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Croatia Favors Investors Over Environment in Impact Assessments

by Krystal

Environmental impact assessments (EIAs) are crucial tools intended to protect ecosystems from potential damage due to construction and development projects. However, in Croatia, the EIA process has frequently been manipulated to favor investors over environmental protection, resulting in significant harm to natural habitats. This article examines the systemic issues within the EIA procedures in Croatia, focusing on the case of the HE Lesce hydroelectric power plant and other similar projects, and explores the broader implications for environmental policy and protection.

The HE Lesce Case Study: A Cautionary Tale

In 2010, the inauguration of HE Lesce, Croatia’s first hydroelectric power plant since independence, was celebrated as a milestone in the country’s pursuit of energy independence. However, this project quickly became emblematic of the failures in Croatia’s EIA procedures.

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Initial Concerns and Oversights

HE Lesce, constructed with a 52-meter-high dam and a 146-hectare accumulation lake, was built on the river Dobra, an area slated to be part of the Natura 2000 network—a European network of nature conservation areas. Local activists had warned as early as 2005 that the EIA study used to justify the project was outdated, originating from 1986. Despite these concerns, the Croatian state-owned energy company HEP proceeded, securing a construction license without updated environmental research.

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Environmental Consequences

By 2012, just two years post-inauguration, the environmental damage was apparent. The water flow in the Dobra River had dramatically increased, leading to flooding, damage to the riverbed, and surrounding infrastructure. The state water management agency, Hrvatske vode, had to start repair works to mitigate the extensive damage caused by the plant. Despite ongoing protests and visible harm, the Ministry of Environment Protection and Green Transition continued to justify the project with the outdated 1986 EIA study, which is now lost.

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SEE ALSO: EIA Natural Gas Report: Timings and Impact

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Systemic Issues in EIA Procedures

HE Lesce is not an isolated incident. The problems with EIAs in Croatia are systemic and multifaceted, involving regulatory loopholes, conflicts of interest, and inadequate enforcement.

Exemptions and Inadequate Assessments

A significant issue is the high rate of exemptions from EIA requirements. In 2023, over 94% of projects requesting exemption from conducting an EIA study were granted it by the Environment Ministry. This included major infrastructure projects and some hydropower plants and wind farm upgrades. These exemptions expedite project approvals but often at the cost of thorough environmental protection.

Wind Farms and Regulatory Failures

Wind farms have highlighted the flaws in the EIA process, particularly with the Krs Padene wind farm, which became a major scandal. Despite the sensitive location near Natura 2000 areas and Krka National Park, significant project changes were approved without updated EIA studies. The Ministry’s inconsistent application of regulations and its ultimate revocation of a requirement for additional assessments under investor pressure exemplify the manipulation within the system.

European Commission Intervention

The European Commission has intervened due to Croatia’s failure to comply with the Habitats Directive concerning wind farm projects. This has resulted in ongoing infringement procedures, highlighting the severity of the issue at an international level.

Manipulation and Conflicts of Interest

EIAs in Croatia are often conducted by private companies paid by investors, creating a conflict of interest. These studies tend to favor the investors, sometimes avoiding thorough research to prevent costly preventive measures. The case of the Krs Padene wind farm, where necessary ecological evaluations were circumvented under political and investor pressure, underscores the systemic corruption and lack of transparency.

Consequences and Legal Actions

Environmental NGOs have occasionally succeeded in legal actions to enforce proper EIA procedures. For example, in the case of sediment excavation from the Drava River, NGOs successfully challenged the exemption from EIA requirements, although the environmental damage had already occurred.

Recommendations for Reform

To address these issues, several reforms are necessary:

Independent EIA Commission: Establish an independent body to oversee EIAs, reducing conflicts of interest.

Updated Legislation and Enforcement: Strengthen regulations to ensure timely and comprehensive environmental assessments.

Transparency and Public Involvement: Increase transparency in decision-making processes and enhance public consultation periods.

EU Compliance: Ensure full compliance with EU environmental directives to prevent further legal actions and improve environmental protection standards.

Conclusion

The EIA process in Croatia is plagued by systemic issues that favor investment projects over environmental protection. The HE Lesce hydroelectric power plant is a stark example of the consequences of inadequate and outdated EIAs. To safeguard Croatia’s natural heritage, substantial reforms are needed to ensure that environmental impact assessments are conducted rigorously, transparently, and independently.

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