Blog – Full Width

by

City of Osijek has highest waste separation rate in Croatia

Osijek has reached a 57.92% waste separation rate in 2024, the highest score among the four largest cities in the country.

Osijek, with a share of 57.92% of separately collected waste, is again the best among large cities in Croatia, according to Mayor Ivan Radić. Because of the achievement, he visited the employees of the city’s waste utility Unikom in the early morning hours.

He stressed that the success is the result of responsible citizens who separate waste, the dedicated work of Unikom employees, and ongoing investments in infrastructure.

Osijek has four recycling yards, including a mobile one. They are able to separate 52 types of waste. There is also a composting facility. As the mayor pointed out, the local authority invests in consumer education, from kindergartens to its Eco City Waste Fest, because it aims to maintain and improve the achieved results.

Osijek is the only major Croatian city that doesn’t pay penalties for not achieving waste separation targets

Radić underlined that Osijek is the only large Croatian city that, thanks to waste separation above 50%, doesn’t pay penalties.

Municipal authorities in Croatia pay fines per ton of landfilled waste that was supposed to be separated and properly processed in line with waste management rules. The fine for 2025 was set at EUR 30 per ton. The obligatory separation rate for 2025 is 50%.

Unikom CEO Igor Pandžić highlighted that in 2024, a total of 36,000 tons of municipal waste were collected, of which nearly 21,000 tons were recyclable waste. The largest portion was biodegradable waste, thanks to the composting unit, into which the city continues to invest.

Osijek has maintained a waste separation rate above 57% for two consecutive years

Paper, plastic, glass, and metal accounted for over 9,000 tons, Pandžić said, and recalled that Osijek achieved a waste separation rate above 57% for two consecutive years.

He said more projects are underway, including the expansion of the composting facility and the establishment of a center for recycling bulky waste, which would further reduce the quantities ending up at the Lončarica Velika landfill.

In Pandžić’s words, they are important steps in terms of the circular economy. “What our fellow citizens separate, we process into a new product like compost, which then goes back into gardens and yards,” he explained.

At the meeting with the workers, the mayor and the CEO announced a 10% salary bonus as a reward for their work.

by

Serbia proposes taxes on greenhouse gas emissions, imported carbon-intensive products

The Ministry of Finance of Serbia launched public consultations on the draft Law on Greenhouse Gas Emissions Tax and Law on Carbon-Intensive Product Imports Tax, both at EUR 4 per ton of CO2 equivalent.

On January 1, importers of electricity, cement, iron and steel, aluminum, hydrogen and fertilizers to the European Union will start paying the CBAM carbon dioxide tax. If the country of origin also has a CO2 pricing system and the EU recognizes it, the sum will be deducted from CBAM.

The greenhouse gas emissions tax won’t be a new fiscal burden, but an incentive for modern and cleaner production, the Ministry of Finance of Serbia stressed in its public consultation call on what it said would be two key laws for the country’s green transition. It intends to charge producers and importers of certain goods EUR 4 per ton of CO2 equivalent.

The draft Law on Greenhouse Gas Emissions Tax and draft Law on Carbon-Intensive Product Imports Tax are intended to lower pollution, improve energy efficiency and secure a more equal position for the Serbian industry in the domestic and international markets, according to the announcement.

The public consultation process lasts until October 21, the deadline for submitting comments and suggestions. Presentations and discussions are scheduled for October 8 and October 15 in Belgrade, and online meetings are to be held on October 10 and October 17.

Both laws to enter into force on January 1, when EU also starts charging CBAM

The first of the two taxes is for big industrial emitters in the sectors of cement, fertilizers, iron and steel, aluminum and electricity. The ministry added that it is targeting January 1 for both laws to come into effect.

On the same date, the EU is set to start charging its Carbon Border Adjustment Mechanism (CBAM) tax on imported electricity, the other said goods as well as hydrogen. If the country of origin also taxes CO2 and the EU recognizes its system, the sum that was paid will be deducted from CBAM.

The CBAM tax is envisaged to rise every year until in 2034 it becomes equal as the prices of grenhouse gas emission certificates in the EU’s Emissions Trading System (EU ETS). Of note, the plan is also to expand the mechanism to other segments that EU ETS covers. The price has held above EUR 75 per ton of CO2 equivalent in the past month.

Institutional infrastructure isn’t sufficiently developed to roll out domestic ETS

The draft Law on Carbon-Intensive Product Imports Tax, envisaged as an equivalent to CBAM on the home market, doesn’t include hydrogen (and neither does the other draft), due to negligible production, while electricity wasn’t included because of technical limitations and a lack of a precise taxing methodology, the ministry explained.

The tax on imported carbon-intensive products would cover only the entities that import more than five tons of the designated products per year

Importers would be taxed based on emissions embedded in the production of the goods from abroad, but they will be able to use tax credits if an emissions levy has already been paid in the country of origin, similar to the EU system. The obligation is only for companies importing more than five tons of designated products per year.

The government opted for a tax instead of an ETS because “an emissions trading system requires a developed institutional infrastructure and market mechanisms that currently aren’t completely established,” an accompanying document reads.

Importantly, an independent verification system is under development.

The taxes would cover CO2, nitrous oxide (N2O) and perfluorocarbons (PFCs).

CO2 tax scope limited to certain larger producers

The ministry pointed out that the draft law wasn’t made to be applied extensively, but only to the firms obligated to have a license for emissions from their plants. Mostly they are large and medium-sized companies. The increase in administrative expenses would be limited, as the entities in the group already measure emissions data, in line with the Law on Climate Change, and send them to the Ministry of Environmental Protection.

The production of synthetic fertilizers and nitrogen compounds, cement, pig iron, steel and ferroalloys, aluminum and electricity accounts for over 57% of emissions in Serbia and more than 90% within the national monitoring and reporting system.

Tax deductions for large electricity producers that invest in decarbonization

A payer of the greenhouse emissions tax that predominantly generates electricity, accounting for at least 80% of its income in the previous annual tax period, is eligible for a tax credit amounting to 20% of the sum that it invested in decarbonization measures, the draft shows.

The deduction wouldn’t exceed 80% of the due tax. The government determines the said measures.

The draft greenhouse gas emissions tax envisages incentives for the taxpayers to finance green projects, the just transition and protection of vulnerable households

In addition, entities that pay the tax would be eligible for incentives, from the state budget, for financing climate and energy transformation through investing in renewables and energy efficiency, innovative low-carbon technologies, decarbonization of industrial production, green construction and support to the just transition and protection of vulnerable households.

In the short term, the new fiscal obligation can cause a moderate increase in production costs for facilities with significantly high emissions, the ministry said. Then there is a possibility, over the long term, for a moderate indirect effect on prices of some products, like construction materials and energy, but it would be limited and gradual, the law’s authors claim.

by

Croatian company Brodosplit delivers equipment for French floating wind farm pilot project

Croatian shipbuilding company Brodosplit has manufactured steel structures for the floating foundations of an offshore wind farm in one of the first such pilot projects in France.

The site for the EolMed project is approximately 18 kilometers from the coastal town of Gruissan in the Occitanie region of southern France.

Qair is leading the consortium, which includes oil and gas giant Total Energies and floating platform provider BW Ideol as its partners. The three 10 MW wind turbines, supplied by Vestas, are about to be installed at a spot where the sea is 55 meters deep.

According to Brodosplit, the project has entered its final phase after the successful launch of the three floating platforms in September.

It isn’t Brodosplit’s first floating wind farm project

The Croatian firm said it manufactured and delivered the metal structures for the floating foundations, in line with the highest quality and safety standards.

Before joining the EolMed project, it entered the floating wind farm segment through cooperation with Ocergie. Brodosplit has created an innovative measuring buoy, OCG-Data, for the France-based company’s Blue Oracle project.

The EolMed project received state support as part of the investments for the future program

The buoy is equipped with a LiDAR (light detection and ranging) system and advanced sensors for monitoring wind, waves, currents, and sea biodiversity, enabling the collection of crucial data for the development of floating wind farms and the preservation of the marine environment, Brodosplit pointed out.

Since EolMed’s initial design in 2016, it has been adjusted and adapted to incorporate the latest technologies. Initially comprising four wind turbines, the number has since been reduced to three for equivalent capacity.

The change also affected the choice of material for the floats – now steel instead of concrete. Construction began in April 2023, and completion is planned for this year.

The project received state support through the Investments for the Future Programme (Programme d’Investissements d’Avenir – PIA). The goal is to demonstrate the economic viability of floating wind farm technology.

Photo: Brodosplit
by

CEE Energy Conference to be held in London on October 7

Featuring a series of expert-led presentations and panel discussions, the second edition of the annual CEE Energy Conference, taking place in London on October 7, will explore the rapid evolution of the energy sector in Central and Southeast Europe.

CEE Energy Conference 2025: From Generation to Stability – Accelerating the Energy Transition in CEE is organized by international law firm CMS and is free of charge. It will bring together speakers from CMS offices across the CEE/SEE region and the UK, alongside representatives from transmission system operators (TSOs), regulators, and leading energy companies.

The conference will feature country spotlights and two panels, with speakers presenting key developments and innovations from the Czech Republic, Romania, Poland, Bulgaria, Hungary, Ukraine, Slovakia, Croatia, and Austria.

A panel titled BESS, Balancing & Grid Stability will include case studies from across the region, as the BESS market continues to attract international investors. At the second panel, PPAs & Tolling Agreements, participants will share insights into emerging and maturing markets, with perspectives from developers, investors, and legal experts.

One of the key speakers is Thomas Hamerl, an expert in renewables, energy storage, and infrastructure

One of the key speakers is Thomas Hamerl, an expert in renewables, energy storage, and infrastructure and Head of the Energy and Climate Change Group at CMS Reich-Rohrwig Hainz. He will speak at the event on regulatory developments and investment possibilities in Austria, Croatia, Montenegro and Serbia.

Participants in the second annual CMS CEE Energy Conference will have the opportunity to join industry leaders in exploring the latest trends, investment opportunities, and challenges, as well as sector developments, according to Hamerl. “On top of that, market-specific developments will be presented for Bulgaria, the Czech Republic, Croatia, Hungary, Serbia, Poland, Austria, and many more,” he stressed.

Thomas Hamerl is an attorney-at-law and a specialist in infrastructure projects, including public-private partnerships (PPP) and concessions. He is also a leading expert in energy law, public procurement law, and construction and infrastructure-related dispute resolution. CMS Reich-Rohrwig Hainz, based in Vienna, operates in Austria and the Western Balkans.

by

Europe’s Environment 2025 report: Not good

Biodiversity is declining and water stress is affecting one third of Europe’s population and territory, while the frequency and magnitude of climate-related disasters are increasing. In short, this is the message from the report Europe’s Environment 2025.

​Europe’s Environment 2025 is the most comprehensive analysis on the current state and outlook for the continent’s environment, climate, and sustainability, building on data from across 38 countries, according to the European Environment Agency (EEA).

The outlook for most environmental trends is concerning and poses major risks to Europe’s economic prosperity, security, and quality of life, the authors warned. The agency said climate change and environmental degradation pose a direct threat to Europe’s competitiveness, pointing out that it depends on natural resources.

Progress on a range of factors that enable the shift towards sustainability – such as innovation, green employment, and sustainable finance – gives cause for hope, EEA added.

​More than 80% of protected habitats are in a poor or bad state

The report shows biodiversity is declining across terrestrial, freshwater, and marine ecosystems in Europe due to persistent pressures driven by unsustainable production and consumption patterns, demonstrated most notably in the food system.

More than 80% of protected habitats are in a poor or bad state, with 60% to 70% of soils degraded, the document reads.

On a positive note, the extent of protected areas increased over the past decade – by 2022, 26.1% of the European Union’s land and 12.3% of its seas were protected. However, designating protected areas alone does not guarantee that biodiversity is effectively protected, the authors wrote.

​Water stress is affecting one third of Europe’s population and territory

The report’s findings point to severe pressure on water resources: water stress is affecting one third of Europe’s population and territory.

Only 37% of surface water bodies had a good or high ecological status in 2021, with the degradation of aquatic ecosystems threatening Europe’s water resilience. Agriculture is responsible for the most significant pressure on both surface and groundwater, data revealed.

EEA recalled that Europe is the fastest-warming continent on the planet.

Weather- and climate-related extremes caused economic losses of assets estimated at EUR 738 billion in the EU’s 27 member states over the period 1980-2023, with over EUR 162 billion in costs from 2021 to 2023 alone, the report reads.

Over 70,000 people in Europe are estimated to have died from heat in 2022.

The average annual economic losses in the 2020‑2023 period were 2.5 times as high as in the preceding decade, from 2010 to 2019, according to the report.

Downpours are increasing in severity, with several regions subject to catastrophic floods in recent years, while extreme heat, once rare, is becoming more frequent, with deadly consequences: over 70,000 people in Europe are estimated to have died from heat in 2022.

The greatest challenges call for a need to rethink the links between the economy and the natural environment, land, water and natural resources, EEA underscored.

“We cannot afford to lower our climate, environment and sustainability ambitions. Our state of environment report, co-created with 38 countries, clearly sets out the science-based knowledge and demonstrates why we need to act. In the European Union, we have the policies, the tools and the knowledge, and decades of experience in working together towards our sustainability goals. What we do today will shape our future,” EEA Executive Director Leena Ylä-Mononen said.

Bright spots

The report also highlighted the good results of environmental protection policies in Europe.

The EU has cut its domestic greenhouse gas (GHG) emissions by 37% since 1990, largely driven by reducing fossil fuel use and doubling the share of renewables since 2005.

All member states have reduced their reliance on fossil fuels and shifted towards more sustainable energy sources over the last decade, while increased energy efficiency has brought down demand.

In 2023, renewable energy sources represented over 24% of the EU’s final energy use, a record high.

The bloc’s industrial system has managed to reduce emissions by more than 35% from 2005 to 2023, while emissions from buildings fell by more than 35% between 2005 and 2023.

Significant progress has been made in reducing pollution in Europe. EU policies led to improvements in air quality and reduced premature deaths attributable to fine particulate matter from 2005 to 2022 by 45%, according to the Europe’s Environment 2025 report.

by

Croatia’s HEP to install 90 solar power plants on rooftops of its facilities

Croatia’s power utility Hrvatska Elektroprivreda intends to install 90 solar power plants on its facilities across Croatia.

HEP ESCO, a subsidiary of Hrvatska Elektroprivreda (HEP), has launched a public procurement for the installation of 90 photovoltaic plants under a design-and-build model and on a turnkey basis.

The firm develops, implements, and finances energy efficiency projects based on the ESCO model.

The investment is estimated at EUR 5.3 million, and the deadline for submitting bids is November 3.

HEP ESCO plans to sign a contract with the best bidder within 90 days after selecting it. The deadline for the completion of works will be 18 months, according to the public call.

Five groups of solar power plants

The public call is divided into five geographical groups in Croatia.

Group 1 is for Zagreb and its surroundings. Solar panels would be installed at ten locations, with an estimated investment of EUR 1.2 million. Group 2 covers hydropower plants Zavrlje, Orlovac, Peruća, and Zakučaci in the coastal region of Dalmatia, as well as power distribution facilities. The works in the segment are valued at EUR 770,000, local media reported.

Four cities in the region of Slavonia make up the third group, with 20 locations. Solar panels would be installed for EUR 1.21 million in Virovitica, Požega, Vinkovci, and Vukovar.

HEP has over 50 solar power plants on the rooftops of its buildings and facilities

A total of 15 locations in the areas of Međimurje and Zagorje and the Sisak-Moslavina county, and including hydropower plant Ozalj, all in northwestern Croatia, are in the fourth group. The estimated value is EUR 1.1 million.

The value of the investment in Istria, Primorje, and Gorski Kotar is EUR 1.03 million. It entails the Fužine hydropower plant, Rijeka, Vinodol, and electricity distribution facilities.

Of note, HEP has more than 50 solar power plants on the rooftops of its buildings and facilities.

HEP Proizvodnja, HEP’s power production arm, has 12 PV plants on administrative buildings, thermal power plants and hydropower plants. The total capacity is about 1.5 MW. HEP ODS, the country’s distribution system operator, has another 44 solar power plants with a total capacity of 1.1 MW on its roofs.