Develop circular economy strategies looking at the entire lifecycle of products

ROADMAP PROGRESS

The 2025 GARI reports that in 2025 the WB6 accelerated their transition from linear policy frameworks towards integrated, lifecycle-based circular economy strategies, driven by the dual pressures of EU regulatory alignment and growing grassroots momentum. In line with the Circular Economy Roadmap of the GAWB Action Plan, the quality of circular economy strategies should now be assessed not only by their formal adoption but by whether they contain concrete deliverables, defined timelines, sector-specific priorities, clear implementation responsibilities and monitoring arrangements. A significant regional step was taken in October 2025, when WB6 Economy Ministers at the Berlin Process in London endorsed Regional Green Public Procurement (GPP) Criteria for the WB6, facilitated by the RCC, presenting a concrete step towards operationalising the Roadmap’s identification of sustainable consumption, including green public procurement, as an integral part of the lifecycle approach. While the gap between strategic ambition and implementation on the ground persists, the year was marked by a notable increase in regional cooperation, private sector innovation and targeted EU support, signalling a shift from scattered pilots towards more coordinated and systemic action.

The strategic context was shaped by the entry into force of the Packaging and Packaging Waste Regulation (PPWR) on 11 February 2025. The Regulation applies from 12 August 2026, requires all packaging to be recyclable, introduces recyclability performance requirements over time and obliges Member States to establish deposit-return systems for single-use plastic and metal beverage containers by 2029 unless high separate collection rates are already achieved. In parallel, Directive (EU) 2025/1892 amended the Waste Framework Directive by introducing binding food waste reduction targets and requiring Member States to establish Extended Producer Responsibility (EPR) schemes for textiles and footwear within the implementation timeline set by the Directive. These regulatory developments, together with the forthcoming separate collection obligation for textiles, have created a clear and urgent impetus for the WB6 to modernise their waste management systems and harmonise EPR schemes. However, progress remains uneven. As of December 2025, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia had submitted formal applications under the EU Waste Shipments Regulation to join the list of jurisdictions authorised to import waste from the EU after 21 May 2027. The GARI recommendations also call for circular economy targets and indicators to be integrated into industrial, raw materials and waste strategies and into the Economic Reform Programmes of all WB6, using the OECD Economic Convergence Scoreboard and RCC monitoring as reference tools for tracking progress on greening and circularity.

At regional level, RCC-facilitated stakeholder cooperation on green and circular economy issues continued to expand, building on the Western Balkans Green and Circular Economy Stakeholders Platform launched in 2024. Important roles were also played by the WB6 Chamber Investment Forum (WB6 CIF), which mobilises business and chamber networks around green competitiveness, and by the Western Balkans Circular Economy Hub (WBCEH), a multi-stakeholder initiative connecting administrations, businesses and civil society to promote practical circular economy solutions and innovation across the region. Its flagship Circular Economy Awards, held for the first time in October 2025, recognised Recycling Albania for establishing Albania’s first Circular Economy Park, Rilindja Gjelbër for launching Kosovo*’s first Textile Recycling Centre and the City of Smederevo in Serbia for municipal leadership in waste separation and solar energy projects. Alongside events such as the Western Balkans Circular Economy Week in May 2025, these initiatives have helped build a shared regional identity around circularity. Significant structural challenges nevertheless remain. The OECD Economic Convergence Scoreboard 2025 records that over 83% of municipal waste in the WB6 is still disposed of in landfills, compared with 23% in the EU, with recycling rates as low as 2–3% in Bosnia and Herzegovina, Kosovo* and Serbia. 
Progress at the domestic level remained uneven. Serbia continued to build on its established policy framework, supported by a new EU support package of EUR 16.3 million launched in early 2025. The package allocates EUR 14.1 million to bio-waste collection and EUR 0.7 million to developing local circular economy roadmaps, directly addressing the low recycling rate of 15.5% recorded in 2020. The adoption of the Waste Prevention Plan 2025–2030 provided further strategic direction, although the closure of the Duboko waste management centre and subsequent landfill fires in the summer of 2025 underscored persistent infrastructural weaknesses. Montenegro adopted its Waste Management Plan (2025-2029) in October 2025, laying a clear foundation for its transition to a circular economy. Its ban on certain single-use plastics and thin plastic bags from October 2024 yielded tangible results, with some retailers reporting a 50% reduction in plastic bag use. In Albania, the waste management sector continued to face structural and implementation challenges: a reform was announced to centralise waste collection and management under the Agency for Waste Economy by 2026, while institutional capacities remained limited and key draft laws on integrated waste management and extended producer responsibility were still pending adoption. The European Commission’s 2025 Enlargement Report also highlighted weak implementation of environmental legislation and the need for urgent action against littering. Several local initiatives nevertheless supported circular practices, including the launch of Albania’s first Circular Economy Park, the continued pilot project on separate municipal waste collection in Berat and the operationalisation of the EIT Raw Materials Regional Innovation Centre in Elbasan.

North Macedonia, despite having a comprehensive circular economy roadmap since March 2024, saw implementation stagnate in 2025, with the proliferation of Producer Responsibility Organisations (PROs) without sufficient supervision jeopardising market functioning and key domestic strategies for waste and sludge management remaining pending. Kosovo* continued to strengthen its policy framework, advancing circular economy reforms included in the Reform Agenda, particularly those supporting start-ups and micro, small and medium-sized enterprises (MSMEs) in the green and circular economy sectors through innovation support mechanisms, alongside measures promoting investment, resource efficiency, recycling and the development of green products. Kosovo* continued implementing the Integrated Waste Management Strategy 2024–2035 with its Action Plan 2024–2026 and the Construction and Demolition Waste Management Plan adopted in 2023. These frameworks provide a strategic basis for waste prevention, separate collection, recycling, recovery and reuse of materials, and the development of circular value chains. Preparations for a new Law on Integrated Waste Management continued. The introduction of a deposit return system (DRS) was affected by amendments to the implementing legislation in March 2025. The number of illegal dumpsites increased by over 13% during the year, highlighting urgent challenges in enforcement and infrastructure, even as civil society actors such as Rilindja Gjelbër advanced textile recycling initiatives. Bosnia and Herzegovina continued to lack a cohesive jurisdiction-wide circular economy strategy, with progress largely confined to the entity level. The first Repair Café was launched in Mostar in 2025 with support from the WBCEH, demonstrating the potential of community-led initiatives to drive practical change from the local level upwards. In addition, a European Union-funded project titled Technical Assistance for Improved Utilisation of Materials from Waste through Separate Collection, Reuse, and Recycling Based on Circular Economy Principles is being implemented in Bosnia and Herzegovina. The project aims to support progress towards EU accession by aligning waste management practices with the European Green Deal and circular economy principles, with a focus on separate collection, reuse and recycling to reduce environmental impacts and support economic growth.

Note: Action 31 of the first Green Agenda Action Plan (2021–2030) is not retained as a separate action in the Revised Action Plan (2025–2030). In the revised framework, it is marked as deleted on the basis that its objectives are reflected in other actions.