Environment: Croatia Enters European System for the Trading of CO2 Units

From 1 January 2013, Croatia will enter the European trading of CO2 units.  Eighty-one industrial complexes will receive a yearly quota for CO2 emissions for which they will be free of paying a fee, while the production of CO2 emissions over this quota will need to be purchased on the European market from European companies that have remained within their quota, thereby selling their remaining quota room on the open market.  Croatian legislation has mostly been aligned with EU directives.  The Fund for Environmental Protection and Energy Efficiency is in the process of fully aligning with the EU Directive 2009/31/EC.  Even though Croatia is required to enter the CO2 trading system as of the new year, it is expected that this will result in transitional difficulties, given that the price of CO2 units are generally less expensive at the beginning and at the end of the calendar years.  Therefore, Croatia will begin its implementation as of 1 January 2013, 6 months before the mandatory entrance.  The average price for CO2 units is €20, which will increase the cost of operations for Croatia’s industrial complexes.

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