As the size of the plan increased following an additional loan request, all 2022 and 2023 structural 
recommendations  are  considered  in  the  overall  assessment.  Structural  recommendations  in  the 
2022 and 2023 CSRs are related to the energy sector. Measures added through the REPowerEU 
chapter contribute to addressing the challenges linked to the energy sector identified through the 
new country-specific recommendations from 2022 and 2023. 

in 

the 

relevant  energy-related  country-specific 

The proposed REPowerEU chapter provides an adequate response to the energy challenges faced 
by  Croatia  and  helps  maintaining  the  good  coverage  of  a  significant  subset  of  the  challenges 
identified 
recommendations.  Croatia’s 
REPowerEU chapter includes scaled up and new measures in energy networks (addressing CSRs 
2022.3.3  and  2023.3.4),  uptake  of  renewable  energy  sources,  renewable  hydrogen  (addressing 
CSRs 2019.3.3, 2020.3.8, 2022.3.2 and 2023.3.1 and 3.2), energy efficient renovation of buildings 
(addressing  CSRs  2019.3.3,  2022.3.4  and  2023.3.1.  and  3.5),  LNG  and  gas  infrastructure 
(addressing  CSR  2022.3.1),  zero-emission  transport  (addressing  CSRs  2019.3.3,  2020.3.7, 
2022.3.5 and 2023.3.1 and  3.6) and green skills (addressing CSR 2023.3.7).  More specifically, 
scaled-up  and  new  reforms  under  the  REPowerEU  chapter,  namely  the  introduction  of  a  new 
system of self-consumption of small renewable production, a set of studies for geological CO2 
underground  storage  in  Croatia,  the  designation  of  the  Croatian  Hydrocarbon  Agency  as  the 
hydrogen coordinating body in Croatia, adoption of the hydrogen development plan and program, 
the  geothermal  potential  development  plan,  the  plan  for  the  production  and  use  of  biofuels  in 

19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
transport,  and  the  certification  of  biogas  address  the  CSRs  2019.3.3,  2020.3.8,  2022.3.2  and 
2023.3.1 and 3.2.  

Since the initial Recovery and Resilience Plan featured a comprehensive coverage of the CSRs 
with a large number of ambitious reforms, the modified plan adds a limited number of new reforms.  

Besides  the  REPowerEU  chapter,  there  are  other  investments  and  scaled  up  measures  funded 
through  the  requested  loan,  which  contribute  to  the  CSRs  implementation.  The  significant 
allocation  to  Investment  C3.1  R1-I4  Construction,  upgrading,  reconstruction  and  equipping  of 
primary schools for one-shift and full-day teaching significantly strengthens the contribution to 
CSRs 2019.2.1, 2020 2.4. Additional scale up of investments in public sewage and water supply 
improve the implementation of CSRs 2019.3.3 and 2020.3.6. 

Taking  into  consideration  the  reforms  and  investments  envisaged  by  Croatia,  its  modified 
Recovery and Resilience Plan is expected to contribute to effectively addressing all or a significant 
subset of challenges  identified in  the country-specific  recommendations, or challenges  in  other 
relevant documents officially adopted by the Commission under the European Semester, and the 
modified Recovery and Resilience Plan represents an adequate response to the economic and social 
situation of Croatia. This would warrant a rating of A under criterion 2.2 in Annex V to the RRF 
Regulation. 

3.3. Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European  Pillar  of  Social  Rights,  mitigating  the  impact  of  the  crisis,  and  social 
territorial cohesion and convergence  

As  part  of  the  modification  of  the  Recovery  and  Resilience  Plan,  Croatia  has  put  forward 
investments aimed at accelerating the green transition, ensuring resilience against further energy 
shocks  and  reaching  the  objectives  of  REPowerEU.  In  particular,  Croatia  is  proposing  new 
measures  to  promote  the  use  of  renewable  energy,  increase  the  electricity  system  capacity, 
accelerate  the  hydrogen  economy,  improve  energy  efficiency  and  attract  capital  to  sustainable 
activities.  The  modification  of  the  plan  also  includes  additional  resources  to  scale  up  existing 
measures in transport, water management and education which are envisaged to further contribute 
to green transition and boost economic and social resilience. 

The  reforms  and  investments  put  forward  as  part  of  the  modification  of  the  Recovery  and 
Resilience Plan are expected to foster economic growth already in the short- to medium-term. The 
European  Commission  has  performed  a  model-based  analysis  of  the  potential  macroeconomic 
impact  of  the  modified  NGEU  investment  using  its  QUEST  model.  In  addition  to  taking  into 
account  the  decrease  in  its  financial  contribution,  simulations  account  for  the  effects  of  newly 
requested RRF loans, of the negative impact of inflation on the real value of non-repayable support 
and loans, as well as of the projected annual Recovery and Resilience Facility spending profile. 
Model estimates show that the modified Recovery and Resilience Plan, together with other NGEU 
measures, has the potential to raise the level of GDP by between 3.3% and 4.3% by 2026, when 
the impact is expected to peak. In addition, while these simulations take account of the impact of 
productive investments, including training and education, further positive effects can be expected 
from the proposed reform measures. 

Taking into consideration investments envisaged by Croatia, its modified recovery and resilience 
plan is expected to have a high impact on strengthening the growth potential, job creation, and 

20 

 
 
 
economic,  social  and  institutional  resilience  of  the  Member  State,  on  contributing  to  the 
implementation  of  the  European  Pillar  of  Social  Rights,  including  through  the  promotion  of 
policies for children and youth, and on mitigating the economic and social impact of the COVID-
19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within 
the Union. This would warrant a rating of A under criterion 2.3 of Annex V to the RRF Regulation. 

3.4. The principle of ‘do no significant harm’  

The modifications of the measures included in the Recovery and Resilience Plan do not have an 
impact on the assessment of the principle of ‘do no significant harm’ which remains identical. 

Croatia’s REPowerEU chapter includes a systematic assessment of each measure against the 
principle of ‘do no significant harm’ (DNSH), for each of the six environmental objectives 
within  the  meaning  of Article  17  of  the  Taxonomy  Regulation.  While  Croatia’s  assessment 
stresses the positive impact mainly on climate objectives, it also provides information allowing to 
assess that measures will comply with the ‘do no significant harm’ principle. 

Specific safeguards have been introduced for measures related to the geothermal exploration under 
Investment  C7.1  R1-I3  “Strengthening  the  use  of  renewable  energy  sources  in  transport  and 
heating”. To comply with the DNSH principle, the measures will not include any exploration or 
extraction of either oil or gas. The measures will be implemented with due care that no equipment 
is purchased or used for such purposes, and that methane releases are minimised. In addition, the 
geothermal drilling would have no harmful impact on water scarcity and water quality.  

When it comes to investment C7.1 R1-I4 “Strengthening the use of renewable energy sources in 
transport  and  heating”  specific  safeguards  have  been  included  to  ensure  that  sustainable 
biomethane is produced in accordance with the Renewable Energy Directive (EU) 2018/2001 and 
that the production does not lead to a decrease in carbon sink and biodiversity degradation. 

In  addition,  measures  on  hydrogen  production  will  need  to  adhere  to  conditions  under  the 
Renewable Energy Directive (EU) 2018/2001, and the relevant Delegated Acts. This is the case 
for  investment  C7.1  R1-I1  “Hydrogen  use  and  new  technologies”  and  investment  C7.1  R1-I2 
“Establishment of a hydrogen-based economy (through the North Adriatic Hydrogen Valley)”.  

The Plan includes measures benefiting from the DNSH exemption. In accordance with Article 
21c(6) of Regulation  (EU) 2021/241,  on the basis  of the information provided by  Croatia, and 
following the positive assessment of the Commission, the principle of DNSH should not apply to  
investment  C7.1 I3  that  contributes to  the objective set  out  in  Article 21c (3), point (a) of that 
Regulation. Investment C7.1 I3 “Increasing the capacity of the LNG terminal on the island of Krk 
and strengthening the gas infrastructure”, includes the expansion of the LNG terminal on Krk to 
700,000 m3/h (6.1 billion m3 annually (bcm/y)), as well as the expansion of Zlobin - Bosiljevo 
pipeline and the Bosiljevo – Sisak – Kozarac evacuation pipeline increasing gas transport capacity 
towards Hungary to 400,000 m3/h (3.5 bcm/y), and section Lučko - Zabok of the Croatia - Slovenia 
interconnector increasing gas transport capacity towards Slovenia to 170,000 m3/h (1.5 bcm/y). 
The Commission has reached a positive assessment for this exemption, since the requirements in 
Article 21c(6) of Regulation (EU) 2021/241 have been met. 

The measure is necessary and proportionate to meet immediate security of supply needs, taking 
into account cleaner feasible alternatives and the risk of lock-in effects. 

21 

 
 
The expansion of the LNG terminal on Krk from 250,000 m3/h to 700,000 m3/h (2.9 bcm/y to 6.1 
bcm/y) will help mitigate dependency on the supply of Russian gas in the South-East Europe, in 
particular Slovenia and Hungary, which both have limited supply routes options and are heavily 
reliant  on  Russian  gas.  However,  the  expansion  of  the  LNG  terminal  must  be  done  in  full 
synchronisation with the expansion of the internal Croatian gas pipeline infrastructure to ensure 
increased capacity of gas transmission to Slovenia (and potentially further to Austria, if the Ceršak 
– Murfeld interconnector is upgraded to allow for gas flow from Slovenia to Austria) and Hungary. 
Without the upgrade of the gas pipeline infrastructure, due to bottlenecks in the Croatian grid, it 
would not be possible to fully utilise the expanded LNG terminal and the additional gas quantities, 
especially considering the current capacity of gas transmission from Croatia to Slovenia of 0.27 
bcm/y and to Hungary of 1.7 bcm/y. The contribution of the measure to mitigating Russian supply 
dependence, thereby improving the security of supply has been also confirmed in the Annex III of 
the REPowerEU Plan2, based on the assessment of the European Network of Transmission System 
Operators for Gas (ENTSOG) following the discussions in spring 2022 with the Member States in 
the regional High-Level Groups, operating in the context of the TEN-E policy.  

The proposed LNG terminal expansion and development of gas transmission pipeline cluster will 
enable gas to  reach  the markets  of Croatia  (yearly  demand  of around  3 bcm), Slovenia  (yearly 
demand of around 1 bcm) and Hungary (yearly demand of around 10 bcm). Considering that the 
yearly demand of Croatia, Slovenia, and Hungary of 14 bcm/y is more than double compared to 
the  expanded  LNG  terminal  capacity  of  6.1  bcm/y,  the  measure  is  proportionate  and  is  not 
oversized,  i.e.,  the  scale  of  the  measure  is  not  larger  than  necessary  to  meet  the  measure’s 
objectives.  As  regards  cleaner  alternatives  such  as  renewable  hydrogen,  production  or  import 
cannot  be  considered  technologically  and  economically  feasible  alternatives  that  could  be 
deployed within a comparable timeline, by end 2026. Also, the Croatian hydrogen economy is yet 
to be developed, with significant renewable hydrogen production not expected before 2026. All 
gas transmission projects will be technically prepared to transport hydrogen where needed, which 
is  in  line  with  the  10-year  development  plan  2023–2032  of  the  Croatian  Transmission  System 
Operator Plinacro. Limited additional capacity of the LNG terminal is the minimum necessary to 
contribute for the phasing out of Russian gas imports by Croatia’s neighbours, while allowing the 
gradual elimination of gas consumption by 2050, given that the low volumes to be transported in 
the new pipelines only cover a fraction of the current gas consumption of its neighbours benefiting 
from the projects and do not contribute to an increase in gas consumption. Therefore, the risk of 
lock-in  effect  is  considered mitigated since the pipelines under this measure can be considered 
future-proof.  Based  on  the  analysis  of  the  supporting  documents  provided  by  Croatia,  the 
Commission  considers  that  the  measure  is  necessary  and  proportionate  to  meet  the  immediate 
security of supply needs, taking into account cleaner feasible alternatives and the risk of lock-in 
effects, in line with Article 21c(6), point (a) of Regulation (EU) 2021/241. 

2 Communication on REPowerEU Plan, COM(2022) 230 final, (18.5.2022). 

22 

 
 
 
 
The Member State has undertaken satisfactory efforts to limit the potential harm to environmental 
objectives where feasible and to mitigate harm through other measures. 

As  regards  the  expansion  of  the  LNG  terminal  on  Krk,  the  environmental  impact  assessment 
undertaken for the original terminal already envisaged the capacity of up to 8.3 bcm/y. Therefore, 
the Ministry of Economy and Sustainable Development issued a Decision confirming that there is 
no need to carry out a new environmental impact assessment for the expansion of the capacity of 
the LNG terminal to 6.1 bcm/y. An environmental impact assessment has been conducted for all 
proposed projects on upgrades of the gas pipeline infrastructure by the Croatian authorities. Results 
of the relevant environmental impact assessments confirm that the projects will be implemented 
in  compliance with  the applicable EU and national  environmental  legal  framework, which will 
help  mitigate  harm,  in  particular  by  protecting  air  quality,  water  bodies,  soil  and  biodiversity. 
Physical climate risks to the gas network infrastructure project will be identified by performing a 
robust climate risk and vulnerability assessment that takes into account climate projections in the 
current  National  Adaptation  Strategy,  and  adaptation  solutions  to  ensure  resilience  and  early 
warning systems will be considered as part of the gas network expansion. A waste management 
plan is envisaged by the environmental impact assessments, according to which measures will be 
undertaken  to  separate  collection  of  municipal  waste  and  hazardous  materials.  In  case  of 
decommissioning  of  the  projects,  measures  are  envisaged  on  separate  collection  of  useful  and 
hazardous waste. Given the nature of the measure, it is not feasible to take fully into account the 
climate mitigation and climate adaptation objectives. However, supporting documents provided 
on the planned capacity of the project, demonstrate that the scale of the measure is not larger than 
necessary in order to meet the EU’s security of energy supply needs. Based on the analysis of the 
supporting  documents  provided  by  Croatia,  the  Commission  considers  that  satisfactory  efforts 
have been undertaken to limit the potential harm to environmental objectives, where feasible, in 
line with Article 21c(6), point (b) of Regulation (EU) 2021/241.  

The measure does not  jeopardise the achievement  of  the Union’s 2030 climate targets  and the 
objective of EU climate neutrality by 2050. 

The  expansion  of  the  LNG  terminal  on  Krk  and  of  the  relevant  gas  pipeline  infrastructure  is 
envisaged to meet only the strictly necessary security of supply needs and does not increase further 
gas consumption within the Union as it aims at replacing the gas capacity originally imported from 
Russia. The measure is aligned with broader energy and climate policy. The LNG terminal on Krk 
was  included  already  in  the  National  Energy  and  Climate  Plan  from  2019,  contributing  to 
diversifying  natural  gas  supply  routes  and  increasing  security  of  supply of  Croatia,  but  also  of 
Central and South-East  Europe. The National Energy and Climate Plan from 2019 envisaged a 
phased approach of the construction of the LNG terminal on Krk, with later potential upgrades of 
the terminal, but also of the relevant gas pipeline infrastructure. The draft updated National Energy 
and Climate Plan includes the increase of the capacity of the LNG terminal to 6.1 bcm/y, as well 
as  the  increased  capacity  of  gas  transmission  to  Slovenia  and  Hungary,  all  of  which  will  be 
addressed with the measure in question. In addition, the modified Recovery and Resilience Plan, 
including  the  REPowerEU  chapter,  contains  reforms  and  investments  to  promote  energy 
efficiency, renewable energy, and sustainable mobility, all of which are expected to contribute to 

23 

 
 
the achievement of the Union climate target by 2030 and climate neutrality by 2050. Based on the 
analysis  of  the  supporting  documents  provided  by  Croatia,  the  Commission  considers  that  the 
measure does not jeopardise the achievement of the Union’s 2030 climate targets and the objective 
of  EU  climate  neutrality  by  2050,  in  line  with  Article  21c(6),  point  (c)  of  Regulation  (EU) 
2021/241. 

The measure is planned to be in operation by 31 December 2026. 

According to the supporting documents provided by Croatia, the commissioning of the expanded 
LNG terminal on Krk is expected in September 2025, and that of the Zlobin - Bosiljevo pipeline 
in February 2025. In addition, the contracts for the equipment and pipelines for the expansion of 
the  Zlobin  -  Bosiljevo  pipeline  was  concluded  in  February  2023,  while  the  contract  for  the 
regasification module for the expansion of the LNG terminal was concluded in April 2023. The 
commissioning of the Bosiljevo – Sisak – Kozarac pipeline is expected in October 2026 and that 
of section Lučko - Zabok of the Croatia – Slovenia interconnector in November 2025. Based on 
the analysis of the  supporting  documents provided by Croatia,  the measure is  planned to  be in 
operation by 31 December 2026, in line with Article 21c(6)(d) of Regulation (EU) 2021/241. 

The  total  estimated  costs  of  the  measures  in  the  REPowerEU  chapter,  without  the  measures 
benefitting  from  the  DNSH  exemption  is  EUR  2,364  million,  which  is  higher  than  the  ETS 
allocation of EUR 269 million and EUR 7.2 million from BAR transfer. 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  no  measure  for  the 
implementation of reforms and investments projects included in Croatia’s modified recovery and 
resilience  plan,  including  its  REPowerEU  chapter,  is  expected  to  do  a  significant  harm  to 
environmental objectives within the meaning of Article 17 of Regulation (EU) No 2020/852 (the 
principle of ‘do no significant harm’). The targeted exemption for the measure in the REPowerEU 
chapter receives a positive assessment as the necessary requirements have been met. This would 
warrant a rating of A under criterion 2.4 of Annex V to the RRF Regulation. 

3.5. Green transition 

Climate target 

The  modified  Recovery  and  Resilience  Plan  of  Croatia  continues  to  correctly  apply  the 
methodology  for  climate  tagging  set  out  in  Annex VI  to  the  RRF  Regulation,  by  identifying 
intervention  fields,  and  corresponding  coefficients  for  the  calculation  of  support  to  the  climate 
objectives, for each measure (the table in Annex I presents the detailed application of the climate 
tagging methodology). It should be noted that:  

a) 

for the tagging and estimated expenditure of existing measures that have not been modified, 
the tagging as reflected in the previous SWD (2021) 147 final remains unchanged. 

b)  for modified measures and new measures of the modified plan: 

o  when they consist of several sub-measures the plan indicates an intervention field for 

each sub-measure, and climate tagging is computed at sub-measure level 

24 

 
 
 
o 

o 

the choice of intervention fields for the green transition is well justified and it reflects 
the nature, focus, objective, or expected outcome of the investments included in the 
component 
the  plan  does  not  propose  to  increase  the  climate  coefficients  of  the  selected 
intervention fields for any measure. 

The modified Croatian plan includes measures supporting climate change objectives for an amount 
which represents 39.02% of the total plan’s allocation (EUR 3.92 billion out of EUR 10.04 billion) 
in the form of repayable and non-repayable financial contribution, including the allocations of the 
REPowerEU chapter. Measures supporting climate change objectives represent 62.63% of the total 
estimated costs of measures in the REPowerEU chapter, according to the methodology for climate 
tracking set out in Annex VI of the Recovery and Resilience Facility Regulation. Therefore, the 
climate change contribution of the total plan, as well as of the REPowerEU chapter, exceeds the 
minimum climate target of 37% as set out in the Regulation.  

The modified Recovery and Resilience Plan contains reforms and investments that are expected to 
significantly  contribute  to  the  green  transition,  including  biodiversity,  addressing  the  country 
specific recommendation as well as to the achievement of the Union climate target by 2030 and 
climate neutrality by 2050.   

The modified plan includes significant new and upscaled measures related to energy networks, gas 
infrastructure, uptake of renewable energy sources, renovation of buildings, energy poverty, zero-
emission transport and renewable hydrogen, all under the REPowerEU chapter. In total, one new 
reform  and  five  investments  to  deliver  on  the  REPowerEU  objectives  are  included,  while  four 
existing reforms and four investments have been scaled up. In addition, one investment in energy 
efficiency of buildings and renewables from the original Recovery and Resilience Plan has been 
moved to the REPowerEU chapter in view of the reduced grant allocation of Croatia. In particular, 
the modified plan includes investments in energy grid and storage, hydrogen projects in the North 
Adriatic Hydrogen Valley, the purchase of additional 103 hydrogen or electric buses supporting 
sustainable  public  transport.  The  plan  includes  measures  to  ensure  security  of  gas  supply,  by 
expanding  the  capacity  of  LNG  terminal  and  gas  infrastructure  with  relevant  pipeline 
interconnectors. The additional measures will support the energy renovation of buildings, address 
energy poverty and improve the management of construction waste from buildings with the status 
of a cultural good (Component 6.1). In addition, significant additional investments will support 
improved water management (Component 1.3) and sustainable transport (Component 1.4). These 
measures are expected to have a lasting impact supporting Croatia’s climate and energy transition.  

Taking into consideration the assessment of all the measures envisaged, the modified  Recovery 
and Resilience Plan, including its REPowerEU chapter, is expected, to a large extent, to make a 
significant contribution to the green transition or to address the challenges resulting from it and 
ensures that at least 37% of its total allocation contributes to the climate target. At least 37% of 
the total estimated costs of the REPowerEU chapter alone contribute to the climate target. This 
would warrant a rating of A under criterion 2.5 of Annex V to the RRF Regulation. 

25 

 
 
 
3.6. Digital transition  

The modified recovery and resilience plan continues to build on the existing measures contributing 
to the digital transition while increasing the level of ambition of investments in the digitalisation 
of the transport sector and in smart energy systems and related storage.  

Based on the methodology set out in Annex VII to the RRF Regulation, the contribution to digital 
objectives accounts for 20.09% of the modified plan’s maximum financial contribution excluding 
the REPowerEU chapter.  

Taking into consideration the assessment of all the measures envisaged, the modified recovery and 
resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to  the  digital 
transition or to address the challenges resulting from it and ensures that at least 20% of its total 
allocation (excluding the measures in the REPowerEU chapter) contributes to supporting digital 
objectives. This would warrant a rating of A under criterion 2.6 of Annex V to the RRF Regulation.  

3.7. Lasting impact of the plan 

The  modified  Recovery  and  Resilience  Plan  maintains  the  ambition  of  the  initial  plan  while 
increasing the focus on the green transition, in line with the REPowerEU objectives, and stepping 
up  existing  measures  in  education,  health,  labour  market,  social  protection  and  public 
administration. This should further enhance the lasting impact of the plan on Croatia’s productivity 
and its economic, social and institutional resilience. 

in 

to 

included 

the  commitment 

Investments 
the 
the  REPowerEU  chapter  strengthen 
decarbonisation of the energy and transport sector and raise the ambition of greening the economy. 
Croatia  proposed  to  scale  up  existing  measures  to  encourage  the  uptake  of  renewable  energy 
sources by introducing a new system of self-consumption and supporting the design of additional 
green urban renewal strategies and the implementation of pilot projects for the development of 
green  infrastructure.  The  modified  plan  also  increases  investments  in  the  greening  of  public 
transport to procure additional hydrogen and electric-powered vehicles, and improve the quality 
of alternative fuel infrastructures in road transport. It also proposes new investments in hydrogen 
and electric charging infrastructure. New investments also focus on the use of geothermal energy 
and sustainable biomethane production. Croatia has proposed to scale up the energy renovation of 
buildings, including buildings damaged by two devastating earthquakes that took place in 2020. 
By increasing funds allocated to renovation, Croatia aims to improve energy efficiency and address 
energy  poverty  in  the  long  term.  The  long-term  security  of  energy  supply  is  being  addressed 
through  additional  storage  capacity,  smart  meters  projects  and  grid  investment,  as  well  as  new 
investments  in  electricity transmission and LNG capacity.  The  modified  plan also  steps up the 
effort  to  deliver  major  improvements  of  basic  infrastructure,  benefitting  citizens  as  well  as 
contributing  to  long-term  sustainable  development.  This  includes  additional  investments  in  the 
waste  management  infrastructure,  addressing  the  need  to  increase  the  level  of  wastewater 
collection and treatment, as well as additional investments into the (re)construction of the public 
water  supply  network  with  the  aim  of  reducing  water  losses  and  expanding  access  to  drinking 
water. 

The modified plan builds on existing reforms and proposes new reforms that address long-term 
economic, social and environmental priorities. Croatia strengthened the ongoing reform of public 

26 

 
 
 
 
administration to ensure that wages in civil service incentivise performance based on a transparent 
and fair system of evaluation and rewards. The modified Recovery and Resilience Plan raises the 
ambition  of  the  education  system  reform  by  scaling  up  investments  into  primary  school 
infrastructure for one-shift teaching, an important step in improving the quality of the education 
system.  Reforms  in  the  construction  sector  focus  on  strengthening  circular  economy  in 
construction and developing green skills and competences. A new reform focuses on strengthening 
the role of the financial sector in the green transition by fostering the development of sustainable 
finance.  Croatia  proposed  to  develop  a  comprehensive  strategy  for  the  development  of  capital 
markets, which will form the basis for targeted actions to improve access to finance for businesses 
and expand savings and investment opportunities.  

Taking  into  consideration  all  reforms  and  investments  envisaged  by  Croatia  in  its  modified 
Recovery and Resilience Plan, their implementation is expected, to a large extent to bring about a 
structural change in the administration and in relevant policies and to have a lasting impact. This 
would warrant a rating of A under criterion 2.7 of Annex V to the RRF Regulation.   

3.8. Milestones, targets, monitoring and implementation 

The overall number of milestones and targets in the Croatia’s modified Recovery and Resilience 
Plan remains balanced and manageable. There are three new reforms and seven new investments 
in the revised Plan. Each of the new reforms and investments includes at least one target and/or 
milestone  that  contains  the  key  elements  of  the  measure  and  allows  for  the  assessment  of  the 
achievement of its objectives.  

The relevant verification mechanisms, data collection systems and responsibilities can be qualified 
as clear, robust and effective to ensure full and timely completion of milestones and targets. The 
assessment  of  the  adequacy  of  the  Recovery  and  Resilience  Plan’s  implementation  structure, 
arrangements  for  the  monitoring  of  progress  and  reporting,  and  the  overall  organisational 
arrangements remains unchanged. 

Overall, the arrangements proposed by Croatia in its modified Recovery and Resilience Plan are 
expected to be adequate to ensure effective monitoring and implementation of the plan, including 
the envisaged timetable, milestones and targets, and the related indicators. This would warrant a 
rating of A under the assessment criterion 2.8 of Annex V to the RRF Regulation 

3.9. Costing 

Croatia provided individual estimated costs for all the new measures in the modified Recovery and 
Resilience  Plan  that  entail  a  cost,  including  the  REPowerEU  chapter.  Croatia  also  provided 
individual justifications for all the measures  whose modifications  entailed a change in  the  cost 
estimates or a related target, including on the proportionality of the relevant amendments. Finally, 
Croatia has provided cost estimates for the additional loans requested. 

The cost information provided by Croatia is mostly sufficiently detailed and substantiated. Croatia 
provided estimates and assumptions on costs using the standard template table, which was intended 
to summarize the key information and evidence on costing, including the methodology underlying 
the cost calculations.  

27 

 
 
 
 
Croatia also submitted additional documents and materials intended to clarify costing estimates 
and provided costing data and benchmarks on comparable investments done in the past or in other 
countries. These documents  also  include descriptions and explanations of  the main drivers and 
changes in the costs of the amended measures and their proportionality.  

The assessment of the  cost  estimates  and supporting  documents shows that the majority of the 
costs of the new measures are well justified, reasonable, plausible, do not include costs covered by 
existing  or  planned  EU  financing  and  are  commensurate  to  the  expected  economic  and  social 
impact of the envisaged measures. Moreover, the changes in the cost estimates of the modified 
measures are justified and proportional.     

Reasonable costs 

Assumptions  used  by  Croatia  to  estimate  the  costs  of  the  new  measures  and  those  in  the 
REPowerEU chapter provide a reasonable explanation of their primary cost drivers. The provided 
materials  generally  allow  for  identifying  the  methodology  behind  the  cost  estimates,  with  no 
concrete evidence that would undermine the reasonability of the costing provided.   

New  measures  in  the  Croatian  modified  Recovery  and  Resilience  Plan,  including  those  in  the 
REPowerEU chapter, comply with the eligibility criteria set out in the RRF Regulation.  All costs 
are  incurred  for  reforms  and  investments  after  February  2020  and  after  February  2022  for  the 
measures in the REPowerEU chapter. Value-added tax (VAT) is not included in any of the cost 
estimates. Some of the measures included temporary recurrent costs that are acceptable, as relevant 
justifications are provided, showing that these costs are temporary and in line with the objective 
of the measures. 

The  reasonability  of  the  costs  of  the  modified  measures  have  not  changed  from  the  initial 
assessment of these measures. Changes in the cost estimates for all of them are duly justified and 
proportional.  In  the  case  of  measures  whose  costs  are  being  amended  under  Article  21(1)  of 
Regulation  (EU)  2021/241,  sufficient  information  was  provided  to  justify  the  objective 
circumstances and the proportionality of the changes in the cost estimates or related target. In this 
context, the reasonability of the cost estimates, taking into account the new measures, including 
those in the REPowerEU chapter, and the amended measures, was established to a medium extent. 

Plausible costs 

The amount of the estimated costs of new measures, including those in the REPowerEU chapter, 
is  in  line with  the nature and type of the  envisaged reforms  and investments.  Croatia provided 
supporting  documents  and  evidence  to  substantiate  the  cost  estimates  for  most  of  the  new 
measures, including those in the REPowerEU chapter.  

The plausibility of the costs of the modified measures has remained mostly unchanged from the 
initial assessment taken into consideration that the changes in the cost estimates generally are duly 
justified  and  proportional.  Sufficient  information  was  provided  to  justify  the  objective 
circumstances and the proportionality of the changes in the cost estimates or related target. 

28 

 
 
Considering the limitations of an ex-ante assessment of cost estimates, the amounts proposed for 
financing were deemed appropriate and seen as establishing the plausibility of the cost estimates 
to a medium extent.   

No double funding 

Croatia has indicated for each individual new measure, including those in the REPowerEU chapter, 
that the costs to be financed by the RRF will not be funded at the same time by other Union funding 
sources. Furthermore, the set-up to prevent, detect and correct double funding has not been altered 
by the modification of the plan.   

As concerns REPowerEU, investment C7.1 R1-I2 (Establishment of a hydrogen-based economy 
(through  the  North  Adriatic  Hydrogen  Valley)  has  potential  complementarity  with  an  ongoing 
Horizon Europe project. For avoidance of potential double-funding, Croatia (i) clearly indicated 
the costs to be financed under the Recovery and Resilience Plan which are different from the costs 
financed from Horizon Europe and (ii) committed to include a binding provision in the upcoming 
call for co-financing clearly instructing the applicants to make a binding declaration on no double 
finding upon submission of their application. For the purpose of verifying lack of double funding, 
the responsible authorities will cross-check the data as set out in the Common national rules. 

Commensurate and cost-efficient costs 

The  total  cost  of  the  modified  Croatian  recovery  and  resilience  plan  is  commensurate  to  the 
expected  social  and  economic  impact  of  the  envisaged  measures.  The  plan  is  expected  to 
effectively address a significant subset of challenges identified in the CSRs. The main objectives 
of the plan are to foster the twin transition, address bottlenecks to a lasting and sustainable growth, 
job  creation and economic, social  and institutional  resilience, thereby reducing  vulnerability to 
shocks.  

The  plan  contributes  to  strengthening  social  cohesion  and  social  protection  and  to  the 
implementation of the European Pillar of Social Rights. The plan enhances the economic, social 
and territorial cohesion and convergence within the Union. The economic and social impact of the 
plan in combination with the positive cost assessment, indicates that the cost is in line with the 
principle of cost-efficiency. 

The justification provided by Croatia on the amount of the estimated total costs of the modified 
recovery and resilience plan is to a medium extent reasonable, plausible, in line with the principle 
of  cost-efficiency  and  is  commensurate  to  the  expected  national  economic  and  social  impact. 
Croatia provided sufficient information and evidence that the amount of the estimated cost of the 
reforms  and investments  of the modified recovery and resilience plan to  be financed under the 
Facility is not covered by existing or planned Union financing. This would warrant a rating of B 
under the assessment criterion 2.9 of Annex V to the RRF Regulation. 

29 

 
 
 
3.10.  Controls and audit  

The  original  assessment  of  the  robustness  and  adequacy  of  the  control  system  and  other 
arrangements included in the Croatian RRP had concluded that these arrangements are adequate 
subject to the timely fulfilment of four milestones pertaining to the organisation of the system and 
the treatment of data and organisation of audits. This warranted a rating of A under the assessment 
criterion 2.10 of Annex V to the RRF Regulation. 

The Croatian authorities have confirmed that the internal control system, as well as arrangements 
for the prevention, detection and correction of fraud, corruption, conflict of interest and double 
funding  as  previously  assessed  remain  in  place.  In  addition,  certain  additional  assurances  have 
been provided as per agreed milestones included in the annex to the original Council Implementing 
Decision—namely the entry into force of the Government Decisions enacting (a) the Directorate 
for Macroeconomic Analysis within the Ministry of Finance as Coordinating Body, (b) the Agency 
for the audit of the EU programme implementation system as the Audit Authority, (c) monitoring 
and control system and update of procedures, as well as the implementation of a repository system 
for monitoring the implementation of the RRP, including for the collection and storage of data 
required by Article 22(2)(d)(i) to (iii). The adequacy of these measures has been assessed by the 
Commission during the first payment request, including the commitments fulfilled by the second 
payment request. 

The modifications to the original plan and the introduction of the REPowerEU chapter as such do 
not  affect  the original  assessment.  However, in  the context of the modification of the Croatian 
RRP, its audit and control system need to be reassessed on the basis of criteria 2.10 of Annex V to 
the RRF Regulation. Since the original assessment, the Commission has had access to information 
on its actual implementation. This includes the preliminary findings of the audit on the protection 
of the financial interests of the Union performed by the Commission in Croatia (HR-Q2-2023-
PFIU). The Croatian authorities took adequate steps to address the recommendations in this report, 
including a thorough update of the rules ensuring the protection of the financial interests of the 
Union.  

In  light  of  this  information,  the  Commission  considers  that  the  internal  control  system  of  the 
Croatian RRP is overall adequate. 

Robustness of internal control system and distribution of roles and responsibilities 

The  previous  assessed  arrangements  as  regards  the  roles  and  responsibilities  of  the  actors  for 
control and audit, segregation of functions and independence of actors performing audits remain 
adequate  and  were  further  enhanced  through  entry  into  force  of  the  Government  Decisions 
enacting  the  Directorate  for  Macroeconomic  Analysis  within  the  Ministry  of  Finance  as 
Coordinating Body and the Agency for the audit of the EU programme implementation system as 
the Audit Authority. 

Adequacy of control systems and other relevant arrangements 

30 

 
 
The control system and other arrangements to prevent, detect and correct fraud, corruption and 
conflicts of interest when using funds provided by RRF continue to appear overall adequate. The 
implementation  of  an  IT  system  for  monitoring  and  control  of  the  measures,  as  well  as  for 
collection of data in line with the requirements of Article 22(2)(d)(i) to (iii) of the RRF Regulation 
is  confirmed.  A  new  Guideline  was  developed  by  the  Croatian  authorities  to  ensure  ex-ante 
controls on conflict of interests by the contracting authorities are conducted using a risk scoring 
tool.  

Adequacy of arrangements to avoid double funding  

The  previously  assessed  arrangements  as  regards  the  prevention,  detection  and  correction  of 
double funding remain in place as initially assessed by the Commission.  

Legal empowerment and administrative capacity of control function 

Legal  mandate  of  all  the  institutions  involved  in  implementation,  control  and  audit  has  been 
approved  through  the  adoption  of  Government  Decisions  enacting  the  Directorate  for 
Macroeconomic Analysis within the Ministry of Finance as Coordinating Body and the Agency 
for the audit of the EU programme implementation system as the Audit Authority. The Act on the 
institutional framework for EU funds entered into force on 4 November 2021 with the publication 
in  Official  Gazette  no.  116/2021  set  up  the  framework  for  administrative  capacity  of  the  main 
institutions involved in monitoring and control. These recently adopted legal acts have confirmed 
the mandate and administrative capacity of the Audit Authority, as well as their independence. 

Conclusion 

The nature and extent of the proposed modifications to Croatia’s recovery and resilience plan do 
not have a material impact on the previous assessment (rating of A) of the adequacy of the control 
and audit arrangements proposed by Croatia. 

3.11.  Coherence 

Croatia’s modified Recovery and Resilience Plan is structured around five coherent components, 
initiative  6.1,  and  the  REPowerEU  chapter,  all  of  which  contribute  to  the  general  and  specific 
objectives of the RRF.  

Each  component  is  built  around  consistent  packages  of  both  reforms  and  investments,  with 
mutually reinforcing or complementary measures.   

The  wide  range  of  measures  supports  the  common  objectives  of  stimulating  the  recovery  of 
Croatia’s  economy  and  strengthening  its  resilience  against  future  shocks.  The  Plan  includes 
important reforms to improve water and waste management, education, renewable energy sources 
uptake and further support the green and digital transition, providing for sustainable and inclusive 
growth.  

31 

 
 
 
The  modification  of  the  Recovery  and  Resilience  Plan  includes  changes  in  all  existing  five 
components  and  initiative  6.1  while  bringing  in  additional  reforms  and  investments  under  the 
REPowerEU  chapter.  The  modified  plan  does  not  alter  the  complementarity  of  the  five 
components  and  initiative  6.1,  and  continues  pursuing  consistent  and  coherent  objectives.  The 
scaled-up and newly introduced measures under the REPowerEU chapter provide a new layer of 
complementarity  on  the  energy  transition  and  decarbonisation  effort  by  complementing  or 
reinforcing existing measures on clean energy, sustainable mobility and renovation of buildings.  

In  order  to  promote  wider  coherence  across  instruments,  notably  with  the  European  cohesion 
policy funds, a balanced territorial allocation of resources is encouraged. 

Taking  into  consideration  the  qualitative  assessment  of  all  components  of  Croatia’s  modified 
Recovery and Resilience Plan, their individual weight (importance, relevance, financial allocation) 
and their interactions, the plan contains measures for the implementation of reforms and public 
investments which, to a high extent, represent coherent actions. This would warrant a rating of A 
under the assessment criterion 2.11 of Annex V to the RRF Regulation. 

3.12.  REPowerEU 

The REPowerEU chapter includes measures related to energy networks, liquefied natural gas and 
gas infrastructure, uptake of renewable energy sources, renovation of buildings, energy poverty, 
zero-emission  transport,  green  skills  and  renewable  hydrogen.  Therefore,  they  contribute  to 
improving  security  of  supply  and  diversification  of  Union’s  supply  for  gas,  boosting  energy 
efficiency in buildings, reducing the dependency on fossil fuels by increasing the production and 
uptake  of  renewables  such  as  sustainable  biomethane,  renewable  hydrogen  and  geothermal, 
increasing  the  share  and  accelerating  the  deployment  of  renewable  energy,  addressing  energy 
poverty,  increasing  energy  security  and  addressing  bottlenecks  in  electricity  distribution, 
supporting zero-emission transport, and supporting requalification of the workforce towards green 
skills, in line with Article 21c(3) points (a), (b), (c), (e), and (f) of the RRF Regulation. 

Measures  contributing  to  the  REPowerEU  objectives  of  improving  security  of  supply  and 
diversification  of  the  Union’s  supply  for  gas  under  Article  21c(3)(a)  of  the  RRF  Regulation 
include  the  new  investment  C7.1  I3  “Increasing  the  capacity  of  the  LNG  terminal  on  the 
island of Krk and strengthening the gas infrastructure”. This investment in liquefied natural 
gas and gas infrastructure includes the expansion of the LNG terminal Krk to 700,000 m3/h (6.1 
bcm/y),  and  the  expansion  of  the  Zlobin  -  Bosiljevo  pipeline,  an  evacuation  pipeline  towards 
Hungary, the Bosiljevo – Sisak – Kozarac, and section Lučko - Zabok of the Croatia – Slovenia 
interconnector. This  investment  will  provide an alternative gas  route to  Croatia’s neighbouring 
Member States such as Slovenia and Hungary since the LNG terminal Krk already has sufficient 
capacity (2.9 bcm/y) to meet the annual Croatian gas demand. The investment will have a long-
lasting impact since it will contribute to the security of supply and reduced dependency on Russian 
gas of Croatia’s neighbouring Member States such as Slovenia, Hungary, but possibly also Austria 
(if the Ceršak – Murfeld interconnector is upgraded to allow for gas flow from Slovenia to Austria). 
Investment C7.1 I3 is coherent with other efforts of Croatia since there is synergy with measures 

32 

 
 
 
in Component 1.2. Requirements for the targeted derogation of the principle of “do no significant 
harm” under Article 21c(6) of the RRF Regulation have been met.  

Measures contributing to the REPowerEU objectives of boosting energy efficiency in buildings 
under  Article  21c(3)(b)  of  the  RRF  Regulation,  include  a  scaled-up  investment  C7.2  I2 
“Renovation of buildings damaged in earthquakes with energy renovation” transferred from 
the original Recovery and Resilience Plan to the REPowerEU chapter after the grant allocation 
reduction, as well as the scaled-up investment C7.2 I1 “Energy renovation of buildings”. The 
scaled-up  investment  C7.2  I1  will  provide  additional  allocation  for  multi-dwelling  buildings, 
energy  renovation  of  public  buildings  under  the ESCO  model  and  energy  renovation  of  public 
buildings, due to very high interest of current and potential new applicants. Moreover, the scaled-
up investment C7.2 I2 will provide additional funds to complete the renovation of public buildings 
already started or contracted under the European Solidarity Fund and renovate damaged multi-
apartment buildings. These investments will have a long-lasting impact since they will contribute 
to improving energy efficiency and the sustainability of the Croatian buildings sector, therefore 
reducing  energy  consumption.  The  investments  in  energy  and  post-earthquake  renovation  are 
coherent with other efforts by Croatia since there is synergy with measures in C1.2 and 6.1. 

Measures contributing to the REPowerEU objectives of reducing the dependency on fossil fuels 
by increasing the production and uptake of renewables such as sustainable biomethane, renewable 
hydrogen and geothermal, and increasing the share and accelerating the deployment of renewable 
energy  under  Article  21c(3)(b)  of  the  RRF  Regulation,  include:  investment  C7.1  R1-I5 
“Biorefinery  for  the  production  of  advanced  biofuels  Sisak”  transferred  from  the  original 
Recovery  and  Resilience  Plan  to  the  REPowerEU  chapter  after  the  grant  allocation  reduction; 
scaled up reform C7.1 R1 “Decarbonisation of the energy sector”, and investment C7.1 R1-
I1 “Hydrogen use and new technologies” transferred from the original Recovery and Resilience 
Plan to REPowerEU chapter after the grant allocation reduction; as well as new investments C7.1 
R1-I2 “Establishment of a hydrogen-based economy (through the North Adriatic Hydrogen 
Valley)”; and C7.1 R1-I3 and C7.1 R1-I4 “Strengthening the use of renewable energy sources 
in transport and heating”. The scaled-up reform C7.2 R1 envisages setting up a new system of 
self-consumption that would accelerate the uptake of renewables sources of energy, such as solar 
photovoltaics on single family houses and multiapartment buildings. The transferred investment 
C7.1 R1-I5 includes the construction and entry into operation of a biorefinery facility in Sisak, 
while the transferred investment C7.1 R1-I1 provides for new renewable hydrogen production of 
10 MW, the construction of six hydrogen charging stations and a set of studies for geological CO2 
underground storage in Croatia. The new investment C7.2 R1-I2 entails co-financing of renewable 
hydrogen projects in the context of the North Adriatic Hydrogen Valley, designating the Croatian 
Hydrocarbon Agency as the hydrogen coordinating body in Croatia, and adoption of the hydrogen 
development  plan  and  program.  Moreover,  the  new  investments  C7.1  R1-I3  and  C7.1  R1-I4 
includes  additional  geothermal  exploration  and  drilling  for  the  purpose  of  district  heating, 
production of sustainable biomethane, as well as two reforms, on adopting a geothermal potential 
development  plan  and  establishing  certification  of  biogas.  These  reforms  and  investments  will 
have a long-lasting impact since they will contribute to the decarbonisation of the economy and 
transport  sector  and  will  reduce  dependency  on  fossil  fuels.  These  measures  are  coherent  with 
other efforts of Croatia since there is synergy with measures in Component 1.2. and 1.4. 

33 

 
 
One sub-measure in the chapter contributes to the REPowerEU objectives of addressing energy 
poverty, under Article 21c(3)(c) of the RRF Regulation, namely a scaled-up investment C7.2 I1 
“Energy  renovation  of  buildings”  that  provides  additional  funding  for  the  ongoing  Energy 
Poverty Programme due to a very high interest of applicants. This investment will have a long-
lasting  impact  since  it  will  contribute  to  reducing  energy  consumption  and  increasing  energy 
efficiency thereby mitigating energy poverty. The investment is coherent with other efforts of the 
Member State since there is synergy with measures in Component 1.2 and 6.1. 

Measures  contributing  to  the  REPowerEU  objectives  of  incentivising  the  reduction  in  energy 
demand  under  Article  21c(3)(d)  of  the  RRF  Regulation,  include  a  scaled-up  reform  C7.2  R1 
“Increasing  efficiency,  reduction  of  administrative  burden  and  digitalisation  of  the 
renovation process”, and reforms C7.2 R2 and C7.2 R3 “Introduction of a new model of green 
urban renewal strategies and implementation of pilot projects for the development of green 
infrastructure and circular management of buildings and space”. These measures will have a 
long-lasting  impact  since  they  will  contribute  to  raising  citizens’  awareness  on  the  benefits  of 
energy  renovation,  ensure  the  development  of  green  urban  renewal  strategies  and  test  green 
infrastructure and circular management solutions through the pilot projects, thereby incentivising 
reduction in energy demand. The investment is coherent with other efforts of Croatia since there 
is synergy with measures in Component 1.2 and 6.1.    

One measure in the chapter contributes to the REPowerEU objectives of increasing energy security 
and  addressing  bottlenecks  in  electricity  distribution,  under  Article  21c(3)(e)  of  the  RRF 
Regulation. The new investment C7.1 R1-I6 “Strengthening the transmission and distribution 
capacities  of  the  electricity  network”  will  improve  the  electricity  transmission  capacity,  and 
better evacuation of electricity from the south to the north of Croatia. This investment will have a 
long-lasting  impact  since  it  will  contribute  to  increasing  energy  security  and  addressing 
bottlenecks in electricity distribution thereby allowing for better integration of renewable energy 
sources. This measure is coherent with other efforts of Croatia since there is synergy with measures 
in Component 1.2. and 1.4. 

Measures contributing to the REPowerEU objectives of supporting zero-emission transport, under 
Article  21c(3)(e)  of  the  RRF  Regulation,  include  the  scaled-up  investments  C7.1  I1 
“Procurement of alternative-fuel-powered vehicles for public urban and suburban regular 
transport” and C7.1 I2 “Co-financing programme for the purchase of new alternative fuel 
vehicles and the development of alternative fuel infrastructures in road transport”; as well 
as new investments C7.1 R1-I2 “Establishment of a hydrogen-based economy (through the 
North Adriatic Hydrogen Valley)”, C7.1 R1-I4 “Strengthening the use of renewable energy 
sources in transport and heat”; and investment C7.1 R1-I5 “Biorefinery for the production 
of  advanced  biofuels  Sisak”  transferred  from  the  original  Recovery  and  Resilience  Plan  to 
REPowerEU  chapter  after  the  grant  allocation  reduction.  The  scaled-up  investment  C7.1  I1 
envisages procurement of additional 103 electric or hydrogen buses and one innovative hydrogen 
energy unit for powering electric locomotives (HERMES unit), while investment C7.1 I2 includes 
faster  electric  charging  stations  of  minimum  charging  capacity  of  50  kW,  instead  of  originally 
envisaged 20 kW. The new investment C7.1 R1-I2 entails retrofitting of five diesel locomotives 
to hydrogen and five charging stations for buses, trains and/or maritime transport, and investment 

34 

 
 
C7.1  R1-I4  includes  new  electric  buses  charging  infrastructure.  These  investments  will  have  a 
long-lasting impact since they will contribute to the decarbonisation of the transport sector and 
will  reduce  dependency  on  fossil  fuels.  The  transferred  investment  C7.1  R1-I5  includes  the 
adoption of a plan for the production and use of biofuels in transport. These measures are coherent 
with other efforts of Croatia since there is synergy with measures in Component 1.2. and 1.4. 

Measures contributing to the REPowerEU objective of contributing to green skills, under Article 
21c(3)(f) of the RRF Regulation, include a new reform C7.2. R4 “Introduction of a new model 
for the preparation, organisation and implementation of adult learning programmes aimed 
at developing green skills and competences in the construction sector for foreign workers 
from third countries”. This reform introduces a new model of adult learning programmes aimed 
at developing green skills and competences in the construction sector for non-EU foreign workers. 
This reform will have a long-lasting impact since it will contribute to supporting the requalification 
of  the  workforce  towards  the  green  transition.  This  measure  is  coherent  with  other  efforts  of 
Croatia since there is synergy with measures in Components 4 and 6.1. 

As  part  of  the  preparation  of  its  REPowerEU  chapter,  the  Croatian  authorities  organised 
consultations  with  stakeholders,  focusing  primarily  on  the  potential  beneficiaries  of  relevant 
measures. 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged  in  the  REPowerEU 
chapter, the chapter is expected, to a large extent, to contribute effectively to energy security, the 
diversification of the Union’s energy supply, an increase in the uptake of renewables and in energy 
efficiency, an increase of energy storage capacities or the necessary reduction of dependence on 
fossil fuels before 2030. This would warrant a rating of A under criterion 2.12 of Annex V to the 
RRF Regulation. 

3.13.  Cross-border or multi-country dimension or effect  

Eleven  measures  included  in  the  Croatia’s  REPowerEU  chapter  have  a  cross-border  or  multi-
country dimension or effect. 

The investment in the expansion of the LNG terminal on the island of Krk and of the relevant gas 
pipeline infrastructure has a multi-country and cross-border dimension since it will increase the 
security of supply, by providing alternative gas route to South-East Europe, in particular Slovenia 
and Hungary. The investments in the upgrade of the electricity network also have a cross-border 
dimension,  as  they  are  expected  to  enable  connection  of  a  higher  share  of  renewables  to  the 
network and decrease the demand for fossil fuels. Hydrogen related investments, the investment 
in biorefinery for the production of advanced bioethanol, the investments in geothermal energy 
and sustainable biomethane have a cross-border dimension since they will increase the share and 
uptake  of  renewable  energy,  thereby  reducing  demand  for  fossil  fuels.  The  investments  in 
deployment of alternative fuel buses and alternative fuels infrastructure will reduce dependency 
on fossil fuels. The investments in renovation of buildings will increase energy efficiency, thereby 
reducing energy demand and dependency on fossil fuels. 

The total costs of these measures account for a total of EUR 2,904.99 million representing more 
than 30% of the estimated costs of the REPowerEU chapter. 

35 

 
 
 
Table 3: REPowerEU measures with cross-border or multi-country dimension or effect 

REPowerEU  measure  with  cross-border  or 
multi-country dimension or effect 

Costs (EUR 
million) 

Contribution to the 
target in % of the 
REPowerEU chapter 
estimated costs 

Investment  C7.1  R1-I1  -  Hydrogen  use  and  new 
technologies 

44.59 

1.52 % 

Investment  C7.1  R1-I2  -  Establishment  of  a 
the  North 
hydrogen-based  economy 
Adriatic Hydrogen Valley) 

(through 

58.5 

2 % 

Investments  C7.1  R1-I3  and  C7.1  R1-I4  – 
Strengthening the use of renewable energy sources 
in transport and heating 

105 

3.6 % 

Investment  C7.1  R1-I5  –  Biorefinery  to  produce 
advanced biofuels Sisak 

99.54 

3.4 % 

Investment  C7.1  R1-I6  –  Strengthening 
the 
transmission  and  distribution  capacities  of  the 
electricity network 

99.5 

3.4 % 

Investment  C7.1 
I1  –  Scaled-up  measure: 
Procurement  of  alternative-fuel-powered  vehicles 
for public urban and suburban regular transport 

Investment  C7.1  I2  –  Scaled-up  measure:  Co-
financing  programme  for  the  purchase  of  new 
alternative  fuel  vehicles  and  the  development  of 
alternative fuel infrastructures in road transport 

Investment C7.1 I3 – Increasing the capacity of the 
LNG terminal on the island of Krk and strengthening 
the gas infrastructure 

100.18 

3.42 % 

32 

1.1 % 

559 

19.1 % 

Investment  C7.2  I1  –  Scaled-up  measure:  Energy 
renovation of buildings 

281.77 

9.63 % 

Investment  C7.2  I2  –  Renovation  of  buildings 
damaged  in  earthquakes  with  energy  renovation 
(investment C.6.1 R1-I2 transferred from the already 
adopted Council implementing decision), including 
a scaled-up part 

1,524.91 

52.12 % 

36 

 
 
Total 

2,904.99 

99.29 % 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged  in  the  REPowerEU 
chapter, the measures in the chapter are expected, to a large/moderate extent, to have a cross-border 
or multi-country dimension or effect.  This  would  warrant  a rating of A under criterion 2.13 of 
Annex V to the RRF Regulation. 

37 

 
 
 
 
 
ANNEX I: Climate tracking and digital tagging  

Measure/ 

Sub-
measure 
ID 

C1.1.1. 
R1-I1 

C1.1.1. 
R1-I2.b 

C1.1.1. 
R4-I1.a 

C1.1.1. 
R4-I1.b 

C1.1.1. 
R4-I2.a 

C1.1.1. 
R4-I2.c 

Measure/Sub-
measure name 

Digitalisation of 
government and 
public administration 
services by business 
sector (G2B) 

Continued 
administrative and 
fiscal burden relief, 
and a better 
regulatory 
environment 

Supporting 
businesses for the 
transition to an 
energy and resource-
efficient economy – 
SMEs 

Supporting 
businesses for the 
transition to an 
energy and resource-
efficient economy – 
large companies 

Financial instruments 
for micro, small and 
medium-sized 
enterprises – green 
part 

Financial instruments 
for micro, small and 
medium-sized 
enterprises – digital 
part 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

4.6 

011 

0% 

011 

100% 

1.1 

011 

0% 

011 

100% 

99.5 

047 

40% 

0% 

152.6 

047bis 

40% 

0% 

27.9 

047 

40% 

0% 

23.2 

010 

0% 

010 

100% 

38 

 
 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C1.1.1. 
R4-I3.a 

C1.1.1. 
R4-I4.a 

C1.1.1. 
R6-I1 

C1.1.1. 
R6-I2 

C1.1.2. 
R3-I1 

C1.1.2. 
R3-I2 

C1.1.2. 
R3-I3 

C1.1.2. 
R4-I1 

C1.2. R1-
I1 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

26.5 

047bis 

40% 

8.0 

047bis 

40% 

0% 

0% 

33.2 

021 

0% 

021bis 

100% 

6.6 

021 

0% 

021bis 

100% 

0.4 

021 

0% 

021ter 

100% 

Measure/Sub-
measure name 

Mid-cap financial 
instruments  
businesses and large 
entities – green part 

Financial instruments 
for public sector 
entities – green part 

Transforming and 
strengthening the 
competitiveness of 
cultural and creative 
industries 

Establishing media 
fact-check and public 
disclosure system 

Preparation of 
strategic documents 
for the digital 
transformation of the 
economy and 
artificial intelligence 

Digital vouchers 

10.0 

010 

0% 

010 

100% 

27.3 

010 

0% 

010 

100% 

7.5 

010 

0% 

010 

100% 

542.2 

033 

100% 

033 

40% 

Grant support for 
digitalisation 

Support for Digital 
Innovation Hubs 

Revitalisation, 
construction and 
digitalisation of the 
energy system and 
supporting 
infrastructure to 
decarbonise the 
energy sector 

C1.2. R1-
I2.a 

Fostering energy 
efficiency, heat and 

30.0 

024 

40% 

0% 

39 

 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C1.2. R1-
I2.b 

C1.2. R1-
I2.c 

C1.3. R1-
I1.b 

Measure/Sub-
measure name 

renewable energy to 
decarbonise the 
energy sector – SMEs 
part 

Fostering energy 
efficiency, heat and 
renewable energy to 
decarbonise the 
energy sector – 
industry 

Fostering energy 
efficiency, heat and 
renewable energy to 
decarbonise the 
energy sector – 
geothermal renewable 
energy 

Programme for the 
development of 
public sewerage – 
water supply 

C1.3. R1-
I2.a 

Programme for the 
development of 
public water supply 

C1.3. R1-
I2.b 

C1.3. R1-
I3.a 

C1.3. R1-
I3.b 

Programme for the 
development of 
public water supply – 
digital part 

Disaster risk 
reduction programme 
in the water 
management sector – 
risk reduction 

Disaster risk 
reduction programme 
in the water 
management sector – 
green infrastructure 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

30.9 

024bis 

40% 

0% 

30 

032 

100% 

0% 

64.6 

039bis 

40% 

312.6 

039bis 

40% 

0% 

0% 

8.3 

040 

40% 

011 

100% 

124.6 

035 

100% 

33.1 

050 

40% 

0% 

0% 

40 

 
 
 
 
 
 
 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

146.0 

044 

40% 

0% 

130 

063 

0% 

063 

100% 

2.0 

011 

0% 

011 

100% 

7.7 

063 

0% 

063 

100% 

1.9 

063 

0% 

063 

100% 

2.5 

063 

0% 

063 

100% 

140.7 

064 

100% 

0% 

Measure/ 

Sub-
measure 
ID 

Measure/Sub-
measure name 

C1.3. R2-
I1 

Disposal reduction 
programme 

C1.4. R1-
I1 

Electronic tolling 
system 

C1.4. R1-
I2 

C1.4. R1-
I3 

C1.4. R1-
I4 

C1.4. R1-
I5 

C1.4. R2-
I1 

Improving the system 
of exercising the 
rights of persons with 
disabilities in the 
field of mobility 

National road 
transport electronic 
storage and data 
exchange system 
(NSCP) 

Reporting control 
system for road 
passenger and freight 
transport 

Monitoring of 
Transport of 
Dangerous Goods by 
Road (e-ADR) 

Reconstruction of 
existing and 
construction of 
second track of 
railway section Dugo 
Selo – Novska, sub-
section Kutina – 
Novska (phase D) 

C1.4. R2-
I2 

Modernisation of the 
line M604 Oštarije  

39.8 

068 

100% 

C1.4. R2-
I3.a 

– Knin – Split 

Removing 
“bottlenecks” on 
railway infrastructure 
– TEN-T 

18.8 

068 

100% 

41 

0% 

0% 

 
 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C1.4. R2-
I3.b 

C1.4. R2-
I4 

C1.4. R2-
I6 

C1.4. R2-
I7 

C1.4. R3-
I1 

C1.4. R3-
I2 

C1.4. R3-
I3 

C1.4. R3-
I4 

C1.4. R4-
I1 

Measure/Sub-
measure name 

Removing 
“bottlenecks” on 
railway infrastructure 
– general 

Modernisation of 
Zagreb Kustošija – 
Zagreb Zapadni 
Kolodvor – Zagreb 
Glavni Kolodvor 

Use of green 
technologies in rail 
passenger transport 

Upgrading of the IT 
and sales system and 
modernization of 
trains with the IT 
system 

Modernisation 
programme for ports 
open to public traffic 

Procurement/construc
tion of passenger 
ships used for regular 
coastal transport 

Construction of new 
cable ferry 
‘Križnica’, 
Municipality of 
Pitomača 

Equipping ports and 
harbours with waste 
management 
infrastructure 

Procurement of 
alternative-fuel-
powered vehicles for 
public urban and 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

1.1 

069 

40% 

29.2 

067 

100% 

13.3 

072bis 

100% 

0% 

0% 

0% 

6.4 

070 

40% 

070 

100% 

11.3 

081bis 

40% 

40.8 

074 

100% 

0.8 

073 

100% 

1.5 

044 

40% 

39.8 

074 

100% 

42 

0% 

0% 

0% 

0% 

0% 

 
 
 
 
 
 
 
 
 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

59.7 

074 

100% 

5.3 

077 

100% 

0.5 

029 

100% 

0% 

0% 

0% 

179.5  N/A3 

100% 

063 

100% 

21.2  N/A4 

100% 

0% 

Measure/ 

Sub-
measure 
ID 

Measure/Sub-
measure name 

suburban regular 
transport 

C1.4. R4-
I2 

Modernisation of 
tram fleet 

C1.4. R5-
I1.b 

Alternative fuels 
infrastructure at 
Zadar airport 

C1.4. R5-
I1.c. 

C1.4. R5-
I2.b 

C1.4. R5-
I3.a 

Capacity building for 
solar energy at Zadar 
airport 

Research, 
development and 
production of new 
mobility vehicles and 
supporting 
infrastructure – 
vehicles 

Co-financing 
programme for the 
purchase of new 
alternative fuel 
vehicles and the 
development of 
alternative fuel 

3 The “Methodology for climate tracking” annexed to the Recovery and Resilience Facility Regulation (2021/241) 
does not set out intervention fields that would allow for climate or environmental tracking of electric vehicles or plug-
in hybrid vehicles, except for vehicles for urban transport falling under intervention field 074. According to Article 
18 (4)(e) of the Regulation, the methodology should however ’be used accordingly for measures that cannot be directly 
assigned to an intervention field listed in Annex VI’. In this context, the Commission has applied a 100% climate 
contribution  coefficient  for  zero-emission  vehicles  of  all  categories  (this  includes  battery  electric  and  fuel 
cell/hydrogen-powered vehicles).  
4 Ibid. 

43 

 
 
 
 
 
 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C1.5. R1-
I1.b 

C1.5. R1-
I1.c 

C1.5. R1-
I1.d 

Measure/Sub-
measure name 

infrastructure in road 
transport – vehicles 

Construction and 
equipping of logistic 
distribution centres 
for fruit and 
vegetables – 
Construction of the 
energy efficient 
logistics distribution 
centres 

Construction and 
equipping of logistic 
distribution centres 
for fruit and 
vegetables - 
Investments into 
renewable energy 
sources (solar) 

Construction and 
equipping of logistic 
distribution centres 
for fruit and 
vegetables - 
Equipping of the 
logistic distribution 
centres 

C1.5. R2-
I2 

Agricultural Land 
Monitoring 
Programme 

C1.5. R3-
I1 

Deployment of digital 
public services 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

37.3 

025ter 

40% 

0% 

1.6 

029 

100% 

0% 

38.1 

044 

40% 

0% 

1.7 

011 

0% 

011 

100% 

1.9 

011 

0% 

011 

100% 

C1.5. R3-
I2 

C1.5. R3-
I3 

C1.5 R4 

Smart Agriculture 

6.6 

011 

0% 

011 

100% 

Traceability System 

1.7 

011 

0% 

011 

100% 

Improving food 
donation systems 

0.3 

011 

0% 

011 

100% 

44 

 
 
 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C1.6. R1-
I1.b 

C1.6. R1-
I2.a 

C1.6. R1-
I2.b 

C1.6. R1-
I2.c. 

C2.1. R1-
I1 

Measure/Sub-
measure name 

Regional 
diversification and 
specialisation of 
Croatian tourism 
through investments 
in the development of 
high added value 
tourism products – 
energy efficiency 

Strengthening the 
competitiveness of 
entrepreneurs and 
fostering the green 
and digital transition 
of the tourism sector 
– large enterprises 

Strengthening the 
competitiveness of 
entrepreneurs and 
fostering the green 
and digital transition 
of the tourism sector - 
SMEs 

Strengthening the 
competitiveness of 
entrepreneurs and 
fostering the green 
and digital transition 
of the tourism sector 
– digital part 

Optimisation, 
Standardisation and 
Digitalisation of 
processes for strategic 
management and 
impact assessment of 
public policies 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

74.1 

026 

40% 

0% 

83.0 

047bis 

40% 

0% 

74.7 

047 

40% 

0% 

8.3 

100 

0% 

100 

40% 

1.2 

011 

0% 

011 

100% 

45 

 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C2.2. R1-
I2.a 

C2.2. R1-
I2.b 

C2.2. R2-
I1.b 

C2.2. R2-
I2.a 

C2.2. R2-
I2.c. 

C2.2. R3-
I1 

C2.2. R3-
I2.a 

Measure/Sub-
measure name 

e-National 
Professional exam - 
infrastructure 

e-National 
Professional exam – 
support services 

Improving pay 
systems in state 
administration and 
public services, HRM 
and COP systems – 
digital part 

Introduction of a 
model for hybrid 
access to the 
workplace – 
smartworking – non-
digital part 

Introduction of a 
model for hybrid 
access to the 
workplace – 
smartworking – 
digital infrastructures 

Deployment of digital 
infrastructure and 
public administration 
services through the 
development of a 
conservation base 
system 

Improve the digital 
infrastructure and 
public sector services 
by developing the 
national archives 
information system 
and strengthening the 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

0.1 

055 

0% 

055 

100% 

0.6 

011 

0% 

011 

100% 

3.5 

011 

0% 

011 

100% 

1.1 

011 

0% 

011 

100% 

8.2 

055 

0% 

055 

100% 

10.8 

011 

0% 

011 

100% 

5.3 

011 

0% 

011 

100% 

46 

 
 
Measure/ 

Sub-
measure 
ID 

C2.2. R4-
I1.b 

Measure/Sub-
measure name 

national archives 
network - 
digitalisation 

Further optimisation 
and decentralisation 
of JLP(R)S through 
support for functional 
blending – digital part 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

0.9 

011 

0% 

011 

100% 

C2.3. R1  Digital Croatia 

0.1 

011 

0% 

011 

100% 

strategy and 
strengthening inter-
institutional 
cooperation and 
coordination for a 
successful digital 
transition of society 
and economy 

Establishment of a 
central 
interoperability 
system 

Establishing a central 
data light repository 
and business analytics 
system 

C2.3. R2-
I1 

C2.3. R2-
I2 

C2.3. R3-
I1 

Upgrading the Shared 
Services Centre 

C2.3. R3-
I2 

Strengthening the 
capacity of the police 
to tackle cybercrime 

C2.3. R3-
I3 

C2.3. R3-
I4 

Establishing a one-
stop shop for all e-
public helpdesk 
services 

Consolidation of 
CEZIH health 
information 
infrastructure systems 

14.0 

011 

0% 

011 

100% 

16.6 

055 

0% 

055 

100% 

34.5 

055 

0% 

055 

100% 

1.8 

021 

0%  021quinquies 

100% 

4.1 

055 

0% 

055 

100% 

13.3 

095 

0% 

095 

100% 

47 

 
 
Measure/ 

Sub-
measure 
ID 

Measure/Sub-
measure name 

C2.3. R3-
I5 

Digital Identity Card 
Deployment Project 

C2.3. R3-
I6 

C2.3. R3-
I7 

Investments in state 
information 
infrastructure 
networks 

Improvement of 
spatial planning 
systems, construction 
and state assets 
through digitalisation 

C2.3. R3-
I8 

Creation of a digital 
mobile platform 

C2.3. R3-
I9 

Establishing a new 
platform for the 
Electronic Public 
Procurement Bulletin 
of the Republic of 
Croatia 

C2.3. R3-
I10 

Digitalisation and 
computerisation of 
the CES (eHZZ) 

C2.3. R3-
I11 

ICT support 
modernisation 
(eHZMO) 

C2.3. R3-
I12 

Digitalisation of the 
HZMO archives 
(eArhiva) 

C2.3. R3-
I13 

Digital 
transformation of the 
Tax Administration 

C2.3. R3-
I14 

Implementation of the 
non-cash payment 
system in the 
economy through 
eInvoices with 
integrated e-archives 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

0.9 

011 

0% 

011ter 

100% 

31.4 

053 

0% 

053 

100% 

23.9 

011 

0% 

011 

100% 

4.3 

011 

0% 

011 

100% 

1.5 

011 

0% 

011 

100% 

7.6 

011 

0% 

011 

100% 

17.1 

011 

0% 

011 

100% 

6.2 

011 

0% 

011 

100% 

56.6 

011 

0% 

011 

100% 

14.2 

011 

0% 

011 

100% 

48 

 
 
Measure/ 

Sub-
measure 
ID 

C2.3. R3-
I15 

C2.3. R3-
I16 

Measure/Sub-
measure name 

and active tax 
accounting 

Putting in place 
tourism applicative 
solutions with the aim 
of administratively 
relieving 
entrepreneurs and 
transforming the 
tourism model 
towards sustainability 

Digitalisation of 
processes in sport and 
recreation at local and 
regional level 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

5.3 

011 

0% 

011 

100% 

1.5 

011 

0% 

011 

100% 

C2.3. R4  Enhancing 

0.4 

053 

0% 

053 

100% 

C2.3. R4-
I1 

connectivity as a 
cornerstone of the 
digital transition of 
society and economy 

Implementation of 
projects under the 
National Framework 
Programme for the 
Development of 
Broadband 
Infrastructure in areas 
where there is no 
sufficient commercial 
interest in investment 

C2.3. R4-
I2 

Construction of 
passive electronic 
communications 
infrastructure 

106.2 

053 

0% 

053 

100% 

19.6 

051 

0% 

051 

100% 

C2.4. R5  Optimisation of 

0.3 

011 

0% 

011 

100% 

State-owned property 
management 

49 

 
 
Measure/ 

Sub-
measure 
ID 

C2.5. R1-
I1 

C2.5. R1-
I2 

C2.5. R1-
I3 

C2.5. R1-
I4 

C2.5. R1-
I5 

C2.5. R1-
I6 

C2.6. R1-
I2 

C2.6. R1-
I3 

Measure/Sub-
measure name 

Enhancing the Court 
Case Management 
System (efile) 

Improvement of land 
register information 
system and cadastre 

Development of a 
tool for the 
publication and 
search of court 
decisions 

Project and 
implementation of the 
Zagreb Justice Square 
project to improve 
access to justice and 
efficiency of 
commercial 
procedures and 
administrative 
disputes 

Implementation of 
energy efficiency 
measures to renovate 
obsolete judicial 
authorities 

A stable and resilient 
IT infrastructure for 
the Justice 
Information System 

Digitalisation of the 
Ethics System of 
Civil Servants 

Advancing the 
existing asset 
declarations system 
of state officials 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

2.9 

011 

0% 

011 

100% 

3.1 

011 

0% 

011 

100% 

0.2 

011 

0% 

011 

100% 

67.9 

025ter 

40% 

0% 

10.5 

026bis 

100% 

0% 

16.0 

011 

0% 

011quater 

100% 

0.3 

011 

0% 

011 

100% 

0.1 

011 

0% 

011 

100% 

50 

 
 
 
 
Measure/ 

Sub-
measure 
ID 

C.2.6. 
R1-I4.a  

C.2.6. 
R1-I4.b 

Measure/Sub-
measure name 

Supporting efficiency 
in the fight against 
corruption and 
organised crime – 
digital investments 

Supporting efficiency 
in the fight against 
corruption and 
organised crime – 
renovation of 
buildings 

C3.1. R2-
I1 

Digital 
transformation of 
higher education 

C3.2. R1-
I1.b  

C3.2. R1-
I2.a 

C3.2. R2-
I1.a 

Development of a 
system of 
programming 
agreements to finance 
universities and 
research institutes 
focused on 
innovation, research 
and development – 
digital part 

Strengthening 
institutional capacity 
of universities and 
research institutes for 
innovation – digital 
investments 

Developing an 
enabling model for 
researchers’ career 
progression and 
conducting cutting-
edge scientific 
research in STEM 
and ICT fields – 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

1.3 

011 

0% 

011 

100% 

2.7 

026 

40% 

0% 

84.0 

012 

0% 

012 

100% 

5.9 

009 

0% 

009bis 

100% 

4.4 

021 

0% 

021quater 

100% 

12.1 

108 

0% 

108 

100% 

51 

 
 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

3.1 

009 

0% 

009bis 

100% 

7.4 

016 

0% 

016 

40% 

15.0 

055 

0% 

055 

100% 

15.0 

021 

0% 

021quater 

100% 

19.2 

018 

0% 

018 

40% 

Measure/ 

Sub-
measure 
ID 

C3.2. R2-
I1.d 

C3.2. R2-
I1.e 

C3.2. R2-
I2.a 

C3.2. R2-
I2.b 

C3.2. R3-
I1.d 

Measure/Sub-
measure name 

granting of 
scholarships 

Developing an 
enabling model for 
researchers’ career 
progression and 
conducting cutting-
edge scientific 
research in STEM 
and ICT fields – 
Research support 
digital 

Developing an 
enabling model for 
researchers’ career 
progression and 
conducting cutting-
edge scientific 
research in STEM 
and ICT fields – 
support for start-ups 

Investing in research 
– technology 
infrastructure in 
STEM and ICT fields 
– digital equipment 

Investing in research 
– technology 
infrastructure in 
STEM and ICT fields 
– digital research 

Introducing a more 
functional R & D & I 
project funding 
programming 
framework – spin-
offs in digital field 

C3.2. R3-
I1.e 

Introducing a more 
functional R & D & I 

19.2 

021 

0% 

021 

40% 

52 

 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

Measure/ 

Sub-
measure 
ID 

Measure/Sub-
measure name 

project funding 
programming 
framework – digital 
research cooperation 

C4.1. R1a   Develop and 

62.5 

01 

100% 

0% 

implement new 
targeted active 
employment policy 
measures for the 
green and digital 
transitions of the 
labour market – green 
jobs 

C4.1. R1b  Develop and 

62.5 

108 

0% 

108 

100% 

implement new 
targeted active 
employment policy 
measures for the 
green and digital 
transitions of the 
labour market – 
digital jobs 

C4.1. R3a  Setting up a voucher 

0.0 

01 

100% 

0% 

system for the 
education of 
employed and 
unemployed people – 
green jobs 

C4.1. R3b  Setting up a voucher 

0.0 

108 

0% 

108 

100% 

system for the 
education of 
employed and 
unemployed people – 
digital jobs 

Implementation of 
vouchers for the 
education of 
employed and 

C4.1. R3-
I1.a 

24.3 

01 

100% 

0% 

53 

 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C4.1. R3-
I1.b 

C4.3. R1-
I1 

C4.3. R1-
I2 

C4.3. R3-
I2 

C4.3. R3-
I3 

C4.3. R3-
I4.b 

Measure/Sub-
measure name 

unemployed persons 
– green jobs 

Implementation of 
vouchers for the 
education of 
employed and 
unemployed persons 
– digital jobs 

Enhancing the 
digitalisation of social 
benefit systems 
between national and 
local levels 

Development of a 
web application on 
the possibility to 
receive social benefits 
at national level 

Enhancing the 
digitalisation of 
welfare systems and 
connecting welfare 
centres and social 
service providers 

Enhancing the 
digitalisation of 
welfare systems and 
implementing 
systems for the 
methodology for 
calculating prices for 
social services 

Construction and 
equipping of centres 
for the elderly 
(accommodation and 
services) – energy 
renovation 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

36.5 

108 

0% 

108 

100% 

0.1 

011 

0% 

011 

100% 

0.4 

011 

0% 

011 

100% 

0.5 

011 

0% 

011 

100% 

0.7 

011 

0% 

011 

100% 

9.8 

026bis 

100% 

0% 

54 

 
 
 
Measure/ 

Sub-
measure 
ID 

C5.1. R1-
I4 

C5.1. R1-
I6 

C5.1. R2-
I2 

C5.1. R4-
I3 

C5.1. R4-
I4 

C5.1. R4-
I5 

C5.1. R5-
I1 

C5.1. R5-
I2 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

2.7 

095 

0% 

095 

100% 

5.3 

095 

0% 

095 

100% 

10.6 

095 

0% 

095 

100% 

2.5 

013 

0% 

013 

100% 

1.4 

013 

0% 

013 

100% 

0.6 

013 

0% 

013 

100% 

8.0 

095 

0% 

095 

100% 

Measure/Sub-
measure name 

Digital image 
diagnostics KBC 
Split 

Digital image 
diagnostics KB 
Dubrava 

Purchase and 
implementation of 
equipment for the 
establishment of the 
National Oncological 
Network and National 
Oncological Database 

Digitising the 
pathway through 
health institutions at 
secondary and tertiary 
levels of healthcare 

Developing a system 
for monitoring and 
preventing shortages 
of medicinal products 
in Croatia 

Introduction of a 
treatment outcome 
monitoring system 
for non-hospital 
patients with a focus 
on chronic patients in 
public pharmacies 

Digital integration of 
operating halls and 
robotic surgery in 
KBC Split 

TELECORDIS 

0.6 

095 

0% 

095 

100% 

55 

 
 
Climate 

Digital 

Measure/Sub-
measure name 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

Teletransfusion 

1.6 

095 

0% 

095 

100% 

Measure/ 

Sub-
measure 
ID 

C5.1. R5-
I3 

C5.1. R5-
I4 

C5.1. R5-
I5 

C6.1 R1-
I1.a 

C6.1 R1-
I1.c. 

C6.1 R1-
I3 

Digitalisation and 
integration of 
operating rooms 
equipped with robotic 
surgery in KBC 
Sestre milosrdnica 

Digitalisation and 
equipping of KB 
Merkur diagnostic 
units 

Energy renovation of 
buildings – public 
buildings 

Energy renovation of 
buildings – multi-
dwelling buildings 

Energy renovation of 
buildings with a 
status of a cultural 
good 

C6.1 R2  Developing a 
framework for 
ensuring adequate 
skills in the context 
of green jobs needed 
for post-earthquake 
reconstruction 

C6.1 R3a 
– digital 
part 

Efficiency gains, 
reduction of 
administrative burden 
and digitalisation of 
the renovation 
process 

7.6 

095 

0% 

095 

100% 

3.2 

095 

0% 

095 

100% 

85.2 

026bis 

100% 

36.5 

025bis 

100% 

39.8 

026bis 

100% 

5.3 

01 

100% 

0% 

0% 

0% 

0% 

2.0 

011bis 

40% 

011bis 

100% 

C6.1 R4  Modernisation and 

0.7 

055 

0% 

055 

100% 

integration of seismic 

56 

 
 
 
 
 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

8.7 

055 

0% 

055 

100% 

1.6 

011bis 

40% 

011bis 

100% 

21.5 

077 

100% 

10.9 

032 

100% 

3.1 

029 

100% 

5.3 

022 

100% 

13.5 

032 

100% 

0% 

0% 

0% 

0% 

0% 

Measure/ 

Sub-
measure 
ID 

C6.1 R4-
I1a 

C6.1 R6 

Measure/Sub-
measure name 

data for the 
renovation process 
and planning of 
future construction 
and monitoring of 
public infrastructure 

Seismological data 
network development 
– digital part 

Pilot project for the 
establishment and 
implementation of 
systematic energy 
management and the 
development of a new 
financing model 

C7.1. R1-
I1.a  

Hydrogen use and 
new technologies - 
recharging points 

C7.1. R1-
I1.b 

C7.1. R1-
I1.c 

C7.1. R1-
I1.d 

C7.1 R1-
I2.a 

Hydrogen use and 
new technologies – 
hydrogen production 
and electrolysers 

Use of hydrogen and 
new technologies - 
Solar 

Use of hydrogen and 
new technologies - 
carbon capture and 
storage 

Establishment of a 
hydrogen-based 
economy (through the 
North Adriatic 
Hydrogen Valley 
(NAHV) 

C7.1 R1-
I2.b 

Establishment of a 
hydrogen-based 

35 

072bis 

100% 

0% 

57 

 
 
 
 
 
 
 
 
Measure/ 

Sub-
measure 
ID 

C7.1 R1-
I2.c 

C7.1 R1-
I3 

C7.1 R1-
I4 

C7.1. R1-
I5 

C7.1. R1-
I6* 

Measure/Sub-
measure name 

economy (through the 
North Adriatic 
Hydrogen Valley 
(NAHV) – REFIT of 
diesel locomotives to 
hydrogen 

Establishment of a 
hydrogen-based 
economy (through the 
North Adriatic 
Hydrogen Valley 
(NAHV) – recharging 
points 

Strengthening the use 
of renewable energy 
sources in transport 
and heating – 
geothermal 

Strengthening the use 
of renewable energy 
sources in transport 
and heating – electric 
charging stations  

Biorefineries for the 
production of 
advanced biofuels 
Sisak - biofuels 

Strengthening the 
transmission and 
distribution capacities 
of the electricity 
network 

C7.1. I1.a  Procurement of 
alternative-fuel-
powered vehicles for 
public urban and 
suburban regular 
transport - buses 

Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

10 

077 

100% 

0% 

25 

032 

100% 

50 

077 

100% 

99.5 

030bis 

100% 

0% 

0% 

0% 

99.5 

033 

100% 

033 

40% 

90.2 

074 

100% 

0% 

58 

 
 
 
 
 
 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

10 

072bis 

100% 

0% 

Measure/ 

Sub-
measure 
ID 

Measure/Sub-
measure name 

C7.1. I1.b  Procurement of 
alternative-fuel-
powered vehicles for 
public urban and 
suburban regular 
transport - HERMES 

C7.1. I2  Co-financing 

32 

077 

100% 

0% 

programme for the 
purchase of new 
alternative fuel 
vehicles and the 
development of 
alternative fuel 
infrastructure in road 
transport - 
infrastructure 

C7.2 I1.a  Energy renovation of 

148.3 

026bis 

100% 

buildings – public 
buildings 

C7.2 I1.b.  Energy renovation of 

110 

025bis 

100% 

buildings – multi-
dwelling buildings 

C7.2 I2.a  Renovation of 

989 

026bis 

100% 

buildings damaged in 
earthquakes with 
energy renovation – 
public buildings 

C7.2 I2.b  Renovation of 

79.1 

025bis 

100% 

buildings damaged in 
earthquakes with 
energy renovation – 
multi-dwelling 
buildings 

59 

0% 

0% 

0% 

0% 

 
 
 
 
 
 
 
 
 
 
Climate 

Digital 

Budget 
(EUR mn) 

Interv. 
Field 

Coeff. % 

Interv. 
Field 

Coeff. % 

0.35 

027 

100% 

0.20 

01 

100% 

0% 

0% 

Measure/ 

Sub-
measure 
ID 

Measure/Sub-
measure name 

C7.2 R1  Raising citizens’ 
awareness on the 
green transition 

C7.2. R4 

Introduction of a new 
model for the 
preparation, 
organisation and 
implementation of 
adult learning 
programmes aimed at 
developing green 
skills and 
competences in the 
construction sector 
for foreign workers 
from third countries 

* Reforms and investments in the REPowerEU chapter are not taken into account when calculating the 
plan’s contribution to the digital target requirement set by Regulation (EU) 2021/241. 

60