The Regional Energy and Climate Agency of North-West Croatia (REGEA) in cooperation with the Croatian National Bank and the Office of the European Investment Bank in Croatia organized a round table "Financing energy efficiency and resilience to climate change in the building sector" at the CNB today. Introductory speeches and presentations were given by Sandra Švaljek, Deputy Governor of the CNB, Slađana Ćosić, Head of the EIB Group Office in Croatia, EIB Croatia, and Julije Domac, Director of REGEA, Marko Škreb, international economic consultant and former Governor of the CNB, Miljenko Sedlar, Assistant Director at REGEA, and Ivan Ivanković, Assistant Director for Environmental Sustainability of the City of Zagreb.

In her speech, Sandra Švaljek pointed out that the Croatian National Bank is now part of the Eurosystem, and that the European Central Bank has very clearly defined its relationship to the climate and the environment. It deals with climate and environment, said the deputy governor, at three levels - as an institution in charge of monetary policy, as a regulator and supervisor of the banking system and as one of the institutions of the European Union. "As an institution in charge of monetary policy because climate affects in different ways the ability to achieve price stability as a primary objective; as an institution in charge of banking supervision because properly identifying and managing climate-related and environmental risks contributes to the stability and safety of the banking system, and as an EU institution it is obliged to support the general economic policies of the EU, without prejudice to the primary objective, where general economic policies include a high level of protection and improvement of the quality of the environment. When it comes to investments in energy efficiency of buildings, they can be considered as both climate change mitigation measures and climate change adaptation measures because they allow us to live comfortably in our homes even during the warmer summers and that our standard does not threaten the rise in fossil fuel prices due to the implementation of climate policies. We are here today to raise awareness of the benefits of investing in increasing energy efficiency in the field of buildings, and, like all sustainable activities, these investments require information, encouragement and education about the consequences, specifically, about the benefits of investing in energy efficiency for households, entrepreneurs and banks", Sandra Švaljek emphasized on that occasion, adding that it is necessary to dispel the prejudice that climate transition is necessarily associated with weakening growth.

Head of the European Investment Bank Group in Croatia Slađana Ćosić pointed out in her introductory address that the European Investment Bank as an EU climate bank is ready to support projects in the field of energy and climate and added that energy investments will have to double to more than EUR 400bn per year in order to meet the EU climate goals. She also explained that as many as three quarters of European buildings are considered energy inefficient and that it is necessary to double the energy renovation of buildings by 2030.

In the year 200, the European Investment Bank directed 58% of its portfolio towards climate action and a sustainable environment.

"Our buildings need to combine green infrastructure and cutting-edge technologies, but also be rooted in society, which is why we need to understand concepts such as affordable housing. That is why I am extremely pleased that I can point out our four largest cities, Zagreb, Osijek, Rijeka and Split, as those that have recognized this and in which we are developing exactly such a concept, with them expressing readiness and political will.

Today we are here to exchange ideas, open up new opportunities, but also to understand each other even better. Unfortunately, the transition will not happen just because it is good for the climate or society. It must also be cost-effective. Today, we are here to show by energy agencies that this is the most cost-effective and most important investment that must happen in our society. The conditions for this should be created, primarily through the taxation of unwanted phenomena, emission allowances, as proposed by the new Fit for 55 regulation and in similar ways, and not through subsidies without criteria, everything for everyone."

"Climate adaptation is necessary; relief alone is not enough. Our infrastructure needs to be adapted to new conditions", pointed out the Director of REGEA Julius Domac in his introductory address.

After introductory speeches and presentations, an interesting round table, entitled "How to finance energy efficiency and climate resilience measures in the building sector", was held, attended by Maroje Lang, Chief Advisor in the Research Sector of the Croatian National Bank, Toma Pasarić from Erste Bank Croatia, Dalibor Dakić, Director of Promo21 d.o.o., and Hrvoje Maras, Chief Economist, REGEA.

The round table discussed the challenges and opportunities for financing energy efficiency and climate resilience in the construction sector in Croatia, with a special emphasis on the involvement of the financial sector.

On this occasion, it was particularly emphasized that the construction sector in Croatia and globally plays a key role in the fight against climate change, since it accounts for approximately 40% of energy consumption and 30% of greenhouse gas emissions.

It was also pointed out that the European Union strives for climate neutrality, but also to secure its own energy sources, which is why it is necessary to reduce greenhouse gas emissions by as much as 95% by 2050 compared to 1990. Buildings are a particular challenge in this context, as it is necessary to provide the huge financial resources needed for energy renovation and the replacement of energy sources for heating and cooling.

Furthermore, the topic of energy efficiency in buildings is also very important because the European Parliament voted Fit For 55 and made it clear that it would start penalising all major pollutants, thus establishing a new emissions payment system for buildings and transport.

As a result, national and local authorities face new costs when implementing the actions and measures of the climate adaptation plans. New costs arise from direct adaptation activities, such as the construction of new construction structures and the increased costs of energy, goods and services due to their production under changing climate conditions. For climate change adaptation actions and measures, it is important to establish a financial strategy and ensure multi-source financing, both public and private. The capacity of existing public sources of funding, such as the state budget, has a number of limitations that then act as a constraint on the implementation of climate change adaptation plans.

In addition to energy savings and reduced bills, projects that contribute to climate mitigation and adaptation goals also contribute to growth in the construction sector and related industries, create new jobs, increase the market value of real estate and improve living conditions.

Through today's discussions, the round table aimed to identify practical solutions and strategies for financing climate change adaptation in the Croatian construction sector. Cooperation between the financial sector led by the Croatian National Bank, the European Investment Bank, public administration and entrepreneurs is crucial in creating the necessary financial mechanisms and regulatory frameworks that encourage investment in sustainable buildings.