Pollution Charges for Environmental Protection
Pollution Charges for Environmental Protection
Croatia’s car fleet is old and polluting, while the auto industry has shrunk sharply since 2009.
The paper proposes reforming environmental fees to lower new-car prices, refresh the fleet, cut emissions, and preserve jobs. Key measures include: reducing the End-of-Life Vehicle (ELV) fee from 0.85 to 0.45 HRK/kg and charging it after sale (with a long-term goal to abolish it); removing duplicate tire-recycling fees for importers; and replacing age-based pollution charges with an emissions (eco-standard) factor so higher-emitting vehicles pay more. Collected funds should be earmarked and used to incentivize low-emission, hybrid, and electric vehicles. Expected benefits are cleaner air, safer roads, and stronger industry employment.