Road Map of Montenegro to Circular Economy – Green Business Model Provides Companies with Numerous Opportunities and Savings in the Long Term

Green economy, environmental protection, sustainable business and the transformation from linear economy to circular economy are becoming a necessity in every society. In the near future, those processes will not be a matter of our individual and collective choices, but also an essential need. That is why the Chamber of Economy of Montenegro (PKCG) had initiated the preparation of the Road Map to Circular Economy, which was presented in late April this year. It is precisely that document, the business association claims, that will be the main guide on the road to a prosperous, developed and ecological Montenegro.

The Road Map is the first document of its kind which identifies priority sectors for the development of circular economy and the implementation of circular practices in Montenegro. In all processes of transformative and innovative character, it is the business community that has the main role and the driving force. It is precisely for that reason that PKCG led the process of preparing this document.

– As an institution which thinks responsibly about the challenges faced by the business community, that is, our members and the society as a whole, we considered it our obligation and we initiated the creation of the document which would recognize and navigate the potentials of sustainable development through the prism of circular economy, because circularity in business is an important pre-condition of sustainability. We believe that the Road Map is the foundation stone for the transformation of the Montenegrin economy from a linear to a circular one. Our idea was fully welcomed and supported by the UNDP office in Montenegro. Their support, as well as the help of renowned experts in this field who worked on this document, were of great importance to us – PKCG says for eKapija.

As they explain, the aim of the Map is to serve all actors in the Montenegrin society to upgrade the quality of their lives, motivate business entities to integrate circular business models in order to improve the quality of their operations, upgrade the business processes, expand and increase the employment possibilities and incite business and cultural evolution.

– It leads us toward systemic changes, that is, toward inciting a transformation in the way of thinking and acting in the sense of using resources, as well as causing a self-binding dedication of decision-makers toward adapting the policies they propose, and which are in line with the principles of circular economy, but also toward developing adequate financial mechanisms that would support this process. This document not only serves as an orientation for what will no longer be a matter of our individual and collective choices in the near future, especially when it comes to the process of the accession to the European Union, but is also an essential need and the main guide on the road to a prosperous, developed and ecological Montenegro – the Chamber says.

The Road Map defines five priority fields within which considerable room and opportunities for the implementation of circular practices are recognized. They, PKCG told us, were defined following thorough and very productive consultations held with various actors in the Montenegrin society through 1-on-1 meetings and workshops.

– These are food and forest systems, a developed environment, tourism and production, and natural resources and the rich biodiversity of Montenegro are at the base of its circular transformation. The five focus areas are mutually highly interconnected and, through the principles of industrial symbiosis and synergy, can bring about systemic changes for our country, which we consider extremely important for realizing all those ambitions and using the potentials defined by this document – they say.

It is the business community that has the main role and the driving force for switching from linear to circular economy.

– That is precisely what we tried to project and reflect through the participation of PKCG in the process of the preparation of the Road Map document, by taking on the role of the one who leads this process. Considering that we are an association formed by business people, it consists of all business entities in Montenegro, and we are there to represent the interests of the economy, both when things are good and when times a hard, that is, when the economy is facing certain challenges. That is what we guided ourselves by this time as well. We gave it our best to squeeze out everything from this process that will be of vital interest for the development of our country tomorrow – they point out.

They add that this is a confirmation that the Chamber, as the umbrella business association, recognizes green and circular economy as a great opportunity for all economic actors in our society, especially considering that the ways and the models of doing business certainly reflect on the society as a whole, influence it and dictate in the long term what the future of young people in Montenegro will look like tomorrow.

– Related to that, it is of great importance how we conceive and reform the economic environment today and that is where we, as the carrying economic institution in the country, recognized and decided to take on the responsibility – to do what was up to us, taking active part in the process, engaging our members, including institutional partners and the civil society, all with the support of international organizations that are our long-standing associates – the Chamber says for eKapija and adds that they will not stop there.

– We believe that inclusion is precisely what is making this process continue, to take on the responsibility and use the acquired experience and knowledge, to implement and share it, to incite each other through action and to work on ourselves, as individuals and as actors and as decision-makers, in order to have a true transformative impact on the society in Montenegro.
Financial support

One of the biggest challenges and obstacles in the transformation toward circular and green economy are finances. To the end of inciting, but also supporting the economy on this path, numerous measures of support were created.

– Through the Program of Support to the Competitiveness of the Economy, the Ministry of Economic Development and Tourism developed a special Program Line for Circular Economy, and this year it was upgraded so as to cover several aspects related to the implementation of circular practices. Also, the Investment Development Fund has very stimulating lines when it comes to the financing of green projects, and the Eco Fund has already realized some incentive allocation campaigns. Elektroprivreda Crne Gore joined this too with its project of support to the use of solar panels – the Chamber says.

Furthermore, the EBRD has set aside funds which pertain to the development of projects of circular and green economy.

– This shows that the funds exist and that there will be even more of them in the future, which is especially important considering that we are aware that this transformation is a considerable financial burden on our economy, which is its main carrier, and that, in that whole process, they need to have our support. It should be kept in mind that there are various EU funds which place funds for green economy, suppressing/mitigating climate change, through numerous programs – they explain.
During the presentation of the document, it was said that circular economy turns challenges into opportunities on the road to adopting more innovative business models. Those opportunities, the Chamber believes, are numerous, and they depend on the sector in question. And it is precisely the Road Map that develops those opportunities based on the defined priority fields.

– These opportunities are classified based on and within horizontal areas which enable a circular transition – awareness and education, systemic cooperation, legal framework, green public procurement procedures, renewable energy, waste management, water management, transport system, spatial planning and digitization and traceability. Of course, in each sector, there are special characteristics related to the integration of horizontal areas, but in general, it can be accepted that these areas are very relevant to each business segment – they explain.

In addition to upgrading and modernizing the manner of business operations, the circular business model enables companies to realize numerous savings in the long term.

– This means that, by implementing circular practices, business entities primarily help themselves, and as a result of that, they also help the environment and the community they operate in. That is the most important reason why we advocate this business model.

The business community and the institutions should be the initiators when it comes to implementing circular economy. However, this process is something that concerns every individual, they believe at the Chamber. That is why it is necessary to promote this concept as a guarantee of sustainability through well-designed media campaigns and educational activities, because, they say, that is what it is, without a doubt.

– The Chamber is soon launching a series of 12 workshops split into four modules which will primarily encompass the economy in the priority areas defined by the Road Map, but also the public administration, and which have as their intention to provide the attendees with the main information and practical examples of how a contribution can be made to the transformation from linear to circular business. Also, the Ministry of Economic Development and Tourism, the Investment Development Fund, the Eco Fund, Elektroprivreda Crne Gore, the Capital City, the EBRD and a number of other local governments and commercial banks, work toward having each business entity and individual in our country understand and be a creator of our safe green future, through various activities and incentives directed at the economy, but also the citizens – they say.

It has been estimated that the circular economy model could bring up to RSD 4.5 billion of economic benefit by 2030 on a global level. Similar estimates have not yet been made for Montenegro, and the Chamber explains that one of the reasons is that we don’t have quite enough data and that we need to work on improving the way they are collected and classified.

– However, independent of the data, there’s no dilemma that the creation of green jobs, an efficient use of resources, the improvement of value chains, the maximization of the use of materials, proper waste treatment and management, will also lead to benefits in the financial sense, and also the improvement of the quality of life of everybody in Montenegro, which is a value in and of itself – they point out.

The road to circular economy is not a simple process, and the challenges are numerous.

– Still, it can be said that, in the Montenegrin society, the opinion is not split regarding whether this is a necessity and that, through a synergetic action, we should do everything to have circular and green economy take root as the manner of doing business and everyday living – PKCG concludes for our portal.
Circular transformation strategy

The Work Program of the Government of Montenegro for 2022 also features the preparation of the Strategy of the Circular Transformation of the Economy, which is expected to be completed by the end of the calendar year.

Privredna komora Crne Gore

Ministarstvo ekonomskog razvoja Crne Gore

UNDP Montenegro Country Office Podgorica

Razvojna banka Crne Gore a.d. Podgorica

Elektroprivreda Crne Gore ad Nikšić

Fond za zaštitu životne sredine Podgorica

Glavni grad Podgorica

Evropska banka za obnovu i razvoj EBRD Podgorica

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