Following the global economic crisis of 2008, the concept of green economy has become a significant field of interest for scientific research as well as for specific development policies in various countries around the world. More recently, the transition towards green economy has been considered a desirable model and alternative approach to development encompassing all elements of sustainable development—economic, ecological and social. By adopting the 2019 European Green Deal, the European Union has explicitly opted for a new pattern of development that involves all European countries transitioning their economies, i.e., achieving economic growth while significantly reducing their negative environmental impact. The aim of this paper was to assess the possible effects of Croatian economy transitioning in accordance with the European Green Deal strategic framework and resources planned for Croatia in the following EU budgeting period (2021–2027). Based on the regression analysis results and two developed investment scenarios for the green transition, the authors have shown the potential positive effects of such a process on the gross domestic product and on total employment. These results were further supported by arguments based on examples for specific sectors and economic activities. The authors conclude that transitioning towards green economy, i.e., implementing specific green economy policies can serve to push sustainable development in the EU while simultaneously contributing to the implementation of the strategic goals of the European Green Deal.

The Croatian economy performs unfavorably in terms of the impact of production on wastewater discharges, which is particularly pronounced in the industrial sectors. Each unit of gross industrial value added produced in Croatia generates significantly more wastewater discharges than in most European countries with a similar level of economic development. Moreover, in 2020, only 26.9% of the total industrial wastewater discharges of the Croatian economy were treated, while 76.2% of the total industrial wastewater discharges were directly discharged into the environment. Since most of the industrial production in the Croatian economy is destined to meet the intermediate needs of other sectors, policy makers in Croatia must take into account that the level of industrial wastewater discharges is also influenced by the production level of sectors that depend on the intermediate products of wastewater-intensive industries. For this reason, we developed a wastewater extended input–output model of the Croatian economy to determine and analyze the impact of intersectoral linkages in Croatian production systems on the amount of untreated wastewater discharges. The results of the study show that wastewater flows in the Croatian economy are largely generated by the processes of production and consumption of intermediate products from the chemical and petroleum refining sectors, which also account for the largest share of the calculated wastewater footprint of total Croatian production. In light of the emerging empirical evidence, it can be concluded that targeting market-based and regulation-based measures at wastewater-intensive producers is not sufficient to reduce the relatively high level of untreated wastewater discharges in the Croatian economy. There is also a need for appropriate integrated policy measures in sectors that have a large wastewater footprint due to their established supply chains.