European Commission approves 60 Million Euro energy support for Croatian firms
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The European Commission approved a 60 million euro support program for the Croatian government to help energy intensive companies manage high electricity prices.
This funding helps offset costs linked to carbon prices within the EU Emissions Trading System. The Ministry of Environmental Protection and Green Transition proposed the plan to ensure that domestic businesses do not move their operations to countries outside the European Union with less strict climate policies.
The program targets specific sectors facing high international competition, such as chemicals, paper, and iron and steel. Companies can receive compensation for up to 80 percent of indirect emission costs incurred between 2025 and 2030. The government expects to pay out 10 million euros annually for these costs. The Croatian government plans to distribute the first 10 million euros by March 31, 2027.
It will secure the remaining 50 million euros from the sale of emission units through auctions held in Croatia. This measure addresses the current energy crisis and geopolitical instability in the Middle East that affects the national economy.
