The majority of Croatian companies are not ready for the green transition, with many not having the money for it, and a good portion of them consider it to be a threat, showed the findings of a survey conducted by the Apsolon consultancy and the Croatian Chamber of Commerce (HGK).

The results of the survey, covering 192 companies and conducted from 1 July to 30 September this year, were presented at the conference on doing business in the era of green transition.

Presenting the findings, Mirjana Samardzic-Novoselec of Apsolon said that companies’ readiness to invest in the green transition was rated poorest, meaning that companies are the most concerned about how they will finance that transition.

It is alarming that 51 percent of the surveyed companies see green transition as a threat and as something that will increase the cost of doing business, require investment, and increase complexity and administrative requirements for companies, she said.

Only about 38 percent of the surveyed companies see the green transition as a moderately positive factor while the remainder sees it as either a neutral or a negative factor.

Project financing is the biggest obstacle for companies, followed by problems concerning the legislative framework, administration and expertise of the current resources.

About 17 percent of companies already have a strategy for the green transition, 66% intend to prepare one while 17% do not have such a strategy and do not intend to create one.

Great expectations from EU funds

The companies surveyed consider EU funds to be crucial for the success of the green transition, as well as clearly defined plans at the national level and cooperation between the public and private sectors. Hence 95 percent of the companies have draft projects for the green transition or are preparing them and they intend to apply for EU funds, to be used mostly to invest in improving energy efficiency, the use of renewable energy sources and digitisation.

Recommendations following the analysis include making the green transition a strategic topic, adjusting the strategic and legislative frameworks, using the synergy between the public and private sectors, and ensuring sources of co-financing for green projects.

HGK Vice President for Industry and Sustainable Development Tomislav Rados estimates that the green transition of Croatia’s energy sector by 2030 alone will require more than HRK 140 billion.

State Secretary at the Ministry of Economy and Sustainable Development Natasa Mikus-Zigman said that about 40% of the National Recovery and Resilience Plan is directed towards the green transition and that funds from the multiannual financial framework for the period until 2027 are available for that purpose as well. She added that some calls for applications had already been advertised to subsidise businesses in the transition to green technologies.