FZOEU and HAMAG-BICRO will place financial resources intended for the green transition in 2024.

FZOEU and HAMAG-BICRO will place financial resources intended for the green transition.

Western economies direct all their efforts and financial incentives towards accelerated “greening” and strengthening the energy balance and independence, and for this purpose, we would say, fabulous sums are available for this purpose. In the general public, the incentives that are available for citizens are currently in the foreground, but great opportunities are opening up for the economy as well. However, RES investment projects entail high costs, but, as the Environmental Protection and Energy Efficiency Fund (FZOEU) points out, they are profitable in the long term, because with the reduction of energy costs, the competitiveness of companies is strengthened, as well as their solvency with financial institutions. This is why, from their experience, more and more companies in Croatia are accepting the green transition as an opportunity not to be missed. Numerous measures and generous subsidies from European funds are also available this year, specifically, the FZOEU, in cooperation with the relevant Ministry of Economy and Sustainable Development, secured more than 50 million euros through the Modernization Fund. Funds will be allocated for investments in energy efficiency measures and high-efficiency cogeneration and the use of renewable energy sources, and will be intended for micro, small and medium-sized enterprises from the processing industry, utility companies and public water service providers. According to the data of the Ministry of Economy, in the last year, investment projects in the production sector in RES were supported with funds from the Modernization Fund with a total of 42 million euros, and contracts were concluded with 166 companies, with funds from the Modernization Fund covering up to 80 percent of costs. As a rule, it was about investments in photovoltaic power plants for the production of electricity for own needs. Important in 2024. in FZOEU, they also highlight the research of geothermal potential, a project on which they cooperate with the Agency for Hydrocarbons.

“Drilling should start already this year near Velika Gorica and Osijek, and the areas around Zaprešić, Sisak, Vukovar and Vinkovci will also be explored. With this, we want to open up the possibility of heating cities using geothermal energy, which would have a significant effect on our energy balance, as well as enable the use of geothermal energy for agriculture”, emphasizes the FZOEU.

However, the project for which there is the greatest interest of the public this year will, they confirm in this institution, rule for co-financing the energy renovation of family houses, and this call will also be the most financially generous. Namely, a total of 120 million euros of incentives for the installation of thermal insulation, energy-efficient carpentry and heating systems based on RES are provided. Within the program, funds will be available for photovoltaic power plants, as well as for filling stations. The publication of the call intended for owners of family houses in which they also live is expected by the end of February at the latest, and applications should be submitted electronically. Namely, for the first time, the implementation of the call was planned with the use of the “e-citizens” system.

EUR 50 million is provided for micro, small and medium-sized entrepreneurs from the processing industry, utility companies and public water service providers.

According to FZOEU, the competition for smart cities, published in December, is still relevant, and in addition to smart solutions and services during 2024. the planning and formation of green infrastructure will be encouraged, especially in urban areas. The plan is to continue with measures aimed at energy-efficient transport – from campaigns to encourage cycling, they will soon start co-financing the purchase of energy-efficient vehicles, as well as further encouraging the use of RES for individuals and legal entities.

HAMAG-BICRO will also be at the disposal of entrepreneurs in financing the “greening” of business.

“This year too, we will continue to provide support to entrepreneurs, both advisory and financial, which concretely means that in the new financial perspective (2021-2027) we will continue to implement financial instruments – loans and guarantees. “However, with a focus on increasing the productivity and competitiveness of small and medium-sized enterprises, the placement of financial resources will require the inclusion of a green and/or digital transition component and proof of compliance with environmental policy goals and DNSH principles,” say HAMAG-BICRO. The latter implies that the entire investment amount will have to satisfy the principle of not doing significant harm. In 2024 financial instruments from the European Fund for Regional Development, the European Social Fund Plus, the European Fund for Rural Development and programs from national funds will be available to entrepreneurs. The plan also includes investment loans for entrepreneurs up to 100,000 euros, as well as loans for working capital up to 30,000 euros, depending on the programs, and with interest rates more favorable than the market and fixed for the entire loan repayment period, which in the current situation of volatile prices and increase in interest rates provides security to entrepreneurs.

“As before, these will be instruments for the realization of which a lower level of collateralization will be required than that which is common in commercial banking, and the preparation and application of the request itself is simplified with available financial resources in the short term after approval”, they note from HAMAG-BICRO, adding that individual and portfolio guarantees will be available, with coverage of up to 80 percent of loans in commercial financial institutions, which also reduces the required level of collateral as well as the price of the loan. HAMAG-BICRO cooperates with most banks on the Croatian market. There is also a tender that will help entrepreneurs in “greening” their business, and it is about “Support to companies for the transition to an energy and resource efficient economy”, with the aim of speeding up and making it easier for entrepreneurs to adapt to new environmental standards in business. In the context of NPOO, HAMAG-BICRO says that at least 250 projects of small and medium-sized enterprises and 40 projects of medium-sized enterprises are expected to be financed. For the first group, the support amounts will range from a minimum of 70,000 to a maximum of 995,421 euros, while for the second category they range from 265,445 to 4,645,298 euros.

120 million euros are earmarked for citizens to install thermal insulation, energy-efficient carpentry and heating systems based on RES.

Therefore, there is no shortage of funds for the green transition, and as it turns out, there is no shortage of entrepreneurial projects that will rely on this aid, because even in the economy they are aware that these programs have replaced former subsidies for new products and jobs or much earlier sectoral and aid for restructuring.

Source: Poslovni Dnevnik