Circular Economy Roadmap
Key Resources
This Pillar supports the transition from linear production and consumption models to resource-efficient and circular systems under the Green Agenda for the Western Balkans (GAWB). It aims to advance alignment with the EU circular economy and waste acquis while fostering more sustainable patterns of production and consumption across the Western Balkans Six (WB6).
The first Green Agenda Action Plan (2021–2030) introduced actions to strengthen circular economy governance, improve waste management systems, promote sustainable consumption, and increase resource efficiency across the region. The Revised Action Plan (2025–2030) builds on these commitments by translating earlier strategic priorities into more concrete, time-bound and operational actions. It refines actions to accelerate waste reduction, reuse and recycling systems, expand Extended Producer Responsibility schemes, address plastic pollution, and strengthen public awareness and stakeholder engagement.
REGIONAL PROGRESS OVERVIEW
The analysis presented below is based on the Reports on the Implementation of the Green Agenda for the Western Balkans Action Plan (GARI), which serve as the primary regional monitoring instrument for tracking the implementation of the Circular Economy roadmap. GARI consolidates data from WB6, the European Commission, regional organisations, international financial institutions, Eurostat and other sources to provide a structured assessment of progress across actions related to circular economy strategies, raw materials management, waste prevention, recycling systems, and waste management infrastructure development across the WB6.
The 2025 GARI finds that during 2025 the WB6 accelerated their shift from linear policy frameworks towards integrated, lifecycle-based circular economy strategies, driven by the combined pressure of EU regulatory alignment and growing grassroots momentum. Regional cooperation, private sector innovation and targeted EU support expanded, signalling a shift from scattered pilots towards more coordinated and systemic action. The circularity gap nevertheless remains wide: the OECD Economic Convergence Scoreboard 2025 records that over 83% of municipal waste in the WB6 is still landfilled, compared with 23% in the EU, while recycling rates remain as low as 2% to 3% in some of the WB6. The share of municipal waste sent to landfill remains more than 3.5 times the EU average, demonstrating that a substantial gap persists between strategic commitments and effective implementation on the ground.
Note: Appendix 1 (Indicators) to the 2025 GARI records the Circular Economy indicators as not available for 2025. The indicator graphs in this roadmap therefore carry the most recent published figures, drawn from the 2024 GARI, except where a later source is named beneath the graph.
KEY RECOMMENDATIONS
- Strengthen governance of primary raw materials by ensuring that all cooperation, investment partnerships and prospective strategic raw materials projects related to the Critical Raw Materials Act (CRMA) in the WB6 are subject to robust environmental and strategic environmental assessment procedures, transparent public participation, strong social safeguards and effective enforcement of environmental legislation.
- Integrate circularity into mining and raw materials strategies by requiring specific domestic-level plans for waste minimisation, improved tailings management, secondary raw materials recovery and site rehabilitation, supported by regional knowledge sharing, skills development and technology transfer through relevant EU instruments and innovation networks.
- Use the Ecodesign for Sustainable Products Regulation (ESPR) and the Packaging and Packaging Waste Regulation (PPWR) as core regulatory drivers for circular product design, packaging performance and resource efficiency, while aligning industrial transition measures with the Waste Framework Directive as last revised by Directive (EU) 2025/1892 and using Carbon Border Adjustment Mechanism (CBAM) preparedness to accelerate decarbonisation and strengthen competitiveness in export-oriented sectors across the WB6.
- Maximise the benefits of CRM 2.0 and the Green Agenda for the Western Balkans as regional cooperation platforms to support convergence of market-enabling instruments relevant for circular economy implementation, including exchange of good practice on extended producer responsibility systems, deposit-return approaches, industrial symbiosis and eco-industrial parks.
- In line with the EU waste management acquis, accelerate the development of integrated, EU-aligned waste management systems, including regional landfills, material recovery facilities, separate bio-waste treatment and related financing and maintenance arrangements, while strictly applying the waste hierarchy and avoiding lock-in to incineration that could undermine recycling and prevention efforts.
- Address illegal dumping and narrow the implementation gap by expanding regular collection in rural areas, systematically mapping and remediating illegal dumpsites, and strengthening inspection, sanctioning, traceability and data systems for waste and environmental offences.
- Scale up consumer-targeted initiatives on waste prevention, repair, separate collection and informed consumption by linking long-term awareness campaigns with visible service improvements and clearer information on product durability, reparability and recyclability.
- Implement the Regional Action Plan on Prevention of Plastic Pollution, including Marine Litter, by prioritising bans on, or significant reduction of, the most polluting single-use plastics, increasing recycled content in plastic packaging and coordinating river basin and coastal actions to cut plastic leakage into the Adriatic.
- Integrate circular economy targets and indicators into industrial, raw materials and waste strategies and into the Economic Reform Programmes of all WB6, using the OECD Economic Convergence Scoreboard and Regional Cooperation Council (RCC) monitoring as reference tools for tracking progress on greening and circularity.
- Integrate green practices and circular economy principles into existing funding and guarantee schemes, including support for small and medium-sized enterprises (SME), innovation funds and development funds, to prioritise projects that improve resource productivity, increase secondary raw material use, reduce waste generation and support the greening of SMEs through clear eligibility and appraisal criteria.
- Promote eco-design and eco-labelling of products, in line with the ESPR and the PPWR, to drive more sustainable production models and enable consumers to make informed, low-impact purchasing decisions.
- Introduce practical circular economy modules and programmes at secondary and university level, including vocational education and training, co-designed with businesses and local administrations, to equip the future workforce with the skills needed for green and circular transitions.
- Integrate circular and green criteria into public procurement, especially for construction materials, furniture, textiles, ICT equipment and packaging-related procurement, to create stable demand for low-impact, resource-efficient products and services.
- Support the development of secondary raw materials markets by improving quality standards, traceability and data on secondary materials, strengthening recycling and re-manufacturing capacities and facilitating cross-border/boundary trade in secondary raw materials in line with EU requirements.
- Build institutional capacity and enhance coordination for circular economy implementation by strengthening inter-ministerial coordination mechanisms, reinforcing the mandates and resources of key implementing agencies and improving cooperation between central and local authorities, business support organisations and civil society.
ACTIONS
The Observatory integrates selected indicators from the Balkan Barometer 2025 surveys to complement implementation tracking with public and business perceptions data on issues relevant to the Green Agenda.
Public Opinion
Source: Regional Cooperation Council (RCC) (2025) Balkan Barometer 2025: Public Opinion Survey, online database, Indicator “Are you familiar with the concept of Circular Economy and its principles?”.
Business Opinion
Source: Regional Cooperation Council (RCC) (2025) Balkan Barometer 2025: Business Opinion Survey, online database, Indicator “Are you familiar with the concept of Circular Economy and its principles?”.
Source: Regional Cooperation Council (RCC) (2025) Balkan Barometer 2025: Business Opinion Survey, online database, Indicator “Which are the main barriers to shifting towards a circular (waste-free) economy in your line of business?”.
Note: the question is asked only of businesses that report being familiar with the circular economy, so the base is 94 respondents in Albania, 56 in Bosnia and Herzegovina, 32 in Kosovo*, 106 in Montenegro, 74 in North Macedonia and 59 in Serbia, not all businesses surveyed. Respondents could select more than one barrier.
Source: Regional Cooperation Council (RCC) (2023) Balkan Barometer 2022: Business Opinion Survey, online database, Indicator “Does your current business model allow for a shift towards a circular (economy) model?”.
Source: Regional Cooperation Council (RCC) (2022) Balkan Barometer 2021: Business Opinion Survey, online database, Indicator “Does your current business model allow for a shift towards a circular (economy) model?”.