Electric vehicle regulation and law in Croatia

Croatia is increasingly interested in EV development. After a two-year break from granting incentives for the purchase of EVs, incentives for buyers will be reintroduced in 2018. Unofficial information suggests that EVs will be financed up to HRK 70,000 (approx. EUR 9,300).

1. What EVs have been deployed in your jurisdiction to date?

EVs represent a small proportion of Croatia’s licensed vehicles. Currently, there are 224 EVs, 1,843 hybrid vehicles, and 445 electric mopeds and bicycles registered in the country. However, during 2014 and 2015, subsidies of HRK 50m helped the purchase of 1,428 EVs on the Croatian market. No incentives were available in 2016 and 2017 and EV sales slowed dramatically – only 9 EVs were registered in the first eight months of 2017. With new purchase incentives anticipated in 2018, a rise in the number of registered EVs is likely.

2. Is there any specific legislation for/regulation of EVs in your jurisdiction?

Croatia’s Act on Promotion of Clean and Energy Efficient Vehicles in Road Transport transposes into national legislation the provisions of EU Directive 2009/33/EC on the promotion of clean and energy-efficient road transport vehicles.

Key programmes include:

  • “Drive Economically” aims to stimulate the purchase of electric and hybrid vehicles – plug-in and with up to 90g CO2/km emissions – by citizens, companies and trades. The programme is implemented by the Environmental Protection and Energy Efficiency Fund (EPEEF).
  • “Green Public Transport” promotes the purchase of environmentally-friendly public transport vehicles, implemented by EPEEF.
  • An eco-driving training programme, implemented by EPEEF.
  • “Green Line”, a grants programme to enable county public institutions, national parks and nature parks to purchase electric vehicles, vessels and hybrid vehicles, implemented by EPEEF.
  • The Transportation Emissions Reduction Programme for 2013-2020, prepared by the Ministry of Environment and Energy (MEE).

3. What measures promote EVs in your jurisdiction?

  • Number of charging points – there are 201 charging points across the country with plans to increase the number to as many as 345.
  • Free charging points – currently, charging points are free. This makes the system economically unsustainable and charging points will soon have to commercialised.
  • EV purchase grants – new purchase grants should be approved in early 2018.

4. Who are the main entities (e.G. Developers, government, System Operator) and what are their roles in the deployment of EVs in your jurisdiction?

As this subject matter relates to traffic, energy and environmental protection and tourism, it falls within the remit of four government ministries: (i) MEE, (ii) Ministry of Economy, Entrepreneurship and Crafts, (iii) Ministry of the Sea, Transport and Infrastructure, (iv) Ministry of Tourism.

EPEEF co-finances the measures for enhancing energy efficiency in transportation through three programmes: co-financing the purchase of electric, plug-in hybrid and hybrid vehicles for citizens, companies and trades; co-financing eco-driving training programmes; and co-financing other measures for energy.

MENP prepared the Transportation Emissions Reduction Programme for 2013-2020, which complies with the Energy Strategy of the Republic of Croatia (“the Energy Strategy”). This programme outlines measures to reduce emissions from transport and aims to achieve a goal of 10% share of renewable energy sources in all modes of transport.

5. What are the main challenges to further deployment of evs in your jurisdiction? How have EV developers sought to overcome these challenges to date?

There are three main challenges: the network of charging points, the price of electricity, and keeping up with international eco-standards and obligations.

The network of charging points is the key infrastructural problem – a good charging network is an important infrastructural prerequisite for further development and deployment of EVs. Most Croatian cities and municipalities have charging points, but there are almost no charging points on the motorways. In the years to come, tourists will be increasingly coming to Croatia with EVs, and if the infrastructure is underdeveloped, Croatia’s tourism may suffer.

A further problem with the existing charging point system is that it is economically unsustainable because, for now, it is free for users. A separate but related issue is that the price of the vehicles themselves is another important factor influencing the development of EVs in Croatia.

The price of electricity is a second major challenge. For electricity to compete with petrol, diesel and gas, the current tariff model should be redefined. Specifically, a more favourable green tariff for EVs should be introduced.

Meeting international environmental commitments is a major test for Croatia. Under the Energy Strategy, Croatia’s transport sector must use 10% renewable energy sources by 2020, up from only 3% today. By ratifying the Paris Agreement, Croatia committed to reducing greenhouse gas emissions by 40% by 2030. The EU goal is to completely exclude oil derivatives from road traffic by 2050. Despite these challenges, Croatian projections state that by 2030, about 35% of its vehicles will be electric.

Portrait ofMarija Mušec
Marija Mušec
Partner
Zagreb
Mia Kanceljak