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Capital that Transforms Business: HBOR’s Green Support for Entrepreneurs

In an era of increasingly pronounced climate change and global disruptions in supply chains, the resilience of the economy becomes a strategic imperative. In this context, the Croatian Bank for Reconstruction and Development (HBOR) has positioned itself as an important strategic partner for entrepreneurs in transforming and adapting their businesses to new market conditions, as well as a key institution that promotes the green transition of the Croatian economy.

In recent years, HBOR has significantly expanded its portfolio of financial instruments aimed at sustainability – from favorable credit lines and combinations with grants to investments in venture capital funds focused on innovative projects. Each of these initiatives is designed to strongly encourage the green transition of the business sector, enhance competitiveness, and invest with long-term positive effects on the environment and society.

Financial Solutions for Sustainable Development – From Idea to Realization

Through existing programs, HBOR supports projects in energy efficiency, renewable energy sources, circular economy, modernization of production processes, reduction of greenhouse gas emissions, and circular economy. In 2024 alone, nearly 300 million euros have been approved for sustainability-oriented projects, and as part of the National Recovery and Resilience Plan (NPOO), more than 130 projects have been financed, including investments in solar energy, energy renovation of buildings, electrification of production, and modernization of industry. It is important to highlight that all HBOR programs under the NPOO are fully aligned with the DNSH principle (do no significant harm), ESG criteria, and the obligation to report on environmental and social impact.

New programs such as loans for modernization of production allow entrepreneurs to combine loans with grants by enabling the write-off of part of the principal, up to 50% – provided that predefined conditions are met. A program titled ‘Loans for Energy Efficiency for Entrepreneurs’ is also in the pipeline, with a total of 250 million euros allocated, specifically aimed at companies investing in equipment renovation, introducing renewable energy sources, and reducing their carbon footprint.

– Long-term sustainability and resilience of the economy are no longer an option but a necessity. That is why at HBOR, we actively design and launch financial instruments and programs that promote the green transition, support innovations, and create competitive advantages for our entrepreneurs. Our role is to provide them not only with access to capital but also with the confidence that this capital will create value for their business and for the entire community and environment. In times of significant market changes, we want to be a source of stability, as well as an incentive for a leap towards a sustainable future – says the CEO of HBOR, Hrvoje Čuvalo.

Venture Capital Funds as Catalysts for Innovation and New Technologies

Recognizing the importance of investing in innovative ideas and sustainable business solutions, HBOR has initiated many initiatives in collaboration with the European Investment Fund (EIF), such as the CROGIP and CROGIP II programs. These programs provide an alternative source of financing for Croatian companies by establishing multiple venture capital funds that invest in various projects, including the development of climate and innovative technologies. The latest program for investing in alternative investment funds further encourages the establishment of funds that will invest in companies focused on climate-neutral products and services.

In 2024, as part of the CROGIP program, the first regional deep-tech fund – Vesna Deep Tech Venture Fund – was launched, which invests in innovations arising from university and scientific institutions in Croatia and Slovenia. Such instruments enable research, development, and sustainable commercialization to merge into a strong economic impact, thus creating the prerequisites for the development of a sustainable startup ecosystem.

Together Towards a More Resilient Future

As a state development bank, HBOR will continue to invest even more intensively in projects that strengthen climate resilience, promote decarbonization, and shape a smarter, cleaner, and more competitive economy. Through favorable loans that encourage the green transition, venture capital funds, and strategic partnerships with key stakeholders, doors to sustainable growth are opened for entrepreneurs, while HBOR remains their reliable partner in the transition to a resilient and competitive economy.