November 25, 2024
From Waste to Wealth: The Rise of the Circular Economy in the Western Balkans
“Our company uses recycled plastics from municipal waste in Montenegro, to create planks. These recycled materials are transformed into durable products like benches, tables, chairs, waste bins, and fences. Once these eco-planks are produced, the materials can be reused after the product’s lifespan”, said Aleksandar Masic from a Montenegrin company, 3D room. Their sustainable approach significantly reduces plastic waste, prolongs the material’s lifecycle, and contributes to the preservation of forests by eliminating the need for wooden alternatives.
This is one of the companies from the Western Balkans that integrates the principles of the circular economy and participates within the framework of the RECONOMY program. The circular economy in the Western Balkans is still in the early stages of development, though it is gaining momentum as part of broader environmental and economic reforms. Even when the companies started production following circular economy principles, they usually faced challenges.
“It is not just a lack of support from the government, but also the absence of an organized waste collection system in Montenegro. We have to purchase plastic waste ourselves, which is an inefficient and illogical process given the environmental goals we are trying to achieve,” said Masic.
Another company, F-Group from North Macedonia uses recycled material from Waste Electrical and Electronic Equipment (WEEE) as construction material.
“After collection from consumers, the process involves manual sorting of the glass from WEEE followed by mechanical treatment of the glass. When glass is shredded, it results in a coarse and fine fraction. The coarse fraction can be used as filler material to replace sand in concrete, while the fine fraction can be used in cement kilns. This project aims to use glass in concrete tiles used in outdoor public areas in Skopje,” said Daniela Nelepa from F-Group.
The main challenge is that WEEE glass cannot be compared to clean glass from packing, as it contains many additives that are contaminants in the recycling process and the standard recycling procedure is not applicable. “To completely recycle the glass, the procedure involves chemical or thermal means which further increase cost and emissions while the end product still has low value”, Nelepa said.
Building the knowledge gap: overcoming barriers to circular economy adoption
Countries in the Western Balkan region are recognizing the importance of transitioning from a linear economic model (take-make-dispose) to a circular one (reduce-reuse-recycle). However, significant challenges remain in terms of infrastructure, policy frameworks, and public awareness.
Despite the different policy situations in the countries, the main barriers to implementing the circular economy are similar: lack of knowledge and skills, low awareness of perceivable benefits, lack of experience of where and how to start, and lack of multidisciplinary professions and skills. Although large-scale adoption of circular business models is limited, some companies are beginning to integrate circular economy principles.
Together4Circular is a tire company from North Macedonia. They realized that rubber production and disposal lead to significant environmental harm, including water and soil pollution, so they mainstreamed circular economy principles into their production. “This can minimize the industry’s footprint and contribute to North Macedonia’s goals of environmental sustainability,” said Anita Koteska from this company.
By adopting circular economy principles, this industry can reduce waste through recycling and repurposing rubber materials, creating a more resource-efficient production cycle. In addition, implementing circular economy principles will help the rubber industry comply with future regulations, making it easier for Macedonian businesses to export to the EU.
Implementing a circular economy can reduce costs by maximizing the use of existing materials, decreasing reliance on new raw materials, and creating new business opportunities in sustainable sectors, particularly in waste management, recycling, and the development of green technologies. “By integrating circular economy principles, the rubber industry in North Macedonia can contribute to long-term environmental protection, economic growth, and alignment with EU policies,” Koteska said.
The implementation of End of Waste (EoW) legislation and an Extended Producer Responsibility (EPR) scheme for glass waste would allow the Albanian company, RecycAl, to expand its operations, increase its workforce, and enhance its impact on waste management. This company, dealing with glass waste, is poised to make significant strides in glass recycling through the production of EoW glass tiles and paving stones. This process involves designing and manufacturing tiles and paving stones from recycled glass waste.
“While producing glass tiles and paving stones from waste offers significant environmental benefits, the practical challenges include high infrastructure and collection costs, finding and retaining reliable employees, market competition, and the overall difficulty of building a financially sustainable business without government support or specialized financial models”, said Lulzim Bauman from RecycAl. She added that although skilled workers for production can be found, retaining them reliably over the long term presents a challenge. Small business often struggles to offer competitive salaries to meet workers’ expectation while staying financially sustainable. Through Eco Education Centre this company promotes sustainability and circular economy principles through community education and training programs.
How are the Western Balkan countries advancing when it comes to circular economy?
Several countries in the Western Balkan region have begun developing or implementing national strategies for the circular economy, primarily in response to their EU accession processes and alignment with the European Green Deal.
Serbia has adopted strategic documents aimed at resource efficiency and sustainable waste management. The government of North Macedonia has been drafting a National Waste Management Strategy that includes circular economy principles, particularly focusing on improving waste management and resource efficiency. Montenegro has incorporated circular economy principles into its national strategies, particularly in the context of sustainable tourism and energy.
Albania has begun integrating circular economy principles within broader environmental and waste management strategies, although it is still in the early stages of formalizing a dedicated national strategy on the circular economy. Bosnia and Herzegovina is also in the early stages of developing a national circular economy strategy. Kosovo has shown some progress in aligning its environmental policies with EU standards, although it lacks a formal national circular economy strategy.
Chambers of Commerce are key drivers in spreading knowledge on circular business models
To help businesses transform their operations and move from a linear to a circular economy, Chambers of Commerce from the Western Balkans countries, with the support of the RECONOMY program, make efforts to support micro, small, and medium enterprises (MSMEs) on this path.
“The Center for Circular Economy has various programs for circular economy depending on the industry, and during the last two years we implemented various activities,” said Nebojsa Vranes from the Circular Economy Department of the Chamber of Commerce and Industry of Serbia. This Center organized several trainings for consultants that will be involved in the preparation of the plans for the transition to the circular economy in 20 companies by the end of this year.
Additionally, they organized workshops dedicated to a roadmap for the reuse, recycling, or valorization of construction concrete waste as well as to carbon accounting and sustainable business. Recognizing that MSMEs face greater barriers in integrating circular economy models, these workshops offered tailored support to improve their resilience. “We are trying to transfer the knowledge and skills to MSMEs and to encourage them to adopt circular business model,” Vranes said. They have also prepared and distributed different Guides for circular economy in agriculture, for the safe management of chemicals, and for small and medium enterprises (SMEs) in food production.
A similar situation is in Montenegro, where the Chamber of Economy of Montenegro (CEM) plays a vital role in supporting SMEs in their transition to a circular business model through various initiatives. “Capacity building and education are in focus, as CEM provides training and workshops to enhance knowledge on circular economy principles. These efforts help SMEs understand the economic advantages of adopting circular models,” said Milena Rmus from CEM.
It also facilitates collaboration with decision-makers while providing networking with regional and international organizations to enhance circular transition. “Through networking and partnership, CEM fosters collaboration among SMEs, large enterprises, research institutions, and government bodies, organizing events where best practices are shared,” Rmus said. It also offers technical assistance and provides consulting services to help SMEs integrate circular principles in their operations, from product redesign to implementing resource recovery systems.
“The Chamber of Commerce of Kosovo [KCC] prepared an Analysis of the Recycling Value Chain with data on the current status, needs, potential, and barriers to recycling in the country. This helps businesses identify opportunities for resource recovery and improve their waste management practices,” said Muela Ibrahimi from this chamber of commerce. KCC also organizes Networking Green Events to connect SMEs with industry experts and policymakers so that they can share their experiences and knowledge. SMEs from Kosovo also participate in training and workshops dedicated to circular economy principles.
All interlocutors agree that regional cooperation among the chambers of commerce in the Western Balkans is essential. Such collaboration leads to a robust ecosystem that drives the whole region towards a more sustainable future, empowering businesses to embrace circular economy principles.
When it comes to familiarity with circular economy among the Western Balkans countries, there is some knowledge, but there is also a gap and a difference between countries. The RECONOMY program is focused on facilitating the establishment of a Regional Circular Economy Hub for these countries. The intention is to create a place with all the information relevant to the private sector and for the other stakeholders, where they can share information and find capacity-building network opportunities and access to financial opportunities as well.
The RECONOMY program is focused on promoting circular economy practices across the region. The aim is to provide relevant information and resources to the private sector and other stakeholders, enabling them to share knowledge, access capacity-building opportunities, and explore potential financial support avenues. This initiative will strengthen regional collaboration and drive the transition to more sustainable business practices.
Authors
vesnaglisic
Vesna Glišić is a senior specialist in communication, public relations, and journalism, with more than 30 years of experience. After 15 years in journalism, she jumped in communication and public relations fields. From 2010, she participated in many EU-funded projects, responsible for communication and visibility. During 8.5 years, Vesna was Outsource Communication and Media Consultant for the Embassy of Sweden in Serbia.
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