A Climate for Change

Human Development Report - Croatia 2008 Evaluation of Current Activities to Mitigate Climate Change – Institutional Analysis^215

13.1. Introduction

Climate change mitigation must be compatible with
human development. Croatia faces a unique chal-
lenge - in addition to developing its economy, it must
also reduce its emissions to meet international obliga-
tions and meet the accession requirements of the EU.
As Chapter 12 shows, the potential exists to reduce
emissions, but succeeding will take significant po-
litical, social and institutional involvement. To reduce
GHG emissions without undermining human devel-
opment goals, Croatia must involve many diverse
actors in the issue and ensure they work together ef-
fectively. As the Stern Review^1 notes, emissions must
have an appropriate price and technologies must be
available. However, even when these conditions exist,
there may still be barriers to energy efficiency, renew-
able energy and other mitigation options. Croatia can
address these barriers if it has the proper regulatory
environment, makes information available for people
and institutions to reduce emissions, and identifies
sufficient funding to pursue emission-reducing tech-
nologies and practices.

Institutions that must be involved in the effort include
Government institutions, businesses, research institu-
tions, Non-Governmental Organizations (NGOs), and
the donor community (see Table 13-1, Table 13-2,
and Table 13-4 for lists involved organizations). This
section describes the current activities of numerous
stakeholders and the level of coordination among the
various actors. While the Second, Third and Fourth
National Communication of the Republic of Croatia
under the United Nations Framework Convention
on Climate Change^2 addresses some institutional is-
sues, this chapter addresses institutional capacity in
a broader sense, using the framework set out by the
Stern Review; i.e., the regulatory environment, the lev-
el of information available and distributed, the finan-
cial context for reducing emissions, and carbon pric-
ing. Finally, it makes recommendations for improving
coordination and identifies areas where more overall
engagement would help move Croatia forward in re-
ducing GHG emissions.I

13.2. Development of the legal/

regulatory environment to

establish carbon prices and to

make technology available

Perhaps the most important factor for climate change

mitigation is government regulation and the legal en-

vironment. The national government sets the agenda,

provides direction for the market, and provides the

regulatory backdrop for addressing climate change.

Because climate change affects almost all sectors, it

will require a coordinated approach by various gov-

ernmental entities to reduce emissions in a way that

does not undermine human development. This ap-

proach must involve the incorporation of climate

change into strategic documents and plans.

The Croatian National Government is aggressively

working to reduce emissions. Parliament has ratified

the Kyoto Protocol and, as an Annex I country, Croa-

tia has committed to a 5% reduction from 1990 levels

by 2012.^3 As part of the EU accession process, Croatia

is already planning to enter the EU Emissions Trad-

ing System (ETS) and is working towards increasing

energy efficiency, expanding renewable energy pro-

duction and reducing overall emissions. Accession to

the EU is probably the central driving factor in pricing

carbon and implementing new technologies.

The Croatian Parliament has been proactive in adopt-

ing laws that deal with climate change, ratifying the

Kyoto Protocol^4 and passing the Air Protection Act^5 and

the Environmental Protection Act.^6 Both the Air Protec-

tion Act and the Environmental Protection Act directly

mention preventing GHG emissions within their texts.

The Croatian Parliament is also the deciding body for

the adoption of the Energy Strategy, the Energy Effi-

ciency Master Plan, and a number of other issues that

are directly related to climate change and, in general,

has been supportive of climate change mitigation.

I This section was prepared primarily using insights gained through

interviews and a capacity assessment survey that yielded responses

from over 30 organizations.