Croatia drafts EUR 1.68 billion Social Climate Plan

Croatia has prepared a Social Climate Plan for the period 2026-2032, worth EUR 1.68 billion. It would introduce measures for the buildings and road transport sectors aimed at supporting households and small businesses.

The draft of Croatia’s Social Climate Plan is under public discussion, which will last until December 22.

The process of adopting the most important national instrument for protecting citizens from the adverse effects of climate transition and the introduction of the European Union’s Emissions Trading System 2 (EU ETS 2) has begun, the Ministry of Environmental Protection and Green Transition stressed.

The plan will be financed with EUR 1.26 billion from the EU’s Social Climate Fund, and the remainder from Croatia’s national budget. Essentially, all the funds are coming from the auctions of emission allowances in the EU and Croatia under the EU ETS 2. It is an expansion of the EU ETS to the buildings sector (heating and cooling) and road transport.

The EU established the Social Climate Fund in May 2023 to protect households and small businesses

The expansion could increase the costs of heating, cooling, and transport. In May 2023, the EU established the Social Climate Fund to protect low-income households, micro enterprises, and transport users that could be affected by the cost increase.

The measures and investments also contribute to the implementation of the goals of the National Energy and Climate Plan (NECP).

The Social Climate Plan allocates EUR 658.1 million (39%) for the buildings sector, and EUR 958.4 million (57%) for road transport. Technical assistance is the third component, with EUR 42 million (2.5%).

The measures planned for the buildings sector include support for the establishment of energy communities and subsidies for the energy renovation of family homes. In the road transport sector, the plan envisages investments in cycling, on-demand mobility services, zero-emission vehicles, and railway infrastructure.

Vučković: Restoration planned for 180 kilometers of bike trails

croatia social climate policy plan EU ets 2 marija vuckovic plenkovic — Photo: Government of Croatia

While presenting the draft plan at a session of the National Council for Sustainable Development, Minister of Environmental Protection and Green Transition Marija Vučković said it identifies two groups: the energy poor or vulnerable, and transport poor or vulnerable.

“The plan provides for 10 measures, four of which relate to so-called stationary or energy poverty, and the remaining six to achieving affordable and favorable mobility and reducing the risk of transport poverty,” she explained.

According to the ministry, the plan provides for the renovation of 180 kilometers of bicycle paths, 80 kilometers of railway lines, as well as the procurement of 30 electric trains, 80 electric buses, and 3,000 electric cars.

Prime Minister Andrej Plenković stressed that the plan isn’t just a technical and administrative document, arguing that it determines what Croatia would become in ten, twenty, and fifty years.

“And we want a Croatia that is economically strong, socially just, and sovereign,” Plenković underlined.

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September 18, 2025

by AEA in News

North Macedonia kicks off project to replace taxis with electric vehicles

North Macedonia plans to subsidize the purchase of 200 electric vehicles for taxi drivers to improve urban transportation and reduce air pollution.

The country’s first move toward electrifying public transportation was announced last year by Prime Minister Hristijan Mickoski, who said 100-120 electric buses would be purchased.

Now, in Skopje, the Ministry of Environment and Spatial Planning and an association of cab drivers have presented a project to subsidize the first 200 electric vehicles for them, as part of efforts for cleaner, quieter, and more efficient urban transportation for the citizens of Skopje and the entire country.

The two sides signed a memorandum of cooperation.

The average price of electric cars in the program would be EUR 28,000

Of note, Skopje is one of the cities with the most polluted air in the world.

According to Izet Mexhiti, First Deputy Prime Minister and Minister of Environment and Spatial Planning, the project represents a concrete and important step toward transforming urban transportation. He added it is part of the strategy to fight air pollution and improve the quality of life in urban areas.

Photo: Ministry of Environment and Spatial Planning

The ministry and the union presented an electric vehicle that meets high environmental standards – without polluting emissions or noise, and with high energy efficiency. Mexhiti stressed that such vehicles would, in several phases, replace the current diesel, petrol, or natural gas vehicles, bringing significant benefits to citizens, taxi drivers, and the environment.

The average price of the said electric cars is EUR 28,000, putting a total cost for 200 vehicles at about EUR 5.6 million. The ministry’s subsidy will be 15% or around EUR 840,000 in total.

There will be a significant reduction in noise pollution

Mexhiti asserted that the replacement of cabs would result in a reduction of more than 2,700 tons of CO2 emissions annually, an effect equivalent to planting over 120,000 trees. He claimed urban noise would be substantially decreased, especially in residential areas.

The official recalled that his ministry has launched a car-sharing system in Skopje with the first 100 electric vehicles and a public system for electric scooters and bicycles in several cities.

In cooperation with the European Union, through the EU for Clean Air program, six electric buses were donated to the City of Skopje, capacities to monitor air pollution have been increased, and tens of thousands of seedlings have been planted across the country, Mexhiti added.

According to Abdullah Rushiti, the president of the union, the greatest benefit of the project is the clean air for the citizens. Three to four thousand taxi drivers operate in Skopje every day, which adds significantly to pollution, he pointed out.

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