Green Serbia 2024

THINKING GREEN & LIVING CLEAN

Nenad Đurđević Ball Packaging Commercial Director SEE, Turkey and CIS; President of the Alliance for Circular Packaging of Serbia

Tijana Koprivica Chief Business Sustainability Officer at Delta Holding

Ratko Ristić

Corresponding Member of the Academy of Engineering Sciences of Serbia (AINS), Full Professor and Dean of the University of Belgrade’s Faculty of Forestry

Dragan Lupšić Corporate Affairs Director at HEINEKEN Srbija

Alessandro Bragonzi Head of the Regional Representation for the West rn Balkans at the European Investment Bank (EIB)

Aleksandar Macura

Co-founder and Programme Director for Energy at the RES Foundation

Milica Uraz CEO, Steel Impex

Aleksandar Kovačević Senior Visiting Research Fellow at Oxford Institute for Energy Studies (OIES)

EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs

DESIGN

Slađan Radosavljević

Zoran Perović design@aim.rs

PHOTOS Zoran Petrović

COPY EDITOR Mark Pullen

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Mihailo Čučković m.cuckovic@aim.rs Nataša Novković n.novkovic@aim.rs

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

FINANCE Dragana Skrobonja finance@aim.rs

Milica Begenišić ESG and Events Manager, Yettel

EXECUTIVE DIRECTOR

Maja Vidaković m.vidakovic@aim.rs

CEO Ana Novčić a.novcic@cordmagazine.com

PUBLISHER Ivan Novčić i.novcic@aim.rs

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica

THINKING GREEN & LIVING CLEAN 2024

Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 125806, Serbia Phone: +(381 11) 2450 508

E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com ISSN: 2560-4465 All rights reserved alliance international media 2023

The views expressed in this publication are those of the presenter; they do

SUSTAINABILITY, A SHARED IMPERATIVE

The successful implementation of the Growth Plan for the Western Balkans hinges on the prioritising of environmental sustainability and harmonising with EU standards. However, current EU funding may fall short, highlighting the need for greater support

The successful implementation of the Growth Plan for the Western Balkans is inextricably linked to the prioritising of environmental sustainability and aligning with EU standards. While the EU’s new growth plan, in conjunction with the Green Agenda, presents a promising pathway to foster climate action, the region faces a multitude of challenges requiring comprehensive solutions.

One of the most pressing challenges confronting the region is its heavy reliance on coal for energy production, which poses a significant obstacle to decarbonisation efforts. Transitioning from coal to renewables requires not only substantial investment, but also robust policy frameworks and institutional capacity-building initiatives. Moreover, there is a dire need to improve the region’s waste management practices, which are characterised by low recycling rates and inadequate infrastructure for the proper disposal of waste. Addressing these challenges requires a concerted effort to develop and implement effective waste management strategies, bolstered by financial and technical support.

Despite the commendable funding commitment of the EU, there are persistent concerns that it may fall short of covering the region’s needs comprehensively. It is imperative for the EU to increase support for critical areas like renewable

energy development, waste management infrastructure and capacity building for environmental initiatives. Furthermore, it is paramount to ensure a just transition for all citizens, particularly those hardest hit by economic shifts resulting from the transition to a greener economy. This includes providing support for the reskilling and retraining of redundent workers in fossil fuel-dependent sectors and implementing social safety nets to protect vulnerable communities.

Amid these challenges, there is a promising trend of citizen engagement and advocacy for environmental initiatives in the Western Balkans. With increasing awareness and interest in becoming RES pro -

THROUGH COMPREHENSIVE STRATEGIES AND CONCERTED EFFORTS, THE REGION HAS THE OPPORTUNITY TO ADVANCE TOWARDS SUSTAINABILITY AND CLOSER ALIGNMENT WITH EU STANDARDS.

sumers, citizens are emerging as a significant force driving sustainable change in the region. Harnessing the enthusiasm and energy of citizens is essential to drive meaningful change and foster a culture of sustainability.

Moreover, collaboration and partnerships between Western Balkan economies, the EU and various stakeholders are crucial to overcome challenges and seize opportunities to create a greener, more prosperous future for the region. By leveraging collective efforts and resources through comprehensive strategies, the Western Balkan region has the opportunity to advance towards sustainability and closer alignment with EU standards. Through a combination of robust policy frameworks, institutional capacity-building initiatives, increased financial support and citizen engagement, the region can overcome its environmental challenges and embark on the path to a more sustainable future.

power company] and on the basis of the obligation of citizens to pay a fee for “green” energy, without anyone having asked the citizens if they agree to that. In whose interest is such conduct?” wonders our interlocutor.

Dr RATKO RISTIĆ Ph.D.

Vice

Rector

for International Relations, University of Belgrade INTERVIEW

SERBIA LACKS ECOLOGICAL SOVEREIGNTY

Serbia is an example of a country in which environmental and public health threats are a consequence of poor political decisions, economic weaknesses, corruption and weak environmental protection standards

Serbia today lacks ecological sovereignty, as the country’s key national resources are exposed to the lucrative financial interests of foreign companies oriented towards profit, which unfortunately includes the mass participation of Serbian business, political, academic and media networks, explains professor Ratko Ristić, a corresponding member of the Academy of Engineering Sciences of Serbia (AINS) and a full professor and dean of the University of Belgrade’s Faculty of Forestry. “I intentionally avoid using the word ‘elite’,” notes our interlocutor, “because those who do

this don’t deserve a moniker intended for the best.

According to professor Ristić, one of the examples of this harmful activity is the construction of derivational type small hydroelectric plants, an area in which approximately 120 facilities have been constructed and generate 0.8% of all electricity produced annually while causing immeasurable damage to the biodiversity of watercourses and endangering the vital interests of local populations. “Moreover, the private owners are paid 40-60 million euros annually – via subsidised tariffs – from the profits of EPS [Serbia’s state-owned electric utility

“Another example is the Ministry of Mining and Energy’s policy that has seen it issue almost 200 mineral exploration permits (for lithium, boron, gold, silver, nickel, antimony, strontium etc.) to private, foreign mining companies on an area encompassing almost 536,000 hectares of state territory. These companies come mostly from Australia, Canada and the U.S., which have much greater quantities of all of the aforementioned resources than Serbia, but which come here due to the lack of systematic concern over the applying of the highest environmental protection standards, thus reducing costs to investors and significantly increasing their profit rates, with no concern whatsoever for the ecological and health ramifications,” explains professor Ristić.

Are you of the opinion that the University of Belgrade remains silent on some pressing environmental issues facing Serbia or has it become more vocal? To what extent have you personally contributed to that change? — In proportion to the total number of several thousand professors and researchers, few people from the University speak up when it comes to delicate environmental issues. It is actually the individuals from the University who consistently, argumentatively and persistently inform the public about threats to the environment and public health that speak out, but likewise a relevant number of professors and researchers also cooperate actively with investors on the implementation of projects that are extremely debatable. In essence, the University should contribute to educating and advancing the community, with a clear mor-

al message about the inviolability of public interest, i.e., the protecting of the interests of the majority of people in our country.

Have citizen protests matured since the first ones? To what extent are the demands made of public office holders today grounded in expertise?

— If you compare environmental awareness in Serbia today to the period of 10 years ago, you will see a huge difference. Large numbers of individuals and citizen associations, as well as media representatives, openly discuss problems and oppose high-risk projects. The demands submitted are based in law and include expert explanations,

— The protests of vulnerable sections of the population are increasingly the only watershed moments that compel state bodies to take into consideration the demands of citizens. It is essential to have visible systemic activity on organising representative monitoring of air, water, soil and food quality, and especially monitoring the state of the health of the nation. In accordance with this, state bodies shouldn’t hesitate in punishing polluters severely and suspending planned or current projects that pose risks to the stability of the ecosystem and public health.

The case of the Jadar project represents the paradigm of dis-

THE ONLY GENUINE PROTECTION AGAINST IMPLEMENTATION OF THE JADAR PROJECT IS THE DETERMINATION OF

THE

THE

LOCAL COMMUNITY,

SUPPORT OF THE SERBIAN CITIZENRY AND PROMINENT MEMBERS OF THE UNIVERSITY, THE SERBIAN ACADEMY OF SCIENCES

AND ARTS, THE ACADEMY OF ENGINEERING SCIENCES OF SERBIA AND THE MEDIA

but we still don’t receive appropriate responses from holders of state office and powers, who are often deaf to requests or work in a way that contradicts valid legislation.

Looking to the most pressing environmental issues, what do you think could represent a watershed moment showing that citizens have the power to change the decisions of the state and fight successfully for a better quality of life? Would that be the definitive abandoning of the Jadar project, the introduction of rigorous controls for the biggest polluters or something completely different?

nies, heads of districts, but also foreign nationals like the second secretary of the Australian embassy and the head of the office of the World Bank in Serbia. Although a government decision suspended the project’s implementation following nationwide protests involving tens of thousands of citizens, it was confirmed that – in the 2021-2023 period alone – almost 292 million euros had been spent (based on expert financial analysis conducted by consultants of the Marš sa Drine organisation) predominantly on marketing and consulting services. We also found out recently that Rio Tinto is one of several thousand registered lobbying organisations that operate within the European Union (EU Transparency Register) and that this company can also deal – in addition to the issues of critical mineral resources, batteries and the “Green Deal” – with Serbia’s EU accession process. It thus turns out that the distance between mining and politics is small, while a question arises as to how Serbia will compensate this powerful mining company for its involvement.

RESPONSIBILITY

University community members are obliged to nurture a responsible attitude towards the environment, in accordance with regulations

PLEDGE

honesty and manipulativeness of company Rio Sava Exploration (the Serbian subsidiary of Rio Tinto), but also of the state bodies of the Republic of Serbia, towards the local community and the general public. Specifically, Prime Minister Ana Brnabić claimed that the state wasn’t behind the Jadar project, only for it to transpire that the Government had formed a Working Group for the project’s implementation (Official Gazette of the RS, No. 36, 2021) chaired by then Mining and Energy Minister Zorana Mihajlović and represented by assistant ministers and state secretaries of all related ministries, directors of public compa-

Based on the public discourse we’ve heard so far, would you expect ecological concerns to be part of the agenda of all stakeholders in political life?

— Topics related to environmental protection and our nation’s public health are only partially included in political parties’ programmes and are often used declaratively, in support of current campaign and propaganda activities. Some local governments show a horrifying lack of understanding for citizens’ concerns (Bor, Loznica, Žagubica, Babušnica, Majdanpek etc.) or actively participate in concealing facts and repressing the population, in complete collaboration with investors, which creates a climate of social mistrust, discontent, fear and despair among the population.

Environmental topics are an expression of the deep need to live healthily in a high-quality environment, which should also be made available to future generations

REPRESSION

Some local governments show a horrifying lack of understanding for citizens’ concerns or actively participate in concealing facts and repressing the population

FASTER PROGRESS NEEDED

Western Balkan countries endorsed the Green Agenda, thus aligning with the European Green Deal for decarbonisation and environmental protection. EIB Global supports their efforts to accelerate change

ALESSANDRO BRAGONZI

Head of the Regional Representation for the Western Balkans at the European Investment Bank (EIB)

The EU is ramping up support for regional economies to accelerate the shift to renewable energy and promote environmental sustainability mostly via the EU Instrument for Pre-Accession Assistance (IPA III). Through initiatives like the Economic and Investment Plan and the Growth Plan for the Western Balkans, the EU is providing increased financial and technical assistance. EIB Global, the arm of the European Investment Bank (EIB) Group operating beyond the EU, plays a significant role by boosting its financing for green investments as a key contributor to these efforts.

“During the 2020 Sofia Summit, Western Balkan countries achieved a significant milestone by endorsing the Declaration on

the Green Agenda. This commitment signifies their dedication to decarbonisation, environmental protection and climate change mitigation and adaptation, in line with the European Green Deal. However, the latest implementation report reveals that most regional economies are still in the process of developing their legal frameworks to tackle climate issues and harmonise with the EU Climate Law by 2025. They have established energy and climate goals within their nationally determined contributions under the United Nations Framework Convention on Climate Change. However, more needs to be done,” says Alessandro Bragonzi, Head of Regional Representation for the Western Balkans at the European Investment Bank (EIB).

What do you consider as being gamechangers in Serbia’s transition to renewable energy over the past two years?

— Serbia has clearly achieved progress on its obligations as an Energy Community Contracting Party with various elements of its regulations, particularly for renewables and energy efficiency. In 2023, the country presented its draft Integrated National Energy and Climate Plan, which envisages the share of renewable energy sources in gross final electricity consumption rising from 30% in 2021 to 45% by 2030. The country is also finalising preparations for its first Climate Change Adaptation programme.

The first auction for Contracts for difference (CfD) for wind and solar power plants which was successfully realized in 2023, and will increase private investors’ appetite to develop renewables, promoting competition and cost-effectiveness into the electricity market. Moreover, the Electric Power industry of Serbia (EPS) started on a de-carbonisation plan, which is adding new production capacity from renewables. This includes the construction its first wind power plant – Kostolac, as well as procurement process for developing GWs of greenfield wind and solar power plants.

What role does innovation play in the green transition?

— The EIB has made green supporting innovative green technologies one of its priorities under the Energy Lending Policy, as part of its contribution to the RE-

PowerEU Plan to ensure Europe’s energy independence and security. Scaling up innovative solutions will not only help meet climate targets, but will also support competitiveness, strengthen energy security and create new jobs.

For example, we are now supporting ground-breaking battery technologies, gigafactories, floating windfarms, green hydrogen and innovation in sectors that are currently tough to decarbonise, such as steel manufacturing or shipping.

Furthermore, as of 2023, we are managing the European Tech Champions Initiative, which seeks to mobilise investments of over €10 billion in innovative companies in their growth stage.

moted as positive examples of a new economic growth path? — It is difficult to estimate, but certainly more needs to be done to promote positive examples and raise awareness of the importance of joint efforts in achieving a more sustainable and greener future. For example, the EU is the largest donor to the Science Fund of the Republic of Serbia through the Serbia Accelerating Innovation project and Growth Entrepreneurship (SAIGE). This project focuses on building the capacity of the Fund and supporting the excellence and relevance of science and research for the national economy.

With regard to the initiatives EIB Global is involved in, we can mention innovative green projects under the auspices of the EU for

EIB GLOBAL SUPPORTS THE DEVELOPMENT OF ONSHORE WINDFARM PROJECTS IN BOSNIA AND HERZEGOVINA, A SOLAR PHOTOVOLTAIC PLANT

NEAR PRISTINA AND THE IMPROVEMENT OF ELECTRICITY GRIDS, ALONGSIDE NEW PROJECTS IN THE SECTORS OF SUSTAINABLE TRANSPORTATION AND WATER MANAGEMENT

In Serbia, EIB Global has provided €200 million of EU funds for upgrading and rehabilitating universities, scientific centres and laboratories, as well as for the construction of Science and Technology Parks in Belgrade, Novi Sad and Niš. EIB funding also enabled the construction of the cutting-edge BioSense Institute in Novi Sad, which is among the global leaders in the digitalisation of agriculture and innovation.

How effectively are innovative initiatives from private and public enterprises, research institutions, local governments and civil society organisations in Serbia being fostered and pro -

the trend seen in Europe whereby investments in environmental protection, climate measures and the adoption of ESG standards are driving the creation of new jobs?

— According to the World Economic Forum, the jobs expected to grow the fastest are for specialists in Artificial Intelligence and machine learning, sustainability specialists, business intelligence analysts and information security specialists. At the global level, estimates show an increase in renewable energy employment from 7.3 million in 2012 to 13.7 million in 2022, and this trend is set to continue.

At the same time, we also need to strengthen our efforts to support a just transition, which means providing new jobs and opportunities to people and communities hardest hit by climate policies, such as the closures of coal mines and fossil fuel power plants.

How well has Serbia’s education system embraced the introduction to the curricula of digital and green skills?

TASKS

Further improvements are needed in monitoring air quality, water management and industrial pollution, as well as in adopting just transition strategies

BARRIERS

the Green Agenda in Serbia programme, which aim to financially support new green concepts developed locally. These projects aim to deploy new technologies for tackling waste management, air pollution, environment protection and the integration of renewable energy into production processes. The initiative is supported financially by the EU and implemented by the UNDP and the Serbian Ministry of Environmental Protection, in cooperation with the Embassy of Sweden and the EIB, with additional funding from the governments of Sweden, Switzerland and Serbia.

Can we see indications in the Western Balkans and Serbia of

— A successful digital and green innovation requires a suitably skilled labour force. However, across Europe, the large skills gap is hindering economic transformation and productivity growth. As an example, a mere 35% of Western Balkan citizens had at least basic digital skills in 2021, compared to 54% in the EU (according to the Regional Cooperation Council).

In Serbia, EIB Global supported the Connected Schools project with €70 million, resulting in over 3,800 schools being equipped with high-speed internet access and thus enabling over 730,000 students and 100,000 teachers to learn and work in a modern digital environment. More recently, EIB has been among the key financiers of Serbia’s dual education strategy, with a €40 million loan to build, renovate and equip educational facilities across the country.

As the largest venture debt investor in Europe, we are committed to breaking down investment barriers for new technologies by providing capital to bridge financing gaps

TRANSITION

EIB adopted a new just transition approach in 2023, in order to ensure enhanced support for countries around the world, including Serbia, in the energy transition process

INTERVIEW

WE HELP THE RICH, RATHER THAN THE POOR

It seems as though the current incentive programmes for increasing energy efficiency completely overlook the poorest citizens and only benefit groups of residents who could largely afford to make such investments by themselves

ALEKSANDAR MACURA

Co-founder and Programme Director for Energy at the RES Foundation

We’ve taken some steps in Serbia that lead towards the introducing of energy efficiency, but the real challenges still lie ahead for us, says Aleksandar Macura, co-founder and programme director for energy at the RES Foundation. Speaking in this interview, he discusses some of those challenges, which range from a lack of good analysis and planning to the establishing of the wrong incentives for the energy transition of households.

What are the challenges confronting Serbia when it comes

to energy diversification and greening the region; and how successfully is it handling them?

— Like all other countries, Serbia is confronted by the question of how to ensure safe, affordable, competitive and sustainable supplies of energy. Sustainability has long since also implied so-called decarbonisation: ending emissions of greenhouse gases. We last week witnessed the trial commissioning of the desulphurisation plant at the Nikola Tesla thermal power plant, with which we began fulfilling our obligation to stop poisoning citizens. The deadline that

we had to meet this obligation expired more than six years ago, and the way we are now reducing emissions of sulphur dioxide leads to increasing carbon dioxide emissions. I simply wanted to note with this lengthy description that the challenges you ask about are extremely complex and that we are lagging behind and still aren’t addressing them sufficiently. We have taken some steps and the construction of certain facilities that use wind and solar energy is underway, while I’ve also written about some developments for your editions. But the real challenges for us are still ahead.

When it comes to transitioning from fossil fuels to alternative energy sources, what would Serbia achieve if it opted to build nuclear power plants and how viable is that?

— This question also indicates the daunting complexity of the challenge mentioned in the first question. Nuclear energy carries significant risks, but also brings a multitude of benefits. We currently lack the essential capacity required to build or operate nuclear power plants. My personal opinion is that we dare not take such risks given the current state of professional, legal and political responsibility in our society. On the other hand, such a situation in the society prevents the high-quality planning of processes. Let’s hope that the outcomes of our plans are moderately dangerous at worst.

energy consumption in Serbia. Serbia has large areas of marginal and low-quality land that could be used to grow biomass. Serbia has huge areas occupied by poor quality forests, including areas of poor forests on good land. Serbia has neither developmental nor spatial plans and a low level of professional, political and legal responsibility. If the situation was different, I’m certain Serbia would be among the countries in which biomass plays a more significant role in the energy transition process.

How relevant is the topic of green transition in Serbia’s business sector?

— Given that I’m not a businessman, I can only judge happenings in the business sector indirectly. My impression is that discussion of this topic has become

THE RES FOUNDATION WILL MONITOR, WITH

GREAT

INTEREST AND CLOSE ATTENTION, HOW LOCAL GOVERNMENTS IN SERBIA DECIDE TO TREAT THEIR POORER CITIZENS USING TAXPAYER

MONEY AND WHY THAT’S SO

What are the most favourable energy transition models for Serbia? How much do we use sources like biomass, for example?

— I couldn’t say what the most financially favourable energy transition model would be for Serbia, but I would like to see more organised attempts for us to answer that question. However, I’m not sure when we’ll see such attempts, due to the reasons mentioned in the answer to the previous question. Biomass is a resource that we use in huge quantities in a terribly inefficient way. We ignore this fact entirely in our planning processes. Biomass is the energy source that accounts for the largest share in household

very vibrant in the business sector. The reasons probably lie in the announced introduction of a cross-border carbon tax, the impact of supply chains culminating in Europe and high energy prices, but also an increasingly improved understanding and knowledge of the existence of appropriate technological solutions.

Have energy efficiency improvement incentives for citizens (façade renovation, window replacements, switching to the use of renewables) been devised well or do they cause further social division?

— These are issues that the RES Foundation will address intensive-

ly during 2024. We hope to be able to share our findings with you and interested sections of the public. The Republic of Serbia borrowed from the World Bank and is also preparing to borrow from the EBRD in order to invest public funds in improving the energy efficiency of households. Apart from these funds, other public funding from the local government budget is being invested for the same purpose. In one case, participation requires co-financing amounting to 50% (in the case of the World Bank loan), and when it comes to the other arrangement (the announced EBRD loan), for now we know only that its beneficiaries will be those of our fellow citizens who live in multi-family residential buildings that are connected to the district heating system in one of 16 local government territories in the Republic of Serbia. Provided we properly understood the announcements of this second programme, its users can also look forward to a grant amounting to half of the funding required to improve the energy efficiency of their buildings and enable transitioning to pay district heating on the basis of consumption. This pleasure will be made possible for them by all current taxpayers, but particularly future ones. Although we’ll only have the results of more detailed analysis later in the year, it isn’t difficult to realise that, for now, both of these programmes completely overlook the poorest citizens and actually benefit those groups that could largely afford to make such investments by themselves. In the new public call to local governments that’s being conducted through the Clean Energy and Energy Efficiency for Citizens project, the possibility exists for municipalities and towns that really like helping their poorer citizens to also set aside part of the funds for them, albeit without any obligation to do so. The RES Foundation will monitor, with great interest and close attention, how local governments in Serbia decide to treat their poorer citizens using our money and why that’s so.

ADVANCE

The trial commissioning of the desulphurisation plant at TPP Nikola Tesla took place recently, with which we began fulfilling our obligation to stop poisoning citizens

CAUTION

Given the current state of professional, legal and political responsibility in our society, we dare not risk engaging in the construction of nuclear plants

RESOURCES

If we had responsible planning, I’m convinced Serbia would be among the countries in which biomass plays a more significant role in the energy transition process

NENAD ĐURĐEVIĆ

Ball Packaging Commercial Director SEE, Turkey and CIS; President of the Alliance for Circular Packaging of Serbia

CORPORATE

BALL’S COMMITMENT TO SUSTAINABILITY

Ball Packaging Europe is a leader in the production of aluminium packaging. With annual production exceeding a billion units, as much as 50 per cent is exported to around 20 countries worldwide

Increasing the percentage of packaging material that’s recycled represents an imperative that is today defined in the EU through a series of laws regulating the management of packaging waste. We spoke about this with Ball’s Nenad Đurđević, as well as discussing the circular economy, deposit-refund systems and the company’s future plans.

Ball Packaging Europe is a leader in the production of aluminium packaging and represents one of Serbia’s biggest export-

ers. Are you also among the biggest advocates of the principles of circularity and recycling?

— That's right. Ball Packaging Europe is a leader in the production of aluminum packaging. Our annual production exceeds billions of units, and even 50 percent is exported to around 20 countries around the world. Export is not only a confirmation of the quality of our product, but it is also of great importance for foreign trade exchange of our country. At the same time, we are also strengthening the network of domestic suppliers, which all contribute di-

rectly to the budget of the Republic of Serbia.

Since Ball Corporation opened its Belgrade factory and launched operations in Serbia back in 2005, the principle of sustainability and circularity has been one of the key postulates forming the basis of our operations and business. Ball Corporation, within the scope of which our Belgrade factory operates, published a climate transition plan in 2023 that is based on a scientifically grounded decarbonisation plan with the goal of achieving critical reductions in CO2 emissions by 2030 and zero emissions prior to 2050. This plan adheres to UN guidelines related to decarbonising economies in order to halt rising global temperatures.

Our export results don’t only confirm the quality of our product, but are also extremely important for our country’s foreign trade exchange. We are simultaneously strengthening our network of domestic suppliers, all of which contributes directly to boosting the budget of the Republic of Serbia.

Every other beverage can in the shops has been recycled at least once and comes from Ball Pack-

aging. What does this fact say about your attitude towards sustainable development, circularity and recycling?

— That fact confirms our determination to operate responsibly, by taking care of the environment and applying sustainability and circularity standards. This is also supported by the fact that, globally, Ball Corporation reached an average of 70% recycled content in beverage packaging produced during 2023. Around 76% of aluminium cans produced in Europe are currently recycled, while our end goal is for that to be 100%, as aluminium is a material that can be recycled an infinite number of times with minimal losses.

The Circular Packaging Alliance, of which your company was among the founders, has vast experience and accounts for around 65% of the Serbian packaging market. Is it realistic to expect to increase the percentage of recycling and circularity?

— The companies comprising the Circular Packaging Alliance - Alpla, the Serbian Glass Factory, Greiner Packaging, Tetrapak, Ball Packaging and Smurfit-Kappa – have great knowledge and experience when it comes to recycling, sustainability and circularity. That’s precisely why we decided to take a joint approach in order to contribute to the adopting of good systemic solutions that will have a positive long-term impact on environmental protection, packaging industry operations and the recycling industry. All three segments are inextricably linked and we view them as a whole.

Increasing the percentage of recycled material in produced packaging isn’t merely something we should hope for and expect, but rather represents an imperative that is today defined in the EU through a series of legal solutions relating to the management of packaging waste, and the Republic of Serbia is also preparing a reg-

ulation, or rather a law that should resolved the issue systemically. Serbia has opted to follow the EU’s recommendations in the environmental protection field, and they envisage 85% of cardboard and paper waste, 75% of glass, 60% of aluminium and 55% of plastic waste being recycled by 2030. If these new solutions prove unfavourable for any of these materials, entire production capacities could be threatened.

The companies forming the Alliance are dedicated to the principles of circularity, as confirmed by the goals set for 2030. In concrete terms, Ball Corporation plans to be recycling 90% of the aluminium cans it produces by the deadline set, and for the rate of new product recycling to reach as much as 85% on all markets where Ball operates.

What do you think is needed to meet the standards recommended by the EU?

— In the opinion of the Alliance for Circular Packaging, reaching the amounts outlined requires focusing on collecting waste from citizens, as well as adding to the existing extended producer responsibility (EPR) system a deposit-refund system (DRS) for all single-use packaging made from metal, plastic, glass and multilayered cardboard, all of which bring high percentages in recycling. Introducing a DRS would help collect approximately 90% of this type of waste within three years of the start of implementation, doubling current recycling rates. This is a very important issue for Serbia. Alongside the ecological aspect, which is the priority, there is also an economic aspect. I consider it crucial for Serbia’s new regulations and laws on the management of packaging waste to follow the model of EU legislation, because that’s the only way for domestic products (producing packaging in Serbia) to continue to be competitive on other markets.

You announced late last year plans to increase the capaci -

ty of your Zemun factory by 30 per cent. What do you expect from that?

— Investing in the Belgrade factory, with the introduction of another production line, will bring growth and improved results, as well as contributing to strengthening our position on both domestic and foreign markets. Ball invests continuously in its Belgrade factory, while this investment serves to confirm that Ball Packaging has been operating successfully over the previous 19 years and that the company has recognised the potential of the Belgrade factory, as well as the entire team composed of our employees.

Is citizen awareness regarding the importance of recycling

AROUND 76% OF ALUMINIUM CANS IN EUROPE ARE CURRENTLY RECYCLED, WHILE OUR END GOAL IS FOR THAT TO BE 100%, AS ALUMINIUM CAN BE RECYCLED AN INFINITE NUMBER OF TIMES

spreading quickly enough? Is the public aware that properly disposing of and processing packaging saves on raw materials?

— I believe that awareness of the importance of a healthy environment, clean water and air, and reduced waste, is increasing among citizens. This is no longer an abstract topic, but rather something that has a direct impact on quality of life, and it is natural for citizens to pay ever more attention to this area.

When it comes to the proper disposal of packaging waste, I’m certain that introducing a deposit system that implies refunding money for each returned package would contribute to people better understanding that used packaging is not waste, but a resource; something that can be exchanged for money and shouldn’t end up dumped at a landfill site or in nature.

e launched the RESERVOIR project last autumn, which will contribute to the protection and recovery of our country’s natural water resources and lead to their improved use, but will also ensure better access to clean drinking water for citizens – explains Dragan Lupšić in this CorD interview.

WCORPORATE

OUR PROJECT ”RESERVOIR” SUPPORTS PRESERVING SERBIA’S WATER

Our country isn’t rich in water, while Edelman’s research also shows that citizens don’t recognise water as being a sufficiently important topic for companies to address. However, water is vitally important for HEINEKEN

DRAGAN LUPŠIĆ

Corporate Affairs Director at HEINEKEN Srbija

However, this isn’t the only reason. Apart from being obliged to harmonise their operations with regulations governing environmental protection, the branches of global corporations that operate in Serbia are also aligning their operational and production processes with their parent companies’ sustainability goals at the global level. These global strategies are

WE’VE IMPLEMENTED MAJOR INFRASTRUCTURE INVESTMENTS AT

BOTH BREWERIES, WITH WHICH WE HAVE ACHIEVED ZERO WASTE TO LANDFILL

AND IMPLEMENTED WASTEWATER TREATMENT SYSTEMS

Why are sustainable operations important today?

— Sustainability has been the number one topic over the past few years when it comes to companies’ ESG and CSR activities, both at the global level and in Serbia. The climate change that we are witnessing is a key reason to raise awareness of this topic and its growing importance.

generally more stringent and ambitious than local regulations, which means that meeting the goals of your own ESG strategies can yield results that extend beyond those stipulated by local legislation.

When it comes to consumers, we live in a time when attention is increasingly being paid to this topic when making purchases. The sustainability of packaging and origin

of raw materials are just two of the many things that consumers take into consideration when choosing a product. And the younger generations are particularly interesting in this sense. Members of Generation Z place a greater emphasis on the quality of ingredients and on packaging simplicity and sustainability, but also on the importance of returnable packaging.

How do the goals of the “Brew a Better World” strategy contribute to carbon footprint reduction?

— In concrete terms, our goal is to achieve net zero in all production processes by 2030 and across the entire value chain by 2040. On this journey, we are focusing on renewable energy sources, increased energy efficiency and reducing CO2 emissions in logistics. Apart from that, an important role is also being played by innovations through the placement of so-called green fridges on the entire Serbian market. Our employees have also contributed to cleaner air by having implemented the “Plant Your Shade” campaign on Brewery Day over two consecutive years in Zaječar and Novi Sad, planting 500 seedlings on

each occasion. Thanks to this planting of a thousand trees, we’ve enabled savings of more than 24 tons of carbon dioxide annually, or 720 tons of carbon dioxide over a 30-year period. Apart from the positive impact that trees have on air purification and CO2 reduction, a significant amount of water is also returned to nature through the transpiration process.

You’ve improved numerous processes significantly, in the direction of environmental protection, at your breweries in both Zaječar and Novi Sad over recent years. To what does this relate?

— That’s right! We’ve implemented major infrastructure investments at both breweries, with which we achieved zero waste to landfil and also implemented wastewater treatment systems. The aim of the latter is to return all the water we use to nature purified. Additionally, in order to reduce the use of plastics, we continuously highlight the importance of using returnable packages and continue to develop innovative packaging. When it comes to Serbia, 85 per cent of our raw materials are sourced locally, while 100 per cent of our suppliers have signed the HEINEKEN supplier Code, thus confirming that they operate in accordance with the highest standards and that they respect human rights and the environment.

You’ve recently been paying special attention to preserving water resources. Why have you focused on this area in particular?

ade. We are proud that we are closing in on the goal we’ve set for 2030. Our commitment to this topic is also best confirmed by the fact that we presented the RESERVOIR project in Zaječar last autumn, which is focused entirely on the issue of water.

What has been implemented to date within the scope of the RESERVOIR project and what are you planning for the period ahead?

— It was in September 2023 that we presented the RESERVOIR national campaign, with which we want to not only raise awareness, but also contribute to the preservation and recovery of Serbia’s natural water resources and their improved use. We are additionally aiming to improve access to clean drinking water for citizens. In cooperation with the NALED organisation, as our long-term partner, the RESERVOIR campaign will be implemented continuously through the renovation of public drinking fountains and artesian wells, with a focus

the renovation of three drinking fountains and the revitalisation of one artesian well, while another four fountains and three artesian wells were renovated in previous years.

The topic of the responsible consumption of alcohol occupies an important place in the framework of your ”Brew a Better World” strategy. In which ways do you raise awareness of this topic? —Responsible consumption is an extremely important topic for us, as is evident in the fact that our portfolio includes two non-alcoholic beer brands: Heineken® 0.0 and Laško Malt®. We also joined forces with the Auto-Moto Association of Serbia with the aim of raising awareness of the importance of this topic, implementing a campaign entitled “Kad ide tura, ne ide gas” [When you drink, don’t drive]. I’m proud that this is the first partnership in Serbia between a beer industry leader and the national association of drivers, and that it represents an innovative advance on the topic of responsible consumption.

— Water accounts for more than 95 per cent of beer, which makes it the key ingredient of the beverage that we produce, but this fact also testifies to just how important this resource is to our industry and to the quality of the beer that we offer our consumers. We take care at our breweries in Zaječar and Novi Sad to ensure the rational use of water, adherence to the circular economy in its use and responsible management, i.e. the maintaining of watersheds. Our progress in this area is best confirmed by figures showing that we’ve reduced water consumption in production by 75 per cent over the last dec-

on Novi Sad and Zaječar, wastewater treatment at breweries (WWTPs), education and student visits to the company’s breweries, workshops for students covering the topic of preserving water resources, as well as the implementation of numerous volunteer actions for employees.

We launched our activities in Zaječar, which is unique in terms of its abundance of healthy drinking water, while it is also home to the first public drinking fountain in Serbia with water sourced from an artesian well. This year alone, in cooperation with the City of Zaječar and the citizens’ association ZA Česme, HEINEKEN Serbia proudly invested in

Through various channels of communication and exclusive video content, as well as innovative activations at driving schools and AMSS and AMS Osiguranje branches throughout Serbia, the messages of this campaign have to date reached almost all drivers in the country. The campaign also includes Nikola Miljković, a trophy-winning Serbian driver and the youngest champion of the European Hill Climb Championship, who – as an experienced competitive driver and an example of responsible conduct on the roads – provides additional strength and visibility to the messages of the campaign.

HEINEKEN Srbija, together with its partners, is this year continuing its mission to ensure the campaign’s messages reach every driver, with a special focus on new and young drivers. Alongside traditional promotion channels, we will further expand the campaign with an innovative approach to this topic that will ensure the campaign’s messages of responsible consumption remain in the public memory always and everywhere.

“ONE SOLUTION” APPROACH FOR EXCELLENT SERVICE

With advanced communication methods, Steel Impex’s approach to obtaining valuable raw materials is based on close cooperation with local communities and companies, as well as the educating of citizens

Apark named ‘Refine’ was established in Serbia this March. As the country’s first industrial park of its kind, it will be used to refine mixed metals. This park represents hope of a more sustainable future, allowing the company to achieve what was once considered impossible. As a leader in waste recycling, the company has more to offer and share with the public. Establishing the park is a significant achievement for the company and a step towards a more sustainable future.

Apart from being the first of its kind in Serbia, what makes your new industrial park for refining mixed metals unique?

— The industrial park for refining mixed metals represents a revolutionary step in metal recycling in the Balkans. This park uses stateof-the-art metal processing and separation technologies, enabling increased efficiency and better results than traditional methods. With a particular focus on sustainability, the park also aims to have a minimal environmental impact through energy-efficient processes and wastewater treatment sys-

tems. This park is expected to significantly improve our ability to manage metal waste, paving the way for new industrial and economic opportunities.

How will you obtain raw materials?

— Our approach to obtaining raw materials is a collaborative effort with our valued local communities and companies. We organise educational programmes and workshops, empowering companies with knowledge about the benefits and techniques of efficient recycling. We also encourage citizens to contribute through regular campaigns on the importance of recycling, underlining how their actions can significantly influence the preserving of natural resources. With advanced communication and collaboration methods, we are building a network of reliable sources of raw materials, with each stakeholder playing a crucial role in our recycling chain.

WE LOBBY FOR BETTER LEGISLATIVE REGULATIONS THAT WOULD SUPPORT MORE EFFICIENT WASTE MANAGEMENT, PRIMARY SEPARATION AND RECYCLING AT THE NATIONAL LEVEL

Can the continuous promotion of recycling and awareness of its importance help promote a more sustainable waste management approach in Serbia?

— Our recycling promotion activities encompass various initiatives,

MILICA URAZ

CEO, Steel Impex

from social campaigns to partnerships with educational institutions. Through interactive workshops, seminars and public discussions, we work to inform citizens about the environmental and economic benefits of recycling. We strive to raise awareness of the importance of this process through a constant presence in the media and on social media platforms. We also lobby for better legislative regulations that would support more efficient waste management, prima-

improve their waste management processes.

Do you offer solutions to companies wanting to contribute to environmental protection through recycling?

— At Steel Impex, we understand the complexity of companies’ waste management. That’s why we’ve developed a “one solution” approach, in which our clients have just one partner to cater for all their waste-related needs. With

ry separation and recycling at the national level.

What is the value of waste discarded in landfills; and what percentage of that waste can be recycled instead of polluting the planet?

— Estimates show that a large amount of the waste generated annually in Serbia could be recycled. The value of this recycled material is measured in the millions of euros, and our mission is to maximise this potential. With constant improvements in recycling technologies and methods, we can reduce the amount of waste ending up in landfills significantly, thus protecting the environment and creating new economic resources. Our programmes also include detailed counselling for companies on opportunities to

ty and growth of the recycling industry. Steel Impex invests continuously in developing new technological solutions that enable more efficient processing and the greater usability of recycled materials. We also pay great attention to training our employees, as we believe that a qualified and trained workforce can maximise the potential of modern technologies. These efforts contribute to better business results and promote a more sustainable approach to resources, which is

ISO standards 27001, 45001, 9001 and 14001, we guarantee the highest level of service and compliance with regulations. We have our own fleet of trucks and complete equipment necessary for waste collection, transportation, storage and treatment. This approach makes it easier for companies to focus on their primary activities while we efficiently manage their waste at our three locations. We thus simplify processes and ensure that waste management is sustainable and efficient.

You have often shown that recycling is the industry of the future. Without this future industry, does planet Earth have a future?

— Investing in innovation, modern technologies and employee training is crucial for the sustainabili-

STEEL

IMPEX INVESTS

CONTINUOUSLY IN DEVELOPING NEW TECHNOLOGICAL SOLUTIONS THAT ENABLE MORE EFFICIENT PROCESSING AND THE GREATER USABILITY OF RECYCLED MATERIALS

crucial for protecting our planet. Without innovation in recycling, sustainable development would be significantly more challenging, leading to long-term negative environmental consequences. Our commitment to this vision shows that recycling is economically feasible and necessary to preserve natural resources and minimise ecological footprints.

MILICA BEGENIŠIĆ

ESG

and Events Manager, Yettel

Here Yettel’s Milica Begenišić explains to us how a leading mobile operator has taken on the role of driving positive change in society and why its personnel are constantly considering what else they can improve, how they can reduce waste and ghg emissions, and how the initiatives launched by the company can involve its employees and almost three million users.

For Yettel, the numbers speak volumes. You are the first 100% green network in Serbia, having recycled over 690,000 devices, 409 tons of plastic and 195 tons of paper, and with clean energy powering 31 of your shops. What other green initiatives are you implementing?

— That’s right, environmental protection is a significant topic for us. We strive to base every business decision we make on sustaina -

ENVIRONMENTAL PROTECTION AN IMPERATIVE

Ecology is becoming an increasingly important topic for companies. At Yettel, green is simply the way they do business

ble principles. We are constantly thinking about what else we can improve, how to reduce waste and gas emissions, and how we can involve employees and our almost three million users. Our recycling programme is growing by the year and we are closing in on the goal of recycling a million devices by year’s end 2025. In addition to offering users the option to recycle waste, we also give them the option to help us reduce our paper use. We are the first telecommunications company in Serbia to enable the paperless signing of contracts and other documentation. We also offer our users the option of using an e-bill. Around 74% of our individual users have chosen this option, which has enabled us to save, in theory, around 8,000 trees. Our goal is to have a million e-bill users by 2025.

Large companies have the power to drive positive change, and

– as a leading mobile operator – you have taken that role seriously. Do you believe in the saying ‘If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse’? — Yes, we do believe in that and try to follow it in every aspect of our business. As you said, companies have the power to drive change; however, with power comes the responsibility to contribute to the communities in which we operate. Apart from the initiatives we launch, we also cooperate with partners who share our values. That’s why we supported the third Science Picnic, organised by the Science Festival. The picnic will be held on 17th and 18th May in the Arboretum of the Faculty of Forestry. Its aim is to better familiarise children and young people with environmental topics in a simple and receptive way and to provide guidelines for nature conservation. We believe that education is the best way to achieve this goal. Environmental protection is an imperative for companies, individuals and society. We must invest our knowledge and goodwill to save the planet for future generations.

OUR FUTURE IS IN SOLAR AND BIOMASS

The sustainable development strategy that represents an integral part of the business strategies of all Delta Holding businesses includes a plan to achieve a 60% reduction in the use of fossil fuel energy by 2030

Defined ESG improvement plans have established ambitious yet realistic goals with which one of Serbia’s largest companies is achieving a positive impact on nature and society, as well as advnacing the economic environment.

Does Delta Holding have a green transition strategy?

— With our environmental protection strategy, we have set plans to reduce the consumption of fossil fuel energy by 60% by 2030. In order for us to achieve this goal, we have been investing in renewable energy sources since 2021 and currently have solar power plants constructed in 16 locations. They have a total power capacity of approximately 5MWh. The plan is to install solar panels at eight more locations this year.

Apart from solar energy, we also use biomass in our work processes. We use corn husks at the Seme Sombor factory, sunflower husks at the Dunavka oil factory and soybean straw as an energy source at the Napredak farm. Renewables account for 25% of total energy consumption.

We will also reduce emissions of harmful gases with our transition to renewables, while we also plan to reduce the amount of generated and discarded waste and packag-

ing, as well as fully utilising waste as a raw material for new products.

Among the members of Delta Holding is the company Delta-Pak, which offers services as an operator for the management of packaging waste and an advisor in the areas of the environment, chemicals and the transport of hazardous goods. It performs these jobs for Delta Holding members, but also for external clients.

Is it easy to achieve green transition in your two core business areas of the agricultural and real estate sectors?

— Large investments are implied in the green transition of both sectors. At Delta Agrar we are achieving reductions in emissions yearon-year through precision agriculture and investments in renewables. Contributing to this is modern machinery equipped with GPS, as well as systems for variable rate seeding, variable fertiliser application and irrigation. The use of drones instead of tractors in the plant protection process has additionally contributed to the reduction of fuel consumption.

As an example of modern building construction and renovation practices, UNIDOM balls made entirely from recycled plastic were used in the construction of the new Delta House office building and resulted in CO2 emissions being re-

duced by as much as 336 tons. The heating and cooling system also implies an economical mode of operation with motion, temperature and CO2 concentration sensors, bipolar ionizers and the cleaning of air particles that also save energy. The roof of the building is installed with solar panels, as well as a collection tank for rainwater that is used as technical water in the toilets. Delta House thereby satisfied all standards and received LEED Gold certification.

The building of the Sava Centre will have a BREAM certificate following the completion of renovation works. It’s single-pane glass has been replaced with more energy-efficient triple-pane glass, while new materials were used to insulate concrete wall surfaces and it has the latest building heating and cooling systems. Solar panels with a capacity of 472 kWh have also been installed on the roof, all of which have led to estimates that the building will consume at least 30% less energy than it did prior to the renovation.

Chief Business Sustainability Officer at Delta Holding

TIJANA KOPRIVICA

PLANTING FLOWERS SAVES BEES

As part of the commemorating of Earth Day, company Mlekoprodukt implemented a large environmental campaign in Zrenjanin and the surrounding area

Socially responsible companies endeavour to motivate all generations to continue to love nature, take care of the environment and plant trees and flowers, while they don’t allow our rivers and natural surroundings to become impromptu dumps. If we love the Earth, it will provide us with manifold rewards.

Company Mlekoprodukt, which operates under the umbrella of the Savencia Fromage & Dairy group, joined celebrations of Earth Day with a range of activities in Zrenjanin and the surrounding area. Company staff cleaned a popular excursion area on the banks of the Tisza, as well as cleaning the banks of the river Begej in the city itself, while a second activity of planting flowers aimed to prevent the further decline of the bee population.

Following the cleaning of the banks of the Tisza and Begej, all waste collected was submitted for recycling, with the money thus collected set to be donated to one of the institutions tasked with caring for children. The activity was supported by the Čigra School of Sport and the Rowing club Begej 1883 from Zrenjanin, members of which participated in the cleaning of the banks of the Begej, as well as public utility company Cistoća i zelenilo [Cleanliness & Greenery], which provided waste containers, gloves and bags for collecting waste.

In parallel with the cleaning of the banks of the two rivers, the “Save the Bees” activity was organised and saw the distribution of flower pots containing meadow flower seeds. These flowers are able to flourish and thrive wherever they are sown, without additional human intervention, and help to increase the number of bees, which form

a crucial part of the ecosystem. Throwing “seed bombs” is fun for both children and adults, while it is also a great tactic for greening abandoned land plots in urban areas, in isolated and neglected spots, but also for enriching the vegetation of meadows.

THEY CLEANED THE BANKS OF THE TISZA AT AN EXCURSION SPOT AND THE BEGEJ IN THE CITY ITSELF, WHILE THE SECOND ACTIVITY OF PLANTING FLOWERS AIMED TO PREVENT THE FURTHER DECLINE OF THE BEE POPULATION

Apart from representing tangible assistance for bee populations, this project raises awareness of the inextricable link between bees and food, while encouraging people to plant as many flowers as possible. Reductions the total area covered by wild flowers is one of the main causes of declining bee populations, but Mlekoprodukt’s campaign demonstrated how this negative trend can be reversed, to the satisfaction and benefit of both people and bees.

Mlekoprodukt managers expressed their great satisfaction with the response of people to this activity, which raises awareness of the essential need to take concrete steps to preserve the environment.

“We thank everyone who joined our “Pearl Team”! We hope that our activities will motivate all generations to continue to love nature, take care of the environment, plant trees and flowers, and not allow our rivers and surroundings to be cluttered by waste. We love the Earth, and it will reward us multiple times,” say Mlekoprodukt representatives.

RESPONSIBLE TOGETHER –FOR A BETTER TOMORROW

As a company that’s renowned for its commitment to sustainable operations, Lidl builds a responsible attitude towards the planet and people. It directs its efforts towards relevant current and future environmental and social challenges and problems

he benefits of the modern age have led to humans being distanced from nature, thus disturbing the equilibrium of a balanced mutual relationship. In this sense, today’s current topics aren’t only important from the perspective of preserving natural beauty, but also when it comes to protecting flora and fauna, or generally ensuring our continued survival on the planet. Sustainable development must occupy its rightful place on the list of priorities of all state bodies, associations, companies and individuals worldwide, in order to ensure the certainty of our common tomorrow. The various problems that are afflicting our ecosystem and becoming increasingly apparent through ever-more frequent floods, fires and droughts have contributed to strengthening public awareness of sustainable development’s key role and prompted a global discussion on the need to include international companies in environmental protection processes.

TSome companies adapt their strategies fully to the needs of socially responsible operations, recognising their own role and accepting their responsibility in order to contribute to preserving nature. A good example in this context is the strategic commitment of Lidl Serbia to social-

ly responsible business, which it pursues in the areas of fair business, respecting biodiversity, climate protection, resource conservation etc. As a company that’s renowned for its commitment to sustainable operations, Lidl builds a responsible attitude towards the planet and people. It directs its efforts not only towards current environmental and social challenges, but also future problems.

One recognisable Lidl project that remains current is called Čisto iz ljubavi [Purely out of love]. Conceived as part of the global REset Plastic strategy, which views plastic holistically and strives for the principle of “less plastic – closed production cycles”, this initiative represents the tangible steps being taken by the company in an effort to address environmental challenges. Led by targets envisaging a 20% reduction in the use of plastic in the packaging of its own brands and an equal increase in the average share of

ONE RECOGNISABLE LIDL PROJECT IS CALLED ČISTO IZ LJUBAVI [PURELY OUT OF LOVE] AND IS CONCEIVED AS PART OF THE GLOBAL RESET PLASTIC STRATEGY, WHICH VIEWS PLASTIC HOLISTICALLY

recycled materials included in packaging by 2025, the company also focuses on resolving other problematic aspects of the use of plastic. As such, within the scope of this project, and with the support of more than 2,500 volunteers, Lidl has implemented more than 80 actions aimed at removing waste discarded in nature. Thanks to the joint efforts of citizens, associations and organisations, these activities resulted in more than 60 tons of waste being removed from nature.

Environmental awareness is becoming increasingly pronounced, while recycling is recognised as a key step in reducing the negative impact on the planet. And yet we still aren’t taking advantage of the potential and the benefits it brings for the environment and the economy. Materials like glass and aluminium can be recycled without losing quality, but large quantities of these materials still end up being discarded in landfills and in nature, posing a serious threat to biodiversity. Neglecting waste causes risks for all living things, and the World Wildlife Fund (WWF) warns that humans are to blame for more than 30% of all plant and animal species having already become endangered.

Being a hero in the fight to save the planet is based to a large extent on the small contributions of every individual, which can trigger an avalanche of positive change. Responsibility towards the environment is certainly required from each of us, because it is only through joint efforts that we can build a sustainable and healthy future for all.

ALEKSANDAR KOVAČEVIĆ

Senior Visiting Research Fellow at Oxford Institute for Energy Studies (OIES)

PACTA SUNT SERVANDA!

The headline for this article, literally meaning “agreements must be kept”, is a reminder to the Western Balkans from the Vienna Convention on International Treaties. Remembering and respecting this is a prerequisite for the success of the Growth Plan, the Green Agenda, ESG criteria and commercial investments in the energy industry

n Vienna on 14 th December 2023, the Ministerial Council of the Energy Community concluded: “The Ministerial Council expressed its serious concern over continued noncompliance with the Large Combustion Plants and the Industrial Emissions Directive in several Contracting Parties. Significant levels of air pollution affect the health and lives of citizens of the Energy Community.”

IThe Council also extended the duration of the Energy Community Treaty (EnCT) to 2036, without making any significant adjustments to its text in order to address this key observation.

In its “Rule of Law Checklist” (28th March, 2016), the Venice Commission assumes that enforcement of international treaties is a key aspect of the rule of law in any given jurisdiction. The European Union makes the assumption that abiding by international treaties is

compulsory for its member countries. Furthermore, the EU sees it as its duty to promote the rule of law in international relations. There is, however, a difference between reporting on the rule of law in EU member states and actually promoting the rule of law in external relations. In other words, its inwardly oriented Methodology for the preparation of the Annual Rule of Law Report within the EU isn’t sufficient to address the situation of compliance with international treaties by third countries.

Observation of the EnCT Ministerial Council is not reflected in the chapter on rule of law in the acces-

IMMEDIATE ACTION TO REDUCE HARMFUL AIR POLLUTION WITH MINIMAL INTERVENTIONS IS CRUCIAL TO SAFEGUARD LIVES AND PROPERTY

sion Progress Reports, despite this noncompliance having been obvious for several years to CSOs, professional institutions and the EnCT Secretariat itself.

If or when the EU’s Growth Plan for the Western Balkans is approved by EU institutions and member states, it will be conditioned by the rule of law principle. In other words, funds aren’t likely to be disbursed as long as noncompliance with the EnCT persists.

The Western Balkans needs investment to address noncompliance with such complex material obligations of the EnCT. At the same time, commercial investments aren’t possible due to legal uncertainty and the risks expressed in the Ministerial conclusions. This is a vicious cycle.

Investments in public infrastructure (high voltage lines or regulatory improvements) and most forms of renewable energy are based on sovereign bonds. However, these investments only increase the competitive pressure on commercial power generators that are deprived of access to commercial financial markets by risk and uncertainty.

These companies are fully exposed to government policies that redistribute funds from operations and the maintenance of assets to support wider employment and social wellbeing. The financial depleting of thermal power plants, coal mines, energy efficiency, forestry and environmental protection generates a short-term surplus and an apparent increase in sovereign creditworthiness. However, this underinvestment in physical assets devastates security of supply and increases noncompliance with the material obligations of the EnCT. This physical devastation is now well underway and will prove difficult to reverse.

Even if the EU turns a blind eye to noncompliance with international treaties and ultimately approves the implementation of funding to the Western Balkans for the Growth Plan, the effects of these funds are likely to be constrained by a shortage of domestic dispatchable power. This also applies to expectations on critical raw materials, rare earth minerals or “nearshoring”. In reality, bauxite, aluminium, steel and energy intensive industries in the Balkans are already dormant. To avoid any ambiguity: there is a shortage of electricity. Energy intensity in the Western Balkans, and electricity intensity in particular, stands at less than half the OECD average. Total energy consumption per capita in the Balkans is lower than in developed EU countries, as evidenced by physical data included in this publication. As a consequence, poverty is inevitable and cannot

be addressed without massive investments in commercial power generation. Poverty is further augmented by power blackouts, forest fires, flooding, erosion and landslides, as well as air pollution. Sulphur emissions in our region are many times higher than the European equivalent.

Under such circumstances, persistent poverty and risks to lives may co-exist with nominal GDP growth and fiscal and monetary stability.

“Agreements must be kept” (Pacta Sunt Servanda!) is a call for a realistic, harmonised legal framework that’s complemented by access to the non-recourse financing that is essential to address the deterioration of energy security and preserve social stability.

If that is achieved, the Growth Plan will find fertile ground and its key objectives could be achieved within a meaningful period of time, by 2036.

It is a physical reality that retrofitting existing power plants to comply with the Large Combustion Plant Directive and the Industrial Emissions Directive does not align with the decarbonisation imperative. However, replacing this dirty energy with a carbon neutral, dispatchable and commercially viable energy supply is feasible and can be done. This bold investment strategy needs to be accompanied by an immediate reduction in harmful air pollution through minimal cost interventions, in order to preserve both lives and properties.

For national power generation companies, the implementation of ESG standards implies massive strategic re-orientation from the devastative ‘business-as-usual’ towards a rapid state-of-theart investment strategy. And this is also possible.

For that purpose, these companies need access to the EUETS (EU Emissions Trading Scheme), with appropriate allocations to enable rapid coal phase-out. While these

allocations may be enacted only once decarbonisation has been achieved, that is sufficient support for commercial funding and access to commercial technologies that are not available in the public domain. Only under this approach will the Western Balkans be able to compete on a level playing field with its Central European competitors.

This is a major task, but it has been done before. Political and industrial leaders have to replicate the construction of the entire lignite power generation portfolio that was constructed over a period of roughly ten years, within an externally arranged financial framework, some 50 years ago. EU institutions need to endorse and promote this policy innovation.

Access to EUETS, under Article 25 of the EUETS Directive, automatically (and irrevocably) ex-

PERSISTENT POVERTY AND RISKS TO LIVES MAY CO-EXIST WITH NOMINAL GDP GROWTH, FISCAL AND MONETARY STABILITY IN THE WESTERN BALKANS

cuses the region from CBAM Regulation under Article 2(6). Through this, the region is protected from the uncertainties of Article 2(7), as well as any confusion between the SAAs and the CBAM Regulation. EnCT already contains provisions regarding the required Monitoring, Reporting and Validation (MRV) system, and it is advanced in its implementation. The appropriate adjustment of the EnCT needs to provide the region with a meaningful legal framework and financing for decarbonisation and clean air. This truly restores security of supply and demonstrates the rule of law. This is a common interest of the EU and the Western Balkans.

Source: The Region

WE ARE THE GENERATION THAT CAN MAKE PEACE WITH LAND

On 5th June we will mark World Environment Day. Hundreds of millions of people will engage in this milestone moment for environmental action.

Since 1973, World Environment Day led by the UN Environment Programme has helped to drive action on some of the planet’s most-pressing environmental problems.

This year, World Environment Day will direct the world’s gaze to three perilous, though often-overlooked, challenges: land degradation, desertification and drought.

One-fifth of earth’s land is now degraded. Our lakes are shrivelling up. Our forests are disappearing. Our farms are turning into dustbowls.

This degradation affects the well-being of more than 3 billion people – and the problem is only expected to get worse.

USE OF DISPOSABLE PLASTIC BAGS DOWN 80 PER CENT

According to the Future of Trade [Budućnost Trgovine] Conference, “the use of plastic bags in Serbian retail has fallen by more than 80 per cent in less than a year, thanks to plenty of work having been done in the previous period on initiatives that served to reduce the use of plastic and the waste generated in the retail industry.”

The great importance of the entire supply chain accepting new trends known to help preserve and protect the environment, such as avoiding the use of plastic, engaging in recycling and using renewable and non-polluting materials and new technologies, was also among assessments made at the conference. It was also noted that retail chains ought to be aware that adopting circular economy models and responsible business practices will help them better connect with their existing customers and attract new consumers, who have increasing environmental concerns.

“At the same time, retailers must be included in the dialogue on new waste management models, particularly for packaging waste, because commerce is the bridge that connects producers and consumers,” it was emphasised at the conference.

THE FALL AND RISE OF RECYCLING

MACHINES IN BELGRADE AND NOVI SAD

Heralded as part of the green revolution, Belgrade’s recycling machines have been consigned to history after less than three years. Of the 25 recycling machines that Belgraders could utilise to dispose of cans, plastic and glass bottles, as well as cardboard packaging, and in return receive telephone or public transport credits, or donate money to humanitarian causes, none are operational any longer.

Company Sekopak, the packaging and packaging waste operater that was responsible for recycling, told the eKapija news site that the project concluded last December, but that recycling machine manufacturer Suprabit is not abandoning it and hopes to find another company willing to empty the machines.

In the meantime, Novi Sad has received its first five recycling machines for the disposal of plastic bottles and aluminium cans. Any citizen using this machine can participate in the collecting of points via the Reciklomat app, which can be downloaded by scanning the QR code on the recycling machine or visiting the Google Play Store. The app is free and, apart from collecting points, you can also use it to confirm the locations of all recycling machines and their availability.

NATIONAL ANTI-POLLUTION CAMPAIGN LAUNCHED

On World Earth Day, the Serbian Ministry of Environmental Protection, in cooperation with the Delegation of the European Union and the United Nations Development Programme (UNDP), launched the campaign “Do Not Pollute, Work With Us” [Sarađuj, ne zagađuj]. This campaign, which aims to raise awareness of the importance of the green transition and environmental protection, calls to action both citizens and the business community to contribute to creating a healthier and greener environment.

The campaign will underline the importance of adopting simple habits like saving water while we brush our teeth, disposing of waste in waste bins, using

cloth tote bags instead of plastic carriers, utilising public transport, cycling or walking instead of driving a car, as well as turning off unnecessary lights at home or at work. Despite these being only small changes, implementing them together enables us to contribute significantly to preserving natural resources and our environment.

The national campaign “Do Not Pollute, Work With Us” is being implemented by the UNDP as part of the EU for Green Agenda in Serbia project.

RES SERBIA 2024 CONFERENCE SCHEDULED FOR SEPTEMBER

INFRASTRUCTURE

PROJECTS COULD TURN BELGRADE INTO A GREEN CITY

Speaking during a panel discussion organised by NALED’s Fair Competition Alliance, UN Resident Coordinator in Serbia Françoise Jacob said that special caution is required when it comes to infrastructure projects planned in Serbia, and particularly in Belgrade, until 2027.

“Many investments are planned in Belgrade. In five years it could become a wonderful green city or a terrible place. That’s why Serbia should pay attention to its green transformation, because this isn’t just about planting trees, but rather about applying technological and social

solutions. We are receiving around 80 million euros from development banks to implement some of these solutions,” assessed Jacob.

She noted that Serbia has achieved about 25 per cent of the green transition goals needed to be met by 2030.

“We hope that this will speed up over the next seven years,” said Jacob, before adding that the goal of Agenda 2030 is to focus on people and reducing inequality in such a way that those who are most vulnerable are part of the transformation and don’t feel the negative effects of change.

The region’s largest conference dedicated to renewable energy sources, RES SERBIA 2024 [OIE SRBIJA], will take place in the spa town of Vrdnik on 23rd and 24th September. For the fourth consecutive year, this annual conference will bring together representatives of the EBRD, the World Bank, national institutions and leading investors to discuss current topics in the field of green energy at the Tower of Vrdnik [Vrdnička Kula] ethno-complex on Mount Fruška Gora. The conference organiser is the Association of Renewable Energy Sources of Serbia, RES SERBIA [OIE SRBIJA], members of which include all relevant companies operating in the country’s RES sector.

RES SERBIA 2024 will include discussions on the construction status of the winning projects from the 2023 auction, the second round of auctions for market premiums for the development of solar plants and wind farms, as well as projects to be developed beyond the auction system. The event will also open discussion on the issue of energy storage and batteries, as well as summarising connection issues.

Last year’s conference included the participation of numerous officials from the Ministry of Mining and Energy, EMS, EPS, EBRD, companies Masdar, Enlight, Elicio, Nordex, European associations WindEurope and SolarPower Europe, directors of leading financial institutions, as well as other RES sector representatives.

ITALIANS SEEK TO CONVERT WASTE INTO ENERGY IN SERBIA

A facility with complex technology that’s used to convert waste into energy was presented earlier this year by Italian company Comef to local government leaders in the Serbian towns of Vrnjačka Banja, Kraljevo and Trstenik. The plant could be utilised at a future regional waste treatment facility that’s set to be used by all three local governments.

This Italian company operates both domestically and internationally designing, constructing and installing systems for generating energy from renewables that aim to reduce energy consumption and emissions of harmful gases, while limiting negative environmental impacts and maintaining a high level of energy efficiency.

Implementing this regional project would provide a lasting solution to the issue of municipal waste disposal and additional kilowatts of electricity or district heating/cooling systems for public or industrial heating. However, it would be preceded by analysis of the structure and amounts of waste being discarded, as well as a state guarantee, while construction of the plant itself would last two years.

OPINION

EUROPE’S FLAWED APPROACH TO CRITICAL MINERALS

The EU’s Critical Raw Materials Act is peppered with commitments to “value-addition” in the countries where critical minerals will be mined and processed. But there is reason to believe that the definition of “value” will exclude the vast social and environmental costs that these activities entail

Afactory might appear economically valuable, but if it is polluting so much that it destroys the surrounding ecosystem, it is not adding value at all. This principle should be central to the European Union’s policy decisions, as it races to secure access to the 34 raw materials considered “critical” to the EU’s renewable-energy, digital, space and defence, and health sectors.

The process of extracting critical minerals from raw ore – before smelting, refining, or otherwise changing them into usable forms – is highly concentrated within global supply chains, and not in Europe. In 2021, China processed 50% of the world’s lithium, 56% of its nickel, 80% of its gallium, 60% of its germanium, and 69% of its cobalt. As a result, these supply chains are prone to bottlenecks and highly

vulnerable to economic and geopolitical shocks.

If a mineral-processing power like China decides to use critical-mineral supplies as leverage or punishment, the EU will be at a significant disadvantage. In July, China announced it would restrict exports of gallium and germanium, both of which are needed to manufacture semiconductors. That decision had ramifications for national security in Europe, where demand for gallium is expected to grow 17-fold by 2050.

This vulnerability partly explains why the European Commission is committed to getting the Critical Raw Materials Act passed by early 2024. Along with strengthening the EU’s own mineral-processing capacity and forging “strategic partnerships” with mineral-rich countries, the CRMA is a key component of the EU’s strategy for securing the supplies it needs.

To boost the appeal of strategic partnerships – while distancing itself from its extractivist past – the EU has incorporated into the CRMA commitments to “value-addition” in the countries where critical raw minerals will be mined and processed. While we can guess some of what is meant by that – for example, supporting the development of mineral-processing capacity in countries where it is lacking – neither the CRMA nor any other documentation published so far clearly defines how value-added would be measured.

As a study by the Heinrich Böll Foundation points out, this leaves citizens of mineral-producing countries, as well as Europeans, unable to make informed decisions about these strategic partnerships, which are, in any case, legally non-binding. As one expert interviewed in the study observes, “unless it is clearly defined, value-added becomes a political slogan that can be wielded. For it to mean anything in practice, it is a concept that needs to be unpacked.”

The European Commission has offered some clues as to what such “unpacking” would reveal. During last November’s EU Raw Materials Week in Brussels, public statements by Commission representatives suggested that value-addition would be economic in nature, with a focus on creating jobs and generating rev-

enues for local communities. But while jobs and revenues are obviously desirable, this approach fails to account for the vast environmental and social costs of mineral processing.

In Namibia, a major copper-smelting operation in Tsumeb has, in the past, contaminated the local air, soil, and water, to the point that residents showed elevated levels of lead and arsenic. In Chile, lithium extraction has caused severe water shortages, as it consumes 65% of the Atacama Desert region’s supply and contaminates freshwater sources. Local communities have barely been consulted, if at all, about these activities – a violation of the principles enshrined in International Labor Organization Convention 169 and the

THE

EUROPEAN

COMMISSION MUST INCORPORATE ENVIRONMENTAL AND SOCIAL CONSIDERATIONS INTO ASSESSMENTS OF VALUE-ADDITION LINKED TO THE

CRMA AND SIMILAR INITIATIVES

If you poison the local people in order to create jobs for them, can those jobs really be considered “value-added”? What about the mineral revenues that were made possible by the destruction of local ecosystems? Does the local economy truly benefit from activities that drain it of vital ecological and social resources?

It should be obvious that short-term economic gains generated by mineral extraction and processing mean little if they have devastating environmental and health effects (which of course carry longer-term economic costs). That is why the European Commission must in-

corporate environmental and social considerations into assessments of value-addition linked to the CRMA and similar initiatives.

But that is just the beginning. Even in strictly economic terms, the concept of value-addition demands a more nuanced perspective. A recent report calculated that more than 95% of GDP generated by increased nickel-processing in one of Indonesia’s two key nickel-producing regions, Morowali, did not remain there. So, local communities are not only bearing the massive environmental costs of nickel extraction; they are gaining almost nothing from the revenues. None of this should be considered “value-added” by the EU.

And then there is best practice. Mineral processing, as a sector, is relatively under-scrutinised compared to, say, mining. Experts consider “green” refining –if such a thing can exist – an emerging field, at best. And, so far, advances in mineral processing have been focused mostly on mitigating financial and geopolitical risks for firms, rather than improving social and environmental outcomes.

To be sure, the electric vehicle-maker Tesla claims to have devised an “innovative” lithium-processing technique that is “designed to consume less hazardous reagents” than the conventional process and create “usable” byproducts. “You could live right in the middle of the refinery and not suffer any ill effects,” Tesla CEO Elon Musk boasts. But the firm has not provided any details publicly. The Heinrich Böll Foundation reached out to Tesla requesting more information, but received no response.

Left unreformed, mineral processing may add some economic value for some countries in some cases, but at great social and environmental cost. Unless the EU looks beyond narrowly economic metrics, its investments in this area will merely perpetuate the wrongs of the current fossil-fuel-based system, damaging human health, destroying ecosystems, and exacerbating the “decarbonisation divide.” No amount of rhetoric about “adding value” will change that.

By Sophia Pickles, a former member of the United Nations Group of Experts

United Nations Declaration on the Rights of Indigenous Peoples.

FEATURE

THE AI REVOLUTION IN CLIMATE SCIENCE

As we grapple with the implications of the digital revolution and a rapidly changing natural environment, AI may hold the key to unraveling some of the complexity that has exceeded our comprehension. But with the means of research firmly in industry hands, policymakers will need to ensure that new tools provide public goods

We have just witnessed the start of a paradigm shift in earth science. A paper published in Nature showed that a neural network (artificial intelligence) predicted weather better than the European Centre for Medium-Range Weather Forecasts, which has the world’s most advanced forecasting system. Then, in November, Google’s DeepMind announced

that its weather-forecasting AI had produced even stronger predictions.

The traditional approach to weather forecasting is to use observations taken at a point in time as initial conditions for equations based on physical principles. By contrast, an AI will ingest data collected over long periods of time and then “learn” the dynamics that traditional equations must describe explicitly. Both

HIGH-TECH COMPANIES – FROM IBM AND NVIDIA TO DEEPMIND AND HUAWEI (WHOSE EMPLOYEES WROTE THE JULY NATURE PAPER) –ARE AT THE FRONTIER OF MACHINE LEARNING

the traditional and the AI-based method rely on supercomputers, but the AI has no need for formally developed theories.

Weather forecasting determines when and where planes fly, which routes ships take, and helps manage all manner of civilian and military risks that come with a variable environment. It matters. While these are still relatively early days for AI applications in this field, and much still needs to be worked out, as in other sectors, AI-driven forecasting may displace skilled labour, since neural networks don’t

require knowledge of dynamical meteorology (the authors of the Nature paper are engineers with no such background). But the implications hardly stop there.

Writing about the problem of statistical forecasting in the 1950s, Norbert Wiener, the father of cybernetics, pointed out that if we already know the history of a system that exhibits certain properties, adding knowledge of the equations that govern its dynamics will not necessarily improve our predictions. Wiener was making a largely theoretical point, because limitations in observations, data, computing power, and other factors allowed for nothing else at the time. But now, his argument strikes at the heart of the matter, capturing the broader implications of recent advances in AI.

upend our understanding of the planet and our role on it.

Consider climate change. For the last 40 years, humanity’s response to the climate crisis has been guided by the Intergovernmental Panel on Climate Change, a scientific body that is compartmentalised by discipline: the physical sciences use large Earth system models that have much in common with those used in weather forecasting, while, separately, economists and geographers quantify the impact and focus on the role of adaptation and mitigation policies on our societies.

This division of labour – reflected in the IPCC’s tripartite working groups –

WRITING ABOUT THE PROBLEM OF STATISTICAL FORECASTING IN THE 1950S, NORBERT WIENER, THE FATHER OF CYBERNETICS, POINTED OUT THAT IF WE ALREADY KNOW THE HISTORY OF A SYSTEM THAT EXHIBITS CERTAIN PROPERTIES, ADDING KNOWLEDGE OF THE EQUATIONS THAT GOVERN ITS DYNAMICS WILL NOT NECESSARILY IMPROVE OUR PREDICTIONS

Just in the last few years, we have vastly increased our observational data of Earth. Between 1993 and 2003, just 25 Earth-observing satellites were launched into space; but between 2014 and 2022, the number shot up to 997, bringing the total fleet of Earth-observing and other satellites currently in orbit to some 7,560. With a vast space infrastructure that beams down data on just about anything – from plant growth, water vapour, and infrastructure installations, to infrared radiation, canopy height and measurements of the state of the atmosphere – we have entered a golden age of Earth observation.

This growing archive of data describes almost everything that both we and nature do on Earth. When combined with new AI models and our ever-expanding computational infrastructure, it could

corresponds with a division in methodologies. While physics-based Earth system models follow from first-principles equations, economists and impact modellers use a portfolio of empirical methods and irreducible theories.

AI could disrupt all of this. While it is unlikely to supplant traditional climate modelling completely – our observational record is not long enough to offer a statistically abundant picture of climate phenomena over the centuries – it is already playing an important role in the field.

More to the point, what matters most to us is not how the climate system behaves but how it affects the world we and oth-

er creatures inhabit. AI models – agnostic to any current scientific theories or disciplinary paradigms – could help us infer and possibly predict how biomass on the landscape changes over time. That, in turn, could improve how we manage forests and agriculture, construct diagnostic tools and early-warning systems for fire or flood risk, understand how energy economics connects to these changes, or predict their effects on the broader economy and even on climate negotiations. And all of this would come on top of how AI can accelerate the transition to a low-carbon economy.

Of course, AI is no substitute for scientific understanding. Science will remain

a quintessentially human pursuit, where the value lies more in asking the right question rather than just extracting an answer from data. Nonetheless, we should try to make the most of the epistemological shift that the rise of AI heralds. It can help us identify new observable phenomena that have thus far escaped disciplinary lenses. It can assist us in managing landscape-scale systems that are too complex to be susceptible to theorisation. It is the ultimate exploratory instrument to dissolve disciplinary boundaries.

This shift also poses a profound policy challenge. The infrastructure driving it – Earth-observing satellites and compu-

WITH THE MEANS OF RESEARCH FIRMLY IN PRIVATE HANDS, POLICYMAKERS WILL NEED TO BE VIGILANT TO ENSURE THAT THESE NEW TOOLS PROVIDE PUBLIC GOODS, RATHER THAN JUST PRIVATE BENEFITS

tation – is increasingly controlled by the private sector. The single largest owner of Earth-observing satellites is a company called Planet Labs. High-tech companies – from IBM and Nvidia to DeepMind and Huawei (whose employees wrote the July Nature paper) – are at the frontier of machine learning. With access to unparalleled capital and resources, these companies can easily outcompete most public research centres. Some can be quite philanthropic, but they ultimately have no obligation to deliver public goods or to worry about equitable access to their infrastructure.

As we grapple with the implications of the digital revolution and a natural environment that is changing before our eyes, AI may hold the key to unraveling some of the complexity that has remained beyond our comprehension. But with the means of research firmly in private hands, policymakers will need to be vigilant to ensure that these new tools provide public goods, rather than just private benefits, and that the questions being asked of them produce answers that inform countries’ legitimate policy aims.

Giulio Boccaletti, Scientific Director of the EuroMediterranean Center on Climate Change

MOMENTUM FOR CHANGE

The second annual ESG Adria Summit was held in Tivat, Montenegro, under the theme “Act now for a sustainable tomorrow,” drawing over 600 participants across the region. The publishing house aim was the conference’s media partner, and the editions The Region and Empowering Women had an exclusive promotion during the Summit

This prestigious event, dedicated to promoting environmental, social, and governance standards in business, gathered prominent regional leaders to exchange ideas, experiences, and best practices. The aim was to achieve sustainable development and enhance the positive impact on the environment, society, and corporate governance.

Biljana Braithwaite, Executive Director of Sustineri Partners and summit founder, emphasised the focus on sustainable financing, green transitions, and leveraging AI and startups for regional growth. The summit marks a sig-

ESG ADRIA SUMMIT

THE FIGHT AGAINST CORRUPTION MUST BE WAGED DAILY. THE FUTURE OF THE WESTERN BALKANS LIES WITHIN THE EUROPEAN UNION, AND THIS FUTURE MUST BE BASED ON SUSTAINABLE DEVELOPMENT ~ NATAŠA PIRC MUSAR

nificant expansion and strategic deepening of the ESG initiative across the Adria region.

Jakov Milatović, Montenegrin President, highlighted Montenegro’s commitment to sustainable practices and the green transition, aligning with the Euro-

pean Green Deal. He stressed the importance of focusing on long-term sustainable development amid recurring ecological and economic crises, highlighting the conference’s role in reinforcing Montenegro’s position on the sustainability map.

“What I also want is for Montenegro

to come closer to European standards of rule of law, for Montenegro to approach the level of living standards of the EU, and for Montenegro to approach the equal opportunities that exist in the EU,” stated Milatović. He said this is not the job of one man or one branch of government; it should be the goal of the entire society and decision-makers, including each of you. He noted that the changes demonstrate that countries have momentum, and we must keep it going.

Nataša Pirc Musar, President of Slovenia, has stated that 2030 is the last feasible date for EU accession “as it is becoming increasingly difficult.” Speaking

at the ESG Adria Summit, she noted that Montenegro is a leader in European integration but stressed that without a commitment to the rule of law and the implementation of all aspects of international legislation, coupled with a lack of anti-corruption measures, the rule of law is ultimately meaningless.

In a panel discussion with Montenegrin President Jakov Milatović, she emphasised that the fight against corruption must be waged daily. She asserted that the future of the Western Balkans lies within the European Union and that this future must be based on sustainable development.

“As the head of state, I always consider the difference between politicians and statesmen. Politicians work to win the next election, while statesmen work for future generations,” Pirc Musar said Federica Mogherini, Rector of the College of Europe, former High Representative of the European Union for Foreign Affairs and Security Policy, Vice President of the European Commission, and former Italian Minister of Foreign Affairs and International Cooperation, gave a keynote on Bridging Borders for Sustainability: Forging a Prosperous European Future for the Region at the #ESGAdria!

With three decades of experience in international diplomacy and negotiation, Mogherini has emerged as an advocate for global peace, cooperation, and the leadership of the European Union.

At the Summit, she sent a strong message about Western Balkans’ perspective and the need to invest in human capital in the coming years for faster EU accession: “It is not only about institutions but also about the people. Every single citizen inside and outside the EU has a role to play. We need to invest in people! People make a difference in everything.”

She added that we are at the right time, and there is strong political will in

WE ARE AT THE RIGHT MOMENT IN TIME, AND THERE IS STRONG POLITICAL WILL IN THE EU TO INTEGRATE WESTERN BALKANS. THE COST OF NON-COMPLETING THE INTEGRATION PROCESS IS TOO BIG OF A RISK FOR THE EU. I’M SURE THAT THE INTEGRATION WILL BE SUCCESSFUL ~ FEDERICA MOGHERINI

the EU for the integration of the Western Balkans: “The cost of not completing the integration process is too big of a risk for the EU. I’m sure that the integration will be successful. So, keeping the political will and motivation will be crucial in the future. It’s a societal transformation, and we must ensure

that every part of society feels like part of this journey!”

The event also launched significant partnerships and training programs, including a cooperation framework with the Western Balkans 6 Chamber Investment Forum to integrate ESG standards into regional business strategies.

Additionally, an ESG certification program will be initiated in collaboration with several regional academic institutionsFEFA from Serbia, the European University in Tirana, and the Faculty of Economics in Rijeka underscoring the summit’s role as a catalyst for sustainable economic development in the Adria region.

Additionally, one initiative dedicated to young leaders is the NextGen program, launched by Sustineri Partners and Universal Capital Bank.

This program aims to increase young leaders’ involvement in further promoting and creating the region’s ESG agenda.