Croatia GENERAL INFORMATION The newest member of the European Union, Croatia has a population of 4.04 million. 143 Its 2020 purchasing power of 64 per cent of the EU average GDP per capita in purchasing power standard makes it the second poorest EU member. 144 Depopulation resulting from negative birth rates and net emigration in recent years affect both the labour market and the sustainability of the health and pension systems. The official unemployment rate was 7.5 per cent in 2020, 145 but although rising, the overall employment rate of 66.9 per cent is one of the lowest in the European Union. 146 In 2020, 23.2 per cent of people were considered at risk of poverty or social exclusion – close to the EU average of 22 per cent. 147 Croatia’s political scene is relatively stable by regional stand­ards, but in common with Bulgaria, several new political parties have made a strong entrance on the scene in recent years, while some of the more established opposition par­ties such as the Social Democrats have weakened. It remains to be seen whether these new parties will be able to estab­lish themselves long-term. ENERGY TRANSITION SNAPSHOT Croatia started with a high level of renewable energy due to its hydropower plants and widespread use of wood for heating, which has allowed it to underperform while still meeting its EU 2020 targets on renewables(except in trans­port), energy efficiency and greenhouse gas emissions. 148 Its 2020 renewable energy target was 20 per cent, but by 2019 it had reached 28.5 per cent, 149 which suggests the goal was not ambitious enough. In 2020, 65 per cent of Croatia’s domestic electricity pro­duction was from renewable sources, including 43 per cent from hydropower plants. 150 However, the Croatian state al­so owns fifty per cent of the Krško nuclear plant in Slove­nia and imported a further eight per cent of overall elec­tricity consumed, so overall the renewable electricity share was around 48 per cent. 151 143 Eurostat, Population on 1 January(DEMO_GIND), accessed 8 Decem­ber 2021. 144 Eurostat, GDP per capita in PPS(PRC_PPP_IND), accessed 8 December 2021. 145 Eurostat, Total unemployment rate(UNE_RT_A), accessed 8 December 2021. 146 Eurostat, Employment rate by sex, age group 20-64(LFSI_EMP_A), accessed 8 December 2021. 147 Eurostat, People at risk of poverty or social exclusion(ILC_PEPS01), accessed 8 December 2021. 148 European Commission, Commission Staff Working Document, Coun­try Report Croatia 2020, 26 February 2020. 149 European Commission, Europe 2020 targets: statistics and indicators for Croatia, accessed 19 November 2021. 150 IEA, Data and Statistics: Electricity, Croatia, 2020. 151 IEA, Data and Statistics: Electricity, Croatia. Croatia has made progress in using its wind potential, but solar and solar thermal are underused considering the vast potential in this sunny country with strong Adriatic winds. In particular, it is still difficult for people in apartment build­ings to install solar equipment, though as of November 2021, updates to the country’s Law on Renewable Energy are in the process of being adopted, which may help with this. Croatia has made some steps forward in energy efficiency in recent years, though its energy intensity is still 1.5 times the EU average. 152 The Energy Efficiency Act 153 and the Building Act 154 form the basis for Croatia’s policy, along with the Or­dinance on the energy efficiency obligation system 155 which prescribes obligations and timelines in more detail. The Cro­atian Government has also adopted a Long-Term Strategy for Encouraging Investments in the Renovation of the Na­tional Building Fund, with a 2050 perspective. 156 Repeated delays in adoption of strategic documents have caused unnecessary delays in Croatia’s energy transition. In February 2020 the Croatian parliament finally adopted a Strategy for the Energy development of Croatia in the peri­od until 2030 with an outlook until 2050 157 – the first since 2009. Then in May 2020, a long-delayed Draft Low-Carbon Development Strategy for 2030 with an outlook to 2050 158 (Long-term strategy) was published for public discussion. It was finally adopted in June 2021. 159 Croatia’s NECP had to be prepared more quickly though, due to EU deadlines. In December 2019 the NECP for the period from 2021 to 2030 160 was adopted and submitted to the European Commission. It sets targets for green­house gas emissions reductions in ETS sectors of at least 43 per cent compared to 2005, reduction in greenhouse gas emissions for non-ETS sectors of at least 7 per cent, an increase in the share of renewables in gross final energy consumption to 36.4 per cent and an increase in the share of renewables in final energy consumption in transport to 13.2 per cent. Considering Croatia’s 2019 renewables 152 Eurostat, Energy intensity[nrg_ind_ei], accessed 8 December 2021. 153 Zakon o izmjenama i dopunama Zakona o energetskoj u č inkovitosti, Official Gazette 127/14, 116/18, 25/20, 21 December 2018. 154 Official Gazette 153/13, 20/17, 39/19, 125/19 155 Pravilnik o sustavu obveze energetske u č inkovitosti, Official Gazette 116/2018, 24 April 2019. 156 Odluka o donošenju Dugoro č ne strategije za poticanje ulaganja u obnovu nacionalnog fonda zgrada Republike Hrvatske, Official ­Gazette 28/2019, 22 March 2019. 157 Strategija energetskog razvoja Republike Hrvatske do 2030. s pogle­dom na 2050. godinu, Official Gazette 25/2020, 28 February 2020. 158 Republic of Croatia, Ministry of Environmental Protection and En­ergy, Prijedlog Strategije niskouglji č nog razvoja Republike Hrvatske do 2030. sa pogledom na 2050., April 2020. 159 Republic of Croatia, Ministry of Environment and Energy, ­Prijedlog Strategije niskouglji č nog razvoja Republike Hrvatske do 2030. sa ­pogledom na 2050. 160 Republic of Croatia Ministry of Environment and Energy, Integrated National Energy and Climate Plan for the Republic of Croatia for the period 2021-2030, December 2019. 31