Latest data available shows that in the last decade, energy demand in households in Croatia is on a constant rise, with yearly increase of 4 %. Within that, in total energy demand of households, heating demands contribute with more than 50 %, offering significant room for energy consumption reductions. Rapid development of the real estate market in recent years induced the government to develop a model of subsidies housing that would make apartment owning more affordable.
This included significant financial investments, but without a clear strategy, as large number of those apartments remained unsold, the main goal of the project was not achieved. Therefore, this research analyses two scenarios that include better thermal envelope of selected buildings. Based on dynamic energy simulations, proposed improvements of the building envelope are compared to the current thermal performance of two selected buildings. This comparison allows one to make heating cost estimations based on the heating energy consumption, but it also enables making carbon dioxide emission projections. Focusing on those two parameters, that are directly influenced by heating energy consumption, this research aims to prove that better thermal performance of buildings raises the environmental quality, but also reduces the costs of living, which should be the goals in projects that are directly financed by the government.