In recent years, Croatia has experienced increasing flooding, droughts, biodiversity loss and climate change impacts. The result: damage to infrastructure, and saline intrusion in coastal areas vital to the economy.
These trends are expected to get worse, at a huge cost to Croatia. According to an estimate by the European Environment Agency, climate change costs the country €2.5 billion each year.
“With climate change accelerating, water-related threats are becoming more pressing – demanding that water users and operators invest in solutions that can achieve multiple objectives,” says Beatriz Merino, director of financial institutions in Europe at The Nature Conservancy, a global conservation non-profit organisation working with the private sector, governments, international financial institutions and communities in more than 72 countries. “Adaptation to climate change is necessary in all sectors, but especially in the water sector.”
To help Croatia deal with these growing water-related challenges, the European Investment Bank has been collaborating closely since October 2023 with the civil society organisation The Nature Conservancy, so that the financing arm of the European Union can identify investment opportunities for nature-based solutions that address adaptation and water security issues in Croatia.
“The Nature Conservancy’s collaboration with the European Investment Bank has been key to opening the door to further exploration of the benefits of nature-based solutions in Croatia’s watersheds,” says Irma Popović Dujmović, Croatia freshwater programme director at The Nature Conservancy.
- Read more about how EU financing helps Croatian small businesses grow
Nature-based solution for infrastructure and water security
While traditional infrastructure remains the conventional intervention in the water sector, there’s a growing interest in finding alternative solutions that deliver multiple benefits to communities, including human health and well-being and job creation, as well as increased resilience of ecosystem services (such as freshwater) and the protection of biodiversity.
Nature-based and hybrid solutions fit the bill.
These solutions protect, sustainably manage, and restore ecosystems while tackling societal challenges like climate change, water security and natural disasters. In some cases, combining green interventions −restoring forests and wetlands− with “grey” infrastructure can cost-effectively enhance service delivery, while also increasing ecosystem resilience and empowering communities.
In addition to benefitting water security, nature-based solutions are attractive to investors because they can simultaneously protect and restore the health and function of natural ecosystems, while improving the management of working lands.
For example, restoring native forest cover can retain earth sediments and improve soil moisture, thus improving water quality, as well as reducing erosion, flood and fire risk. It also provides a habitat for wildlife, recreational opportunities, and a source of forest products for rural communities, including mushrooms, wild plants, honey etc.
©Ciril Jazbec/The Nature Conservancy
Engaging with local communities
Despite this effectiveness, nature-based solutions are often overlooked due to insufficient awareness of their potential, limited local data and research on the effectiveness of nature-based solutions, and a need for a supportive policy and land tenure framework.
The European Investment Bank and The Nature Conservancy have engaged with key Croatian stakeholders to increase understanding of the potential contribution of nature-based solutions to the country’s climate adaptation strategy.
“Collaborating with our civil society partner, The Nature Conservancy, enables the EIB to increase understanding and awareness of the huge benefits of nature-based solutions for climate adaptation, water security and biodiversity,” says Hakan Lucius, head of sustainability at the European Investment Bank.
Local entities such as Croatian Waters, the Ministry of Environment and Green Transition, the Association of Cities, the Institute for Environment and Nature Protection, and several Croatian non-governmental organisations are collaborating on this initiative.
“Our partnership with The Nature Conservancy in Croatia marks an important step in addressing the country’s mounting water stress and climate change challenges through nature-based solutions,” says Slađana Ćosić, head of the EIB Group office in Croatia.
It’s essential for local institutions to understand the costs and benefits of these solutions, and how to implement them effectively. That’s especially true in regions unfamiliar with these approaches. It’s also important that existing policies and regulations are adapted to facilitate the planning and development of these solutions.
For now, specific locations and suitable nature-based measures to address local water security problems have been identified, and the publication ‘Harnessing the power of nature-based solutions concerning water security challenges in Croatia’ has been presented to Croatian and European Investment Bank stakeholders.
“In the next phase, we will focus on turning that interest into action, digging deeper into case studies to unlock insights that will help accelerate the deployment of nature-based solutions at scale in Croatia,” says Irma Dujmović.
Banner image @Chip Carron / The Nature Conservancy.
