The EIB is considering a loan for new trams in Zagreb, as the city continues to invest in trams and electric buses to decarbonise public transport.
Croatia’s capital is continuing to transform its public transport into a low-emission system, and the next step could be financially supported by the European Investment Bank (EIB). The European institution is considering granting a loan of EUR 75 million for the purchase of new trams and buses, with an eligible cost of EUR 184 million.
The project forms part of the ‘Decarbonisation of Public Transport in Zagreb’ programme, with the investment representing a further stage in a wide-ranging process of electrifying urban mobility, given that the tram remains the backbone of the city’s public transport system.
The programme aims to modernise public transport between 2025 and 2030 through the purchase of 20 new electric trams, up to 34 metres in length, and 100 electric buses measuring 9, 12 and 18 metres. The vehicles will replace part of the fleet that has reached the end of its service life and will help reduce emissions from urban transport.
The modernisation programme is already underway
The EIB’s analysis comes at a time when Zagreb is already implementing a substantial rolling stock renewal programme.
At the end of 2025, the operator Zagrebački električni tramvaj (ZET) completed the handover of the first 20 low-floor trams manufactured by the Croatian company Končar – Električna vozila, under a contract worth EUR 49.8 million.
During the same period, contracts were signed for a further 20 new trams, worth EUR 55 million, of which nearly EUR 44 million is funded by the European Union through the Competitiveness and Cohesion Programme. Delivery of these is scheduled for 2026.
At the same time, the authorities also contracted for 62 electric buses, an investment valued at EUR 56.75 million, of which over EUR 45 million is funded through Croatia’s National Recovery and Resilience Plan. According to the municipality, all the buses will enter service by October 2026.
These projects complement the programme currently being assessed by the EIB and demonstrate that the city is pursuing an accelerated renewal of both its tram and bus fleets.
Objective: low-emission public transport
Through the new funding being assessed by the EIB, Zagreb aims to accelerate the decarbonisation of public transport and reduce reliance on private cars.
According to the project factsheet published by the bank, the investment aims to reduce greenhouse gas emissions, improve air quality, reduce noise pollution, increase energy efficiency and enhance road safety.
The new trams and electric buses will replace vehicles that have reached the end of their service life, offering a higher level of comfort, accessibility and reliability.
Zagreb’s tram network, which stretches over 110 km, is one of the most important urban transport systems in Central and South-Eastern Europe. Local authorities believe that investment in modern rolling stock is essential for making public transport more attractive and for reducing road traffic.
At the same time, the municipality and the operator ZET have set themselves an ambitious target for the next decade: the complete electrification of their fleet of around 500 buses, transforming Zagreb into one of the European cities most committed to low-emission urban mobility.
If the loan under consideration by the EIB is approved, it will bolster one of Croatia’s most extensive public transport modernisation programmes, combining European funds, EIB financing and local investment to accelerate the transition to a cleaner and more efficient urban mobility system.
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