A healthy and sustainable environment is crucial for economic competitiveness as it supports resource efficiency, enhances resilience to climate-related risks, fosters innovation, and attracts investments while mitigating environmental degradation and associated costs. The chapter analyses the robustness and comprehensiveness of environment policies across four sub-dimensions. The first sub-dimension, climate action, assesses strategies aimed at both mitigating and adapting to climate change. The second sub-dimension, circular economy, focuses on policies promoting waste minimisation, resource efficiency, as well as sustainable production and consumption. The third sub-dimension, protection of ecosystems, explores challenges in managing freshwater, biodiversity and forestry, as well as land-use. The fourth sub-dimension, depollution, analyses policies related to air quality, water supply and sanitation, and industrial risk management, paramount for enhancing competitiveness while ensuring environmental sustainability.
Western Balkans Competitiveness Outlook 2024: Serbia
14. Environment policy
Abstract
Key findings
Serbia has continued to improve its overall environment policy score since the last Competitiveness Outlook (Table 14.1). Particularly noteworthy are the strides in enhancing the climate action and circular economy frameworks. However, there remains room for improvement in strengthening the ecosystem protection framework, which currently falls below the regional average. This is particularly evident in the areas of biodiversity conservation, forestry practices, and land use management.
Table 14.1. Serbia’s scores for environment policy
|
Dimension |
Sub-dimension |
2018 score |
2021 score |
2024 score |
2024 WB6 average |
|---|---|---|---|---|---|
|
Environment |
13.1: Climate action |
2.8 |
2.5 |
||
|
13.2: Circular economy |
3.0 |
2.2 |
|||
|
13.3: Protection of ecosystems |
2.0 |
2.1 |
|||
|
13.4: Depollution |
2.5 |
2.3 |
|||
|
Serbia’s overall score |
2.1 |
2.2 |
2.5 |
2.3 |
|
The key findings are:
Serbia has made strides in strengthening its climate change framework by committing to more ambitious mitigation targets in the Low-Carbon Development Strategy, adopted in 2023, and enhancing institutional co-ordination with the re-establishment of the Climate Change Council. Greater resilience to climate change has also been evidenced by the development of the Climate Change Adaptation Programme, which assesses vulnerabilities to climate change hazards, and the Digital Climate Atlas of Serbia, which enables enhanced monitoring of climate risks.
As the first economy in the Western Balkans to adopt a circular economy roadmap, Serbia has strengthened its policy framework by implementing the Circular Economy Development Programme and Action Plan 2022-24, alongside improved co-ordination among relevant stakeholders. Nevertheless, additional efforts are needed to improve waste management practices for a successful transition, given that only 17.5% of waste was recycled in 2021.
Efforts to improve ecosystem protection in Serbia have been limited. Although the strategic framework on freshwater conservation has been strengthened and a forestry inventory has been conducted, there is still a need to expand land use management policies. Biodiversity preservation requires attention as the proportion of protected areas remains minimal and limited actions to mitigate pollution and tackle illegal activities have been implemented.
Important steps have been taken to address air, water and soil pollution. Serbia has committed to reducing health impacts from air quality by adopting its first Air Protection Programme (2022-30) and substantial investments have been secured to improve the water supply and sanitation system. Initial efforts have also been made to bolster industrial risk prevention, management, and remediation by updating legislative and policy frameworks, aligning them more closely with EU standards.
State of play and key developments
Sub-dimension 13.1: Climate action
Over the past two decades, Serbia has experienced a modest decline in greenhouse gas (GHG) emissions. In 2020, 79.2% of all GHG emissions originated from the energy sector, largely attributable to the heavy reliance on low-calorific lignite coal for about 70% of its energy production (UNFCCC, 2023[1]). This reliance contributes to high electricity consumption in Serbia, notably driven by electricity use for heating and a notable deficiency in energy efficiency. Another substantial emitter is the Agriculture, Forestry, and Other Land Use (AFOLU) sector (excluding removals), responsible for 7.2% of total emissions, primarily due to intensive agricultural practices. In the 2010-20 period, the AFOLU sector experienced a 16.2% drop in removals, mainly due to increased biomass use and natural disasters such as fires, strong winds, insect damage and diseases (UNFCCC, 2023[1]). Concurrently, Serbia is preparing for increasingly severe impacts of climate change, with projections indicating potential temperature rises of up to 4.3°C by the end of the century. Hydrometeorological hazards like seasonal flooding and periods of drought have already significantly impacted Serbia’s economy and are expected to become more frequent. Annual precipitation has seen a 10% increase countrywide over the period 2008-17, with a notable rise of up to 20% in the southern regions. The Serbian economy also faced significant challenges in 2014 due to heavy floods, resulting in a 1.8% drop in real GDP compared to the previous year. Already, vulnerability is evident across water resources, agriculture, forestry (including biodiversity), and health sectors (UNFCCC, 2022[2]).
Serbia has taken significant steps to enhance its climate change framework, aligning with commitments outlined in the United Nations Framework Convention on Climate Change (UNFCCC) and the Green Agenda for the Western Balkans. In 2021, the Law on Climate Change was enacted, setting up the National Greenhouse Gas Inventory System and its reporting mechanism. This legislation also laid the groundwork for the formulation of the Low-Carbon Development Strategy, covering the period up to 2030, with projections reaching until 2050. The strategy, adopted in 2023, outlines an economy-wide target for reducing GHG emissions by 33.3% by 2030 compared to 1990 levels. This target aligns with the revised Nationally Determined Contributions (NDC) submitted in 2022 for the period 2021-30. It represents a significant increase from the initial NDC, which aimed for a 9.8% reduction during the same period. A relevant Action Plan and monitoring framework are under development to guarantee enforcement of the strategy. Moreover, Serbia was in the process of developing an Environmental Protection Strategy and Action Plan, in alignment with the Green Agenda for the Western Balkans and planned to be adopted in 2025. Co-ordination of climate change policies has been renewed since the last assessment, with the re-establishment of the National Climate Change Council in 2021, gathering 30 members representing various entities, including line ministries, institutions, civil society, and non‑governmental organisations (NGOs). The Council has convened three times since its re‑establishment, which falls short of the minimum requirement set in its Rules of Procedure, according to which it should meet at least once every six months.
In addition to the Low Carbon Development Strategy, Serbia is developing its National Energy and Climate Plan (NECP) to consolidate its climate change mitigation framework. The NECP, which underwent wide public consultations in 2023 and is supported by a Strategic Environment Impact Assessment Report,1 was pending adoption at the time of writing. The measures outlined in the Plan are aligned with the Energy Development Strategy until 2040, which is under development at the time of writing. It incorporates projections until 2050 and establishes specific targets for renewable energy and energy efficiency, among other key areas. As part of the NECP, Serbia aims to achieve a 40% reduction in GHG emissions by 2030 compared to 1990 levels, which represents a more ambitious target than that stated in the NDC. While there is no GHG pricing mechanism in place, Serbia plans to introduce a carbon tax to attain this goal. Serbia also offers a range of investment incentives for renewable energy projects to mitigate carbon emissions in the energy sector, including auctions, tax incentives, grants, and subsidies2 (see Chapter 13).
Serbia’s climate change adaptation framework has considerably improved since the last assessment. In addition to adaptation measures introduced in the revised NDC,3 the Climate Change Adaptation Programme until 2030 and Action Plan (2024-26) have been developed with the support of the Green Climate Fund and adopted at the end of 2023. Strategic targets of the Programme are to increase awareness of the impacts of climate change, increase capacities for the systematic implementation of adaptation measures, increase the resilience of critical infrastructure and natural resources, and improve financial support for adaptation measures. The Action Plan defines 25 measures, the financial and institutional frame, and the timeline for their implementation and monitoring. Resilience and preparedness for climate-related hazards are also expected to be enhanced with the National Strategy for Disaster Risk Reduction and Emergency Management and its Action Plan,4 which remains to be adopted. The Strategy is aligned with the Sendai Framework for Disaster Risk Reduction5 and covers all types of natural and geophysical hazards (water-related, extreme weather events, land-related disasters, earthquakes). Following climate change-related disasters, in particular the 2014 floods, implementation of adaptation measures has been solid and conducted by a consortium of international organisations (such as the programme “Making Cities Resilient 2030”6) and the Ministry of Interior (primarily awareness raising and preparedness activities7).
Climate-related data collection and distribution have also improved since the last assessment to enhance prevention, intervention and recovery. Namely, the Disaster Risk Register was introduced in 2022 as an interactive digital database on disaster risk assessment, intervention and infrastructure reconstruction; the Digital Climate Atlas of Serbia, established in 2022, includes climate datasets, including observation as well as regional and local-level climate model projections. Information exchange related to natural disasters, including scientific and technical data, is planned through bilateral agreements with 12 countries.
Sub-dimension 13.2: Circular economy
Currently, resource productivity remains low in Serbia (EUR 0.40/kg in 2021 compared to EUR 2.26/kg in the EU) (Eurostat, 2022[3]), underscoring the importance of embracing a circular economy with measures addressing the entire life cycle of products. This involves aspects ranging from design and manufacturing to consumption, repair, reuse, recycling, and the reintegration of resources back into the economy. Serbia was the first Western Balkan economy to develop a circular economic framework. In line with its circular economy roadmap adopted in 2020, a Circular Economy Development Programme and Action Plan for 2022-24 were developed, with clear objectives and measures covering sustainable resource use, consumption and production (Box 14.1). The Action Plan for the period 2025-30 is planned to be prepared and adopted in 2024.
Circular economy considerations have also been integrated into sectoral policies (such as the Industrial Policy Strategy, the Low-carbon Development Strategy, the Small and Medium-sized Enterprises Strategy and Waste Management Programme). Institutional co-ordination is well established through a new Department for Circular and Green Economy within the Ministry of Environmental Protection8 and a Working Group on Circular Economy comprised of members from all parts of society, both ensuring active implementation of the framework (Box 14.1). The Chamber of Commerce and Industry of Serbia also actively promotes circular economy principles among businesses, notably through a dedicated digital platform established in 2021.
Box 14.1. Serbia’s Circular Economy Development Programme 2022-24
Development of the Programme
A strategic framework for a circular economy in the Republic of Serbia began to be defined in 2019 by creating the “Ex-ante analysis of the effects of circular economy”, which indicated that a separate policy document was needed for the field. In accordance with the results of the analysis and the Law on the Planning System of the Republic of Serbia, the Ministry of Environmental Protection initiated the development of the Circular Economy Development Programme in the Republic of Serbia 2022-24. The document was adopted in December 2022.
Wide stakeholder consultations were conducted for the development of the programme with all relevant ministries and the Circular Economy Working Group, which includes representatives from civil society, academia and the private sector.
Elements of the Programme
Five specific objectives, with measures and activities to be implemented in 2022-24, are envisaged to fulfil the overall objective.
Support companies with the aim of improving the efficiency of production and removing waste from supply chains.
Support local self-governments in developing local roadmaps for a circular economy, which will contribute to the creation of sustainable communities.
Raise awareness of interested public and educational institutions about the circular economy concept.
Strengthen co-operation between the business and academic sectors for innovations contributing to the circular economy.
Encourage the application of green public procurements and voluntary instruments in the field of environmental protection.
Improving the waste management system through more efficient waste use in the circular economy is also seen as an important crosscutting element.
Implementation of the Programme
Monitoring of the Programme is conducted annually, reporting on inputs, outputs, indicators and performed activities. According to the latest report conducted in 2022, implementation is ongoing with some delays. The main activities conducted include:
Adding a special section for Green Public Procurements to the Ministry of Environmental Protection website: six guideline documents have been prepared.
Preparing an analysis with measures for further applying existing and introducing additional voluntary instruments.
Preparation of a plan for an awareness-raising campaign on circular economy: at least 15 workshops, public events and roundtables are planned to be conducted. Some awareness-raising activities will also target the consumption footprint of public authorities and accompany them towards sustainable choices.
Twelve circular vouchers were awarded through public calls for companies to develop innovations and solutions based on circular economy principles, in co-operation with scientific and research organisations.
Source: Ministry of Environmental Protection (2022[4]).
While progress has been made in the past decade on expanding the coverage of waste collection services (88% in 2021 compared to 78% in 2011, waste treatment remains a challenge in Serbia: only 17.5% of waste was recycled in 2021, compared to 49% in the EU (EEA, 2023[5]). This discrepancy is primarily attributed to inadequate infrastructure for waste sorting and recycling, limited financial resources at the local level, and a lack of public awareness and engagement. Although envisaged in the legal framework, separation at source (of paper, glass and metal) remains marginal, and there is no systematically organised system for separate collection in place, except for a few ad hoc pilot projects in some cities. Important strides were nevertheless achieved to strengthen the waste management framework, with the adoption of amendments to the Law on Waste Management in 2023 and the Waste Management Programme (2022-31) and related Action Plan (2022-24). The law further aligns with the EU Waste Framework and Landfill Directives by introducing a legal basis for improving the waste disposal management systems and circular economy principles. The programme includes recycling and landfilling targets, which are in line with the Circular Economy Development Programme, and envisages the development of planning documents for specific waste streams (such as agricultural, mining, and medical waste). Nonetheless, illegal disposal of waste in unsanitary landfills remains common (only 25% of waste is sent to the 11 sanitary landfills) (EEA, 2021[6]), and the uptake of the extended producer responsibility scheme (which is currently only in place for packaging waste) has been slow. Steps were nevertheless taken to clean and prevent illegal dumpsites, and investments in new treatment facilities are ongoing in Belgrade. Another significant obstacle to scaling up waste management practices is the subpar quality of waste data. This issue arises from several public utility companies not following the prescribed methods for assessing quantities and analysing the composition of municipal waste, and the absence of proper weighing equipment at treatment facilities.
Sub-dimension 13.3: Protection of ecosystems
Serbia possesses significant water resources, although it heavily depends on external flows, with 92% of its water supply originating from external sources. In 2020, its renewable internal freshwater resources per capita amounted to 1 219 m3, contrasting with the EU average of 3 037 m3 (World Bank, 2023[7]). Despite this, Serbia does not face significant water scarcity conditions; its worst seasonal water use against renewable water resources reached 5.3% in 2019, far below the state of water stress (20%) (EEA, 2023[8]). In 2021, around 74% of water was used in the industry sector, mainly for cooling in electric power generation, followed by domestic and agricultural use (around 13% each) (SORS, 2023[9]). Considering the spatial and temporal unevenness in Serbia’s water regime, a solid legal and policy framework for freshwater management is crucial to address specific challenges presented at local levels (Ministry of Environmental Protection, 2022[4]). In particular, water pollution originating in the energy sector, waste and wastewater public companies, and chemical and mineral industries – as well as compliance of hydropower plants with environmental laws – requires attention (European Commission, 2023[10]). The policy framework on freshwater management is guided by the Water Management Strategy (2017-34) and its 2021-23 Action Plan. Additionally, the River Basin Management Plan by 2027, which aims to establish sustainable water management practices in Serbia's major basins and further aligns with the EU Water Framework Directive, was prepared in 2021 and adopted in 2023. Ongoing implementation efforts prioritise safeguarding water quality by expanding wastewater treatment capacities, mitigating agricultural pollution from nutrients and pesticides, remediating contaminated sites, and implementing pollution control measures in urban areas, traffic, built infrastructure, and forestry. These efforts align with the objectives of the International Commission for the Protection of the Danube River and the Sava Commission, of which Serbia held the presidency in 2023. Nevertheless, the lack of a national water management body, resulting in the absence of a digitalised and comprehensively compiled dataset for national water quality and quantity, impedes proper implementation and monitoring of measures.
Limited advancements have been noted to strengthen the biodiversity and forestry management framework in Serbia. The Biodiversity Strategy has not been revised since it expired in 2018, and no monitoring report for the Nature Protection Programme (2021-23) has been produced to assess the progress of its implementation. Mainstreaming biodiversity policies into sectoral policies, awareness-raising activities, and adoption of additional national conservation instruments have not been undertaken during this assessment period. Additionally, there has been minimal alteration in Serbia's terrestrial protected areas, remaining at 8% in 2022, a slight increase from 7.6% in 2019. This falls short of the Aichi Target of 17% by the year 2020 (Convention on Biological Diversity, 2020[11]). A critical review of the nature protection system has nevertheless started as of 2023 with a new five-year project led by the International Union for Conservation of Nature, which has a particular emphasis on good governance and protected area management. The project is expected to establish a comprehensive nature management programme, in line with global conservation standards and best practices.
Forests covered 39.3% of Serbia's land in 2022, with this area seeing a gradual increase in recent decades attributed to consistent afforestation efforts and a decline in rural populations, leading to reduced extensive agrarian production in forested areas (UNFCCC, 2023[1]; Convention on Biological Diversity, 2024[12]). Serbia seeks to address the significant risks posed by illegal tree logging to its forestry resources with the development of the Law on Marketing of Wood and Wood Products, which had yet to be adopted at the time of writing. Moreover, the Roadmap for a National Forest Programme, developed in 2023 through an EU-funded project, aligns the framework with international best practices on forestry and emphasises the vital role of forests in climate change mitigation and adaptation. The results of the latest forestry inventory, conducted during 2019 and 2022 and published at the end of 2023, should also provide data for developing effective forest management plans. These plans will facilitate well-informed decisions regarding harvesting, conservation, and restoration activities.
Serbia is facing land degradation challenges, mainly due to issues such as unplanned urbanisation, unregulated land repurposing, mining operations, chemical pollution, and erosion. For instance, in 2020, total damages in state forests amounted to approximately 143 007 m3 of wood volume, out of which man-made disasters caused damage to 26 000 m3 (UNFCCC, 2023[1]). Serbia still lacks an overarching land use management framework due to delays in adopting the Spatial Plan for the period 2021-35. Initiated in 2020, the Plan encompasses 49 spatial development indicators to monitor spatial planning. Its primary goals include curbing illegal constructions, achieving a balance between land degradation and restoration rates, and promoting the implementation of ecologically sound systems for irrigation while addressing erosion. Despite this gap, Serbia’s Sustainable Urban Development Strategy (2020-30) is being implemented, focusing on promoting sustainable land use practices in urban areas by specifically addressing issues related to demographic changes and housing, infrastructure planning and the redevelopment of brownfields. Additionally, the strategy considers the importance of environmental conservation and tackles the potential effects of climate change. Moreover, Serbia defined several objectives relevant to land degradation and desertification as part of its seventh report to the United Nations Convention to Combat Desertification, submitted in 20229 (UNCCD, 2023[13]). During the assessed period, some activities related to land use were carried out, with a primary focus on identifying and restoring degraded land10 (Serbia and Land Degradation, 2024[14]). However, overall implementation remains subdued, and land degradation persists. The recent expansion of mining activities in Serbia has impacted land use, particularly through the repurposing of forest and agricultural land and increased pollution. Mining activities are not always accompanied by Environmental Impact Assessments, exacerbating the environmental consequences. Though important for the economy, it is essential to conduct exploration activities responsibly, considering key spatial planning principles and environmental considerations (Ristivojevic and Lazar, 2023[15]; Heinrich Boll Stiftung, 2022[16]). Some indicators relevant to land use, such as trends in land use change and the spread of urban land, are systematically collected by the Serbian Environmental Protection Agency to inform policy making, although they are not harmonised across government bodies.
Sub-dimension 13.4: Depollution
Air pollution remains a pressing environmental issue in Serbia, with annual average concentrations of fine particulate matter (PM2.5) reaching 20.5 µg/m3 (microgrammes per cubic metre) in 2021, one of the highest levels in Europe and more than four times higher than WHO recommended levels of 5 µg/m3 (EEA, 2023[17]). Air pollution in Serbia arises from diverse sources, notably the reliance on lignite and coal-fuelled power stations in the energy sector, coupled with the burning of solid fuels like coal and wood for residential heating. While implementation of measures to enhance air quality has been limited in the assessed period, Serbia has taken a significant step forward, by adopting its first Air Protection Programme (2022-30) along with an Action Plan spanning from 2022 to 2026. This comprehensive initiative is designed to reduce health damages resulting from poor air quality by 50%, compared to the levels recorded in 2015. Namely, the Programme’s most ambitious targets are to reduce sulphur dioxide (SO2) emissions by 92% and PM2.5 emissions by 58.3% by 2030, complying with Best Available Technique-Associated Emission Levels (BAT-AELs) to decrease air pollutants and heavy metals from industrial processes. Ammonia (NH3) emissions from the agriculture sector are also foreseen to be cut by 20.5% in 2030. Moreover, eight local air quality plans tailored to specific local circumstances have been approved, and more are expected in the upcoming period.11 Since 2021, there has been enhanced reporting on air quality, with the Serbian Environmental Protection Agency initiating regular reporting of national emission inventories for all pollutants, aligning with EU requirements.12 However, the area covered by official air quality monitoring only encompasses around 25% of Serbia’s total territory, raising concerns about the comprehensiveness of air quality data (Bradaš et al., 2023[18]). Moreover, the absence of approved air quality plans across all municipalities, coupled with Serbia’s legislation not aligning with the EU acquis on national emission ceilings, often leads to a lack of prompt responses when air pollutant limit values are exceeded.
Untreated sewage and wastewater stand out as primary contributors to water pollution in Serbia. Approximately 75% of the population had access to safe drinking water in 2020, a percentage that has remained unchanged since 2004 (Bradaš et al., 2023[18]). Only 55% of the population is connected to a sewage system and 16% to wastewater treatment as of 2021, a significant disparity compared to over 90% in the EU (SORS, 2023[9]). Moreover, more than half of the industrial facilities in Serbia do not treat wastewater, because there are no treatment systems in place (UNFCCC, 2023[1]). Water losses in the water system, exceeding 50% in some districts, represent another significant challenge.13 The Water Management Strategy (2017-34) remains the guiding strategic document for water supply and sanitation in Serbia, and no major policy changes have occurred since the last assessment. Further efforts are needed to ensure alignment of the water legislation with the EU acquis and to strengthen administrative capacity for monitoring and co-ordination among all relevant stakeholders14 (European Commission, 2023[10]). Despite current challenges, there are plans to enhance water supply and sanitation in the coming years. The Ministry of Construction, Transport, and Infrastructure announced the start of construction for around 800 kilometres of sewage and collector infrastructure in 2021, covering more than 20 municipalities and cities, with significant support from international donors. The government aims to extend sewage infrastructure coverage to 80% of the population until 2026 and additionally plans to integrate wastewater treatment plants into the utility infrastructure.15 In this regard, the construction of a wastewater treatment plant has been finalised in Vranje and Kruševac at the end of 2021, and has started in Nis, Brus and Blace with international co-funding. While current water service fees have proved too low to cover or even supplement investment in water supply and sanitation infrastructure, EU-funded work on adequate water fees and tariffs continued in 20 municipalities to ensure proper covering of operational costs of the system16 (European Commission, 2023[10]). Upon completion of this project in mid-2024, Serbia will need to ensure the capacities of local governance, especially concerning the operation, maintenance and budget planning of water and wastewater facilities.
Since the last assessment, additional steps have been taken to reinforce the legal framework concerning industrial risk management. Namely, two draft laws have been prepared: the draft law on Control of Major-accident Hazards Involving Dangerous Substances fully transposing the Seveso III Directive on preventing major industrial accidents,17 and the revised law on Integrated Pollution Prevention and Control (IPPC), further aligning with the Industrial Emissions Directive.18 During the assessed period, international co-operation partners19 supported Serbia in preparing secondary legislation on IPPC and ensuring the compliance of all 221 IPPC installations, including applying the best available techniques. The institutions' capacities were also strengthened through training sessions on permit writing, inspections, and binding rules. Promisingly, the desulphurisation of the Kostolac B thermal power plant, Europe’s biggest sulphur dioxide polluter, started in 2023 after being delayed for several years (European Commission, 2023[10]). Regarding chemicals, a new Rulebook was adopted in 2021 based on the Law on Chemicals, introducing a list of restrictions and prohibitions for hazardous components representing risks to human and environmental health. While this complements the official register of chemicals available on line since 2019, no mechanism is currently in place to identify new chemical substances outside the lists in the register and the rulebook. On the policy side, the National Programme for Industrial Safety, being prepared at the time of drafting and planned to be adopted at the end of 2024, will aim to strengthen disaster resilience and industrial risk management. To ensure proper remediation of contaminated sites by industrial activities, a Cadastre of Contaminated Sites Information System exists, and soil-monitoring data are regularly collected by the Serbian Environmental Protection Agency (SEPA) at the operational, post-operational and remediation stages to identify potential health risks.
Overview of implementation of Competitiveness Outlook 2021 recommendations
Serbia’s progress on implementing Competitiveness Outlook 2021 Recommendations has been moderate: below, Table 14.2 shows the economy’s progress in implementing past recommendations for environment policy.
Table 14.2. Serbia’s progress on past recommendations for environment policy
|
Competitiveness Outlook 2021 recommendations |
Progress status |
Level of progress |
|---|---|---|
|
Step up efforts to combat air pollution and climate change, primarily by reforming power generation |
The Programme of Air Protection of the Republic of Serbia 2022‑30 and its Action Plan 2022-26 aim to cut health damages caused by low air quality in half compared to 2015 levels. To this end, measures to reduce high exposure to air pollution and harmonise pollution limits with EU regulations are foreseen. Moreover, Serbia offers a range of investment incentives for renewable energy projects, including tax incentives, grants, and subsidies. The feed-in tariff system was established by the Law on Renewable Energy Sources. Moreover, the Plan for the incentive system for the use of renewable energy sources for the period 2023-25 was adopted, focusing on electricity generation from wind farms and solar power plants. |
Moderate |
|
Invest in improving the water supply and sanitation system and treating more wastewater |
Revision of municipalities’ water fees and tariffs is ongoing as part of an EU-funded project to cover operation and maintenance of water infrastructure. While the share of wastewater treated remains low, investments for sewage systems and wastewater treatment are ongoing, mainly with the support of international donors. |
Moderate |
The way forward for environment policy
Despite taking important steps to strengthen its environment policy framework, in the areas of climate change and circular economy, Serbia could consider the following improvements:
Increase waste recycling rates by effectively implementing the extended producer responsibility (EPR) take-back scheme for packaging waste and extending the EPR system to new product groups. While the EPR scheme has applied to packaging waste since 2010, the uptake by producers and consumers has been slow. To scale up its efficiency, Serbia could follow the guiding EPR principles laid out in Box 14.2. To align with relevant EU Directives, Serbia should also extend EPR schemes to other product categories or waste streams, such as end-of-life vehicles and electrical and electronic equipment, and motor oils and tyres.
Mainstream biodiversity considerations are included in all relevant strategic documents. In line with the internationally led project to develop a comprehensive nature management programme, Serbia must develop a long-term national vision for biodiversity with clear targets and indicators. A global vision for 2050 already exists under the Convention on Biological Diversity, which Serbia can adopt or tailor to its national circumstances. Serbia should also ensure that biodiversity is mainstreamed across relevant strategies and programmes and strengthen inter-institutional co-ordination by setting clear roles and responsibilities. Biodiversity loss and climate change must be addressed together, considering that terrestrial ecosystems are natural carbon sinks, with an annual gross sequestration equivalent to about 60% of global anthropogenic emissions (IPBES, 2019[19]). Given Serbia's vulnerability to climate-related hazards, investing in nature can serve as a crucial means to protect the population from threats such as floods, droughts, storms, and other environmental risks (OECD, 2021[20]).
Elevate the commitment to safeguarding natural heritage by significantly expanding the coverage of protected areas. To ensure efficient enforcement of biodiversity measures, Serbia needs to significantly expand the coverage of protected area, which is falling short of international targets. Costa Rica’s Payment for Environmental Services programme is a successful model for expanding protected areas. Through this initiative, landowners receive financial incentives for maintaining or restoring ecosystems on their land, effectively discouraging deforestation. This approach has expanded protected areas and fostered biodiversity conservation by creating biological corridors and engaging local communities in sustainable land management practices. The programme's success is attributed to a robust institutional framework, effective governance, and collaboration between the government, non-governmental organisations, and communities. Currently, Costa Rica has expanded its officially protected areas to cover 25% of land and 30% of marine areas, well above the respective OECD averages (OECD, 2023[21]).
Adopt the Spatial Plan and strengthen institutional co-ordination among different ministries responsible for land use issues related to climate, biodiversity, and agriculture, both horizontally (at national level) and vertically (between different levels of government) to achieve a more holistic governance of land use. The land use nexus involves multiple issues, affects multiple actors from both the public and private sectors, and requires a whole-of-government approach to co-ordinate policies across all relevant stakeholders, which Serbia currently lacks. One good practice example that provides such co-ordination is the Austrian Conference on Spatial Planning (Box 14.3).
Box 14.2. Guidance on implementing extended producer responsibility take-back schemes
OECD EPR Guidance
To effectively implement extended producer responsibility (EPR) take-back schemes to shift end-of-life management costs of products from the public sector to producers and consumers and to increase the collection and recycling rates of these waste streams, economies should ensure the application of the following principles (a selection based on the OECD EPR Guidance):
Clear legal framework – The legislation must clearly define and define the responsibilities of all actors involved in EPR. There needs to be a legal framework for producer responsibility organisations to operate. The EPR targets need to be periodically reviewed.
Transparency – The governance of EPR systems needs to be transparent to provide more effective means for assessing the performance of the actors involved and holding them accountable for their activities. This will require collecting both technical and financial data and setting up registers of producers, accreditation of producer responsibility organisations, and appropriate sanctions.
Sufficient existing waste management capacity – For EPRs to work effectively, adequate waste infrastructure must be in place across the country, including infrastructure for waste separation at source, collection and treatment (ideally recycling).
Administrative oversight capacity for better enforcement – This concerns enforcement capacity to prevent unauthorised facilities and collection points from operating. This should also minimise free-riding and non-compliance.
Stakeholder engagement – Platforms for dialogue among stakeholders need to be established.
Prevent Waste Alliance EPR Toolbox
To facilitate the adoption of general good practices and OECD guidance on EPR, authorities and other relevant actors could make use of the EPR Toolbox developed by Prevent Waste Alliance, to consult other international practices and participate in knowledge exchange to enhance the functioning of the domestic EPR system. The EPR Toolbox contains three modules that span more general aspects of an EPR, including the monitoring of financial flows, but also focus on concrete actions, such as the integration of the informal sector or the creation of a market for recycled plastics.
Data collection and processing for EPR schemes – Example of the Czech Republic
While certain technical requirements must be met, the first step towards ensuring transparency of EPR schemes is effective co-ordination and compliance with reporting obligations under applicable legislation. The Czech Republic’s electronic registry for waste is an exemplary model for a successful national waste information database. Recently rated as the best European system for waste data management and evaluation by the European Topic Centre for Circular, it employs two distinct systems. One handles the mandatory data reported by entities subject to relevant legal acts (Information System for Reporting Obligations), while the other manages the subsequent verification, processing and evaluation of the reported data (Information System for Waste Management). This streamlined process is further enhanced by extending verification authority to municipal and regional authorities, with the Environmental Information Agency functioning as the central data hub. By engaging a diverse array of stakeholders, including the statistical office, the information system becomes a catalyst for the development and implementation of evidence-based waste management policies.
Sources: Prevent Waste Alliance (2023[22]); Tuscano et al. (2022[23]).
Box 14.3. Enhancing land use co-ordination with the Austrian Conference on Spatial Planning
The Austrian Conference on Spatial Planning (ÖROK, Österreichische Raumordnungskonferenz) is an organisation dedicated to co-ordinating spatial planning policies between the three levels of government in Austria (the national level, the states and the municipalities). Its decision-making body is chaired by the federal chancellor, and its members include all federal ministers, the heads of all federated states, and representatives of local government associations. Furthermore, business and labour organisations are represented in the body as consulting members. The work of the decision-making body is supported by a permanent secretariat with a staff of approximately 25-30.
One of the central tasks of the ÖROK is the preparation of the Austrian Spatial Development Concept (ÖREK, Österreichisches Raumentwicklungskonzept). The current Austrian Spatial Development Concept (ÖREK 2030) was published in 2021 and covers a planning period of around ten years. Guided by the key theme of “Need for Transformation”, it is a strategic instrument for overall spatial development in Austria. Beyond the preparation of the Spatial Development Concept, the ÖROK also monitors spatial development across Austria. It has developed an online tool that provides a mapping function of a variety of important indicators at the municipal and regional level and releases a report on the state of spatial development every three years.
The ÖROK is also the co-ordinating body for structural funds provided by the European Union. It managed the integration of structural funds into broader spatial strategies and was directly responsible for the programming work related to 1 of the 11 Thematic Objectives of the programming period 2014-20. The ÖROK also serves as a National Contact Point within the framework of European Territorial Cooperation.
Sources: OECD (2017[24]); ÖROK (2024[25]).
References
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[1] UNFCCC (2023), Second Biennial Update Report of the Republic of Serbia, https://unfccc.int/sites/default/files/resource/Second%20Biennial%20Update%20Report%20of%20the%20Republic%20of%20Serbia.pdf.
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[7] World Bank (2023), Renewable Internal Freshwater Resources per Capita (cubic meters) - Serbia, European Union, https://data.worldbank.org/indicator/ER.H2O.INTR.PC?end=2020&locations=RS-EU&most_recent_year_desc=true&start=2011 (accessed on 9 January 2024).
Notes
← 1. The Strategic Environment Impact Assessment Report was developed to examine and mitigate negative impacts of the measures planned on communities, regions, industries and workers.
← 2. The feed-in tariff system established by the Law on Renewable Energy Sources. Moreover, the Plan for the incentive system for the use of renewable energy sources (2023-25) was adopted, focusing on electricity generation from wind farms and solar power plants. More information on renewables investment incentives is available in the Energy Policy Chapter.
← 3. The revised NDC integrates adaptation measures in the water, agriculture and forestry sectors, including the assessment of loss and damage. However, it does not include adaptation targets.
← 4. The strategy was originally scheduled for adoption covering the period from 2022 to 2027, but there are current plans to extend it to encompass the years up to 2030.
← 5. The Sendai Framework for Disaster Risk Reduction (2015-30) is an international agreement adopted in 2015 during the Third UN World Conference on Disaster Risk Reduction. It sets out a roadmap for countries and other stakeholders to reduce disaster risk and build resilience. The framework focuses on various aspects of disaster risk reduction, including understanding risk, strengthening governance, investing in resilience, and enhancing disaster preparedness.
← 6. The programme “Making Cities Resilient 2030” started in 2021 by a consortium of international organisations involved in disaster resilience and the Public Investment Management Office, the Ministry of Interior and the Standing Conference of Towns and Municipalities. Its objectives are to 1) improve cities’ understanding of risk and secure their commitment to local disaster risk reduction and resilience; 2) strengthen cities’ capacity to develop local strategies/plans to enhance resilience; and 3) support cities in implementing local strategies/plans to enhance resilience. It also aims to improve vertical and horizontal co-ordination among relevant institutions, as well as among cities.
← 7. With the support of the Organization for Security and Cooperation in Europe (OSCE) Mission to Serbia, “The Family Guide for Emergency Preparedness and Response” was produced, enabling continuous education of the population. In co-operation with Caritas Serbia, posters and family manuals were produced in the area of disaster risk reduction, as well as colouring books and videos for children on the topic of behaviour during emergencies such as fires, floods and earthquakes. Within the campaigns "Firefighters at School" and “Fundamentals of Child Safety”, members of the Fire and Rescue Units raised the safety culture of students, covering fire protection and protection against technical and technological hazards and natural disasters.
← 8. The Department for Circular and Green Economy is comprised of a group for sustainable development (5 employees) and a group for the implementation of voluntary instruments in environmental protection (3 employees).
← 9. Some of these objectives involve promoting sustainable land management to contribute to achieving land degradation neutrality in affected ecosystems. Additionally, the goals involve enhancing the living conditions of affected populations and effectively mitigating, adapting to, and managing the effects of drought.
← 10. Such activities include training organised within the Food and Agriculture Organization (FAO) project "Strengthening national capacities for risk assessment of diffuse pollution of agricultural land"; the organisation of a congress on the study of soil where the Environmental Protection Agency presented its work on the topic, "Enhancing management of contaminated sites using environmental monitoring data and preliminary risk assessment methodology in Serbia"; and the participation at a regional event for the World Soil Day, organised by the FAO.
← 11. In 2021, all eight agglomerations experienced air quality classified as category III, indicating excessive pollution. This marked an increase from the previous year, where seven out of eight agglomerations fell into this category, with the addition of the Novi Sad agglomeration to the list. When the air quality reaches category III in agglomerations, it necessitates the development of an air quality plan, as mandated by the Law on Air Protection. The Ministry of Environmental Protection approved the air quality plans for the Belgrade and Kragujevac agglomerations in 2021, and for the Kosjerić and Novi Sad agglomerations in 2022. Additionally, approval for short-term action plans was granted to the cities of Bor, Kragujevac, Kruševac, Leskovac, Sremska Mitrovica, and the Municipality of Trstenik.
← 12. Directive (EU) 2016/2284 on the reduction of national emissions of certain atmospheric pollutants.
← 13. Systematic statistics are only available up to 2017. According to SORS, losses increased from 32% in 2011 to 35.5% in 2017. In the South Serbia region, these losses exceed 45%, with some districts like Bor and Branicevo experiencing losses greater than 50%.
← 14. The Ministry of Agriculture, Forestry and Water Management, and the Ministry of Construction, Transport and Infrastructure, as well as local enterprises established by municipalities, are the key bodies responsible for water supply and sanitation management in Serbia.
← 15. Projects in Leskovac, Vranje, Niš, Brus and Blace, Kraljevo, Loznica, Sokobanja, Čačak, Belgrade, and Zlatibor are currently in various stages of preparation or construction, specifically focusing on water treatment and/or sludge treatment facilities. On the other hand, projects in Kruševac and Raška have already been completed. Ongoing projects, supported by the German Development Bank KfW, involve the construction and reconstruction of wastewater treatment plants (WWTPs) in Smederevo, Pančevo, Kikinda, Požarevac, Trstenik, Pirot, Jagodina, and Vršac. Additionally, these projects include the reconstruction and extension of the sewage network.
← 16. The "European Union support to reforms in water sector services" project, initiated on 27 January 2022, aims to analyse the existing organisation and operations of public utility companies handling water supply and sewerage. It seeks to assist in drafting reorganisation plans and proposing regulatory functions to ensure these entities attain requisite technical, technological, and organisational standards, thereby enhancing service provision within the water sector.
← 17. The Seveso III Directive (Directive 2012/18/EU) on the control of major-accident hazards involving dangerous substances provides the relevant framework on risk management measures to prevent major accidents and to limit their consequences.
← 18. Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (recast).
← 19. Support is provided through the project “Green Transition – Implementing Industrial Emissions Directive in Serbia 2021-25” (Phase 3), implemented by the Cleaner Production Centre of the Faculty of Technology and Metallurgy, University of Belgrade, and financed by the Swedish International Development Cooperation Agency, Sida, spanning August 2021 to December 2024.