COMMISSION STAFF WORKING DOCUMENT Guidelines for the Implementation of the Green Agenda for the Western Balkans Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions An Economic and Investment Plan for the Western Balkans
Date: 2020-10-06
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: EU financial instrument, Western Balkans, air quality, biodiversity, circular economy, climate change policy, digitisation, food policy, soil pollution, water pollution

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.10.2020  SWD(2020) 223 final  COMMISSION STAFF WORKING DOCUMENT Guidelines for the Implementation of the Green Agenda for the Western Balkans Accompanying the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions An Economic and Investment Plan for the Western Balkans {COM(2020) 641 final}  
 
 
Table of Contents 

1. 

Introduction ................................................................................................................................... 2 

2.  Decarbonisation: climate, energy, mobility ................................................................................. 2 

3.  Circular economy .......................................................................................................................... 7 

4.  Depollution: air, water and soil .................................................................................................... 9 

5.  Sustainable food systems and rural areas ................................................................................. 12 

6.  Biodiversity: protection and restoration of ecosystems ........................................................... 13 

7.  Mechanisms of Implementation ................................................................................................. 14 

8.  Financing Instruments ................................................................................................................ 19 

1 

 
 
 
 
 
 
1. Introduction 

This Staff Working Document (SWD) outlines in more detail the actions related to the Green 
Agenda  for  the  Western  Balkans  included  in  the  Communication  on  an  Economic  and 
Investment  Plan  for  the  Western  Balkans  adopted  by  the  European  Commission.  It  further 
details  the  five  pillars  of  the  Green  Agenda:  (1)  climate  action,  including  decarbonisation, 
energy  and  mobility,  (2)  circular  economy,  addressing  in  particular  waste,  recycling, 
sustainable production and efficient use of resources, (3) biodiversity, aiming to protect  and 
restore  the  natural  wealth  of  the  region,  (4)  fighting  pollution  of  air,  water  and  soil  and  (5) 
sustainable  food  systems  and  rural  areas.  Digitalisation  will  be  a  key  enabler  for  the  above 
five pillars in line with the concept of the dual green and digital transition. The objectives of 
these  pillars  should  be  pursued  through  concrete  actions  and  supported  by  mechanisms  and 
financial instruments set out in the following sections. 

2. Decarbonisation: climate, energy, mobility  

Climate Change 

  The  Western  Balkans  is  one  of  the  regions  in  Europe  most  heavily  affected  by  the 
impact  of  climate  change  and  this  trend  is  projected  to  continue,  with  estimates  of 
temperature increases of 1.7 – 4.0°C, and even exceeding 5.0°C by the end of the century1, 
depending on the global effort in greenhouse gasses emission reduction. 

  The  Paris  Agreement,  ratified  by  five  of  the  Western  Balkan  partners,  commits  its 
signatories  to  take  action  to  ensure  that  the  global  average  temperature  increase  is  kept 
well below 2° and to pursue efforts towards limiting global warming to 1.5°. In line with 
the  European  Climate  Law,  climate  neutrality  will  be  reflected  in  the  EU’s  bilateral 
relations and accession  negotiations with  the Western Balkans, who  should  already now 
start transforming their societies accordingly.  

Achieving 

 
climate 
neutrality  by  2050  means  making 
far-reaching  changes  to  the  way 
we  live  today,  which  is  why  the 
Commission  is  proposing  to  cut 
greenhouse  gas  emissions  55% 
by  2030.  This  increased  level  of 
ambition  for  the  next  decade  will 
put the EU on a balanced pathway 
to climate neutrality by 2050.  

 
So  far,  the  EU  has  been 
leading  the  way  in  the  transition 
towards 
climate-neutral 
economy and has much to offer in 
experience  with 
terms 

of 

a 

1 https://www.rcc.int/news/383/rcc-publishes-study-on-climate-change-in-the-western-balkans-alarming-increase-
of-temperature-over-the-whole-territory 

2 

 
 
                                                
decoupling economic growth from  resource use. The EU’s experience, know-how and 
resources can support Western Balkans in their efforts to enhance resilience and adapt to 
the unavoidable impacts of climate change, while also achieving synergies with the clean 
air objectives (one atmosphere approach).  

  Policy cooperation and provision of viable alternatives to fossil fuels can prove pivotal in 
helping  partner  countries  reconsider  unsustainable 
infrastructure  and  energy 
investments. Technical and financial assistance will be needed to tap into the enormous 
potential of a new economic model based on sustainability and climate-neutrality.  

  Climate change will continue to create significant stress in Europe in spite of mitigation 
efforts.  Strengthening  the  efforts  on  climate  proofing,  resilience  building,  prevention 
and preparedness in the region is therefore crucial. It should include engaging the private 
sector in resilience investments and developing natural disaster risk transfer mechanisms.  

  A  broad  consensus  is  emerging  that  carbon  pricing  will  be  an  important  instrument  in 
achieving  climate  goals.  The  early  inclusion  of  the  Western  Balkans  in  the  Emissions 
Trading Scheme could be explored. It could be a key tool to create economic incentives 
for climate action and help smoothen the transition to climate-neutrality.  

  The transition  to  climate-neutrality must be  socially just  and  inclusive  in order to  be a 
success. It must be recognised that not all countries or regions start the transition from the 
same  point  or  have  the  same  capacity  to  respond,  and  that  the  most  vulnerable  are  the 
most  exposed  to  the  harmful  effects  of  climate  change.  A  system  equivalent  to  the 
European  Just  Transition  Mechanism  foreseen  in  the  European  Green  Deal  could  be 
explored.  

  These changes will require the backing of the citizens. According to an EU survey2, 93 % 
of  EU  citizens  consider  climate  change  to  be  a  serious  problem.  A  similar  survey 
conducted  in  the  Western  Balkans  in  2019 3  revealed  that  only  65%  of  the  region’s 
population consider climate change a threat. The European Climate Pact extended to the 
region  could  be  a  tool  to  raise  awareness  and  ensure  buy-in  from  the  civil  society  and 

INITIATIVES 

  Facilitate swift alignment with the EU Climate Law 
  Assist the partners in the preparation and implementation of long-term climate adaptation 

strategies to increase resilience, notably through climate-proofing of investments 

  Provide technical assistance on Emissions Trading Scheme and alternatives to fossil fuels  
  Explore options for early inclusion of the Western Balkans in the EU Emissions Trading 

Scheme if fully aligned 

  Include the region in the European Climate Pact and its activities 

individual citizens. 

Clean Energy Transition 

2 Special Eurobarometer 490  April 2019 “Climate Change” Report  
3 Balkan Barometer 2019 https://www.rcc.int/pubs/89/balkan-barometer-2019-public-opinion-survey 

3 

 
 
                                                
  Coal  is  still  fundamental  to  the  energy  sector  in  the  Western  Balkans,  accounting  for 
around  70%  of  electricity  produced  in  the  region,  and  in  some  countries  even  97%. 
Albania, with strongly developed hydropower, is a notable exception.  

  Western Balkan governments have committed to pursuing a clean energy transition and 
sustainable development at the Ministerial Meeting in Podgorica in February 2019.  This 
transition  should  reduce  energy  imports,  develop  renewable  energy  sources,  strengthen 
regional energy security, unlock greater economic growth4, and address persistent air and 
related health pollution challenges.  

infrastructure  management  and  planning 

  Although  significant  progress  has  been  made  towards  improving  connectivity  between 
Western  Balkans  partners,  the  regional  energy  market  is  yet  to  be  accomplished.  In  this 
is 
sense,  a  regional  approach  to 
fundamental  to  deliver  resource  efficiency  gains  and  reduce  costs.  Energy  efficiency,  a 
prerequisite for achieving decarbonisation at the lowest possible cost, must be integrated 
in  the  future  energy-related  policy  and  investment  decisions.  Data  and  electronic 
communication technologies can support the decarbonisation of the energy system and the 
availability  and  cross-sector  sharing  of  data,  in  a  secure  and  trustworthy  manner,  can 
facilitate innovative solutions. The preparation and submission of  National  Energy  and 
Climate Plans and Targets will demonstrate a commitment to tackle the issue, targeting 
the  sectors  with 
energy savings potential.  

the  highest 

  Renewable 

energy 
a 

sources 
already  make 
significant 
proportion  of  the  electricity  mix 
in  some  economies  of  the  region. 
With  hydropower  and  bioenergy 
it 
dominating 
is 
these 
important 
sources  and  tap  into  solar  and 
wind  potential.  The  roll-out  of 
modern  technologies  needs  to  be 
better 
by 
accompanied 
investment environment.  

the  picture, 
to  diversify 

a 

  Natural gas may also be seen as a 

Source: SQ Consult 2018 

stepping  stone  in  the  gradual  decarbonisation,  particularly  for  those  partners  with  the 
heaviest  reliance  on  coal,  provided  appropriate  markets,  financing  and  expertise  are 
available.  The  establishment  of  clear  standards  and  thresholds  to  qualify  the  transition 
readiness of such projects should be encouraged. 

  Reducing the cost of capital, harmonising regulatory frameworks and facilitating access to 
finance  for  the  procurement  of  appliances  could  be  an  essential  element  in  this  context. 
More  work  needs  to  be  done  as  regards  confidence-building  measures  to  encourage 
consumers to turn more to renewable energy and stimulate adequate grid development.  

4  IRENA’s  REmap  study  demonstrates  the  region’s  high  potential  for  cost-competitive  renewable  energy 
developments, with a 43% cost-effective renewables potential for the WB6 by 2030: https://irena.org/remap. 

4 

 
 
                                                
  Transformation  of  energy  intensive  industries  towards  climate-neutrality  will  require 
integrated  actions,  including  e.g.  creation  of  markets  for  climate-neutral  products, 
developing new technologies and speeding up their uptake as well as ensuring availability 
of climate-neutral energy and feedstock at globally competitive prices.  

  Energy  poverty  is  the  social  dimension  of  energy  transition  that  must  be  addressed  for 
households that cannot afford key energy services to secure a basic standard of living and 
citizens buy-in. Effective programmes should be designed to address affordability issues, 
reduce energy bills and help the environment.  

  The building sector is one of the key areas where the highest energy cost savings could 
be  reaped. Different  financial  instruments  (guarantee  facilities,  energy  performance 
contracts, on-tax and on-bill financing) could be used to achieve higher renovation rates of 
both private and public buildings through attracting private finance. Digital upgrades can 
also  improve  energy  efficiency  of  buildings  by  15-25%  and  at  the  same  time  provide 
possibilities  for  telework,  telehealth  and  tele-education.  Extending  the  “EU  renovation 
wave” to the Western Balkans could stimulate investment and create jobs. 

  At  the  same  time,  greater  circularity  and  more  efficient  use  of  materials  present  new 
opportunities  for  further  reducing  greenhouse  gas  emissions  in  buildings.  Hence, 
comprehensive  approaches  targeting  materials  efficiency  along  the  entire  lifecycle  of 
buildings should be encouraged and supported, for example during renovation efforts. 

  Finally, it would be beneficial to  extend all the  dimensions of the  Energy  Union to  the 
Western  Balkans:  supporting  energy  security,  market  integration  and  energy  transition, 
energy  efficiency  and  renewable  energies.  The  EU  should  support  capacity  building  of 
energy regulators  and transmission system  operators so that they  can participate fully in 

INITIATIVES 

  Continue to assist partners in the alignment with the acquis related to decarbonisation of the 

energy sector in the framework of the Energy Community 

  Assist partners in the development of National Energy and Climate Plans 
  Assist partners in developing private and public building renovation schemes and securing 

appropriate financing, by extending the “EU renovation wave” to the Western Balkans 
  Assist partners in implementing programmes addressing energy poverty in the region 
  Associate the Western Balkans partners with the Coal Regions in Transition EU initiative 
  Carry out an assessment of the socio-economic impact of decarbonisation in the region  

EU-level networks.  

Smart and Sustainable Mobility 

  The  road,  rail  and 

inland  waterway  connections 

the  Western  Balkans  are 
underdeveloped  due  to  lack  of  sufficient  investment  and  poor  maintenance.  Rail  is  still 
heavily  dependent  on  fossil  fuels  with  more  than  30%  of  the  TEN-T  Core  and 
approximately  50%  of  the  Comprehensive  Networks  not  electrified.  The  Green  Agenda 
will  be  an  opportunity  to  revisit  the  overall  transport  strategies  and  to  promote  a 
greener and more sustainable transport network.  

in 

5 

 
 
  The  top  priority  in  this  respect  remains  the  revitalisation  of  the  rail  network.  The 
Regional  Rail  Strategy  and  its  action  plan  aim  at  making  rail  a  credible  and  sustainable 
alternative to road transport.  

  There  should  be  a  focus  on  the  deployment  of  Intelligent  Transport  System  solutions 
(ITS) aimed at making transport operations more efficient,  and reducing CO2 emissions. 
Wide availability and use of data technologies in public transport systems has the potential 
to make them smarter, less polluting and customer friendly. 

  The  promotion  of  multimodal  transport  solutions  and  modal  shift,  through  targeted 
policies,  including  investment  in  inland  waterways,  will  be  needed.  The  infrastructure 
connections between sea/inland waterways ports and the rail network are currently weak 
or non-existent.  

  The  region  suffers  greatly  from  outdated  and  underdeveloped  transport  logistics. 
Improving operational logistics and the use of modern software at border crossing points 
both  within  the  region  and  between  the  region  and  the  EU,  could  also  improve  the 
environmental situation.  

  Cleaner  fuels  and  higher  fuel  efficiency could also help reduce the environmental and 
health  impacts  of  transport  in  the  Western  Balkans.  The  EU  Communication  on  Clean 
Power for Transport5 could be a reference point for the Western Balkans region.  

  Charging  for  infrastructure  use,  e.g.  through  vignettes  or  electronic  tolls,  is  another 
effective tool, which could be used to influence the price of transport and the demand for 
greener transport. It could also be a source of funding for the maintenance of the existing 
infrastructure.  

  Innovative  solutions  could  challenge  some  of  these  consumption  patterns  whilst  still 
ensuring  that  mobility  needs  are  met.  Smart  mobility  can  combine  different  transport 
modes and options (public transport, car-sharing, car rental services, taxis and public bike-

INITIATIVES 

  Actively support the implementation of the regional action plan for rail reforms, 
  Define  rail  freight  corridors  and  an  overall  strategy  to  increase  rail  capacity  and  develop 

more environmentally friendly transport modes; 

  Ensure  implementation  of  EU  technical  standards  in  all  transport  modes,  in  particular  the 

European Railway Traffic Management System; 

  Actively  support  the  implementation  of  the  regional  action  plan  for  transport  facilitation, 

including border-crossing points, aiming at resource-efficient transport operations; 

  Support  the  implementation  of  the  road  safety  action  plan  and  the  road  action  plan, 

including  road maintenance and resilience; 

  Assist  partners  in  developing  and  implementing  climate  resilience  plans  for  their  national 

transport networks; 

  Assist  in  defining  and  implementation  of  sustainable  urban  mobility  plans  for  the  major 
urban  areas  of  the  region  supported  by  the  smart  cities  digital  platforms  and  dedicated 
applications; 
5 COM(2013) 17 final of 24.1.2013 

  Support  the  region  in  planning  and  implementing  sustainable  mobility  solutions,  including 

alternative fuels infrastructure, charging stations, etc. 

6 

 
 
                                                
sharing/urban mobility schemes) to cater for mobility needs by using IT.  

3. Circular economy: sustainable production and consumption  

Resources, Production and Innovation 

  Half of total greenhouse gas emissions come from resource extraction and processing. It is 
not possible to achieve the climate-neutrality target without transitioning to a fully circular 
economy. The new Circular Economy Action Plan is  at  the core of the  European Green 
Deal,  the  EU  roadmap  towards  climate-neutrality.  The  circular  economy  model  where 
value and resources are maintained in the economy for as long as possible and waste 
generation  is  minimised,  reduces  pressures  on  natural  resources  while  boosting 
sustainable growth and jobs creation. It can make a decisive contribution to decarbonising 
the economy. 

 

In order to achieve circularity, measures should be taken to address the entire life cycle of 
products,  from  design  and  manufacturing  to  consumption,  repair,  reuse,  recycling,  and 
bringing resources back into the economy. Preventing waste from being created in the first 
place is key, but once waste has been created, it needs to be transformed into high-quality 
resources. The region has to look for options to reduce the consumption footprint and 
increase the circular material use rate, which in turn will boost economic growth. This 
should be done in full cooperation with stakeholders and business. 

  Ensuring  the  sustainable  supply  of  raw  materials, in particular critical raw materials, 
by diversifying supply from both primary and secondary sources, is a pre-requisite for 
a transition to a circular economy. The increase of the resources productivity within the 
economy, making the best possible use of the raw materials extracted from the domestic 
territory  of  the  local  economy  is  another  requirement.  Western  Balkans  economies 
currently find themselves at the lower end of resource productivity, with values (i.e. 0.35 
euro/kg) much below the EU average (i.e. 2.07 euro/kg6). Thirdly, resources  should  be 
retained in the economy for as long as possible, maximising their value and minimising 
waste.  This  involves  good  product  design,  efficient  material  and  energy  use,  long  life-
cycles, well-designed circular industrial sites, new business models and, when a product 
eventually  becomes  waste,  effective  recycling  to  provide  high  quality  secondary  raw 
materials.  

  Since each industry sector is different when it comes to resource use, waste generation and 
management,  Western  Balkan  authorities  issuing  permit  requirements  for  industrial 
installations  should  be  encouraged  to  use  the  EU  best  practices  in  different  industrial 
sectors through the  'best  available  technique  reference  documents' (BREFs). Circular 
economy promotes innovative  and  more  efficient  ways  of  producing  and  consuming 
and the Western Balkans businesses and consumers should be encouraged to adopt them. 
The local SMEs  should benefit from the business  opportunities of increased resource 
efficiency  and  seek  access  to  innovative  technologies.  Improving  the  uptake  of  the  EU 
Eco-Management and Audit Scheme (EMAS) should also be encouraged. 

6 Eurostat  

7 

 
 
                                                
  Further  efforts  are  therefore  needed  to  develop  a  comprehensive  approach  to  foster 
sustainable  lifestyles  and  consumption,  and  to  accompany  consumers  and  public 
authorities towards sustainable choices.  

  Industrial  policy  will  be  key  in  the  achievement  of  the  Green  Agenda  for  the  Western 
Balkans. Integration with the EU internal market means integrating with its industrial eco-
systems as they transform in the spirit of the Green Deal of the EU. This implies not only 
the need for a green modernisation in enterprises, but also investments in the co-operative 
linkages  in  the  industrial  eco-systems  such  as  innovation,  inward  foreign  direct 
investment,  export  prerequisites  and  skills  development.  Their  green  focus  can  be 
informed by the smart specialisation strategy of the economies and regions.  

  Over  the  last  ten  years  the  Western  Balkans  have  significantly  improved  in  terms  of 
innovation  performance.  However,  catching  up  with  other  European  regions  would 
require a sustained annual GDP growth of some 7%. Currently, exports are still focused 
on  medium-  and  low-technology  products  and  innovative  efforts  mostly  accommodate 
traditionally strong sectors. Although some Western Balkan economies record increases in 
patent activity, patent intensity in the region is still low, while on the other hand, scientific 
publication  production  displays  a  stable  upwards  trend.  Therefore,  the  deployment  of 
effective  innovation  measures  is  essential.  Furthermore,  the  research  and  innovation 
systems in the region need to continue shifting their focus towards businesses to provide 
better  balance  between  public  and  private  sector  efforts.  Finally,  promoting  a  strategic 
green approach in conducting public procurement will allow for a more responsible and 
sustainable way of spending public money, support investment and can help levelling the 
playing field by ensuring that all bidders have to follow the same standards. 

Waste and Plastics 

  The generation of waste in the Western Balkans has been increasing steadily over the last 
years due to economic development and increased consumption, currently being at around 
1000kg/capita.  While  this  is  still  lower  than  the  EU  average  of  1700kg/capita,  the  very 
low recycling rates (below 3%, in comparison to the EU average of 44%) result in higher 
per capita amount of waste not being recycled. 

 

Important  efforts  and  investments  are  needed  to  establish  proper  functioning  waste 
management  centres  and  recycling  facilities,  so  that  the  countries  can  use  the  existing 
resources  currently  ending  up  in  landfills  (over  90%  landfilling  rate  in  the  region)  or 
incinerators. The Western Balkans will need to  implement  effective  separate  collection 
schemes  for  at  least  paper,  metal,  plastic,  glass  and  bio-waste,  which  are  key  to  quality 
recycling, and establish built-in economic incentives to reduce waste generation (e.g. pay-
as-you-throw  schemes)  and  better  waste  treatment  (e.g.  landfill/incineration  charges),  as 
well as efficient Extended Producers Responsibility Schemes.  

  The Western Balkans will need to align with the single-use plastic legislation and to fully 
implement  the  modernised  EU  waste  legislation,  including  its  recycling  and  landfill 
reduction targets.  

  The  rivers  in  the  Western  Balkan  region  carry  disproportionate  loads  of  litter  to  the 
Adriatic  and  to  other  seas.  Poor  practices  of  solid  waste  management,  lack  of 
infrastructure and awareness of the public at large about the consequences of their actions 

8 

 
 
aggravate  substantially  the  situation.  Wastewater  treatment  in  the  region  is  very  poor  or 
non-existent.  Litter  from  fishing  and  shipping  in  the  Adriatic  Sea  further  add  to  the 
problem.  Marine  and  coastal  plastic  litter  is  a  critical  issue  for  the  region  where  coastal 

INITIATIVES 
  Support the region in improving the sustainability of production of raw materials  
  Work towards integrating the Western Balkans into the EU industrial supply chains, in 

particular for key industrial ecosystems such as renewable energy, textiles, tourism, digital, 
mobility-transport-automotive and energy-intensive industries; 

  Support the region in developing circular economy strategies looking at the entire lifecycle of 
products, waste prevention, modern waste management and recycling, re-use, repair and re-
manufacturing,  

  Consumer targeted initiatives raising awareness of citizens on waste, separate collection and 

sustainable consumption 

  Assist the region in preparing and implementing waste prevention programmes, waste 

management and recycling strategies, and programmes for re-use, repair and manufacturing 
  Continue supporting the construction and maintenance of waste management infrastructure 
  Develop a regional agreement on the prevention of plastic pollution, including specifically 

addressing the priority issue of marine litter 

  Support the establishment of sustainable development and innovation policies for the 

economies via the implementation of Smart Specialisation Strategies 

tourism is an important source of income.  

4. Depollution: air, water and soil 

Air 

  Air pollution in the Western Balkans remains one of the highest in Europe and has a direct 
impact on citizens’ health. The very high concentrations of particulate matter pollution 
are  mainly  due  to  emissions  from  industrial  installations  (such  as  coal  power  plants), 
domestic  heating  (notably  wood  and  coal  fired  stoves  and  boilers  as  well  as  domestic 
burning of waste)  and traffic (older vehicles). Moreover, transboundary pollution occurs 
not  only  within  the  Western 
Balkans  but  also  between  the 
region and the EU7  

 

In their efforts to implement air 
quality  legislation,  the  Western 
Balkans  need  to  be  able  to 
ensure  air  quality  monitoring 
through 
and 
extended 
modern 

assessment 
and 

7 JRC, Status of air pollutants and greenhouse gases in the Western Balkans (2019) Report JRC1186779. 

9 

Modelled annual mean concentration of PM2.5 in the WB region, 2016. 
Source: WHO  

 
 
                                                
monitoring  system,  air  quality  management  and  reporting,  and  the  development  and 
implementation of air quality plans in order to comply with air quality standards pursuant 
to the Ambient Air Quality Directives8.  

  Progress  is  needed  in  the  establishment  and  reporting  of  emission  inventories  and 
projections of emissions, as well as for the development of national air pollution control 
programs  in  accordance  with  the  National  Emissions  Ceilings  Directive9 For  industrial 
emissions,  the  region  is  struggling  with  the  effective  implementation  of  the  Industrial 
Emissions  Directive,  which  requires  additional  capacity  building  and  investment.  In 
addition, application of Best Available Techniques (BATs) is essential in particular when 
considering investments in new projects. 

  The  main  challenge  is  the  implementation  gap,  as  all  the  Western  Balkan  partners  are 
recording  exceedances  of  air  quality  standards  for  at  least  one  pollutant  in  at  least 
one  location  (and often  for several  pollutants at several  locations). This  implementation 
gap is most pronounced for particulate matter (PM), nitrogen dioxide (NO2), and sulphur 
dioxide (SO2). Addressing these exceedances will require urgent action at different policy 
levels  to  reduce  emissions  from  key  sectors,  identified  on  the  basis  of  harmonised 
methodologies. 

  Political commitment will be essential for the successful implementation of the Ambient 
Air Quality Directives and to secure a reduction in overall national emissions including air 
pollutant emissions from energy, transport, agriculture and industry. More effort is needed 
in certain areas to develop more up-to-date and accurate emission estimations7. Such work 
would  also  enable  the  partners  in  the  region  to  ratify  the  latest  protocols  of  the  United 
Nations Economic Commission for Europe (UNECE) Air Convention. 

Water 

  The Western Balkans are home to some of the last pristine rivers of the continent, but their 
protection  remains  a  challenge.  The  region  represents  17%  of  the  population  of  the 
Danube  River  basin  and  8.5%  of  its  area.  There  is  a  high  share  of  population  in  rural 
areas  (30  to  50%)  with  only  basic  sanitary  facilities  and  wastewater  collection,  while 
urban areas with collection of wastewater via sewer networks discharge mostly untreated 
wastewater10. The risk of release of nitrates and pesticides into groundwater needs to be 
further controlled. 

and 

  The  main  pressures  on  quantity 
are  water  abstraction  for  industry, 
agriculture 
public  water 
supply.  The  widespread  droughts 
in the last years in the region have 
further  underlined  the  importance 
of  securing  water  availability  and 

Source: Regional Cooperation Council 

8 Directives 2004/107/EC and 2008/50/EC, as amended by Commission Directive (EU) 2015/1480. 
9 Directive (EU) 2016/2284 on the reduction of national emissions of certain atmospheric pollutants. 
10 Wastewater Management in the Danube Region: Challenges and opportunities of EU Accession (2017) 
https://www.umweltbundesamt.at/en/services/services_resources/services_water/ref_watermanagement/   

10 

 
 
                                                
resilience in the long-run across Europe.  

  A  unique  challenge  to  the  region’s  rivers  is  also  a  steep  increase  in  hydropower 
capacity across the region as much as fourfold between 2015 and 2017, having significant 
environmental  and  social  impacts,  both  at  the  country  and  at  the  wider  regional  level. 
Transboundary water cooperation is often a politically sensitive issue, especially where 
water  bodies  show  receding  water  levels  due  to  climate  change  and  over-abstraction  or 
deterioration of water quality downstream of the rivers. 

  The  main  task  ahead  is  the  implementation  of  the  water  related  legislation,  which 
requires  more  resources  for  investments  in  water  infrastructure  and  in  the  governance 
structure  for  sustainable  water  management  (monitoring  and  reporting,  planning, 
coordination  across  relevant  sectors,  impact  assessment  capacity,  etc.).  More  precisely, 
priority could initially go to investment in monitoring infrastructure based on a mapping 
of  the  needs  at  river  basin  level  followed  by  the  development  and  implementation  of 
appropriate measures to reduce pressures on water bodies.  

Soil 

  Soil  erosion  or  land  use  degradation  is  considered  as  a  problem  in  many  mountainous 
areas  of  the  Western  Balkans.  The  European  Environmental  Agency  concluded  in  2010 
that  erosions  affects  about  20%  of  the  combined  Serbian  and  Montenegrin  territory. 
Albania is losing between 20 and 70 hectares of soil annually.  

  Combating  land  degradation  and  restoring  degraded  land  include  sustainable  food 
production, 
forest  management,  soil  organic  carbon 
management,  ecosystem  conservation  and  land  restoration,  reduced  deforestation  and 
degradation, and reduced food loss and waste.  

improved  sustainable 

  Western Balkans could  undertake actions to address land degradation and desertification 
which  can  offer  co-benefits  also  for  other  key  environmental  issues  such  as  water 
pollution  and  scarcity,  and  biodiversity  loss,  as  mentioned  in  the  EU  Soil  Thematic 

INITIATIVES 

  Assist region in developing and implementing Air Quality Strategies,  
  Increase uptake of Best Available Techniques in line with the Industrial Emissions Directive 
  Accreditation of air quality monitoring networks 
  Including the region in pan-European networks supporting depollution initiatives e.g. Air 

Quality: Forum on Air Quality Modelling (FAIRMODE) & Network of Air Quality Reference 
Laboratories (AQUILA); Soil: European Soil Bureau Network (ESBN) etc. 

  Support Modernisation of water monitoring infrastructure  
  Implementation of Water Framework, Urban Waste Water and Extractive Waste Directives 
  Support regional and/or bilateral agreements and/or protocols on transboundary water pollution 

and on land-based sources of pollution 

  Investment in waste and manure management and wastewater treatment plants for reuse 

of water in agriculture 

  Investment in urban wastewater collection and treatment including advanced treatment of 

nutrients  

  Support the Western Balkans to use and contribute to the potential of programmes such as  

European Earth Observation programme, Copernicus and Destination Earth.  

11 

 
 
 
Strategy11 .   

5. Sustainable food systems and rural areas 

 

In  addition  to  the  deficiencies  identified  in  the  other  pillars  that  also  relate  to  the  food 
sector (e.g.: waste, packaging, transport, consumption, etc.) particular attention should be 
paid to the specificity of this sector and to the rural areas in the Western Balkans. 

  Agriculture  and  related  sectors  still  contribute  around  10%  of  the  Gross  Domestic 
Product (GDP), while in some countries, the share of agriculture, forestry, and fisheries is 
close to 20% of the total workforce (40% in the case of Albania). 

  Despite  the  rich  natural  resource  base,  agri-food  systems  in  all  countries  in  the  region 
faces  numerous  challenges  and  remain  constrained  by  deeply-rooted  structural 
problems: the average farm size is several times lower than in the EU, labour productivity 
and  yields  are  very  low  –  due  to  underdeveloped  technological  capabilities  and  many 
households are still engaged in subsistence agriculture.  

  The level of compliance of Western Balkans with the EU animal and plant  health, food 
safety  and  animal  welfare  standards  varies  significantly,  and  major  efforts  are  still 
necessary  with  regard  to  food  safety  and  animal  welfare.  This  has  become  even  more 
pertinent in the context of the recently proposed EU’s Farm to Fork Strategy. 

  The common challenge is to bring food processing establishments into conformity with 
EU standards.  At the same time, the demand for food in the region is increasing – both in 
terms  of  quantity  and  quality.  A  growing  middle-class  chooses  to  follow  healthier  and 
more  nutrient-rich  diets,  including  indigenous  Balkan  food  products.  Coupled  with  the 
growing tourism market  and export potential, this represents a major opportunity for the 
region, provided the transition is sustainable.  

  While gradually transforming agri-food production systems in the Western Balkans, it will 
be necessary to ensure that the transition does not contribute further to unemployment 
or  depopulation  of  rural  areas  or  to  deterioration  of  the  rural  landscapes  and 
biodiversity  loss.  It  will  need  to  be  countered  with  the  creation  of  alternative  and 
sustainable economic opportunities in rural  areas. The rural  areas of the region will also 
require  assistance  in  adapting  to  possible  consequence  of  climate  change,  which  may 
result  in  water  scarcity  and  extreme  climate  events,  such  as  floods.  Support  to  local 
governance and social  capital  in  rural  areas via the “LEADER  approach”, dissemination 
of good practices and innovations, and networking will enable rural communities to better 
respond to these challenges. 

  EU  pre-accession  assistance,  and  in  particular  the  instrument  of  support  for  agriculture 
and  rural  development  (IPARD)  can  be  used  to  assist  the  economies  of  the  region  in 
reforming  and  restructuring  their  agri-food  sectors  to  be  able  to  compete  in  the  global 
markets upon EU accession, increase food security and quality, reduce waste and improve 
compliance with EU food safety and animal welfare standards. It should also contribute to 
enabling  rural  communities  to  harness  opportunities  in  the  circular  and  bio-economy, 

11 COM(2006)231 

12 

 
 
                                                
making  the  rural  economies  of  the  region  more  resilient  to  potential  climate  change 
impacts and the rural areas – vibrant spaces for Western Balkan citizens. 

 

In the long run, to transition to a sustainable food system, the Western Balkan countries  
will  need  to  transform  not  only  their  primary  production  sector,  but  also  the  food 

INITIATIVES 

 Support alignment of the agri-food and primary production sectors with EU standards for 
food safety, plant and animal health and welfare (improving livestock farm biosecurity and 
animal health and disease prevention; upgrading agri food establishments) 

 Strengthen the official sanitary controls along the entire food chain and improve the 
traceability and labelling of food products (including harmonised electronic system 
certification) to ensure food safety  

 Improve consumer information and promote sustainable food. 
 Promote environmentally friendly and organic farming and reduction of synthetic chemical 

products used in food production: pesticides, veterinary medicines and fertilisers 

 Support cooperation among scientific and educational bodies and producers and processors in 

the agri-food sector to facilitate transfer to innovative and environmentally friendly 
technologies and farming methods 

 Support actions to reduce waste in rural  and coastal areas (along roads, in rural rivers) 
 Stepping-up efforts for sustainable development of rural areas by implementation of Leader, 
modernisation of physical assets in the agri-food sector, supporting economic diversification 
and improvement of rural infrastructure under IPARD. 

processing sector and promote sustainable food consumption.  

6. Biodiversity: protection and restoration of ecosystems 

  Besides providing  food,  fresh water  and  clean  air, protection from floods and storms, 
nature  mitigates  natural  disasters,  pest  and  diseases,  contributes  to  regulating  the 
climate, combating land degradation and enhance food security.  

  As  a  region  with  a  wealth  of  habitats  and  species,  including  a  number  of  important 
endemic  species,  the  Western  Balkans  should  spare  no  effort  to  protect  the  biodiversity 
and the ecosystem services including through alignment with EU legislation.  

  The main challenges at the regional and national level are related to the lack of political 
commitment  to  improve  implementation  of  biodiversity  policy,  lack  of  financial 
resources and the impact  of  economic  activities, such as agriculture, forestry, fisheries 
and, to a lesser extent, transport, tourism and energy infrastructure developments. This is 
due in part to the structure of current production systems and in part to lack of awareness,  
misunderstanding of and lack of guidance related to the added value of services generated 
by  biodiversity  for  these  sectors  (e.g.  pollination)  and  of  key  nature  legislation 
requirements (infrastructure development) or to development pressures. 

13 

 
 
  While  a  comprehensive  policy  framework  exists,  implementation  on  the  ground  in  the 
region  is  lagging  behind.  In  addition,  the  success  of  any  national  biodiversity  strategy 
depends  to  a  large  degree  on  the  effective  mainstreaming  of  nature  and  biodiversity 
into  other  policies  (agriculture,  forestry,  regional  development,  energy,  transport, 
fisheries, etc.).  

 

In this context, Western Balkans partners are encouraged to align their policies to the EU 
Biodiversity  Strategy  for  2030  and  to  support  the  EU  position  at  the  upcoming 
international negotiations on the global post-2020 biodiversity framework. 

  Deforestation  and  illegal  logging  are  an  important  related  challenge.  The  increase  of 
dramatic forest fires in the Western Balkans and pest and disease outbreaks require better 
risk prevention in sustainable forest management and land use. The Western Balkans need 
to build close inter-institutional relations and private sector networks between each other 
and with Member States to develop  good governance in the forest sector and reduce the 
risk of illegal timber exports to the EU. 

  The new  EU  Forest  Strategy, planned for 2020 under the European Green Deal  would 
serve  as  a  guidance  on  effective  afforestation  and  forest  restoration  in  Europe,  that  will 
help  to  improve  sustainable  forest  management,  increase  the  absorption  of  CO2  and  the 
promotion of the bioeconomy. Measures that support the fight against illegal logging and 
deforestation-free  value  chains  will  also  be  adopted  and  will  contribute  to  improve  the 
conservation  status  and  the  resilience  of  the  forests  in  the  Western  Balkans.  Finally, 
coastal  and  marine  habitats  are  under  high  pressure.  As  highlighted  by  the  EUSAIR 
macro-regional  strategy,  sustainable  blue  economy  offers  interesting  opportunities  for 
development  in  coastal  regions.  Integrated  Coastal  Zone  Management  and  Maritime 

INITIATIVES 

  Support the region in developing and implementing a Western Balkans 2030 Biodiversity 

Action Plan 

  Assist in preparing and implementing a Western Balkans Forest Landscape Restoration 

Plan  

  Assist in an analysis of biodiversity benefits of nature-based solutions and of opportunities 

for their integration into the development of climate and other plans  

  Strengthen the mechanisms for regional cooperation on biodiversity conservation as well as 

the engagement with the United Nations Rio Convention 

  Support knowledge exchange among the WB and EU research centres, and explore options 

to set up the Western Balkans Biodiversity Information Hub 

Spatial  Planning  are  essential  cross-cutting  tools  that  can  be  deployed  in  the  Western 
Balkans. 

7. Mechanisms of Implementation  

Greening the current framework 

14 

 
 
The  Green  Agenda  for  the  Western  Balkans  should  be  seen  as  a  blueprint  for  possible 
measures to be adopted jointly by the EU and each of the Western Balkans partners, based on 
the  existing  political  and  technical  cooperation  frameworks,  including  in  particular  the 
Stabilisation  and  Association  Agreements,  the  Negotiation  Frameworks  and  Economic 
Reform  Programs.  The  Agenda  should  enable  the  Western  Balkans  and  the  EU  to  create 
stronger 
links  between  climate  and  environment  actions,  policy  reforms  and  EU 
approximation.  It  should  also  guide  the  definition  of  financial  and  technical  assistance 
strategies both at bilateral and regional level.  

Public Administration Reform  

Ensuring policy coherence at all levels of governance is essential to achieving better synergies 
between  the  economic,  environmental  and  social  dimensions  of  sustainable  socioeconomic 
development,  and  to  reduce  trade-offs  between  them.  Increasing  the  focus  of  EU  public 
administration reform assistance in the Western Balkans on policy coherence and the green 
growth dimension in particular could make a major contribution to the Green Agenda. This 
could  specifically  target  inter-institutional  coordination,  statistics  and  administrative  data 
(through  for example common data spaces for public administration, to improve transparency 
and  accountability)  to  support  decision-making,  improved  strategic  planning  and  impact 
assessments for legislation, policies and infrastructure investments. 

Public Finance Management 

Utilities in the Western Balkans require considerable investment, especially in the waste and 
water sectors, and they need to be self-sustaining. Hence the tariffs need to reflect the real full 
cycle of the costs, and preparation is needed for future use of EU Structural Funds. From this 
perspective, it is important that the partners start now a macroeconomic process, establishing 
a sustainable system for investments, based on polluter pays principle. Specific “green” funds 
should  turn  from  a  budget  line  to  a  real  co-financing  instrument.  Mainstreaming 
environment  and  climate  into  relevant  policy  areas  requires  working  with  ministries 
responsible  for  economic  development,  planning  and  finance  and  to  build  their  capacity  on 
areas such as natural capital accounting and valuation, green budgeting/green taxation and the 
use of market-based instruments, such as environmental taxes, charges and subsidies to steer 
markets. 

Emissions Trading Scheme  

Early access  of the Western Balkans to the EU  Emissions  Trading  Scheme (ETS), as was 
done  in  Croatia,  is  an  option  to  be  explored.  The  Western  Balkans  partners  would  require 
significant technical assistance and administrative capacity building in order to reach a stage 
where  this  could  be  feasible.  Using  the  revenues  from  additional  aviation  allowances  under 
the scheme could be an additional source of income.  

Greening Economic Reform Programmes 

One  of  the  vehicles  to  implement  the  Green  Agenda  is  by  designing  relevant  policies  and 
reforms in the Economic Reform Programmes. These aim at building national consensus on 
country-wide  structural  challenges  to  economy  and  at  prioritising  reforms.  ERPs  should 
therefore assess the transition to a more environmentally sustainable, circular and low-
carbon economy in the Western Balkans. To that end, the ERPs should include indicators on 

15 

 
 
Sustainable Development Goals and resource efficiency, in line with the European Semester 
exercise.  For  example,  the  Resource  Efficiency  Scoreboard,  on  which  the  Western  Balkans 
are  already  partially  reporting,  could  be  used  to  get  information  on  their  transition  to 
sustainable economic growth model. 

Environmental governance, implementation and enforcement 

Establishing 
the  necessary  wider  environmental  governance  framework  will  be 
challenging.  This  includes  having  in  place  effective  mechanisms  for  public  participation, 
access to information, access to justice in environmental matters and environmental reporting. 
There is a need to strengthen the administrative capacity of competent authorities responsible 
for  environmental  assessments  for  strategic  planning,  programmes  and  projects. 
Environmental  assessments  ensure  that  the  environmental  implications  of  decisions  on 
strategic  planning,  programmes  and  projects  likely  to  have  significant  effects  on  the 
environment are taken into account before the decisions are made. The involvement of civil 
society as well as of environmental, local and regional authorities is essential.  

Achieving  a  high  level  of  environmental  protection  is  only  possible  if  an  alignment  to  the 
relevant EU environment legislation is implemented and enforced. Strengthening capacities of 
competent  authorities  of  the  Western  Balkan  partners  to  monitor,  promote  and  enforce 
compliance with environmental obligations is crucial. This includes ensuring administrative 
capacity  for  combating  environmental  crime  and  other  serious  offenses  by  effective 
environmental inspections and administrative and criminal enforcement.  

Western Balkans Just Transition Mechanism 

The  transition  to  climate-neutrality  must  be  socially  just  and  inclusive  in  order  to  be  a 
success.  It  must  be  recognised  that  not  all  regions  and  partners  start  the  transition  from  the 
same point or have the same capacity to respond, and that the most vulnerable are the most 
exposed  to  the  harmful  effects  of  climate  change.  The  European  Green  Deal  proposed  the 
establishment of the Just Transition Mechanism and Fund to support societies in the transition 
process.  This  system  could  be  a  model  for  a  similar  mechanism  for  the  Western  Balkans 
economies. The mechanism could focus on regions and cities most affected by the transition, 
marked  by  high  energy  intensity  and  fossil  fuels  reliance.  It  would  mobilise  resources  for 
providing access to re-skilling programs and jobs in new economic sectors.  

Involving Local and Regional Governments 

The EU supports coal and carbon-intensive regions in transition with a view to ensuring a just 
transition, in which no region or citizen is left behind. The EU Platform for Coal Regions in 
Transition facilitates the exchange of best practices, strategies and projects with a potential to 
kick-start  the  transition  process.  It  also  delivers  tailor-made  assistance  such  as  e.g. 
development and implementation of long-term transition strategies. Extending the Platform to 
the Western Balkans could help the region in the transition towards climate neutrality. 

Another action, which could be of interest to the Western Balkan region, is the  pilot  action 
for regions in industrial transition, which supports EU regions in managing the transition to 
a low-carbon economy.  So far, twelve pilot  regions receive region-specific support to  boost 
innovation  capacity,  remove  investment  barriers,  and  equip  workers  with  the  right  skills  to 
prepare  for  the  economic  transformation.  The  pilot  action  seeks  new  ways  to  help  these 

16 

 
 
regions harness globalisation through decarbonisation, innovation, digitization and developing 
people’s skills. If the action continues beyond the pilot, it could be extended to the Western 
Balkans. 

The EU Covenant of Mayors for Climate & Energy brings together more than 9000 cities 
and  towns  in  Europe, voluntarily  committed  to  fast-track  implementing  EU  climate  and 
energy objectives. Signatory cities pledge action to implement the EU 40% greenhouse gas-
reduction target by 2030 and adopt a joint approach to tackling mitigation and adaptation to 
climate  change. A  number  of  Western  Balkans  cities  are  already  associated  with  the 
Covenant, more should be encouraged to join. 

Smart Specialisation  

The  Green  Agenda  for  the  Western  Balkans  can  greatly  benefit  from  Smart  Specialisation 
Strategies,  which  are  conceived  as  place-based,  innovation-led  transformation  agendas  for 
sustainability.  They  create  the  opportunity  to  engage  regions  and  cities  in  transformation 
contributing to the European Green Deal, providing an overall framework and directionality 
for innovation investments. The strategies of Montenegro and Serbia can serve as inspiration 
to  the  other  Western  Balkan  countries.  The  Smart  Specialisation  Strategy  of  Montenegro, 
adopted  in  2019,  addresses  environmental  and  sustainability  in  two  priority  domains:  first, 
sustainable agriculture and food value chain; and second, energy and sustainable environment.  

Research and Innovation 

The  Western  Balkans  are  already  participating  in  Horizon  2020  –  the  EU’s  Framework 
Programme for Research and Innovation – with some 200 stakeholders and EUR 30 million 
funding awarded in 2019. The new Horizon Europe Framework Programme for Research 
and  Innovation  will  have  a  stronger  focus  on  spreading  excellence  and  reducing  the  R&I 
divide,  which  will  specifically  benefit  the  Western  Balkans  economies.  Two  EU  macro-
regional  strategies  with  a  strong  innovation  component  are  implemented  in  the  Western 
Balkans: the Danube Strategy  and the Adriatic-Ionian Strategy, and they should continue to 
support innovation and cross-border cooperation on a medium-term vision for the regions. 

Regional Cooperation Programmes 

Regional  cooperation  provides  the  opportunity  for  tackling  common  problems  and  for 
sharing  knowledge  and  good  practice.  The  EU  has  been  financing  dedicated  regional 
cooperation  projects  in  the  area  of  environment  and  climate  for  a  number  of  years.  The 
Regional  Environmental  Network  for  Accession project contributed to environmental and 
climate  improvements  in  the  Western  Balkans  and  approximation  of  the  region  to  EU 
standards.  The  Environment  and  Climate  Regional  Accession  Network  continued  to 
strengthen regional cooperation between the candidate countries and potential candidates. It is 
currently followed up by the EU Environment Partnership Programme for Accession and 
the  EU  Support  for  Climate  Action  in  IPA  II  beneficiaries  –  “Transition  towards  the  low 
emissions and climate-resilient economy”, which supports the EU integration of the Western 
Balkan partners in the field of environment and climate.  

Regional Cooperation Council 

17 

 
 
The  Regional  Cooperation  Council  could  play  an  important  role  in  building  the  regional 
dimension  of  the  Green  Agenda.  The  RCC  is  a  regionally  owned  and  led  cooperation 
framework aiming at advancing the European and Euro-Atlantic integration of the region. It 
works  to  develop  and  maintain  a  political  climate  of  dialogue,  reconciliation,  tolerance  and 
openness  towards  cooperation  through  the  implementation  of  regional  initiatives  aimed  at 
economic  and  social  development.  In  terms  of  environment  and  climate  change,  RCC 
maintains a permanent high-level regional policy dialogue and supports regional cooperation 
towards achieving Paris Climate commitments and 2030 energy and climate targets.  

Transport Community 

The  Transport  Community  Treaty  in  force  since  2017  aims  at  the  integration  of  the 
Western Balkan transport market systems in the EU. To achieve this, the Treaty foresees the 
setting  up  of  technical  committees  to  assist  partners  in  transposing  the  acquis  and 
implementing  appropriate  reforms.  The  Transport  Community  can  be  instrumental  in 
identifying  the  priority  transport  investments  with  a  focus  on  the  TEN-T,  addressing 
regulatory  barriers  to  green  transition,  and  promoting  and  developing  green  mobility 
strategies and investments throughout the region, as well as mainstreaming the environment in 
all aspects  of transport. In this vein,  the Transport Community is  developing a rolling work 
plan for the development of priority projects, which shall contribute, to balanced sustainable 
development in terms of economics, spatial integration, environmental and social impact. 

Energy Community 

Established  in  2005,  the  Energy  Community  brings  together  the  European  Union  and  its 
neighbours to create an integrated pan-European energy market. Its key objective is to extend 
the EU internal energy market rules and principles to South East Europe, the Black Sea region 
and  beyond  on  the  basis  of  a  legally  binding  framework.  A  stable  regulatory  and  market 
framework  capable  of  attracting  investment  in  power  generation  and  networks,  right 
conditions for cross-border energy trade, enhanced security of supply and increased uptake of 
renewable energy and energy efficiency are the Community’s core axes of focus.  

It will remain a crucial promoter of clean energy transition rules and standards in the Western 
Balkan  region.  The  Energy  Community  will  keep  monitoring  the  implementation  of  an 
expanding EU acquis and will engage in the setup of the Coal Regions in Transition Platform 
for the Western Balkans and Ukraine. 

Capacity Building 

Many  of  the  actions  proposed  here  will  require  strong  capacity  building  components.  In 
addition  to  the  traditional  consultancy-type  assistance,  DG  NEAR  oversees  two  important 
instruments  for  administrative  capacity  building  which  can  be  useful  in  the  delivery  of  the 
Agenda.  The  Technical  Assistance  and  Information  Exchange  (TAIEX)  supports  public 
administrations  with  regard  to  the  approximation,  application  and  enforcement  of  EU 
legislation  as  well  as  facilitating  the  sharing  of  EU  best  practices.  It  is  needs-driven  and 
delivers short-term tailor-made expertise on the transposition, implementation or enforcement 
of a specific part of EU legislation. Twinning is a European Union instrument for institutional 
cooperation  between  Public  Administrations  in  the  Member  States  and  the  beneficiaries.  It 
brings  together  public  sector  expertise  to  achieve  concrete  results  through  peer  to  peer 

18 

 
 
activities  defined  in  a  medium  term  programme.  Both  TAIEX  and  Twinning  are  important 
instruments when it comes to capacity building in the Western Balkans.  

EU level networks 

The  European  Environment  Agency  and  EU-level  networks  of  environmental  practitioners, 
such  as  the  European  Environment  Information  and  Observation  Network  (Eionet),  the 
European  Union  Network  for  the  Implementation  and  Enforcement  of  Environmental  Law, 
the European Network of Prosecutors for the Environment, the EU Forum of Judges for the 
Environment  and  EnviCrimeNet  (police),  play  an  important  role  in  sharing  good  practices, 
developing practical tools for detection and investigation and training. These networks have 
demonstrated  the  added  value  of  the  multi-disciplinary  approach  necessary  for  an  effective 
environmental  compliance  assurance  and  are  open  for  candidate  countries  and  potential 
candidates.  

Education and awareness raising 

In order to raise awareness of the effects of climate change on society in the Western Balkans, 
it is important to organise more events and campaigns, and thereby stimulate policy debate 
and help society come up with solutions to tackle these challenges. This will not only inform 
citizens about the consequences of climate change, but also inspire them to act and demand 
change. Existing actions such as Climate Diplomacy Week and the European Climate Pact 
foreseen under the European Green Deal could be extended to the Western Balkans. 

Education is key to positively affect behaviours regarding the environment, starting from an 
early age as well as to reskill workers from transition industries. Curricula need to include key 
competences  and  skills  necessary  to  perform  in  the  green  economy.  To  be  successfully 
implemented, the Green Agenda for the Western Balkans needs to be reflected in the reforms 
of the education systems in order to guarantee that people are equipped and prepared for the 
labour market and society of tomorrow. With proper information and education, the youth of 
the  region  can  contribute  decisively  to  the  implementation  of  the  Green  Agenda.  The 
European  Green  Deal  will  also  have  to  be  translated  into  the  different  components  of 
Erasmus+, the EU flagship programme for education available in the region. 

8. Financing Instruments  

The  implementation  of  an  ambitious  Green  Agenda  for  the  Western  Balkans  will  require 
substantial public and private funding, at national, regional and international level. The 
external instruments under the next EU Multiannual Financial Framework (MFF, 2021-2027) 
are currently being negotiated with the Council and the European Parliament. This EU public 
funding will further need to leverage private finance in order to fill the significant investment 
gap.  Moreover,  additional  support  from  EU  Member  States  and  own  funds  from  the 
beneficiary  parties  will  need  to  be  mobilised.  To  this  extent,  the  Commission  can  consider 
supporting innovative financial instruments, such as green bonds, that can mobilise public and 
private investments at the scale needed for the implementation of the Green Agenda. 

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Financial assistance in the field of environment and climate change has to date been mainly 
sectoral,  focused  on  the  process  of  alignment  to  the  EU  acquis  under  the  requirements  of 
chapter  27,  with  both  actions  at  bilateral  (mainly  investments)  and  regional  level  (mainly 
capacity building). Given the all-encompassing nature of the Green Agenda, the focus in the 
years to come will have to extend to the wider sustainable economic development issues, 
to further mainstream green issues in financial assistance and support all relevant institutions. 
In that perspective, the green oath to “do no harm” and the EU taxonomy should be respected 
to the extent possible. 

The Instrument  for  Pre-Accession  (IPA)  III  proposal  foresees  a dedicated window of the 
programming  framework  for  the  implementation  of  the  Green  Agenda  and  sustainable 
connectivity. 

According  to  the  draft  proposal,  IPA  beneficiaries  will  be  encouraged  to  develop  energy 
efficiency  and  renewable  energy  sources  and  to  shift  to  resource-efficient,  safe,  and 
sustainable low-carbon economies in line with the wider EU targets for climate action and 
environmental  protection.  Through  a  sustainable  use  of  natural  resources,  our  partners  can 
attain  higher  standards  of  environment  and  human  health  protection  and  increase  climate 
change  mitigation  and  adaptation.  This  would  not  only  directly  benefit  the  health  and  well-
being of the citizens, but also make the region attractive for investments and tourism, and tap 
into the significant economic potential of green growth and the circular economy.  

The  Commission  can  also  explore  the  feasibility  of  using  existing  financial  assistance 
instruments for setting up or supporting a range of market-based instruments in the region, 
such as  Natural Capital Investment Fund(s) or a dedicated Green Window under the External 
Investment Plan supporting projects that have positive community, ecological, economic and 
environmental impacts, but cannot access traditional financing because of perceived risks.  

Albania,  Montenegro,  North  Macedonia  and  Serbia  are  set  to  continue  to  benefit  from  the 
multi-annual  rural  development  programmes  under  the  Instrument  for  Pre-Accession 
(IPARD).  IPARD programmes contain a menu of 11 measures, selected for implementation 
by the partners. Under each of the measures, beneficiaries may prioritise and select  sectors, 
which  should  receive  assistance.  Sustainable  agriculture  and  food  production  should  be  the 
centrepiece of IPARD under the new MFF.  

While  IPA  funding  may  be  sufficient  to  kick-start  action  in  key  areas,  substantial  funding 
form  other  stakeholders,  in  particular  international  financial  institutions  (IFIs),  will  be 
essential. The European Investment Bank, now the EU’s “climate bank”, would have to play a 
distinct  role  in  close  coordination  with  the  European  Commission.  The  establishment  of  a 
Structural  Reform  Support  Facility,  providing  on-demand  support  for  growth-enhancing 
reforms,  could  also  be  explored.  The  Commission  can  also  continue  to  use  well-proven 
blending instruments and innovative financial instruments to ensure maximum impact. 

The  Western  Balkans  Investment  Framework  (WBIF)  is  one  such  blending  financial 
instrument which can support the Green Agenda. It is already active in the environment and 
energy  sectors.  Under  the  upcoming  Multi-Annual  Framework,  the  EU  is  set  to  look  to  the 
WBIF  to  provide  investment  grants  and  capacity  building  in  these  areas.  In  particular,  two 
existing  WBIF  blending  facilities  focusing  specifically  on  renewable  energy  and  energy 
efficiency  can  be  further  mobilised.  The  Green  for  Growth  Fund  (GGF),  structured  as 
public private partnership, can continue to provide financing for green investments, while the 

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Regional  Energy  Efficiency  Programme  (REEP)  can  support  the  transposition  and 
implementation  of  the  EU  energy  efficiency  acquis  combined  with  financing  to  enterprises, 
households and public sector entities undertaking energy efficiency investments.  

Funding will also be crucial for research and innovation. The European Innovation Council 
(EIC) is the most ambitious EU initiative for disruptive and breakthrough innovation and it 
fully includes the Western Balkans. The region can also benefit from the InnovFin Financial 
Instruments under Horizon 2020. 

Finally, the extension  to the Western Balkans of the  Western  Balkans  Guarantee  Facility 
(EFSD+), the successor of the current European Fund for Sustainable Development (EFSD), 
could  be  considered  to  be  used  to  attract  private  funding  to  scale  up  green  investments  in 
relevant  areas,  boosting  the  region’s  competitiveness  and  job  creation.  The  use  of  these 
guarantees could be particularly relevant for the implementation of the Green Agenda when it 
comes to  activities such as:  (1) kick-starting commercial sub-sovereign financing in  support 
of  WBIF  priorities,  including  environmental,  recycling,  energy-efficiency  and  renewable 
energy  municipal  infrastructure  investments,  as  well  as  smaller-scale  PPP  projects  where 
feasible;  (2)  scaling  up  investments  in  “green  entrepreneurship”  as  well  as  supporting  the 
transition towards a circular economy in innovative and economically viable ways.  

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