Croatia: EIB and HBOR to enable easier access to energy efficiency loans to businesses and municipalities
- Oct 3, 2019
Businesses in Croatia looking to increase energy efficiency of their properties will benefit from a new program worth in excess of EUR 2m, signed today between the EIB and the Croatian Bank for Reconstruction and Development (HBOR). Municipalities in Croatia will also be eligible to benefit under the program and improve city lighting networks.
- EIB provides more than EUR 2million for HBOR to support Croatian businesses apply for energy efficiency loans; support available also to municipalities for street lightning improvements;
- The package will allow HBOR to assist eligible entities attract up to EUR 57.6m worth of investments;
- The largest part of EIB`s empowering package to HBOR comes from ELENA initiative;
Businesses in Croatia looking to increase energy efficiency of their properties will benefit from a new program worth in excess of EUR 2m, signed today between the European Investment Bank (EIB) and the Croatian Bank for Reconstruction and Development (HBOR). Municipalities in Croatia will also be eligible to benefit under the program and improve city lighting networks.
EIB-supported program will allow owners of primarily E and F energy class private sector buildings receive support from HBOR and develop applications for ESIF loans to improve energy efficiency or install in-building renewable energy sources. HBOR will be able to extend the same support to municipalities applying for ESIF loans to improve their street lighting networks.
The partnership will support eligible entities to invest more than EUR 57million in energy efficiency, save up to 35 GWh of energy each year and reduce CO2 emissions. The deal will improve around 130,000 m2 of public and private buildings space and increase street safety with around 60,000 improved lighting posts across Croatia.
Vice President of the EIB, Vazil Hudak said, “I am very happy to see our partnership with HBOR develop and grow. Today, we agreed to increase energy efficiency of Croatian businesses and municipalities and contribute towards safer streets for the citizens. As the EU`s Climate Bank, EIB is happy to sign this program reducing CO2 emissions and energy waste. I encourage businesses and municipalities to apply with HBOR and help not just themselves and Croatia, but the entire planet.”
The President of the Management Board, Tamara Perko said, “This is one more activity with which we significantly reduce funding costs for users while increasing the success of these projects. I am confident that project documentation financing for energy efficiency projects will further stimulate activities in this area, which means, in addition to reducing energy consumption, boosting activities of the construction and all other related industries. We expect these funds to be available to customers in the first quarter of 2020.”
Business building owners and local governments will all be eligible to apply for the support directly at HBOR.
EU partnership for an energy efficient Croatia
The largest part of EIB`s funds provided to HBOR comes from ELENA, a joint initiative developed by the EIB and the European Commission. ELENA was established under the Horizon 2020 program to provide grants for technical assistance focused on the implementation of energy efficiency, distributed renewable energy and urban transport programs.
With the support provided from HBOR eligible entities will be able to benefit from three types of European Structural and Investment Funds (ESIF) loans for energy efficiency investment in the public and private sectors as well as from HBOR’s own lending programs in EE/RE and other sources of funding.
Notes to editors:
EIB in Croatia:
EIB lending commitments in Croatia since the start of the Bank’s activity in the country are currently at EUR 6.55 bn. Between 2008-2018 alone the EIB signed for support worth EUR 4.75bn. EIB operations cover important sectors of Croatia’s economy, including transport, the environment, energy infrastructure, manufacturing and services. Another key component of the Bank’s activity in Croatia is the promotion of small and medium-sized enterprises (SMEs) by increasing SME access to long-term financing through local financial institutions.
Hrvatska banka za obnovu i razvitak is the development and export bank of the Republic of Croatia with the main task of promoting the development of the Croatian economy. In its operations, and within the framework of its powers and authorisations, HBOR promotes systematic, sustainable and balanced economic and social development pursuant to the overall strategic goals of the Republic of Croatia. More information on the HBOR's work is available here
About ELENA Facility:
The EIB runs the European Local Energy Assistance (ELENA) facility on behalf of the European Commission. ELENA helps the public and private sector implement energy efficiency, renewable energy and sustainable transport Investment projects, thus reducing greenhouse gas emissions. The ELENA facility promotes innovative solutions in energy efficiency and accelerates investments by building experience, facilitating financing and overcoming barriers.
About European Structural and Investment Funds (ESIF):
European Structural and Investment Funds (ESIF) allows the EIB to transform EU resources into financial products (FI) such as loans, guarantees, equity and other risk-bearing mechanisms. These are then used to support economically viable projects, which promote EU policy objectives. FIs aim to put EU funds to good and efficient use, to ensure grants are complemented by other financial products so that EU funding can be used time and time again in a revolving fashion. FIs can be combined with technical support or guarantee/interest rate subsidies.