The new state of Croatia has inherited relatively good environmental laws. Sectoral laws and regulations, including an Environmental Assessment Act, have existed since 1984. New environmental laws and amendments are being drafted. The draft Environmental Protection Act is being reviewed by the government bodies and the parliament.
Environmental issues are under the authority of several different ministries according to sectors. The Ministry of Civil Engineering and Environmental Protection plays a coordinating role. Nevertheless, a strong, separate Ministry of Environment is needed. Due to other priorities, incomplete legislation, inadequate institutional framework and lack of funding, it has not been possible to develop and implement a proper environmental strategy. Because of other concerns, the parliament is not able to play a strong controlling role and therefore the Parliamentary Committee on Environment is relatively weak. Response to existing negative trends has been insufficient. However, this situation is improving.
Within the new government it is becoming easier to identify and assign responsibilities, although this process is not as fast as it should be. Improvements are needed in the areas of institutional structure and capacity to properly use all available institutions and to take advantage of existing expertise. Environmental expertise is available on a relatively high level but it is missing in some specific fields. Few experts and NGOs are involved in the decision-making process in environmental field, but public awareness regarding environmental issues is increasing and NGOs are free to work according to their own priorities.
The structure of local authorities is also changing. A new structure for local and regional governments is being established and the process will take a few years to be completed. Under the existing scheme of administrative jurisdiction most environmental protection matters are handled at the national level. Municipalities and towns have authority over local environmental protection and town planning, and counties have authority over protection of the environment with respect to subjects shared by multiple municipalities.
Since the fall of 1993, economic reform and development questions (including to some extent the environment) have come to the forefront. More attention is being given to obtaining Western assistance, reducing inflation, and pursuing development options. So far, privatization has only undergone its first phase, which includes small and medium-sized enterprises. The new privatization law, adopted in 1991, does not include environmental concerns. A proper banking system has not yet been established but some efforts to improve the situation have been taken. It will be difficult to progress with the economic changes if vital outside support cannot be secured.
Many experts think that industry and business should contribute more to environmental solutions, i.e. through fees or taxes, or requirements to invest in environmental improvements. Industrialists tend to assume that pollution will decrease through technological solutions, while environmental advocates believe it is necessary to consider industrial and ecological interests together in the development process. Because of the current economic crisis some polluting industries have ceased operation (i.e. a huge aluminium factory near Sibenik) resulting in a positive impact on the environment. It is expected that additional environmental problems caused by certain major industrial facilities will be solved in the course of economic restructuring because these facilities are obsolete, require excessive investments in modernization and will simply go out of business.
Unfortunately, the economic crisis and war have led to mass poverty. In addition, the huge flood of refugees has also become a priority requiring immediate attention. Much of the population is in no position to give attention to environmental problems and the conditions necessary for the development of a civil society are substantially lacking. Only a very small group of individuals, mainly intellectuals, is strongly interested in ecological issues. As the economy is in a difficult situation, there is always the pressing question of how to bridge the gap between social and economic (industrial) interests. There is strong pressure on the politicians to secure reconstruction and the return of refugees before any other issues are addressed.
In spite of a great number of protected areas, natural resources management could be much improved. There is a need to develop preventive approaches for preserving the richness of Croatia's natural capital. The country's assets include the scenic coastal area with its potential for tourism, the fertile agricultural area of Slavonia, and the drinking water resources in the Karst area. There are vast forested areas (some of them are still virgin with inhabitant species living in truly natural conditions), and large wetland areas. The Adriatic Sea along Croatia's coast is cleaner than along Italy but very vulnerable because of its shallowness.
So far there is no environmental protection strategy to secure the proper management of these assets. Tourism and agriculture are claimed to be the strategic sectors which can serve as the basis for a future development. However, the "green/blue strategy" advocated by the government to develop tourism and agriculture has been more of a verbal approach than a practical one according to some experts. There is awareness of the value of the existing rich natural capital but it is not articulated as part of a policy or strategy.
The supply of drinking water is also affected by the war, partly because some water supply facilities are in territories still occupied, and partly because some facilities have been destroyed. There have been attacks on the Kutina fertilizer factory, the Ivanicgrad gas refinery and the Sisak oil refinery which has endangered a 20-40 km zone around those facilities with a potential ecological disaster (liquid ammonia, fertilizer, acids, sulphur, etc.). An emergency response system has been established including a plan with the necessary steps for making the installations more safe, evacuating local residents and providing sheltering, but money needed to finance such activities is not evident. The government has tried to intervene and prevent major damages in some areas by removing dangerous materials and assessing the destruction. In some cases catastrophes were averted due to timely actions.
Besides those caused by the war, there were also other serious incidents of environmental damage. The Sava river is heavily polluted yet supplies several million people, industry, and agricultural areas with water through the underground water in its basin. Acid rain is endangering about half of the woods in Gorski Kotar. Improper disposal of communal and toxic waste is endangering water resources in certain areas.
Some areas have been identified as environmental "hot spots." Certain industrial plants should be closed immediately (i.e. the charcoal producing plant in Bakar is causing serious pollution). In Kutina the fertilizer plant is producing phosphates and pesticides which are causing health hazards. Also of concern is the concentration of chemical and pharmaceutical industries and fuel plants in the Eastern and the Western parts of Zagreb.
Another critical step in the field of management and administration is greater involvement of outside academic and NGO experts in the environmental decision-making process and the establishment of better cooperation among all institutions dealing with environmental and nature protection. There are good environmental experts and institutes in Croatia but most of them are not included sufficiently in the decision-making process. A database on the state of the environment is also needed. Some beginning steps have already been taken to establish a coordinated and decentralized environmental management system. Some experts think that the "know-how" to identify, prepare and manage the implementation of projects is insufficient. (This criticism is based on the experience with the methodology used in developing proposals for the Croatian contribution to the Project Portfolio for the Lucerne-Sofia Process.) Greater expertise is also needed in the area of law enforcement, especially given the new market conditions.
Some progress has already been made in the area of environmental legislation. The draft of the environmental framework law has been prepared. Discussion has started in the parliament and it will probably be adopted by May of 1994. This law will determine the general framework for all specific laws and regulations in the field of environment. Operational and sectoral laws will also have to be drafted. Some sectoral laws are already existing (water, nature protection, soil, forests, protection against noise, etc.), while others are missing (waste, air). The new Law on Nature Protection was passed last year. The energy strategy adopted by the parliament and government more than three years ago was based on cooperation between the ex-Yugoslav republics. The situation since then has changed considerably and the strategy should also be changed. The new framework law is generally considered to be a good start if adopted. Proper political conditions and educated experts are needed, however, to draft environmental laws that can be realistically implemented.
EIAs have been obligatory since 1990, and relatively widely implemented and regulated since 1984. The new environmental framework law encompasses this in a broader concept and plans a new regulation on it. There is a list of activities for which EIA is necessary and the local and governmental authorities are authorized to request an EIA in cases where they see it as necessary. EIAs should be conducted for every new investment, but now the scope of businesses included under the law (as presently interpreted) is too narrow. It is necessary to develop a manual on EIAs which will explain the law, regulations and the proper methodology for conducting them.
A more comprehensive approach to environmental education is necessary. Specifically, training is needed in environmental management and legislation for experts who are working in environmental administration. Experts working now in this capacity are mostly architects and engineers. It is necessary for experts belonging to different disciplines to work together on environmental issues. Also, education and training is required for members of the various political parties, so that they will be able to responsibly address environmental problems and protection in their agendas.
The government should promote a network of national institutions proficient in environmental training. General education of the public is also needed. Electronic media should play a more active role in creating more responsible attitudes among the public in order to put more pressure on the policy makers. The term "ecology" is sometimes misused, and anything can come under this heading. Even commercial enterprises rely on slogans including ecological terms. Also, NGOs should contribute to environmental education to a large extent because they have qualified experts in a variety of fields. However, in order to realize educational goals, financial resources will be needed. Positive examples from other countries and outside financial assistance will be required.
The government has good relations with some of the NGOs and the public is supportive of the government in many environmental issues. Public participation is a strong element of the EIA process. NGOs and scientific experts participate in some discussions of legislation and policy, but generally this involvement should be improved. It is necessary to strengthen the environmental NGO organizations so that they can better help this process and assist in the definition of environmental priorities.
The main negative driving forces for environmental degradation: the war; incomplete legislation; inadequate enforcement infrastructure and the lack of standards, and; industry focusing on short term profits and considering environmental investments only as costs, not as benefits.
At present, only small funding resources are available on the state and local levels for financing environmental improvements. Waste and wastewater treatment projects can be financed from taxes and other incomes from the local level. Part of the revenues collected for use of the sewage system and water supply can be used for environmental purposes but only part is left at the local government level. For example, the Zagreb City government can, to some extent, finance larger investments if it generates additional funds itself.
The idea of using economic incentives as efficient tools for environmental management is widely accepted, but few instruments are in operation with the exception of some taxes (tourist tax) and tax preferences (fuel tax) as well as tax preferences for non-leaded petrol and environmentally friendly packaging.
The pricing system for resources is one of the economic incentives already used in the energy field. The prices for energy consumption vary with respect to the type of energy source. The Ministry of Finance is entitled to change the prices. However, it is necessary to improve this system in the future and to make a clear difference between industrial and household energy use, and urban and countryside consumption.
External funds are very much needed as internal resources are extremely limited. The Ministry of Environment is looking for external assistance from the EC, UN agencies, the World Bank, foreign foundations and others. An environmental protection plan for Croatia has been prepared by the Ministry in which the most important tasks are outlined. This document declares not only that extra funding would be needed, but that substantial environmental improvements can be achieved only with external financial support. However, NGOs think that many results can be achieved with available domestic resources, for example, public awareness raising.
Many think that there is a need for a new Marshall plan which would also include Croatia. Presently, Croatia is not involved with the main Western assistance programs due to political reasons. According to most of the experts political considerations should be coordinated with environmental ones but not to the detriment of the latter. Before the war, the World Bank had a large project at Istria to the amount of 250 million USD which has not been completed. Environmental advocates have been trying to get funding from the World Bank and the European Bank for Reconstruction and Development for nature protection activities in order to set up a waste management strategy for the Istra region. Recently there has been some slight progress in the area of international cooperation as Croatia has been accepted as a participant in the Global Environment Facility. There is also some hope to develop projects with the sponsorship of the UNDP.
Environmental problems requiring external funds are seen as follows: concrete projects regarding solid and hazardous waste management; clean up of the principal rivers and the Adriatic Sea, and; the establishment of a comprehensive monitoring system for air and water. In some cases, seed money would be enough to initiate activities, which could then be continued with funds from other sources.
The main criticism of Western financial assistance is that it is usually too strongly tied to the use of Western technology and expertise. Western help has more positive impacts if the technical expertise is oriented towards a concrete field of knowledge which is missing in Croatia. Croatia has to assess, understand and better present its environmental problems and needs to potential Western donors in order to secure future assistance. The greatest value of cooperation is seen as experience and knowledge to be gained rather than money obtained. International advice and projects can play an important role also because they seem to have a more influential impact than similar advice or initiatives coming from Croatian institutions.
Non-financial assistance is especially needed in the following areas: drafting legislation and addressing legal issues; developing standards and enforcement guidelines; training in environmental management; cooperation in research, information systems, and equipment; environmental education in and out of schools; the post-war reconstruction of ecotourism; reconstruction and improvement of the environmental quality in national and nature parks in the post-war period to sustain the biodiversity.