About circular economy

The principles of the circular economy include:

1

Designing products to be durable and recyclable

Products are designed to be long-lasting, easily repairable and made from materials that can be efficiently recycled or safely returned to the environment.

2

Closing the loop

The circular economy emphasizes the importance of returning and reintegrating materials and components into the production process instead of disposing them as waste.

3

Resource efficiency and optimization

It focuses on efficient use of resources such as energy, water and raw materials, as well as minimizing waste generation throughout each phase of a product's life cycle.

4

Shifting from ownership to service

Promotes business models that shift from traditional ownership to providing access to goods and services, such as sharing, leasing or subscription models. This can reduce overall demand for new products and enable better utilization of existing resources.

5

Collaboration and value chain integration

Encourages cooperation and collaboration among stakeholders in the value chain, including manufacturers, suppliers, consumers and waste management entities in order to create closed-loop systems and maximize resource recovery.

6

Systemic thinking and innovation

The circular economy requires a holistic and systemic approach, considering the interactions and interdependencies between economic, environmental and social factors. It promotes innovation in technologies, business models and policy frameworks to accelerate the transition to a more sustainable economic system.

THE EUROPEAN FRAMEWORK
FOR CIRCULAR ECONOMY

The European Union is taking an important role in the transition to a sustainable and resilient economy.

With the European Green Deal, the EU Taxonomy Regulation, UN Agenda for Sustainable development, the "Fit for 55" package and the Circular Economy Action Plan, the European Union has increased its focus on the importance of a sustainable and circular transition that benefits everyone. Emphasizing the importance of involvement of the Western Balkans in the green transition process, the EU has presented the Green Agenda for the Western Balkans and Economic and Investment Plan for the Western Balkans providing concrete means to stimulate and accelerate the transition towards a circular economy.

Learn more about European framework

1. European Green Deal

The European Green Deal was adopted in 2019 as a package of political initiatives aimed at achieving climate neutrality of the European Union by 2050. The Green Deal covers a wide range of areas, including energy, transport, agriculture, and the circular economy. It is a strategy that incorporates SDGs from the UN 2030 Agenda, decarbonization and highlights the social and environmental transition towards a modern, digital and circular economic society that leaves no one behind. Some of its key objectives include reducing greenhouse gas emissions, increasing the use of renewable energy sources, improving energy efficiency, promoting sustainable transport and reducing waste. To successfully achieve its goals (climate neutrality, decoupling growth, resource efficiency and solidarity), the European Green Deal requires sectoral interconnection and consistency in the implementation of EU public policies.

2. Fit for 55

Under the "Fit for 55" package, the EU is drawing up climate, energy, land use, transport and taxation policies to reduce net greenhouse gas emissions by at least 55% by 2030, aligning them with the targets set in the European Climate Law. The package includes measures to increase the share of renewable energy, gradually phase out the use of fossil fuels, promote energy efficiency, and introduce carbon pricing in sectors currently not covered by the EU Emissions Trading System . The measures proposed under the "Fit for 55" package aim to make the EU more resilient to the effects of climate change while supporting sustainable and competitive economy.

3. EU Taxonomy

The EU Taxonomy refers to a classification system established by the European Union to facilitate the transition to more sustainable and environmentally friendly business practices. The goal of the EU Taxonomy is to help companies identify and report on their sustainability-related activities, thereby increasing transparency and preventing "greenwashing."
The EU Taxonomy serves as a crucial tool in the transition towards more sustainable business operations, providing clear guidelines and standards to help companies align their activities with sustainability and green objectives. As such, the circular economy taxonomy sets forth a set of definitions and criteria specific to economic activities and sectors that must be adhered to.
The EU Taxonomy Regulation is closely linked to EU Regulation 2019/2088 on sustainability-related disclosures in the financial services sector, which introduces transparency rules for participants in the financial market.

4. Circular Economy Action Plan

In March 2020, the EU adopted the Circular Economy Action Plan (CEAP), which is the cornerstone of the European Green Deal. The new Action Plan aims to steer the European economy towards a greener future, enhancing its competitiveness. The plan seeks to promote more sustainable product design, reduce waste and empower consumers, with a specific focus on resource-intensive sectors such as electronics and ICT, plastics, textiles and construction.

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5. Green Agenda for the Western Balkans

The Green Agenda for the Western Balkans is an initiative launched by the European Union in order to facilitate the transition of the region towards greener and more sustainable economic systems. The initiative aims to support the Western Balkans in achieving their climate and environmental goals while promoting economic growth and job creation.
Under the Green Agenda, the EU has committed to providing significant financial and technical support to the countries in the region. This support includes funding for the development of sustainable infrastructure, the promotion of renewable energy sources, and the adoption of circular economy practices. Additionally, the initiative aims to strengthen the regulatory framework in the Western Balkans by promoting the adoption of environmental legislation in line with EU standards, as well as supporting the development of green innovations and entrepreneurship.
Similar to the EU's Green Deal, the Green Agenda for the Western Balkans is envisioned as a blueprint for the transformation of Western Balkan countries, focusing on five interconnected areas: climate action, circular economy, sustainable transport, energy efficiency and biodiversity.

6. Action Plan for the Implementation of the Sofia Declaration on the Green Agenda for the
Western Balkans 2021-2030

The Action Plan for the Implementation of the Sofia Declaration on the Green Agenda for the Western Balkans 2021-2030 was developed by the Regional Cooperation Council (RCC). This plan is designed to fulfil the commitments made in the Sofia Declaration by 2030. It is based on strategies and goals outlined in the European Green Deal, tailored to the specific regional context of the Western Balkans. The Action Plan provides an overview of measures to meet the 58 commitments (goals) of the Sofia
Declaration, grouped into five pillars. It also outlines the main regional coordinators and other relevant organizations contributing to the achievement of each specific goal.

7. Economic and Investment Plan for the Western Balkans

The Economic and Investment Plan for the Western Balkans is an initiative of the European Union aimed at supporting the economic development and modernization of countries in the region. The plan was adopted in 2020 as part of a broader package of measures to support the Western Balkans in their EU accession process, which envisages the mobilization of approximately 9 billion euros in grants and up to 20 billion euros in guaranteed investments. The focus of EIP is on infrastructure connections for transportation and energy, market integration, cross-border trade within the region and EU, green and digital transition and private sector competitiveness, with a special emphasis on innovation.

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Why circular economy?