Charting Croatia‘s BlueEconomy Pathways PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized February2024 ©2024TheWorldBank 1818HStreetNW,WashingtonDC20433Telephone:202-473-1000 Internet:www.worldbank.org SOMERIGHTSRESERVED ThisworkisaproductofthestaffofTheWorldBank.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsoftheExecutiveDirectorsofTheWorldBankorthegovernmentstheyrepresent.TheWorldBankdoesnotguaranteetheaccuracyofthedataincludedinthiswork.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries. NothinghereinshallconstituteorbeconstruedorconsideredtobealimitationuponorwaiveroftheprivilegesandimmunitiesoftheWorldBank,allofwhicharespecificallyreserved. RIGHTSANDPERMISSIONS Thematerialinthisworkissubjecttocopyright.BecausetheWorldBankencouragesdisseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattributiontothisworkisgiven. ATTRIBUTION Pleasecitetheworkasfollows:WorldBank.2024.ChartingCroatia’stheBlueEconomyPathways ©WorldBank. Allqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtoWorldBankPublications,TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. Coverphotography:©BenanBerhan Tableofcontents ChartingCroatia‘sBlueEconomyPathways1 Abbreviations4 Acknowledgements8 Abstract9 ExecutiveSummary10 Introduction18 ScopeandMethodologyoftheReport19 QuestionsWhichthisReportAimstoAddress20 Croatia’sTraditionalMaritimeSectorsandEconomicContributionsataGlance20 MaritimeSectors–AnEngineForGrowth,butareTheySustainable?22 Chapter1.TheBlueEconomyDevelopmentContext24 WhatisBlueEconomy,andDoesItMatter?25 SnippetsoftheBlueEconomyDevelopmentFrameworkforSustainableGrowthofMaritimeSpace26 Chapter2.MaritimeEconomy,GrowthDriversandNaturalCapital28 PhysicalGeographyandSocioeconomicProfileofCroatia’sAdriaticCoast30 CoastalandMaritimeEconomy,StructureandTrends33 BlueNaturalCapital35 EstablishedBlueEconomySectors38 CoastalTourism38 FisheriesandAquaculture42 MaritimeTransport47 ShipbuildingandRepair50 OilandGas51 SeaSaltandInertMaterials53 EmergingBlueEconomySectors53 BlueEnergy54 OtherBlueEconomyActivitiesforFutureDevelopment55 Innovations,ResearchandDevelopment56 Chapter3.Croatia’sMaritimeSpace–ThreatsandOpportunities57 NaturalandHuman-InducedThreatstotheAdriaticMarineandCoastalEnvironment58 ClimateChangeVulnerability58 MunicipalSolidWaste61 MunicipalWastewater62 PressuresfromTourismIndustry62 UrbanizationandLandUse64 EnvironmentalHealthofCoastalandMarineEcosystems65 UserConflictsandSynergies67 OpportunitiesforEstablishedBlueEconomySectors70 CoastalandMarineTourism70 FisheriesandAquaculture71 FishProcessingIndustry72 2ChartingCroatia‘sBlueEconomyPathways ShipbuildingandRepair73 OpportunitiesforAdvancingBlueEconomyTransition74 Chapter4.Strategies,Policies,andInstitutionsforBlueEconomyTransition77 StrategicContextforSustainableEUMaritimeSpace78 NationalPolicyFrameworkforTransitiontoBlueEconomy81 MarineSpatialPlanning87 BlueGovernance,InstitutionsandStakeholders89 Innovation,ResearchandDevelopment94 RegionalPartnerships:EUSAIR–ACommonMaritimeAgendaforBlueEconomy99 Chapter5.FinancingCroatia’sBlueEconomyTransition DemandforPrivateBlueFinance SupplyofSustainableFinancing 102 108 111 Chapter6.TowardtheBlueEconomyPathway PolicyDevelopment,Planning,andInstitutionalFramework ProtectionofMarineandCoastalResources InclusionandStakeholderParticipationinTransitioningtoBlueEconomy MobilizingBlueFinance PathwaysofCroatia’sMaritimeEconomy 112 113 114 114 115 116 References120 Annexes Annex1:NotesonTermsandDefinitionsUsedinTheReportAnnex2:NotesontheApproachandDataUsedintheAnalysisAnnex3:EconomicProfilesofAdriaticCountiesofCroatiaAnnex4:OutlineoftheBlueEconomyGovernanceFrameworkAnnex5.ListofNationalPoliciesHarmonizedwithEU Annex6.StateoftheEnvironmentandPressuresintheAdriaticMarineEnvironment–MeasuringSelectedGES Annex7.SWOTAnalysisofEstablishedMaritimeSectors 123 123 127 128 131 135 139 142 LISTOFFIGURES Figure1.OverviewofImportantMaritimeSectorsinCroatia21 Figure2.BlueEconomyDevelopmentFramework26 Figure3.GDPinAdriaticCroatia2000-202031 Figure4.AdriaticCroatiaGDPPerCapita(2000–2020)32 Figure5.Exports,Imports,NetExportsofEconomicSectors*intheAdriaticCroatiain2022(€’000)32Figure6.ShareofAdriaticEconomyinTheNationalGvaofCroatia,PerSectorsin2000and2020(%)33 Figure7.GVAPerSectorinTheAdriaticEconomyDuring2000–2020(€,Thousands)34 Figure8.SeasonalChangesofAccommodationandFoodServiceActivitiesinCroatia andAdriaticCountries35 Figure9.NatureProtectedAreasinCroatia36 Figure10.Natura2000SitesinCroatia36 Figure11.TouristArrivalsinCommercialAccommodationEstablishmentsinAdriaticCroatia,2005–202239 Figure12.TourismDensity:NumberofNightsinanAreaUnit(km2)andTourismDensityRate(Number ofOvernight