Croatia: Zagreb utility to get EIB advice on revamping municipal operations as capital seeks climate neutrality

This article is published in association with European Investment Bank.

• EIB to advise Zagreb utility Zagrebački holding on upgrading logistics that underpin services ranging from water supply to building maintenance.
• Advisory agreement covers array of company facilities and equipment.  
• Accord advances Croatian capital’s green goals including climate neutrality by 2030.

The European Investment Bank (EIB) will advise Croatian utility Zagrebački holding, which provides the capital Zagreb with services ranging from water and energy supply to building and park maintenance through a host of subsidiaries, on upgrading operations. Under a new advisory agreement, the EIB will work with Zagrebački to consolidate facilities, streamline logistics and optimise equipment, vehicles and land.

The goal is to reorganise the company’s network of small and medium‑sized operational nodes and prepare the design for the new main operational hub, while also assessing financing options and evaluating the centralisation of administrative functions in a modern, energy efficient headquarters.

The project will cut fuel consumption and greenhouse gas emissions through shorter routes, better fleet use and more energy-efficient buildings. This in turn will lower the carbon footprint of the city’s services and support its rollout of low‑emission and electric vehicles, helping Zagreb meet a goal of becoming climate neutral by 2030.

“A well‑organised and energy‑efficient municipal infrastructure has a direct and meaningful impact on the everyday experience of citizens. Through our advisory support, Zagreb could transform its operational model, reduce costs, cut emissions and deliver higher quality services to its residents. We are proud to support Croatia’s capital as it accelerates its transition toward climate neutrality and builds a more sustainable and resilient urban future” said EIB Vice-President Ioannis Tsakiris, responsible for EIB advisory operations.

Zagreb, which has a population of almost 800,000, is part of a European Union programme called “Climate Neutral and Smart Cities”. The new EIB agreement stems a European economic-stimulus programme known as InvestEU and notably to its “Advisory Hub”.

“Since assuming management of Zagreb Holding, we have been focused on improving operational efficiency. The development of a sustainable and energy-efficient network of municipal service bases marks a further step in that direction. This new network of municipal bases and local branches will bring us closer to the point of service delivery, thereby reducing the burden on public transport, lowering the environmental impact of daily operations, and improving overall resource efficiency,” said Ivan Novaković, President of the Management Board of Zagreb Holding.

The EIB advisory assignment will help lay the foundation for future investments aligned with Zagreb’s long-term development strategy and EU climate objectives. By reducing resource consumption and energy use, the project aims to generate lasting environmental and social benefits for the city and its residents.

The advisory accord complements EIB financial support for the city of Zagreb including a €395 million loan for sustainable urban infrastructure. The EIB is already providing financial backing to the city for renewable-energy and public-transport upgrades, social and affordable housing, schools, kindergartens and the digitalisation of municipal services.

In addition, the EIB provides technical advice to Zagreb under an EU initiative known as European Local Energy Assistance, or ELENA.

Background information

EIB Group   

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructure, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 

EIB Advisory 

In addition to financing, the EIB Group offers advisory services that help public and private clients develop markets, build capacity and support high impact investment projects. In 2025, EIB Advisory helped accelerate project delivery and crowd in finance for 179 projects worth more than €80 billion in the European Union and beyond.

InvestEU 

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.