45 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE To promote the shift to a circular economy, the EU has created strict policies and strategies regarding waste management to limit, recycle, or repurpose generated waste. One of the most influential pieces of legislation introduced by the EU in 1999, the European Landfill Directive, called for a decrease in the amount of landfilled waste, setting the stage for further legislation. In 2008, the EU released the Waste Framework Directive, which placed more importance on solid waste collection to facilitate recycling practices (Agovino et al., 2024). These pieces of legislation set the tone for waste management in advance of Croatia’s entrance into the EU. In 2015, the EU Circular Economy Action Plan was adopted, aiming at creating more sustainable products, empowering consumers to value sustainable products, and promoting economic circularity (European Commission, 2020). As Croatia was already a member state of the EU upon introduction of this system, it was expected to comply with these regulations, requiring adjustments to Croatian legislation. EU framework implementation in Croatia Prior to entry, Croatia was required to implement the acquis communautaire, the collective body of EU laws, regulations, and directives. Croatia struggled to adhere to these policies, particularly regarding waste management. In 2004, the European Commission declared waste management the largest problem area in Croatia’s environmental sector, because many Croatian national regulations had never been implemented, let alone stricter EU regulations. Few recycling facilities existed, and no return and collection systems were put in place. In 2008, at least 86% of solid waste was landfilled, and only 13% was collected to recycle (Stanic-Maruna & Fellner, 2012). The commission also stated that quantities of illegal landfill and disposal of waste were eight times higher than disposal at official sites (European Union, 2004). The EU set national targets and the national government passed laws, but hundreds of separate municipal waste companies and local jurisdictions with differing budgets and capacities were responsible for implementing these changes, with no mechanism to coordinate efforts or equalize capacities. Between 2004 and 2013, to gain EU entry, Croatia began nationally aligning its waste management policies with those of the EU. In 2013, Croatia adopted the Act on Sustainable Waste Management to implement the principles of international environmental law and align with the acquis communautaire (Croatian Parliament, 2013). Although some national waste collection and disposal policies were implemented, the changes were not sufficient, according to the EU, and, in October 2015, Croatian authorities received a letter of formal notice regarding their nonconformities. After this notice, in July 2016, the European Commission pursued legal action against Croatia within its July Infringements Package, outlining that Croatia had not made satisfactory progress in adopting the Waste Framework Directive. Specifically, Croatia was noncompliant in requirements for waste management permits, waste prevention programming, and ensuring proper inspection protocols, among other issues (European Commission, 2016). This noncompliance was attributable to individual municipalities’ unsuccessful efforts in implementing policies set by the national government. The warnings were, in effect, a symptom of fragmentation. Despite the national will, the governance structure left local governments unable to deliver on it. In 2020, a new Circular Economy Action Plan was adopted in the EU, establishing tighter requirements (European Commission, 2020). The Circular Economy Act, due for implementation in 2026, will continue building on the Circular Economy Action Plan, with the intention of making the EU a leader in the circular economy (Circular Economy, 2023), and could further extend Croatia’s lag behind other EU countries. Municipalities already struggling to implement these regulations will be under even more pressure from both the national government and the EU to make necessary changes under a short timeline. Funding opportunities through the EU Joining the EU gave Croatia access to a large amount of funding to increase compliance with EU regulations and directives. Through the EU Competitiveness and Cohesion Operational Programme, Croatia backed 8271 projects, including many waste infrastructure improvements. For instance, in Dubrovnik-Neretva County, a project from 2019 to 2023 funded the development of a waste management system that included six transshipment stations. The total budget was €54M and the EU contributed €38M, about 70% of the total cost (European Commission, n.d.-c). Other projects throughout the country funded the purchase and installation of municipal vehicles to promote separate collection, construction of recycling yards, and an increase in waste recovery (European Commission, n.d.-b). These projects have proved substantially successful in building the infrastructure needed to process the generated waste.
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