The Road to Green Serbia by CorD Magazine

Nowadays everything is about Green Living. Itâ&#x20AC;&#x2122;s not as hard as it seems, all you need to do is make small, nearly-painless changes.

CONTENTS

THE ROAD TO GREEN SERBIA

The Guide

XXX

30 31 8

Oliver Dulić, Minister of Environmental Protection and Spatial Planning FOR A GREEN SERBIA

12 IMPRESSUM EDITOR IN CHIEF Tatjana Ostojić, t.ostojic@cma.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs DESIGNER Miloš Aleksić, m.aleksic@aim.rs EDITORIAL CONTRIBUTORS Ana Stojanović PHOTO Slobodan Jotić, Darko Cvetanović LECTOR Pat Andjelkovic TRANSLATOR Snežana Bjelotomić PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@aim.rs; Snežana Terzić, s.terzic@aim.rs; Marija Petrović, m.petrovic@aim.rs GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica The Guide “The Road to Green Serbia 2010” published by: alliance international media in association with Ministry of Environmental Protection and Spatial Planning Special thanks to Siniša Mitrović, Advisor to the Environmental Protection Minister Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2010

This issue is audited by

ABC Serbia

18 22

Aleksandar Vesić, Assistant to the Minister for Environmental Protection - WITHOUT LANDFILL IN THE FUTURE

32 34 38

Dr. Elke Hellstern, KfW Entwicklungsbank, Office Belgrade – INVESTMENTS IN ENVIRONMENT ARE NO LUXURY

Hemofarm - THE WORLD OF HEALTH Nebojša Pokimica, Assistant Environment Minister EUROPEAN ENVIRONMENTAL INTEGRATIONS Business Park Airport City GREEN THINKING

53 54 57 58 60

42 45 46

Željka Jurakić, Director of the Environmental Protection Fund - WAITING FOR PUBLIC – PRIVATE PARTNERSHIP NEWS

NEWS Milan Kindjic, Director of the ‘Let’s Clean up Serbia’ Campaign – IMPROVING WASTE DISPOSAL MANAGEMENt NEWS Ph.D. Jordan Aleksic, Faculty of Applied Ecology Futura NEW DOCTRINE Ljubinka Kaludjerovic, Secretary General of the Standing Conference of Towns and Municipalities’ (SKGO) Environmental Protection Committee - A GREAT CHALLENGE

Hugh Mcreynolds – Managing Director of Carnex JSC RESPONSIBLE MEMBER OF THE SOCIETY

Coca-Cola Helenic – ENVIRONMENTAL PROTECTION

Siniša Mitrović, Advisor to the Environmental Protection Minister - VENUE FOR FOREIGN INVESTORS

Development Committee – ENVIRONMENTAL PROTECTION INVESTMENT

Carlsberg Srbija - VAST DANISH EXPERIENCE APPLIED IN SERBIA

Dr Marina Ilić, Professor at the Faculty of Ecology and Environmental Protection and Head of the Task Force in Charge of Writing the Waste Management Strategy BETTER WASTE MANAGEMENT

48 49 26

Law - LEGAL SECURITY

World - WHERE HAVE THE PLASTIC BAGS GONE? Tihomir Vasiljev, Green Energy Group - SUSTAINABLE ENERGY FUTURE OF SERBIA Dušan Stokić, Secretary General of the Serbian Chamber of Commerce’s Environmental Protection and Sustainable

68 70 74

Nebojša Đorđević, Chairman of the Managing Board of the Galenit Cluster, and Mišo Babović, Project Manager in the Centre for Development of Social Entrepreneurship – PROFITABLE SECTOR World – WIND ENERGY INVESTMENT Eco – Tourism - UNIQUE PLACE NEWS

PIRAEUS BANK AD BEOGRAD

CORPORATE SOCIAL RESPONSIBILITY iraeus Bank SA, parent company of Piraeus Bank Beograd, which plays a leading market role in Greece, has undertaken initiatives for the assessment, evaluation, and reduction of environmental risks related to its operational and core business environmental impacts, and at the same time has promoted “green” investments. With the aim of operating in harmony with society, the Bank attaches major importance to activities that promote corporate social responsibility in the fields of corporate governance, social work, cultural contributions, and environmental issues. Piraeus Bank has also developed the “Greenbanking4life” programme, with the goal of helping create effective and far-reaching market-based solutions to address a range of environmental problems. At the same time, these products identify and secure new business opportunities and job openings that benefit customers. Within the framework of “Greenbanking4life,” the Reduce-ReuseRecycle system was introduced. In the past three years, the Bank has recycled 5000 tons of paper, thus saving 27,000 trees. By recycling computers and other electronic materials, the Bank has avoided wasting 8 tons of glass, 11 tons of aluminum, and 7 tons of plastic. By avoiding 950,000 km of transport through e-learning, C02 emissions were reduced by 170 tons, i.e. by 1% per employee. By taking these measures alone, the Bank has reduced its operational costs by 150,000 euros in one year! Translating Piraeus Bank’s financing into renewable energy systems, the amount of € 174,000,000 during 2008 into avoided CO2 emissions corresponds to 400,000 tons of CO2 or the equivalent of 30 million trees. Through evaluation of its impact on the environment and through previous experience during recycling campaigns as well as the evaluation of market potential that showed a lack of “green” services, Piraeus Bank in Athens opened its first and one-of-a-kind Green branch in the Balkans, which provides all green banking services in one place. Piraeus Bank Group transfers its experience in the domain of corporate social responsibility to the countries where it operates. Piraeus Bank Belgrade has recognized, as a Group member, the significant importance of preserving the environment, and so has become dedicated to take an active role in “green” projects. In early December 2007, Piraeus Bank AD Beograd voluntarily joined the UN Global Compact, which adheres to ten principles in the areas of human rights, employment rights, environment protection and anti-corruption. By doing so, Piraeus Bank became one of the first companies on the Serbian market to support the initiative of the United Nations, with the aim to contribute to the integration of the basic and universally accepted principles of the Global Compact in its scope of activities. With the aim of placing special emphasis of its corporate social responsibility on projects in the domain of ecology and environmental protection, Piraeus Bank has supported the project of the Ministry

6 | The Road to Green Serbia

Čedomir Živković, President of Vršac municipality, Oliver Dulić, Minister of Environment and Spatial Planning and Miroslava Nešić-Bikić, Piraeus bank Head of marketing and PR of Environment and Spatial Planning and the “Let’s Clean Up Serbia” action. The Bank has also become involved in solving problems of the planned collection and recycling of paper by initiating joint action with the Ministry of Environment and Spatial Planning. Also, the Bank has launched its own “Going Green” campaign and “Fill to the top!” action in 18 cities where Piraeus bank operates through the donation of recycling containers and boxes for collecting used paper. The first campaign promotion was on “public class about climate changes” within United Nations week. On this occasion, Piraeus Bank representatives held a lecture in an effort to present how every individual and company affect the environment in which they live and operate. The project “Fill to the Top” was launched through donations of recycling containers and cardboard boxes to the citizens of Vršac and Niš. Donations are planned for all cities where the Bank operates along with the organization of environmental education classes for individuals and companies about the contribution that they can make on the local level. In the year ahead, the Bank will continue with the projects started in 2009, as well as create new ones. In the forthcoming period, Piraeus Bank will build platform branch entrances for disabled persons at some of its more prominent Belgrade locations and in some other cities. By opening branch offices suited for disabled persons, Piraeus Bank will try to make their daily activities easier and to show that is taking care of the most vulnerable groups. Piraeus Bank will continue to follow world trends in using new technology to improve the banking sector and create services in order to best satisfy client needs and support the local community through different social responsibility activities.

INTERVIEW

OLIVER DULIĆ, MINISTER OF ENVIRONMENTAL PROTECTION AND SPATIAL PLANNING

FOR A GREEN SERBIA

Oliver Dulić, Minister of Environmental Protection and Spatial Planning have presided at the Governing Council of the UNEP’s Global Ministerial Forum in Bali

The Serbian government has recently adopted the National Environmental Protection Programme with the aim of developing a contemporary environmental protection policy during the next decade. By Ana STOJANOVIĆ ast year, the Serbian government passed a set of environmental protection laws with the aim of harmonizing Serbian legislation with that of the EU. In addition, the National Environmental Protection Programme was also adopted, as the most important, comprehensive, strategic environmental protection document that will be Serbia’s guideline in

8 | The Road to Green Serbia

planning and managing environmental issues over the next ten years. We are talking with the Minister of Environmental Protection and Spatial Planning, Oliver Dulić, about these topics, and about the activities that the Ministry plans to carry out in the upcoming period. Building on the success that the ‘Let’s Clean Up Serbia’ campaign achieved, you have launched another campaign called

‘The Green Caravan of Serbia.’ What do you expect from this campaign? ’The Green Caravan’ will tour all over regional centres in Serbia in order to establish direct communication with local administration and hence contribute to the implementations of environmental protection laws, as well as laws covering spatial planning and construction. The experience tells us that implementing laws is the most difficult thing to do following

their adoption. That’s why we chose to establish a new way of communicating with the people that are supposed to implement these laws, to reach out to them so that we can help them with possible ambiguities and answer any questions that they might have pertaining to the Ministry’s jurisdiction. The team is made up of state secretaries, assistants, representatives of the Environmental Protection Fund, agencies, institutes, section heads, and advisors.

tration to take off? The people who pass legislation ought to be an example to other institutions, the private sector, and citizens in demonstrating how to treat waste as a resource. The recycling industry has a problem with not having sufficient quantities of paper on the market and the demand for paper is quite high. Used paper hasn’t been collected in the past because everybody thought that there was nobody to recycle it, so the paper was exported. We are going to put a stop to this and the waste that is generated on the territory of Serbia will be collected here too, and only the waste that cannot be processed, due to insufficient capacities or lack of appropriate technology, will be exported.

Has the ‘Let’s Clean up Serbia’ campaign met expectations? I am quite happy with the campaign results, especially if we bear in mind that, during the entire year, a total of 56.21% of illegal landfills in Serbia were eliminated, i.e. 2,427 out of 4,318 registered landfills. In Central Serbia alone, 1,984 such landfills were eliminated in 61 municipalities. These are good results indeed. Also, we are quite aware that we could have done better, so the campaign is continuing this year too, with the same intensity.

In your opinion, which part of Serbia is the most polluted and which is the cleanest? We don’t have exact information about that, but, according to our estimates, the environment in protected natural resources is well preserved and healthy. According to the Environmental Protection Agency, cities are the most polluted and we are talking mainly about air pollution. These cities are those where gas system installation still hasn’t been carried out.

The recycling industry has a problem with not having sufficient quantities of paper on the market and the demand for paper is quite high

Research released at the end of last year showed that people’s awareness about the need to preserve the environment has grown. To what do you attribute this change of mind? Aside from the visible results accomplished in advancing environmental protection, we can say that the campaigns that we have launched have been important from the standpoint of increasing the people’s awareness about the significance of environmental protection and preventing further pollution. Research carried out by the Centre for Free Elections and Democracy (CESID) showed that citizen awareness about environmental protection did go up since the beginning of last year. Also, let me say that the campaign ‘Let’s Clean Up Serbia’ won the award for the best non-profit campaign last year, according to journalists and newspaper editors. How many illegal landfills have you removed, and how many sanitary ones have you built in Serbia? So far, we have removed a total of

2,427 out of 4,318 registered but illegal landfills. Also, regional landfills in Leskovac, Lapovo, Kikinda, and Vranje have been built, with landfills in Duboko, Užice, Pirot, Sombor, and Subotica currently under construction. Recently, you were handing out boxes for collecting recycling paper in the government building and in certain municipal facilities. Why has it taken so long for the initiative for collecting used office paper in the state adminis-

Treating hazardous waste has been a big problem for many years, so Krnjevo was chosen as a disposal location. Why was that? Krnjevo is the place for temporary storage of hazardous waste, following a decision made by the Serbian government on June 25, 2009. The Ministry is in charge

MEDICAL WASTE

n collaboration with the Ministry of Health, we have prepared a new rule book about managing medical waste that will provide clear procedures, criteria, and ways to handle such waste in Serbia. Currently, there are 78 facilities where this waste is eliminated, and we plan to implement a special system for treating pharmaceutical waste generated and exported by pharmaceutical companies and health institutions. A great number of citizens have medication in their homes that has expired, and I would like to ask them to wait before they dispose of them, since pharmacies are going to start collecting that waste soon. Following the adoption of the rule book, all health institutions will have to properly package and store medical waste, and we are going to also regulate the way in which such waste should be treated. The Road to Green Serbia | 9

INTERVIEW

We can say that the campaigns that we have launched have been important from the standpoint of increasing the people’s awareness about the significance of environmental protection and preventing further pollution of selecting an authorized operator which will safely re-pack special types of waste, temporarily store it, fireproof it, and provide 24-hour-security. This special type of waste is going to be stored for the time being at a location far from the residential area in Krnjevo, a location owned by the Republic of Serbia and which is currently used by the Ministry of Defence. As I said, the waste will be temporarily stored, not longer than 12 months, and after that it will be permanently taken care of. The temporary storage is in line with relevant regulation, and is completely protected. Proper fire safety precautions have been taken, and the site is supervised and physically protected. The Republic Environmental Protection Agency will monitor the storage and waste protection. You have presided over the special session of the Governing Council of the UNEP’s Global Ministerial Forum. What impressions do you bring from that event?

Oliver Dulić, Minister of Environmental Protection and Spatial Planning and Mirko Cvetković Prime Minister during campaign ‘Let’s Clean up Serbia’ Serbia’s participation in the 11th Special Session of the Governing Council of the United Nations Environment Programme (UNEP) Global Ministerial Forum in Bali will result in our being able to attract additional investments in the recycling industry, which in this year alone should create 10,000 new jobs. At this moment, opportunities have presented themselves for investing in recycling of electric and packaging waste. This is where experience from other countries comes in handy. Last year, Serbia attract-

UNEP’S GLOBAL MINISTERIAL FORUM

erbia’s participation in the 11th Special Session of the Governing Council of the United Nations Environment Programme (UNEP) Global Ministerial Forum in Bali will result in our being able to attract additional investments in the recycling industry, which in this year alone should create 10,000 new jobs. At this moment, opportunities have presented themselves for investing in recycling of electric and packaging waste. This is where experience from other countries comes in handy. Last year, Serbia attracted significant investments in green economy, primarily in the recycling industry, which hired close to 500 people over the last few months. This is the most dynamic industry in Serbia at the moment.

10 | The Road to Green Serbia

ed significant investments in green economy, primarily in the recycling industry, which hired close to 500 people over the last few months. This is the most dynamic industry in Serbia at the moment. In which direction will environmental policy develop in the upcoming period? Following the adoption of the set of environmental laws and bylaws, we expect the regulation that has been harmonized with that of the EU to finally come alive. The Serbian government has recently adopted the National Environmental Protection Programme with the aim of developing a contemporary environmental protection policy over the next decade. The Action Plan will be used as a vehicle for the programme’s implementation, and will provide a legal and institutional foundation for many projects awaiting us during the EU integration process, including using budget and pre-accession funds.

INTERVIEW

ALEKSANDAR VESIĆ, ASSISTANT TO THE MINISTER FOR ENVIRONMENTAL PROTECTION

WITHOUT LANDFILLS IN THE By Sladjana VASIC Photo Darko CVETANOVIC he new strategy of waste disposal management, which the Government will soon bring to law, is built upon a legal act from last year – the law on waste disposal management and the law on packaging and packaging waste. According to Aleksandar Vesić, Assistant to the Minister for Environmental Protection, a strategic approach from 2010 to 2019 will be determined, and the politics of environment protection in the area of waste disposal management will be based on special flows of the waste, be it industrial waste, dangerous waste, or management of communal waste.

How many centers for waste disposal management have been planned?

It is planned to build a central plant for physical-chemical waste treatment

In most EU countries, manufacturers and importers join forces through operators and bear responsibilities for their waste. They are obliged, for their type of waste, to reach a percentage at the annual level regarding waste gathering and waste recycling. 12 | The Road to Green Serbia

We have planned to open 12 regional centers in the next five years. The other 12 will be functional by 2019 and in the meantime, all existing landfills will be closed and repaired in order halt negative influence on the environment. According to the strategy about waste disposal management, the hierarchy in waste disposal management has to be respected. Everything having usable value has to be separated and recycled. Finally, what is left will be used to make energy or gas. We have passed certain bylaws that concern the special waste flow of electrical waste, oil waste, accumulator waste, batteries, asbestos, tire waste, … Under this procedure are also bylaws on medical waste and also there is an act concerning motor vehicle waste, so we can cover everything. What kind of plant are you planning to build and how much it will cost? We plan to build a central plant for physical-chemical waste treatment, which will be done through IPA funds from the European Union (Instrument of pre-accession aid). For the preparation of technical documentation and research works, 3 million euros have been secured, and the other part is for building the plant. For that part, we were given 11 million euros. We have to suggest a minimum of two or three building locations. Based on research, we will determine the best location. The plant won’t have an incinerator, although they are needed as well in the future for treatment of dangerous waste, medical waste, animal origin waste, pharmaceutical waste, and other kinds of waste which, at the moment, we export because we don’t have plants for burning those wastes. In the plant for physical-chemical waste treatment, the waste won’t be burned

E FUTURE We aspire to reach EU countries at the level of percentage of recycling certain components and emissions wonâ&#x20AC;&#x2122;t be released in the air. The waste will be neutralized and returned. What is the procedure for getting a license for building a plant? We have an IPPC law about integrated restrain and control of polluting the environment, which was passed in 2004. According to that law, plants like this should receive an integrated license, in other words, an ecological license, which is recognized everywhere in the world and which cannot be received if the best BAT technique has not been applied. Before that, an evaluation of influence on the environment has to be done. When do you plan to establish the system? We are planning to establish the system this year. We have to give licenses to all possible operators from the areas of gathering, transporting, storage, treating, or collecting waste. At the moment we have around 250 requests and we have just issued the first licenses. In the future, there will have to be a controlled flow of the waste. There will be a document to fill out concerning waste motion and all parties from that document have to be licensed by the state. This year we plan to create a data base, because manufacturers and exporters and importers are obliged to inform the agency for environmental protection about the amounts and types of imported goods over the territory of Serbia. This will apply to collec-

REGIONAL PLAN

e have obliged local self-managements to make local plans for waste disposal management, to join forces by regional principle, sign contracts with each other, and to make a regional plan for waste disposal management within one year from the day the law went into effect, meaning from May 24th of this year. That plan should be submitted to us for approval. tors and recyclers, who should inform us about the amount of the waste they have collected and recycled. When that happens, then we will have a real data base according to which we will be able to make plans. Certain stimulus measures are also planned through the Ministry for Environmental Protection, as subventions, which will be given based on final results of the work of those who are dealing with collecting and recycling the waste. The Fund for Environmental Protection will be in charge. In this way, we will create new job opportunities and we will develop a waste- collecting industry. We aspire to reach EU countries at the level of percentage

The Road to Green Serbia | 13

INTERVIEW

of recycling certain components. We will especially negotiate about metal, plastic, glass, wood, and paper, and we will try to increase the percentage of recycling every year. Eventually it will be, let’s say 18 percent, and then 25, then 35… What is the situation regarding packaging and packaging waste? Regarding packaging and packaging waste, there are national goals we have to reach. It was the general attitude among manufacturers and importers that there is no system of imbursements in advance. In most EU countries, manufacturers and importers join forces through operators and bear responsibilities for their waste. They are obliged, for their type of waste, to reach a percentage at the annual level regarding waste gathering and waste recycling. That means that if they use PET packaging, their company should join Carlsberg, Knjaz Milos, Coca-Cola, and all others who are placing drinks in PET packaging, like “Sekopak” is doing it here.

PROFIT

ur state, at the annual level, produces around 40 to 50 thousand tons of non-organic waste. For the new plant, the predicted annual profit is around five million euros for those 46 thousand tons of waste that would be recycled.

14 | The Road to Green Serbia

That system operator has a special relationship with the consortium and they are on their behalf obliged to organize agreements on gathering systems, collecting, separating, baling, and recycling. If they don’t reach the given percentage, they pay high penalties to the Fund for that difference. How much this will burden our industry? Implementation of the law about waste and the law about packaging and packaging waste should cost our country around 970 million euros. Our evaluations from before, in regard to our old strategy, were a billion euros. We have defined sources of funds from which we can accomplish all that. And, if we are talking about private sector and factories and companies, they have been so far obliged to take care of their waste in an adequate way. Those who had money exported their waste. Those who didn’t kept their waste at their locations as temporarily stored goods, very often in a very unsafe way. It is good that there were no major incidents when we consider how much waste we have around factories. To export waste for destruction will cost you three to four euros per kilogram. The new plant will help us lower that cost and then destruction of the waste could cost one euro per kilogram. On the other hand, there are certain institutions and donors which want to help. When the IPA 3 component is open, we will be able to apply for infrastructural projects in the area of management of commu-

nal waste and purification of water waste. For the first year we expect around 50 million euros and the minimum for applying is 10 million euros. The central plant for purification of water waste should cost around eight to nine million euros, not including surrounding settlements. That is a satisfying investment, and based on it we can apply for funds from the IPA. What about strategic partners? According to the law on concessions, only communal waste can be subject to concession. Local self-management can give communal waste for concession for 20, 30, 40 or more years. Over the territory of Serbia there are cases like that as well. We still haven’t worked out mechanisms of private-public partnership, because we don’t have a legal act which defines, in more detail, the way of stepping into that kind of partnership. The Min-

The central plant for purification of wastewater should cost around eight to nine million euros istry of Economy and Regional Development right now is preparing legal act which will regulate in more detail the way to start a partnership like that. Also under preparation is the law on transformation of public companies, which will make it possible for a public-communal company to transform into some other form of strategic partnership. It can become a mixed company and it can become a shareholders company. In that way, everyone will find the best possible way for themselves and their citizens based on their regional right to manage the waste and based on a study on investment justification because we should not forget that communal waste will, again, be the citizens’ burden. Therefore, local self-managements need to have developed plan documents, to have programs and plans for waste disposal management, to overview the complete situation, and to have our approval. There is as well a condition by the European Commission for the international tender. Can a private company make a plant like this? As a private company, yes, it can, while a foreign company has to be registered here with a central office in this country. Is it recycling “a new area” for investors? We receive questions like this all the time. Everybody is welcome, especially in the areas of waste disposal management, waste destruction, and plants for water waste purification. I am certain that the recycling industry will get its swing in the future and that it will benefit all. He who invests in waste and its disposal, cannot lose. The biggest item is transport, because if you have waste which should be transported to Germany and you must pay 5 euros per kilogram, three to four euros will go for transportation. If you have a plant here, then you have something, because you have the market, in other words you have the waste.

The Road to Green Serbia | 15

Recycling involves processing used materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from incineration) and water pollution (from landfilling) by reducing the need for “conventional” waste disposal, and lower greenhouse gas emissions as compared to virgin production. Recycling is a key component of modern waste reduction and is the third component of the “Reduce, Reuse, Recycle” waste hierarchy.

INTERVIEW

DR MARINA ILIĆ, PROFESSOR AT THE FACULTY OF ECOLOGY AND ENVIRONMENTAL PROTECTION AND HEAD OF THE TASK FORCE IN CHARGE OF WRITING THE WASTE MANAGEMENT STRATEGY

BETTER WASTE MANAGEMENT he Waste Management Strategy is expected to be completed soon. The strategy stipulates construction of 27 regional waste management centres. This is just one of the topics that we talked about with Dr Marina Ilić, a professor at the Faculty of Ecology and Environmental Protection.

Bearing in mind that you are at the helm of the task force that is writing the Waste Management Strategy, could you tell us what novelties does the strategy bring when it comes to the area of waste management? The strategy is currently in the process of being adopted, and it has virtually the same approach as the 2003 strategy, but with more elaborate elements pertaining to waste management, which is also something that the previous document contained. There is a plan to construct 27 regional centres, with some of them already under construction. Of course, this is time-consuming since each project has to have the relevant technical documentation, environmental impact assessment, and available funds. Our goal is to set up 12 recycling / waste management centres over the next five years, which is also very important.

“Each year, close to 2.4 million tons of utility waste are generated in Serbia. Our goal is to set up 12 recycling / waste management centres over the next ﬁve years.”

What will these regional centres look like and how is everything going to function? A regional centre covers a regional landfill and has the facility for waste separation located near the landfill, a waste reloading station that will transport the waste to a relevant landfill, as well as a compost facility. This is the infrastructure required for waste management. In cities, we need to find locations for these centres where citizens would bring their recyclable waste. Regional and local plans would cover waste management issues in line with the Strategy. What are the biggest problems in Serbia when it comes to waste management, since not much consideration has been given to ecology? In Serbia, 60% of generated waste is collected mainly from urban areas, while rural areas are not included. The main problem is lack of appropriate infrastructure, which leads to pollution of ground, surface, and underground waters. Also, there is a lack of data on waste composition and flow, as well as on quantities that

AWARENESS AND ENVIRONMENTAL PROTECTION

owadays, waste is no longer being called rubbish. Public awareness is being developed through civil education and by providing information, with the media playing an important role. This is a recipe that developed countries have been using. It is very important to teach children from an early age about this, since that is the only way for citizens to understand that what is being done will only benefit them. We are working on reducing environmental pollution not only because of esthetics. The ‘Let’s Clean Up Serbia’ campaign yielded great results. A total of 2,300 out of 4,400 unregulated landfills have been eliminated. However, this is not the end of our problems, since if citizens do not realize what they shouldn’t do and if they are not given an opportunity to dispose of rubbish in a different way, then these unregulated landfills will emerge again.

18 | The Road to Green Serbia

The Road to Green Serbia | 19

INTERVIEW are recycled. It often happens that utility and hazardous wastes are deposited together, and there is not enough room for storage, treatment, and disposal. What is the situation like in Serbia following the adoption of a set of environmental laws? How do we compare to other regional and EU countries? We, just like our neighbouring countries, are striving to join the EU and are harmonizing our directives and regulation with those of the EU. The problems we face in waste management are similar to those in Croatia, Macedonia, and Bosnia and Herzegovina. I have to admit that Croatia and Slovenia are ahead of us. They have developed recycling and have set up a waste management system, but that also took time. We need time too to harmonize our documents with the relevant regulation and start implementing them. For decades, Serbia had to deal with unsustainable management of waste, which usually ended up on unregulated landfills. Each year, close to 2.4 million tons of utility waste are generated in Serbia. The waste is disposed of at 163 officially registered landfills, which are often located near towns and villages or lake and river shores. Aside from ‘official’ landfills, there are close to 4,400 unregulated garbage dumps, with 2,300 of them having been eliminated during the ‘Let’s Clean Up Serbia’ campaign. There are plans to build facilities for physical and chemical treatment of hazardous waste in Serbia. How are we going to supervise and destroy this kind of waste if we don’t build such facilities? The only solution is to export the waste to be treated in countries which have that kind of facility. Since in Serbia we have none, and we don’t have a proper location for its disposal, hazardous waste is usually deposited on factory premises. On some premises, the waste is stored properly, on some it’s not. All in all, factories are not good locations for disposal of this kind of waste. We have to build a facility for physical and chemical treatment of hazardous waste in accordance with the relevant international standards. On the other hand, it is not necessary for us to implement all procedures, since other countries are not doing so and they export this waste. In what way is pharmaceutical and medical waste in Serbia generated and collected? Do health care facilities have special machines to treat such waste? Thanks to a project and a donation from the European Union, a total of 78 autoclaves have been bought, which are going to be allocated to health centres all over Serbia and that will treat contagious medical waste. This kind of waste needs to be separated first into dangerous and harmful waste, and then processed in machines under high pressure and temperature. The waste is then ground up and disposed of at sanitary landfills. According to the relevant ministry, one of Serbia’s goals is to raise the recycling level and develop the recycling industry. What is the current situation like and what is the future of this industrial branch in our country? Our recycling system is still very basic. We don’t have a single 20 | The Road to Green Serbia

integral system that would be operational in the entire country. By passing the Law on Waste Management and the Law on Packaging and Packaging Waste, a legal framework was created for such a system to be set up. This particularly applies to used batteries, car batteries, used tyres, waste oils, and medical and pharmaceutical waste. By establishing a special flow waste management system, we are going to set up collection and treatment facilities, mainly through private donations, and based on waste management licences issued in accordance with the law.

The waste management sector in the EU has an annual turnover of over 95 billion euros and employs close to 5 million people What is the situation with recycling in EU countries? In the EU, close to 30% of waste is recycled, with some countries, like Belgium, Austria, and Germany, recycling up to 80% of their entire waste, which is quite a high percentage. Romania and Bulgaria recycle around 30%, and we recycle much less than that. It is our goal for this percentage in our country to go up, since more recycling can create new jobs and allow for utilization of waste as a resource. Any country needs time in harmonizing its standards with those of the EU and everybody is working in that direction. We ought to mention that the waste management sector in the EU has an annual turnover of over 95 billion euros and employs close to 5 million people. The Law on Waste Management stipulates that each municipality has to devise a regional waste management plan. How far are they with that and to what extent would the system advance if we organized ourselves in that way? The law was adopted in May 2009, and it says that every single municipality has to write a regional waste management plan within one year. Then, several municipalities are supposed to join forces and form waste management regions in order to build regional landfills and infrastructure that is required for utility waste management. They also have to sign inter-municipal agreements and devise regional waste management plans. I don’t know how many such plans have been written so far, but I do think that most of them are still not finished and that both municipalities and regions have a lot do to.

The Road to Green Serbia | 21

INTERVIEW

DR. ELKE HELLSTERN, KFW ENTWICKLUNGSBANK, OFFICE BELGRADE

INVESTMENTS IN ENVIRONMENT ARE NO LUXURY KfW´s Support to Green Serbia improves the environment and reduces costs

fW Group is one of the world´s most active banks when it comes to financing environment and climate protection. In 2009, we committed worldwide 10.6 billion euros to these sectors or altogether 42 % of our overall investments. Around 2.4 million t CO2 p.a. could be reduced and 292,000 jobs created or secured. In Serbia, on behalf of the German Ministry for Economic Cooperation and Development (BMZ), since 2000 KfW Development Bank has committed around 780 million euros to the energy, water, and financing sector. We strongly support Serbia´s path to EU, which also means the acceptance of the demanding environmental standards of the “Acquis Communautaire.” Adherence to these standards will highly improve living conditions in Serbia. Nevertheless, they demand huge investments. KfW provides financing and technical support through a variety of program to achieve this.

ELECTRIC POWER AND HEAT In the energy sector, our focus is on promoting energy efficiency in power and heat. In 2009, we started our “Programme on Environmental Measures” together with EPS (volume 46 million euros). Project measures include the rehabilitation of coal mills in the Nikola Tesla power plant, which will improve the efficiency of this block by 10%. This saves coal and reduces air and climate pollution. Production costs are reduced and the in22 | The Road to Green Serbia

vestment will be amortized in less than 5 years. A typical win-win situation where environment and economy are winning! The second component of this program is the environment-friendly ash disposal at Kostolac A power plant. The negative impact on environment and health through flying ashes and heavy metals for inhabitants, agricultural lands, and the Danube will be overcome. Also our programmes of rehabilitation of Bajina Basta and Zvornik hydropower plants (100 million euros by KfW) with our partner EPS have an important environmental impact: they allow expansion of the life span of these clean energy producers for at least forty years. In 2001 with our support, a general overhaul of Nikola Tesla B power plant, including the

One of the biggest challenges for Serbia will be the treatment of municipal and industrial waste waters installation of air filters, was concluded (50 million euros) with an important impact on the clean energy generation. Another focus of German development cooperation has been the modernization of district heating companies together with Ministry of Energy and Mining (77 million euros). The main goal is the reduction of heat losses, improving efficiency, and introducing consumption-based tariffs. These measures have already resulted in energy savings of around 20%. Additionally, 20% can be saved through consumption-based tariffs.

ENERGY EFFICIENCY IN ENTERPRISES AND HOUSEHOLDS KfW is also supporting small and medium enterprises and households that want to invest in energy saving. With the support of BMZ and the German Ministry of Environment and Reactor Safety (BMU), KfW has set up credit lines with Cacanska Banka, Pro Credit Bank, Raiffeisen Bank, and Volksbank for investments in energy efficiency and renewable energies (40 million euros). The investments must save at least 20% of energy. Technical assistance is provided to banks and investors. WATER AND WASTE WATER So far, KfW Development Bank has committed 140 million euros for the water and waste water sector and, so far, 18 waterworks are involved. Environmental benefits result from reducing the high water losses (presently up to 60%), improving the quality of water and considerable energy savings through new efficient pumps. One of the biggest challenges for Serbia will be the treatment of municipal and industrial waste waters. KfW Development Bank, together with European Union, the Ministry of National Investment Plan, and other donors shall make efforts to package their financing possibilities in order to offer good financing options to municipalities. CONCLUSION In Serbia, environmental investments are no luxury. A functioning supply of energy, water, and heat is important for the wellbeing of the population and economic growth. Often these investments bring forward a win-win situation,where conserving natural resources results in economic benefits.

CORPORATE

BIS RECYCLING CENTER FOR ELECTRONIC AND ELECTRICAL WASTE AND FLUORESCENT TUBES AND BULBS he company BoĹžiÄ&#x2021; i sinovi d.o.o. was founded in June 2006. The BIS Recycling Center for electronic and electrical waste is in Pancevo. The company has entered a new stage of development and joins the trend of developed countries in Europe that recycling is not only a means of preserving the environment, but an industry which can bring economic benefits to all participants in recycling. Since its establishment, the BIS Recycling Center has followed the continuing increase in services, renowned customers, and excellent results in the field of social responsibility. The main goal of this year is to create efficient centers for collection throughout Serbia.

The aim of the company is to provide clients with a legal way to get services such as transportation and recycling of EE waste and fluorescent tubes, the physical destruction of business documents, deletion of confidential data from the media, safe waste storage, sale of raw materials, refurbishing, development plans, and education. A special feature of participating companies is included in efforts to promote the concept of corporate social responsibility by its own example and through intensive cooperation with partners from public and nonprofit sectors. In accord-

ance with this policy, the company is part of initiatives that represent socially responsible business in Serbia, the UN Global Compact, and the Council of Chambers of Commerce of Serbia for socially responsible business. BIS is particularly proud of the participation of the Microsoft MAR program, which allows donation refurbished computers. The result of our work is reflected in CSR awards received.

The Road to Green Serbia | 23

CORPORATE

COCA-COLA HELLENIC

ENVIRONMENTAL PROT

Environmental protection management is one of the essential elements of CocaCola Hellenicâ&#x20AC;&#x2122;s operations on its way to reach sustainable development in each of the 28 countries that the company currently operates in

24 | The Road to Green Serbia

ith environmental protection in mind, CocaCola Hellenic adheres to and applies relevant local regulation and the highest environmental protection standards in its everyday operations, like the ISO 14001 and the ECO quality environmental protection management system devised by the company itself, which is even stricter than the ISO 14001.

ENERGY CONSERVATION PROGRAMME Since 2002, Coca-Cola Hellenic has been implementing the Energy Conservation Programme which has already yielded significant results in saving water. The programme makes it possible for employees of Coca-Cola Hellenic to understand and apply instructions on how to save water in the

companyâ&#x20AC;&#x2122;s work process and production. In 2008, the Energy Conservation Programme led to 10% less water being used per each litre of drink produced. The company has also invested in constructing a wastewater processing facility that will be installed in by 2010 in all 80 factories owned by Coca-Cola. Since 2005 in Serbia, the company has been using this facility that enables wastewater generated in the bottling plant to be processed until it reaches the water quality as recommended by the EU. The wastewater facility can process up to 600 cubic metres of wastewater, i.e. technological and sanitary water per day, with processing done on several levels. This investment, worth over 1.5 million euros, used to be one of the biggest ecological construction sites in the country. Since 2002, Coca-Cola Hellenic has increased water usage efficiency by 20%.

TECTION EFFICIENT ENERGY UTILIZATION As one of the signatories of the UN Global Compact’s “Caring for Climate: The Business Leadership Platform,” which is a global call to businesses and governments to speed up action on climate change, CocaCola Hellenic is dedicated to reaching the top position. In the near future, the company will reduce carbon emission by installing units that use combined heat and electric energy. We also plan to set up quite a few of these stations wherever we are present, with each station contributing to the total CO2 emission to be reduced by 40%. By the end of 2010, following the implementation of this programme, carbon emission will have been reduced by 20%, in line with the EU’s 2020 goal. In 2008, the CO2 emission per litre of produced drink in Serbia was reduced by 8%, as compared to 2007. In addition, Coca-Cola Hellenic has been increasingly using renewable energy and exploring the possibility of installing two solar facilities in Greece. It has been estimated that the IT industry participates by 2% of total carbon emission, and so the company decided to launch a project called ‘Green IT’ in 2007. In its first year, the project led to CO2 emission being reduced from 854 tons to 712 tons. The company’s branch in Serbia joined the project in February 2009, with the aim of reducing energy consumed by electronic devices by 12%. Coca-Cola also started to explore the possibility of using combined fuel vehicles and alternative car fuels. In 2008, we launched a project called ’Eco Friendly Driving.’ So far in Serbia, over 40% of the company’s vehicles have been using natural gas as fuel which led to CO2 emission being reduced by 37 tons in relation to 2007. In addition to that, we have begun to install GPS devices that will monitor the mileage and fuel consumption of our vehicles, all of this leading to additional reduction of CO2 emission. We have also launched two new types of refrigerators which diminish annual CO2 emission by 29,000 tons, as well as an energy saving device, the ECO-Box that will

Coca-Cola started to explore the possibility of using combined fuel vehicles and alternative car fuels. In 2008, it was launched a project called ’Eco Friendly Driving improve a refrigerator’s energy efficiency by an additional 20% to 25%. Also, we are currently replacing fridges that use HFC gases as coolants and which significantly contribute to global warming stemming from usage of the HC gases and CO2 technologies. It has been estimated that in the next ten years, CO2 emission will have been reduced by additional 500,000 tons annually, which is more than the combined emission of all 80 factories that the company owns. Since 1995 in Serbia, all cooling devices that are used in the company and on the market have been using environmentally friendly Freon R134A and R404A. Also, we have started to use two new refrigerator types (FV 500 and FV 700), which reduce emission by 29%. As of 2007, we have been using the EMS energy-saving device in large refrigerators, and we are currently installing the ECOBox that is going to additionally improve the refrigerators’ efficiency by 20% to 25%. EVERYDAY IMPLEMENTATION OF ISO AND ECO SYSTEMS Coca-Cola Hellenic Serbia recycles 90% of its secondary raw-materials during the production process. Recycling materials include glass, paper, wood, metal, PET, PVC, used motor oil, and car tyres. After the waste is sorted out and stored, which is done on the bottling facility grounds, the recycled mate-

rial is shipped to companies that are registered for recycling industrial waste, only to be later re-used in production. CONTINUOUS ADVANCEMENT OF ENVIRONMENTAL PROTECTION As of February 2003, Coca-Cola Hellenic Serbia has been using natural gas, which also significantly reduces pollution. The entire internal transport is carried out via electricity or natural gas-generated facilities in order to avoid pollution. Also, within the bottling facility, there is a laboratory that supervises the emission and air pollution level in order to protect the working and living environment, and the results have shown that all relevant parameters are within the permitted level. In its boiler room, Coca-Cola Hellenic uses natural gas as fuel and fuel oil as an alternative. The company is continuously implementing activities on reduction of water and energy consumption like re-using the same water twice in two different stages of washing packaging and production lines, optimizing the use of heating and air-conditioning devices in offices, and installing water consumption measuring instruments. Our plan is also to install a device that would measure energy consumption in each production facility and office.

The Road to Green Serbia | 25

INTERVIEW

SINIŠA MITROVIĆ, ADVISOR TO THE SERBIAN ENVIRONMENTAL PROTECTION MINISTER

VENUE FOR FOREIGN I polluter is the one that pays and bears the responsibility for the end product. This practically means that if a producer sells a certain product, he has to be mindful where this product will end up. We are currently working on modules that will translate waste management into waste flow, which are going to be supervised and subsidized by the state. Following the Act on Waste Management, the Republic of Serbia has been providing subsidies for special waste flows. At this moment, subsidies cover

We estimated that the Fund’s financial capacity could be in the region of €30 million

Serbia is determined to establish a new economic branch – the recycling industry By Tatjana OSTOJIĆ Photo Slobodan JOTIĆ n May 6th, 2009, the Serbian Parliament passed 18 environmental laws that cover the country’s environmental doctrine through the year 2020 in terms of waste, packaging, and packaging waste management. We are talking to Siniša Mitrović, advisor to the Serbian environmental protection minister, about waste flow and its impact on the Serbian economy.

26 | The Road to Green Serbia

Does Serbia have laws that regulate waste flows? A first step forward in this respect was made in 2004, when we adopted the general Law on Environmental Protection. Last year, we continued the process by passing 18 environmental laws. This time around, we have improved regulation capacity, but we still need to resolve the problem of industry’s capability to apply the regulation. The Law on Waste Management stipulates special waste flows that are regulated in line with the European principles, i.e. the

used tires, car batteries, ordinary batteries, electronic and electric waste, and asbestos. This means that authorized recycling organizations that are licensed by the state are allowed to handle waste on the behalf of the state. I would like to remind you that 2010 was declared ‘the year of recycling,’ which means that in Serbia the entire process is implemented via the ‘Let’s Clean Up Serbia’ campaign. The process has to be legitimized as part of the transformation of public utility companies in Serbia. We simply have to raise the capacity of the recycling industry in Serbia. This poses a real challenge to us, and so we have prepared several important measures like setting up the Environmental Protection Fund which provides financial means for the recycling industry. The state is determined to establish a new economic branch in Serbia – the recycling industry, and has so far granted three integral licenses for management

INVESTORS of special waste flows that cover products like tires and tire particles, electric and electronic waste, and plastic. Also, the Fund has devised a set of measures to advance the environmental protection industry in Serbia. A total of €6 million was allocated for this purpose. Where do funds for environmental subsidies in Serbia originate from? The funds come from the Environmental Protection Fund that was established in 2004. The Fund receives its money from large polluters, so it is financially self-sufficient. We are going to extend its foundation since all taxes relating to waste management are directed towards the Fund. 10% will remain in the Fund, while the rest will be allocated to the recycling industry. We estimated that the Fund’s financial capacity could be in the region of €30 million. The new laws regulate special waste flows that are emerging now. Is there any deadline for Serbia to start recycling the waste that has been accumulated before these laws were passed? There is a category called historic waste and the Republic of Serbia is obligated to deal with it. The European Union regulates that this waste has to be recycled, but hasn’t given any specific deadlines. That means that we do have some leeway to set the deadline for ourselves, based on the capacity of our infrastructure. At this moment, Serbia lacks the means to treat dangerous waste, but as we are approaching EU membership, we are going to have treatment facilities for dangerous chemical and physical waste. Serbia also has to deal with the problem of disposing of medical and pharCOSTS

hen it comes to the environmental requirements that Serbia needs to meet in order to become an EU member, this will cost the country between €6 and €8 billion. Currently, Serbia sets aside only 2% of its national GDP for this purpose. If we look back at the period starting in 2000, this percentage was between 0.2 and 0.3. Environmental investments in the countries that have been granted EU candidacy status, like Bulgaria and Romania, amounted to 1.5%. Bearing in mind the costs that Serbia will have to cover on its way to the EU, we could allocate at least 1% of the country’s GDP for environmental integrations. On the other hand, Serbia spends between 5% to 10% of its GDP on living environment.

The Road to Green Serbia | 27

INTERVIEW our strategic goal and we are of the opinion that strategic partnerships should be allowed in the public utility sector. Besides that, the state of Serbia needs to establish a regulation body that would deal with the status, investments, prices, and other aspects of strategic partnerships when it comes to utility waste since this is currently a grey area.

Following the Act on Waste Management, the Republic of Serbia provides subsidies for special waste flows maceutical waste. Since we are talking about great quantities of this waste, we need to forge strategic partnerships particularly when it comes to disposing of pharmaceutical waste. In March, Serbia adopted a rule book about treating medical and pharmaceutical waste that defines the flow of this waste in the country. Since dangerous waste is something that Serbia simply has to take care of, we are currently negotiating that certain facilities owned by the Serbian Army be used for this purpose. In addition, we need to have hazardous waste collection points. Once we do that, the state can decide what to do with the waste, i.e. to treat it itself or export it. Which areas would you like this strategic partnership to cover? 28 | The Road to Green Serbia

Serbia is going to send out an invitation to potential strategic partners soon. At this moment, we are working on the Law on Public Utility Companies, which is due to come into force by September 2010, and will contain stipulations about selecting strategic partners in this area. At the moment, 24 Serbian municipalities have formed some kind of partnership when it comes to public utility infrastructure. The Ministry of Environmental Protection and Spatial Planning, as the ministry in charge, has launched a procedure for redefining the status that public utility companies have in Serbia which now includes establishing a so-called utility police, since we really do want to finally start properly managing utility waste in Serbia. This is

In which way can the industry adjust its capacities and costs to the European integration process in the environmental protection area? Serbia needs partnership with industry. We simply cannot close down 80% of the industry in Serbia because they haven’t harmonized their production with European requirements. We have to give them an opportunity to start using various credit lines provided by our fund or maybe use European funds in order to re-integrate the industry. Europe expects us to come up with an agenda for doing that. It all hinges on our capacities, resources, regulation, and finances. It is quite important to finish this process, especially if we are talking about the energy sector, telecommunications, road network, i.e. every entity that is considered a large polluter and that we think of being very important to us. Who is going to bear the costs? Europe says that it is up to the polluter to pay and he has an extended responsibility. Up until now, nobody has paid much attention to that. That’s why we launched the ‘Let’s Clean Up Serbia’ campaign in order to eliminate at least some of the historic waste that has engulfed us. This process will last for at least two more state administrations. It is important that we have managed to lay the foundation for the institutions. We have laws in place, we have special waste flows, and polluters have the obligation to pay the tax. It is up to us to build up capacities, since we cannot tell anyone that he is being held responsible for waste without telling him where to dispose of this waste. This is a great op-

Europe says that it is up to the polluter to pay and he has an extended responsibility portunity for the creation of green jobs, green economy, and green business. Currently, our capacities for handling electric and electronic waste are only 3%. The waste disposal industry is going to become very interesting to future investors, and we expect a total of 20,000 new jobs to be created in the recycling sector alone by 2015. In Romania and Bulgaria, the recycling industry takes second place when it comes to competitiveness. That means that waste is becoming a serious challenge, as well as an energy-generating fuel. There are currently 150 utility waste dumps in Serbia that are ideal for generating bio-gas. Do you anticipate any foreign investments being made in this sector? At this moment, foreign investments are very welcome in this industry. There

are these large operators like Gorenje and Bosch that are searching for locations to build recycling capacities in Serbia. Since we can exert some influence on them via the Law on Economic Development, i.e. we can offer cheap locations, we are going to encourage the development of such capacities. We estimate that Gorenje will pay close to â&#x201A;Ź5 million euros on the account of environmental tax alone. Hence, it is quite natural to expect Gorenje to open a recycling centre for domestic appliances and in that way regain some of the money. It takes three months for the Ministry of Environmental Protection to issue all required permits. In May, Minister Oliver DuliÄ&#x2021; is going to invite foreign organizations to invest money in energy efficiency, recycling, green locations, green jobs, and green economy since

there are lots of such investment opportunities in Serbia.

The Road to Green Serbia | 29

LAW

LEGAL SECURITY Six months of implementation of the new Law on planning and construction Kancelarija JANKOVIC, POPOVIC & MITIC O.D. he new Law on Planning and Construction (hereinafter LPC) was adopted in Serbia at the end of August 2009. The LPC decreases the number of approvals necessary for starting construction and regulates the conversion of the “usage right” over the construction land to the right of ownership. However, many provisions of the LPC still require secondary legislation (bylaws) in order to be fully implemented. Since the enactment of the LPC, the number of rendered construction permits decreased due to the lack of respective bylaws regulating this issue. Until this moment, only two crucial bylaws have been rendered – a rulebook on the contents on information on location and contents of the location permit and a decree on criteria and procedure for determination of the compensation for conversion of the right to use land into ownership right (the Decree). The subject bylaws, especially the Decree, do not provide detailed provisions, and therefore are subject to various interpretations. In most cases, before applying for a construction permit, one has to execute a conversion procedure and inscribe the ownership title over the land. Pursuant to the provisions of the LPC, usually existing usage title over the land may be converted to

ownership title, with or without a conversion fee. The conversion of the usage title against payment of the conversion fee is applied to companies which were subject to the privatization, bankruptcy, or foreclosure proceedings. Usage title over construction land is not transferrable, and therefore investors often acquired the usage land through privatization or other procedures. In this way, the potential investor would become the owner of the company hav-

A number of investors pointed out that the lack of provisions regulating these issues shall result in provisional implementation of the conversion legislative ing the usage title over the land. Having in mind that the usage title over the land usually has been acquired through privatization, it is clear that the majority of the construction land may be converted from usage to ownership only upon payment of the conversion fee. On the other hand, in case the conversion is not executed (the compensation is not paid) within one year from enactment of the LPC, the usage title over the (undeveloped) construction land ceases to exist, meaning that the entitled company would not have any right over the land. The conversion fee is calculated as the difference between the market price of the land determined by the tax authorities and

THE CONVERSION FEE

he conversion fee is calculated as the difference between the market price of the land determined by the tax authorities and the revalorized value paid in privatization, bankruptcy, or foreclosure proceeding. In case of a long-term lease, the conversion fee is calculated as the difference between the market price and the revalorized lease fee paid in acquisition of the lease title. The procedure of determination of the conversion fee is regulated by the Decree. 30 | The Road to Green Serbia

the revalorized value paid in privatization, bankruptcy, or foreclosure proceeding. In case of a long-term lease, the conversion fee is calculated as the difference between the market price and the revalorized lease fee paid in acquisition of the lease title. The procedure of determination of the conversion fee is regulated by the Decree. The Decree and the LPC do not foresee all situations of acquisition of usage title over the land, such as obtaining of the majority shares of companies through capitaliza-

tion of debts, capital increase, and acquisition through purchasing the majority of shares in companies. A number of investors pointed out that the lack of provisions regulating these issues shall result in provisional implementation of the conversion legislative. The only way for the investor to avoid payment of the conversion fee is to start construction (obtain construction permit) before eighteen months have gone by from the enforcement of the LPC. The question arising from this is how an investor should obtain a construction permit when the construction permits are not rendered due to lack of secondary legislation. Future activities of the competent bodies in the Republic of Serbia should be aimed at faster and better implementation of the LPC. Only then shall the legislator achieve one of the main motives for adoption of the LPC, which is an increase of legal security for investors and improvement of Serbia’s competitiveness in the SEE real estate market.

CORPORATE

VAST DANISH EXPERIENCE APPLIED IN SERBIA n increasing development of competitive factors at the market of Serbia and its surroundings motivates numerous international companies, such as Carlsberg Srbija Group, to apply best experience of their holding companies in all aspects of business and practice, in accordance with their needs. It is also important to note that there are specific differences among markets in regard to their adjustment to business trends of their respective environments, which is most often in close relation with defining business objectives as well. It is a common fact that strategic definition of business priorities has a great impact on a final result in a specific area of business. Carlsberg Srbija Group is strongly guided by a principle that stable growth is possible only in a prosperous community, where each member is satisfied. The company is aware of the fact that, as any other legal entity, it significantly influences numerous stakeholders within its operations at a specific market, and feels a need and obligation to provide maximal contribution to the community where it operates. Furthermore, in accordance with economic, social and cultural growth and through its business operations and an example, it strives to point to a need for environmental protection and improvements, aimed at providing the existing and future generations with maintaining, as well as upgrading, high quality of life. In that regard, Carlsberg Srbija Group believes that sustainable development includes a far more comprehensive approach than usually applied in relation to living environment and society, and that only joint efforts of all stakeholders, from individuals to the whole community, can result in achieving targeted objectives and the overall social development. Bearing in mind all these areas, Carlsberg has proved to be a serious

BUSINESS OPERATIONS IN LINE WITH INTERNATIONAL STANDARDS triving to operate in line with internationally recognised systems and global environmental standards, since the arrival to the Serbian market Carlsberg Srbija Group has implemented the following: ISO 14001 – for the Environmental Protection Management System, ISO 9001 – for the Quality Management System, ISO 22000 – for the Food Safety Management System, and the Standard OHSAS 18001 for occupational health and safety.

investor since the acquisition of Čelarevo brewery. The investments, which have now reached the total of EUR160 million, have been followed by the stable growth and positioning at the increasingly competitive market of Serbia, and have led to the strategic business advancements in all directions. In 2009, despite economic challenges and the overall weakening of the business climate, the company achieved results in production, placement and sales, with relevant growth indicators at the export markets as well. In the course of this year, the company plans to implement one of its most significant projects in the CSR area – launch of a new Waste Water management system at the site of the brewery in Čelarevo. This confirms Carlsberg Srbija’s long-term commitment to the environmental protection and care for the local community as its priority. With this project, Carlsberg Srbija will become the only brewery in Serbia which has such a system. The project has included significant investments, totalling EUR5 million, as well as strict expert supervision in regard to the system functioning and all required tests and evaluations by relevant institutions. The company is also active in one of the most important areas of modern society, waste management process and recycling. With its responsible conduct and efforts to be integrated into the existing projects, Carlsberg Srbija has had successful cooperation with responsible institutions of the Government of the Republic of Serbia, as well as other relevant organisations, for several years now. These projects include long-standing cooperation with the ReCan, an organisation for can recycling and return, executed within various public events which include the company’s brands. One of the most significant steps aimed at raising awareness regarding the need to recycle is installation of adequate, specially designed waste bins at festivals, as a form of education of a large number of visitors. The company also participates in the popular “Can Day” campaign of Ball Packaging Europe, and the “I Choose to Recycle” one. Such projects cover various aspects of responsibility towards the living environment. Benefits of professional and responsible business operations are confirmed by the fact that, in addition to a healthier environment, awareness regarding the significance and need for responsible conduct, as one of the pillars of sustainable development, is rising among the general business public, business partners and consumers. The Road to Green Serbia | 31

CORPORATE

HEMOFARM

THE WORLD OF HEALTH echnological completeness and the manufacture of highquality medicine of all forms and groups is the main activity of Hemofarm, the leader in the domestic pharmaceutical market. Hemofarm is the biggest exporter of medicine from Serbia and this year they are celebrating half a century of their existence. Since 2006 Hemofarm has been an equal member of the German STADA Group. From their modern factories, compatible with GMP, MCA, ISO, FDA, the highest World’s standards, they are placing effective products on 30 markets worldwide. However, their success is not measured by their results alone, but also by their concern for the community. The ethics and standards of developed society and business models of the Firm are deeply grounded in the sphere of Hemofarm’s socially responsible behavior. “The starting assumption of Hemofarm’s business and development is a healthy and safe environment. Therefore, Hemofarm’s concern about protection and development of the environment exceeds respecting the law and legal acts. Hemofarm, since 2004, has a certificate for management of environmental protection and compatibility with b ISO 14001. The Department for Environmental Protection, whose head is

Mr. Petar Dabić, is working on permanent training of all employees on a daily basis, through education and raising awareness about the importance of environmental protection. On Hemofarm’s site there is a page for ecology, available to all employees,” said Gordana Lazić Velovan, Director of Hemofarm’s PR Centre. One of Hemofarm’s main activities regarding its ecological mission is the collection and safe storage of hazardous waste, pharmaceutical, chemical, electronic waste... “For many years, hazardous pharmaceutical waste has been exported to Austria,

the emission of harmful substances in the air, and taking samples of technological water waste and atmospheric water waste in order to analyze its compatibility with values determined by law. Also, representatives of Hemofarm’s Department for environmental protection constantly play a part in projects of the Ministry of the Environment and other relevant ecological institutions and organizations,” Gordana Lazić Velovan explained. The central complex of Hemofarm in Vrsac lies in a beautiful setting, surrounded by a spacious park. An employees’ settlement, Hemograd, is growing according to the needs over the past 15 years, and it has been designed and built with large green areas. Hemofarm Foundation initiated and invested in the decoration and planting of several areas on Vrsac Hill, which is, with its natural features, a unique oasis for recreation and also a valuable support for asthmatic people. “Good examples influence society, therefore Hemofarm has helped local self-management to reform the city lake, and Hemofarm Foundation has invested in rebuilding children’s playgrounds and sports facilities in the city, and at several locations on Vrsac Hill and surrounding villages. The Foundation has made possible the adaptation of the stairs on the Hill that lead all the way to the beautiful viewpoint, which used to be a neglected and ruined surface. Besides that, we are a part of other public actions outside of Vrsac, like the big exhibition on Kalemegdan, ‘The Earth Seen By the Eyes of the Sky,’” Gordana Lazić Velovan added.

One of Hemofarm’s main activities regarding its ecological mission is the collection and safe storage of hazardous waste, pharmaceutical, chemical, electronic waste... which is expensive but necessary because in Serbia there is no adequate plant for its destruction. On an annual level, Hemofarm exports over 60.000 kg of dangerous waste, for recycling we give more than 1400 kg of electronics waste and 1.700 kg of sucrose, and we collect around 800 tons of secondary raw material. Also, we are intensively working on the collection and recycling of secondary raw materials, neutralizing packaging, regularly controlling

GREEN FROG AWARD

n its grounds, Hemofarm is building the World of Health, an affirmation of healthy values, by contributing to environmental protection and its resources. Therefore, among many rewards, it is not a surprise that Hemofarm has received the Green Frog Award from the International consultant-reviser Company Deloitte in acknowledgment for special achievements in the area of communication regarding the environment. 32 | The Road to Green Serbia

xxx

The Road to Green Serbia | 33

INTERVIEW

NEBOJŠA POKIMICA, ASSISTANT ENVIRONMENT MINISTER

EUROPEAN ENVIRONMENTAL INTEGRATIONS As a potential EU candidate, Serbia can use two components in the IPA funds

By Ana STOJANOVIC Photo Darko CVETANOVIC ost of the European integration process pertains to ecology and regulation that should be adopted in line the EU environmental standards. Over one-third of the EU acquis relates to environmental protection. This was just one of the reasons to talk to Assistant Environment Minister Nebojša Pokimica.

Could you give us a timeframe by which our legislation will have been harmonized with that of the EU? Last year, we adopted a set of socalled green laws. Over ten laws were passed and they are harmonized with the EU environmental directives and recommendations. I would like to single out the Law on Waste Management, the Law on Packaging and Packaging Waste, the Air Pollution Air, and the Law on Noise Pollution. A string of conventions was 34 | The Road to Green Serbia

also adopted. Our ministry wants to see all environmental laws harmonized with the EU ones by 2012. In addition to these laws, we adopted dozens of bylaws that are closely related to these laws, and have fully met the prerequisites stipulated in the environmental integration

Our ministry wants to see all environmental laws harmonized with the EU ones by 2012. plan. This year, we continued with the same activities and on January 21st, the government passed the National Environmental Protection Programme. This is a strategic document that will be applicable over the next ten years that contains an annual short-term plan, a fiveyear-medium-term plan, and a ten-year, long-term plan.

One of the main complaints that the foreign investors in Serbia have is insufficient implementation of existing laws. Our ministry has been insisting on the implementation of laws. The EU’s 2009 Progress Report was the best so far for us, and Serbia was commended for adoption and implementation of environmental laws. Let me just illustrate this by saying that following the adoption of these laws last year, we have already started to issue licences for waste management operators. With regard to the 2004 laws, they are also fully implemented. There is the Law on Environmental Impact Assessment that was rather revolutionary since it brought about complete decentralization. The jurisdiction (in terms of spatial planning and construction) was transferred to municipalities and autonomous provinces. Foreign experts say that when it comes to the harmonization level, the law is completely in line with the EU. We also adopted bylaws that apply to the Law on Air Pollution, which are also being implemented. We also hold education and training sessions on a regular basis where we are talking about these laws. Then, we closely cooperate with NGOs, and last year we ratified the Aarhus Convention, which is very important in terms of accessing information of public importance. What else needs to be done? I expect the Law on Waters to be adopted this year. This is not in our ministry’s jurisdiction, but, together with the Ministry of Agriculture, the law is currently being worked on within the framework of the AKIA Programme that pertains to environmental protection.

How important is it for Serbia to harmonize its laws in order to use the pre-accession funds? As a potential EU candidate, Serbia can use two components in the IPA funds. The IPA is a financial mechanism that helps countries in the pre-accession process. The first IPA cycle began in 2007 and will last until 2013. The first two sections of this project cover activities like development of institutions in transition and cross-border cooperation. Our Ministry has already begun with implementation of the projects from the first section. Currently, we have three IPA-related projects that are being implemented – two pertain to the twinning process, and the other one is about technical assistance. ‘Twinning’ means that an EU country or several of them are helping us with preparing and implementing certain laws. When it comes to technical assistance, foreign companies are helping us with preparing strategies for realization of certain plans. One twinning project is about building up air management capacities and is being implemented by a Czech and German consortium. The project’s implementation began at the end of last year. The second project relates to nature preservation and it is called ‘Natura 2000.’ The programme started at the beginning of this year and is being implemented by an Austrian / Greek consortium. We have already chosen twinning partners for projects covered by the first two IPA chapters. The first one is about raising the awareness about hazardous waste and the second one covers managing chemical waste. The projects will start in mid2010. We, as project beneficiaries, have to provide offices and equipment, while partner countries will provide experts. There is a standing advisor in twinning projects, who comes from the country which participates in the project and he will spend two years in this position. We are also getting ready for the third component and that is regional development, where we are going to be one of the project leaders. These are serious infrastructure projects worth over 10 million euros. The money will be available to us when we become an EU candidate,

The Selovo project, which pertains to water supply in the region of Niš, is estimated to be worth over 35 million euros so will the fourth and fifth IPA component. If we are talking about the third component, it requires a great preparation, both strategic and in terms of staff, as well as a full decentralization. Once we start using these funds as a member state, we are going to have to manage the money, acquisitions and implementation. Currently, all of that is done by the Delegation of the European Union in Belgrade. The Ministry of Environmental Protection will prepare the main document which will focus on transport and environmental protection. The environmental protection chapter will have four measures. The first one pertains to waste management, the second to waste waters, the third to water supply, and the last to air pollution management. We are going to be responsible for the waste management measure. The ministry in charge of water supply will

handle the wastewater, while the Ministry of Energy will be in charge of the measure pertaining to air pollution management. Implementation is supposed to start at the end of 2011 and will last until 2014. When it comes to Serbia, a total of 100 million euros has been set aside for the environmental protection measure. In order to get this money, our projects need to be fully prepared. What are these projects about? The main emphasis is put on prepar-

The Road to Green Serbia | 35

INTERVIEW

ing relevant projects and these projects have already been selected. They are two extensive waste management projects and the one is about building the Kalenić regional sanitary landfill that covers an area of Valjevo, and even some Belgrade municipalities with total of 500,000 inhabitants. The other regional landfill is Halogen in Zaječar, which covers that part of Serbia in line with our Waste Management Strategy. With regard to water supply, we are going to have a project called Selovo, which pertains to water supplying system for the entire region of Niš. The project is estimated to be worth around 35 million euros. If we are talking about wastewater, there is the Loznica project, and the documentation for this project is nearly completed. There are a couple of other projects about utility wastewater treatment. There isn’t a single town in Serbia – Belgrade, Niš, Novi Sad – that has a facility for purifi-

When it comes to Serbia, a total of 100 million euros from the EU funds has been set aside for the environmental protection

cation of utility wastewater. Then there is a project that covers reconstruction of filters, probably in the Morava or Obrenovac thermo-electric power plants, that will tackle the problem of the energy sector’s emission of harmful gases. What activities are currently being carried out in this area? We have to fill out a questionnaire first, which is a pre-requisite for applying for candidacy. The EU will officially send us the questionnaires in June or July and we will be given a deadline to complete them. In order not to waste any time, our government’s EU Integrations Office gave us the questionnaires for Albania and Montenegro. The questionnaires and the replies given by these two countries were translated for our ministry and we are currently working on formulating the answers. The environmental protection chapter contains over 100

ADMINISTRATION CAPACITIES

s the result of last systematisation, the Ministry of Environmental Protection now covers an area that pertains to IPA funds, just as the office of Deputy Prime Minister Božidar Đelić requested. All ministries were told how to arrange their administration in order to apply for pre-accession funds. Each ministry ought to have a programme unit (that prepares projects and related elements) and an implementation unit (which implements these projects). Seven or eight people will be hired to do these jobs, and that is quite sufficient at the moment. 36 | The Road to Green Serbia

questions, and we are one of the many ministries that have to provide answers. There is also a chapter that pertains to water (the Ministry of Agriculture is in charge of that). Also, the Ministry of Energy, the Ministry of Infrastructure, and the Veterinary Directorate in the Ministry of Agriculture will also have to provide answers. We have already discussed this with other ministries, and we will be able to provide replies to the questions soon after the questionnaire arrives. A well-completed questionnaire means faster accession to the EU and a certain form of partnership. In addition to cooperating with the EU, do you have any other bilateral cooperation or assistance going on? We have a really wonderful cooperation with Sweden, as a bilateral donor. Their development assistance agency, SIDA, has offices in Belgrade and they have been helping us a lot. We have just agreed for SIDA to help us with finishing our Strategy for Sustainable Use of Natural Resources that we started to write in 2006. The cooperation with Norway is also exceptional. This country will give us funds for writing planning documentation, while the Delegation of the European Union will provide funds for technical documentation and construction of the hazardous waste treatment facility. Also, our cooperation with the Czech Republic is quite good, with the country providing assistance with small infrastructure projects. We have also established a good cooperation with Hungary, since they’ve expressed interest in green projects. There is also a long-term cooperation with Italian Ministry for Environmental Protection, which has its offices here.

CORPORATE

AQUAFINING - BRANCH OF CUPRUM D.O.O. QUAFINING - branch of Cuprum d.o.o. Company was established at the beginning of 2007 as a with the aim of engaging in the acquisition and installation of standardized HDPE (high density polyethylene) membranes for landfills, as well as other materials like geotextile, GCL membranes, drainage foils, etc. The original plan was to devise a serious approach to the activities of coating regional landfills in Serbia and abroad through cooperating with renowned producers of HDPE materials, like the Austrian company AGRU, and engaging quality staff. The company was also set up with the aim of providing assistance to design companies and specialized institutions in writing relevant projects. At the very beginning, AQUAFINING - branch of Cuprum d.o.o. was assigned an important and responsible project as sub-contractor for the Monterra Company in Belgrade, i.e. in removing the old and placing new HDPE foil at the regional landfill in Dolovo near Pančevo. During 2007, a total of 40.000,00 m2 HDPE foil, of 2.00 m thickness was laid (with the textured foil placed on slopes and walls, and the smooth foil in the landfill’s centre). The work was carried out within the agreed deadline, and following the completion of other construction work done by the Main contractor, the landfill became the first of its kind in the country. In the last several months, our company has had dynamic cooperation with the Italy-based company UNI ECO, which specializes in environmental projects. Based on this cooperation, a contract on the

acquisition of materials and the commission of works on the regional landfill Duboko near Užice was signed. The project entails placing close to 70.000,00 m2 of HDPE membrane, as well as the same quantity of geotextile and bentonite watertight cover, the socalled GCL layer. In the upcoming period, our company will be engaged in business endeavours outside Serbian borders, which will direct our company towards interesting markets and construction sites in regional countries. For further clarifications and technical advice, please contact us.

AQUAFINING - branch of CUPRUM d.o.o. 3, Nemanjina Street, 26000 Pančevo, Tel. and fax: 013/333-600; 333-601 E-mail: cuprumsrbija@nadlanu.com Mob. Director: Vladimir Lazić 0600-333-602 Technical department: Dejan Kežić 0600-333-610 (Civil Engineer)

The Road to Green Serbia | 37

CORPORATE

BUSINESS PARK AIRPORT CITY

GREEN THINKING Dedication to business and improvement of the environment edication, a formula contained in the corporate slogan “Committed to Excellence,” is reflected in Airport City’s approach toward business as well as toward the environment. Airport City is the first business park in Serbia developed on the site of the first Belgrade airport. Since the beginning, there has been awareness on behalf of the investor that, in a certain way, their business park should maintain the heritage of that site. Therefore, the old hangar, which is under protection of the state, has been restored and preserved. And the name itself, Airport City, fitted perfectly because under that same name there is also a project in Israel. “Today Airport City has around 80,000 square meters of developed space, which has been built accord-

ing to the highest international standards. Materials used are not harmful toward the environment and are energy-efficient. We are talking about a project which will have 186.000 square meters of available space and an investment of around 200 million euros,” says Adir El Al, Airport City’s CEO. But investors did not want Airport City to be a concrete jungle. Therefore, there is an orientation toward “green thinking.” As the name Business Park suggests, investors dedicated a great deal of attention tomained conscious not to take away from nature, but rather to add green areas into the surroundings. For this reason, we should not be surprised that the main investor decided two years ago that one tree, which already existed there would not be cut down, although according to all projects the tree should be removed. Investors thought that the tree had existed much longer than they had in this area, and so they didn’t have any right to cut it down. The architectural plan for the underground garage was changed, which required additional expenses for the investors and additional assets were accumulated to save the tree during construction. Today this tree is the symbol of a growing awareness regarding the subject of how important environmental protection is. Airport City went one step further by making it possible for their tenants to subdivide their waste disposal in order to recycle. Aware of the fact that an ecological approach in doing business and recycling are part of corporate politics of the majority of their clients, Airport City is trying to secure conditions for them to implement their business standards into their working environment here in Belgrade as well as elsewhere where they operate.

Airport City even went one step further by making possible for their tenants to subdivide their waste disposal in order to recycle ward the organization of the green surfaces. One of the reasons is that a refined environment, with green areas coordinated in a natural environment, improves work output. In addition, the awareness to refine the surrounding space and to add rather than take away was present in Airport City even before the investors came to Belgrade. Having in mind their country of origin where every plant is considered a success because it is an accomplishment to make a desert green, the investors re-

CHILDREN AND ECOLOGY

e are especially proud of one action which we implemented with kindergartens in New Belgrade. We think that effort should be invested in raising awareness from the youngest days, because in that way we invest into the future of all of us. In New Belgrade’s Association of Kindergartens, they introduced a program of raising awareness among the children about how important environment, starting from how to protect the planet all the way to the fact that there are recycling materials from which is possible to make different, beautiful artworks. At the end of the last year, we hosted an auction of children’s works made from recycled materials. All income of the auction was used to improve parks around the kindergartens. With that action, which we are planning to continue, cooperation has started. Therefore, in the spring we will host children’s “Eco-Patrols” in Airport City, said Marina Deleon, Communication Advisor.

38 | The Road to Green Serbia

The Road to Green Serbia | 39

Planting trees in our neighborhood is one of the best things we can do for the local environment and for the planet. Besides producing oxygen and removing carbon dioxide and contaminants from the air, trees have many other social, economic, and environmental benefits.

INTERVIEW

ŽELJKA JURAKIĆ, DIRECTOR OF THE ENVIRONMENTAL PROTECTION FUND

WAITING FOR PUBLIC - PRIVATE PARTNERSHIP The Fund’s main revenue comes from fees pay by polluters

the Law on Establishment of the Environmental Protection Fund. The new set of laws, passed in 2009, created brand-new financing resources. The Law stipulates the Fund’s structure and functioning, and the main step forward is that the Fund is now independent in terms of managing and proposing which projects should be implemented. Before that, the usual procedure was that the Fund had to launch a competition and wait for somebody to apply, which was rather difficult since all of

The fee makes up between 1% and 5% of the price, which certainly cannot be used as an excuse for shopkeepers to raise their margins

By Sladjana VASIC Photo Slobodan JOTIC espite the fact that the Environmental Protection Fund has been operational since May 25th, 2005, the Serbian Parliament passed the Law on Establishment of the Environmental Protection Fund only last August. Also, relevant bylaws have been written that will guarantee that the Fund would have new kind of revenue. In the words of Željka Jurakić, the Fund’s director, this created a wide framework for tackling the environmental protection issues.

What did the Environmental Protection Fund gain from the new law and does the Fund have a new role now? Many new laws and many of the Fund’s tasks originated from 42 | The Road to Green Serbia

our projects are quite extensive and pertain to infrastructure like building and reorganizing landfills. Back then, when it came to finances, we had to pair with local authorities and often we didn’t have enough money to implement projects that were worth several million euros. Also, years would go by until we actually started to realize these projects since we had to approach banks and foreign institutions for money. Now, we are free to choose our partners. In the past, we provided 50% or 75% of the project funding, but now we can finance it 100% if we are talking about projects that are of key interest to the Ministry of Environmental Protection and the Serbian government. We have also started to grant loans in collaboration with the Republic of Serbia’s Development Fund, so we lend money to pri-

INFINITELY HIGHER DAMAGES

he money set aside for environmental issues is quite low and amounts to only 0.25% of the national GDP, while the damages arising from pollution are estimated to be worth between 4% and 13% of the national GDP.

According to the 2005 regulation, the Fund’s current revenue amounts to over 20 million euros vate companies that are engaged in recycling and re-using waste, as well as to projects for reducing harmful emission. By this I mean the installation of filters and the purification of wastewater. We are also going to grant loans to public utility companies which they can use to buy new equipment. What are the terms of those loans? The terms on which these loans will be granted are much better than those offered by banks so far. Banks are the ones that will do financial assessments. The Fund will provide a non-return participation of 20% of the project’s value. Together we will arrange other conditions all in order to define the most favourable terms of these loans. Banks are free to ask PUC to provide some financial participation.

Both. Unfortunately, we are still at the very beginning when it comes to collecting recyclable materials and the money always goes back to what has been collected and treated, but we can invest in production expansion, too. The Fund can manage both equipment and facilities on behalf of the Republic of Serbia, and once relevant regulation is adopted, we are going to be open to forging public-private partnerships. We are waiting for the Law on Public-Private Partnerships to be adopted. This law already exists in many countries and we really do need it. This is our end goal. In order to implement these policies to the end, we need an awful lot of money. How much revenue does the Fund generate from collecting fees? According to the 2005 regulation, current revenues stand at over 20 million euros, i.e. 2 billion dinars. In projecting our revenue for the next three-year period, we used the data that was written in our national Waste Management Strategy, which gives a certain figure of how much waste and new products enter our market. If we

Where does the Fund get its money? According to old and new legislation, polluters are obligated to pay a fee (‘polluter pays principle’), and we get money from collecting these fees. The fees are something that we have to charge because we are potential EU candidates. The fees cover products that will be treated as waste one day, after they are fully used. By doing this, we have a whole new economic branch emerging and new jobs created. For instance, close to 4,500 people in Croatia work in this branch. The money ends up in the hands of the people who are recycling and the people who actually prove that they have recycled. We are going to provide assistance to local authorities so they can organize a network of people who will collect and dispose of waste. 90% of the money generated from fees goes back to the system itself, while the remaining 10% is spent on overhead and education. Once people change the way they think and when they realize that old things are not just junk, that they can have ‘a life after life,’ then these obligations will not be hard to fulfill. Is the aforementioned 90% going to be spent on subsidies too or only on loans?

WE ARE THE FUTURE OF RECYCLING IN SERBIA We offer recycling solutions for:

WASTE ELECTRICAL AND ELECTRONIC EQUIPMENT (WEEE); WASTE METAL SCRAPS: ALUMINIUM, COPPER, IRON & PRECIOUS METALS ; WASTE PHOTOCHEMICALS; INDUSTRIAL WASTE; AND MUCH, MUCH MORE...

EKO-METAL d.o.o.

Please contact us for further information at the numbers and addresses listed. Thank you!

Grobljanska 2, 22408 Vrdnik tel: 00381(0)22 465 306; tel/fax: 00381(0)22 465 351

office@ekometal.com

marketing@ekometal.com

www.ekometal.com The Road to Green Serbia | 43

INTERVIEW because they will, some day, become waste that we are be obliged to recycle here on our territory. And that’s what these fees are going to be used for. As a direct benefit, we will have new working places, less waste in our environment, decreased pressure on resources, and higher-quality products on our market. When I say higher-quality products, I mean that new products that will be put on our market will be the one with a higher recycling potential. This is where we see an interest of importers and producers to join the system – the more quality products you put on the market, the more you can expect to get back through subvention from the state Fund and you can also get more when you put your quality recycled materials on the market.

The Law stipulates the Fund’s structure and functioning, and the main step forward is that the Fund is now independent in terms of managing and proposing which projects should be implemented. consider this new revenue, then we stand to get close to 80 million euros or 8 billion dinars. Of course, this is an optimistic estimate, since it has been done on the basis of the past experience. We are going to have more realistic information at the end of the year when the companies that pay fees submit the relevant data. Do these fees have a bearing on the product’s price? They make up between 1% and 5% of the price, which certainly cannot be used as an excuse for shopkeepers to raise their margins. The environmental protection fee is not the basis for a drastic price hike, as it was announced previously. To what extent are companies going to be able to pay the fee and how long will it take them to get used to this new situation? The first year will be rather painful for everybody – us, who are supervising the system, and companies which need to get used to setting money aside for the fee. But we do give an opportunity to these companies 44 | The Road to Green Serbia

to join the system. Why wouldn’t a cooker producing company, that has a good production and export capacity, collect old cookers via its distributors when it is already paying the state to do the same?! When these old cookers are returned to the factory, the producer can open a recycling line, hire some new workers and get new raw-materials. He doesn’t have to buy all new materials on the market. Also, he doesn’t pay the fee on exported articles. The fee has to be paid only for products put on the market in Serbia

What are the experiences of similar funds in the regional countries that are EU members? We came back from Romania recently, where we had talks with representatives of their recycling industry and when we told them about our new legislation, they told us, “Well, yours is much better than ours.” In Romania, the state imposed fees that, according to recyclers, are still insufficient to keep the system alive on some significant level. Our guideline was that the money collected from the fee needs to perpetuate the system. What will happen to historical waste? It’s up to the state to deal with it and the Fund will finance its final put away. We know the whereabouts of this kind of waste and we direct it towards the disposal facility. The waste that cannot be treated in the country can be exported and you need a license for that. This is the current solution in line with the existing regulation. What are your future plans? We are planning to build so-called recycling yards, i.e. collection centers and facilities for treatment of utility and other types of waste. The Fund is financing the project, the blueprint has already been made, and it is going to be posted on our website where everybody can see it. A standard solution will be applied to all yards. We want them to be uniform, regardless of where a yard is located, whether in Subotica or Babušnica.

NEWS

RECYCLING SAVES WOODS Governor of the National Bank of Serbia Radovan Jelašić says that close to 20 hectares of woods could be saved in Serbia each year if the financial sector employees in Serbia were to use recycled paper. The sector employs a total of 45,000 people. The governor attended a round table discussion organized by Telenor about the role that companies play in climate changes and their social responsibility. Jelašić pointed out that in May 2008, the National Bank of Serbia made it mandatory for waste paper and plastic packaging collected in the bank to be recycled, adding that in the first year, a total of 33 tons of paper was recycled, which translates into 560 trees, as well as 3 tons of plastic. C.E.O. of Telenor Serbia, Kjell-Morten Johnsen, said that environmental awareness should become an integral part of corporate operations and the decision-making process. “Telenor has already integrated activities on reducing greenhouse gas emissions, i.e. preservation of energy, into its business plans,” he said, adding that the company’s efforts did yield results, particularly when it came to saving costs and higher profit. ENERGY SAVING IN VOJVODINA It was announced at the energy efficiency seminar held in the Vojvodina Parliament that retirement homes in Novi Sad and Ruma are going to be used as venues for energy-saving pilot projects. This will be done to reflect the Berlin Energy Saving Partnership, following which the Serbian Energy Agency was founded along the lines of public-private partnerships. The Agency invited privately-owned companies to invest in public buildings and apply new technologies in order to save on electricity, heat, water, lighting, and other energy resources. This would be cost-effective, and in this way, private companies would make their investments more profitable. For example, the city of Berlin implemented the PPP model, which gave excellent results in over 1,400 hospitals, kindergartens, schools, retirement homes, sports halls, swimming pools, and prisons. A total of 26% of energy was saved, which means 11 million euros annually for Berlin, said Toivo Miller of the Berlin Energy Agency. TONS OF FUEL LEAK INTO THE SEA Authorities are investigating the case of the ferry “Tin Ujevic” that ran aground at Split port. The 98.3-metrelong ferry run by Jadrolinija Rijeka was on its regular Stari Grad-Split route when it hit the coast at 7:30pm. No one was injured in the incident, but around 33,000 litres of oil spilled into the sea. The hole in the ship’s hull measures 2.5x3.0 metres. The odour of oil spread throughout the coastal part of the city this morning. Protective measures were immediately taken to stem pollution of the sea. At the moment when the accident happened the ferry carried 11 passenger and 21 freight vehicles, and there was no damage done to the vehicles. The environmental organization ‘Zelena Lista Zagreba’ wants minister Božidar Kalmeta to resign, calling him morally and politically responsible for this accident.

INTERVIEW

HUGH MCREYNOLDS – MANAGING DIRECTOR OF CARNEX JSC

RESPONSIBLE MEMBER OF THE SOCIETY “We are implementing numerous activities so as to improve our business operations, with the aim of protecting the environment which has been neglected for more than 20 years” arnex Company from Vrbas has been a leading meat industry for more than 50 years, both locally and regionally. This implies certain responsibilities, especially when it comes to business conduct in accordance with the Law on Environmental Protection. For several years now we are conducting numerous activities so as to improve our business operations, all with the aim of protecting the environment which has been neglected for 20 years. We are dedicated to finding the solution to these historical ecological issues and thus we will continue with the investments into this area of business, as ecologically responsible member of the society”, stated Hugh McReynolds, Managing Director of Carnex.

Your industry is located in the vicinity of residential zone in Vrbas. How did you deal with the problem of “friendly neighbours”? One example of this was when people living in the vicinity of one of our factories have been complaining to the noise coming from the condensers located on the roof of the durable goods plant, which is used for cooling down of ammonium in the cooling system. In order to create better living and working surrounding for people

living nearby, we have decided to make a significant investment and to replace the condensers in question. After works on replacement have been finished, authorised laboratory had visited the site and measured the environmental noise level which was reduced below the border level. How does a big company such as Carnex manage the waste issue? One of significant guidelines for organization of business in meat industry Carnex is management of waste flows. Various processes in our company result in pro-

Due to the fact that in Serbia we do not have a plant for burning dangerous waste, some types of waste have to be exported to countries of the EU duction of significant amounts of waste, i.e. secondary materials, on daily basis. Largest part of this waste is categorised as non-dangerous waste that is taken over by companies authorised for take-over, trans-

EDUCATION OF EMPLOYEES

e have formed a team for rational utilization of water consumption, whose activities are to educate and raise the consciousness level of all employees when it comes to the issue of water consumption. This is important as we provide a facility with the capacity to deal with such quantities of waste water. The results are apparent, the fact of which we are very proud. Furthermore, our colleagues from the Ecology Department in Carnex regularly publish articles in relevant magazines and actively participate in international seminars. Our experts perform training and educate all employees of our company, from those working in the production plant to those representing top management”, McReynolds said.

46 | The Road to Green Serbia

port, recycling and treatment of waste. This class of waste includes aluminium foil waste resulting from the production of packaging, waste in the form of plastic crates, barrels and PET package, iron waste coming from written-off machines, used tyres from vehicles, etc. What about dangerous waste? Waste matters containing at least one out of four characteristics of dangerous waste are also produced in Carnex; among others, these are waste oils of mineral origin, waste electronic and computer equipment, used lead batteries, waste neon light bulbs, etc. Due to the fact that in Serbia we do not have a plant for burning dangerous waste, some types of waste have to be exported to countries of the EU. Dangerous and cancerous pyralene condenser batteries taken out from power transformer stations are being exported to Germany where they are being destroyed by burning in furnaces specialized for dangerous waste. Electronic and computer waste is constantly collected and sent to centre to be recycled. Used oil is being sent to Oil Refinery, while used batteries are being sent to Battery factory.

CARNEX INVESTS TO HELP SOLVE THE PROBLEM OF WASTE WATERS

EFFLUENT PLANT FOR GREAT BACKA CANAL arnex Company, being aware of the significance of investing into environmental protection, continually invests into projects with the aim of promoting environmentally friendly business operations. Having in mind that pollution to the Great Backa Canal is one of the burning ecological issues in our country, Carnex has a while ago instigated the process of creating the project for waste water treatment plant which is to purify the waste waters before they are being released to the central plant for waste water treatment for entire Vrbas municipality. Carnex shall invest more than 1 million Euro into this project and in the equipment, assembly and construction works required for this project. While the Dutch partners are working on

the production of the equipment for the plant, at the same time different projects are taking place – machine, hydro-geological, electrical, constructional, technological projects in this respect. Company »IK

Consulting and Engineering« will collect all the necessary documents, studies and licences for construction while the technology and equipment for treatment of waste waters is being prepared.

Measures to help reduce the environmental impact of farms include separation of solid mater from waste water has been installed on trial basis, lagoons are being cleaned on regular basis while the material taken out from the lagoons (solid manure) is being spread over Carnex agricultural fields. Two manure spreaders have been supplied for this purpose. Company cooperates closely with all relevant institutions in our country in order to solve ecological issues quickly and efficiently. During the previous year, Carnex obtained UNIDO certificate for cleaner production awarded by Serbian Centre for Cleaner Production. This certificate is awarded to companies which have implemented the methods for cleaner production and thus improved the utilization of natural resources.

The Road to Green Serbia | 47

WORLD

WHERE HAVE THE PLASTIC BAGS GONE? Plastic bags are difﬁcult and costly to recycle and many end up on landﬁll sites where they take around 300 years to photo degrade. By Andy Soos, ENN lastic bags are everywhere. Many years ago the only bags at the grocery store were paper ones. Now you have a choice of paper, plastic or bring your bag. Where have all the bags gone after they are used? Plastic bag and film recycling in the U.S. reached a record high in 2008, recovering about 832 million pounds of post consumer film, according to a new study from the American Chemistry Council. Plastic bags are difficult and costly to recycle and many end up on landfill sites where they take around 300 years to photo degrade. They break down into tiny toxic particles that contaminate the soil and waterways and enter the food chain when animals accidentally ingest them. But the problems surrounding waste plastic bags starts long before they

48 | The Road to Green Serbia

The recycling report conducted by Moore Recycling Associates, finds that plastic bag and film recovery increased 28 percent since 2005, photo degrade. Many become airborne and float surprising distances. Others can choke waterways and animals. The recycling report, “National PostConsumer Recycled Plastic Bags and Film Report”, conducted by Moore Recycling Associates, finds that plastic bag and film recovery increased 28 percent since 2005, driven by several factors including greater consumer access to collection programs and new markets for the recycled materials such as backyard decking, fencing, railings, shopping carts and new bags. The report’s findings are based on recovery data from 19 domestic processors or end users of film material and 60 companies that export material. However, researchers note that the recycling numbers may understate actual bag and film recycling because export data was more difficult to obtain. And it is not just the stereotypical grocery store plastic bag. What is includ-

ed (and it varies from state to state) are: Newspaper bags; Dry cleaning bags; Bread bags; Produce bags; Toilet paper, napkin, and paper towel wraps; Furniture wrap; Electronic wrap; Plastic retail bags; Grocery bag; Zip lock bags (remove hard components); Plastic cereal box liners; Case wrap (e.g., snacks, water bottles). Many recycling bins for this program are at supermarket chains or major retail stores.Another report finding shows that the recycling programs are being led in part by plastic bag makers. In addition, some states have implemented recycling rules that could spike the recycling numbers even higher. As an example, in 2008, New York’s Governor Patterson signed legislation that will require many retail stores to recycle plastic carry out bags or face fines from the state Department of Environmental Conservation. In New York City plastic bags are being targeted for recycling since film plastic comprises about 7.5% of residential waste stream and is mostly comprised of plastic bags. Plastic bags specifically, comprise about 2.87% of New York City’s residential waste stream, which is the largest source of plastic in the city’s waste stream.

COMMENT

SUSTAINABLE ENERGY FUTURE OF SERBIA Development projects like ‘Waste to Energy’ increasingly deal with waste classiﬁcation, as a special group of renewable energy sources

By Tihomir VASILJEV, GREEN ENERGY GROUP he necessity of sustainable development, as well as the liberalization of the energy market governs the changes in energy systems, production sectors, and consumption of all sorts of energy. With this in mind, OIE are making an enormous contribution towards the creation of the future of the energy sector in the Republic of Serbia following European and regional aspirations, frameworks, and standards. The affirmation of renewable sources of energy is one of the priorities set by the energy-related strategy of EU and the rest of the progress-oriented world and because our country is also being facing immediate obligations with respect to using renewable sources of energy on its way to becoming an EU country, it is necessary to create a gradual and long-term strategy on a country level. Admittedly, Serbia is currently lagging behind world trends in the field of sustainable development, but this fact should not be too discouraging. As in a marathon race, falling behind a little can easily be turned into a great advantage. Today, when the world’s

professional public openly discusses the pros and cons of using renewable sources of energy, Serbia is wise and strategically prudent to choose an adequate energy strategy by learning from others’ mistakes. The Ministry of Environment and Spatial Planning, as well as the Ministry of Mining and Energy, are the main creators of the National Energy Strategy. Setting good foundations for the future of sustainable energy may be observed through several steps: 1. Step: Decrease of energy resources – through advancement of energy efficacy and change in the structure of using power sources; 2. Step: Prudent asset investment – keeping investors well-informed and forming financial funds; 3. Step: Using one’s own resources – by increasing a share of domestic production by way of development loans. All of which requires: 1. A very precise and well-thought National Strategy applicable and adjusted (oriented) to a micro region – an individual; 2. Support of independent and professional informative and consultant institutions

such as AEE, RCEE, Consultant offices; 3. Legislation and sublegislation, incentive measures, incentive resources, and price policy. It is interesting to know that while stocks of fossil sources of energy are diminished by human activity and while natural resources remain unchanged, there is a group of power sources increased by human activity which is known as “civilization product” or waste. One of the topics most clearly emphasized for its importance in sustainable development is waste management and recycling. Waste, organic and non-organic, surely contains a considerable amount of energy. Development projects like ‘Waste to Energy’ increasingly deal with waste classification, as a special group of renewable energy sources. From a practical standpoint, all these strategies are not self-sufficient and require the activation of human and material resources which the state can certainly spare. The consciousness of individuals, citizens of the Republic of Serbia, is on an extraordinarily high level so this potential could easily be put to work and a good strategy realized. The efforts of the government and non-government sector are driven by this goal which also guides the “Green Energy Promotion Group” in its attempts to constantly inform and educate Serbian citizens in the field of OIE application. Green Energy Group,7 Srednja Street, 24000 Subotica, Republic of Serbia www.greenenergygroup.rs info@greenenergygroup.rs The Road to Green Serbia | 49

INTERVIEW

DUŠAN STOKIĆ, SECRETARY GENERAL OF THE SERBIAN CHAMBER OF COMMERCE’S ENVIRONMENTAL PROTECTION AND SUSTAINABLE DEVELOPMENT COMMITTEE

ENVIRONMENTAL PROTECTION INVESTMENT By 2016, we should increase investments in environmental protection at least twelvefold. Serbia will have to spend over 4 billion euros on environmental protection By Tatjana OSTOJIC Photo Slobodan JOTIC e are talking to Dušan Stokić, Secretary General of the Serbian Chamber of Commerce’s Environmental Protection and Sustainable Development Committee, about the effects that the EU integrations have had on industry, as well as obligations that stem from this process.

Are we required to allocate money for environmental protection in order to meet EU standards? Investing in environmental protection is often inadequately perceived by the public since it is viewed as an expense. On the other hand, the state administration, including provincial and local authorities, need to understand that their job is not done after they adopt relevant regulation. The regulation needs to be written in a way that it can easily translate to companies which ought to be given enough time to adjust their operations to the regulation, i.e. to harmonize their technology and techniques, facilities, train their staff, and get assistance so they can successfully sustain the first ‘impact’ of this regulation. For instance, take the Czech Republic. In the country’s early accession days, i.e. from 1996 to 2000 (the country joined the EU in 2004), it invested 1.34% of its GDP in environmental protection, while Slovakia invested 1.87%. On the other hand, Hungary and Slovenia started to invest in this area later on, immediately before they became EU members in the peri50 | The Road to Green Serbia

od between 2000 and 2004. We should also mention Romania. Estimates show that Romania needs to invest around 17.7 billion euros in environmental protection in the period from 2002 to 2030. Estimates usually cover a period of 20 and 30 years,

We currently have 182 facilities that have to meet certain criteria, requirements, and standards stemming from the IPPC directive

since investments in environment are codependent on economic growth. So, if the growth is 5% or 7%, then that is your basis for calculation. Hence, it is really important for Serbia to have a realistic and objective long-term projection, which will take into consideration all parameters of economic growth. On the basis of this projection, we ought to make concrete calculations for environmental protection. Let me mention briefly Romania again. The country plans to invest in several sectors. Out of the aforementioned 17.7 billion euros, 55% will go towards advancing the water supply and sewage system. The remaining 45% will be spent on reducing industrial pollution and waste management.

If we take a look at short-term investments for the period of three years between 2002 and 2004, Romania estimates that it would need around 950 million euros. It is quite interesting to see the investment structure, i.e. who is actually giving this money. People often have the wrong perception that it is the state that provides the money. It does and it doesn’t. When we say “the state,” we have to be aware that the state actually gives the least amount of money. In Romania, over 50% of the money came from the EU funds. Almost 25% came from bank and international financial institutions loans, while the remaining 10% came from the state budget, local authorities, and private investments. In other countries, the structure is pretty much the same, but in any case, the state’s share is definitely low. It is very important to mention that there is this decentralization where quite a big portion of the money comes from local self-government budgets, in other words, from collecting environmental taxes. There is the possibility of investing this money into concrete projects and spending it on the economy, for example, on industry and development of local infrastructure. Which areas are the most deserving of investments? There are six European directives that Serbia has to implement, and these are what we call investment-heavy directives. Three of them pertain to water – the Drinking Water Directive, the Urban Waste Water Directive, and the Water Framework Directive. There are also three directives that cover industrial pollution - the IPPC Directives (Integrated Pollution, Prevention and Control) and the

Landfill Directive. For instance, Slovenia invested 2.7 billion euros in implementing the EU regulation (we are talking about environmental regulation). Out of these 2.7 billion, almost 50% was spent by the public sector, and almost half of that by the industry, i.e. on the implementation of just one IPPC directive, the one that pertains to integrated licences. Serbia is still in the process of collecting relevant information in order to come up with the required amount. Still, some surveys have been done, like the study on the effects

The Road to Green Serbia | 51

INTERVIEW of Serbia’s accession to the EU, in collaboration with the FEFA Faculty and the Serbian Chamber of Commerce. It turned out that Serbia has to spend over 4 billion euros on environmental protection. How much money is currently being allocated for this purpose in Serbia? After 2000, the state allocated between 0.2% and 0.4% of the national GDP, which is very low. According to certain projections and analyses, this percentage should be drastically increased. If we were to have 5% economic growth, we should invest at least 1.2% of the GDP by 2011 and 2.4% by 2016. So, we ought to increase investments in environmental protection at least twelve-fold. How do we go about that? We need to be more synchronized and harmonized. The state is, of course, in charge of preparing the business sector, passing legislation, and having continuous dialogue with companies. We are trying to do that through the Serbian Chamber of Commerce. The business community often has very useful suggestions when it comes to, let’s say, implementation of laws on packaging and packaging waste. Aside from that, the business sector is in a rather difficult situation and simply has to find ways to meet the required standards. If we are talking about technical standards, this means that a production facility in Serbia has to make sure that its emission does not exceed 5 mg per cubic metre of air. This implies that we have to have clean technologies, a continuous maintenance system, and people who would manage it properly. A company also

needs to define its environmental protection strategy. Is Serbian industry up to that challenge at the moment? There is a European directive – the IPPC directive, there are domestic laws, and a list of facilities that have to harmonize their business with the directives. The

full implementation of the IPPC directive. We currently have 182 facilities that have to meet certain criteria, requirements, and standards stemming from the IPPC. Then there is the energy sector, heating plants, energy generating facilities, the mineral industry, i.e. the ceramic industry, metal processing, and the electric industry, waste management, and other types of industries like food processing (dairies), cattle breeding, and similar. Quite a big chunk of the industry is covered and deadlines are clearly defined. For example, we have only three to four months in the case of cement producers. Once the industry and economy form a good cooperation on the national level, the state and its negotiation team could ask the European Commission to extend the deadlines. Other states have done that, with some of them being really good negotiators, like the Czech Republic and Poland. It is very important to allow the economy to breathe, since if we smother it, who is going to fill up our budget and how are we going to progress?

The Czech Republic has invested 1.34% of its GDP in environmental protection, while Slovakia invested 1.87%. In the case of Serbia, this percentage is 0.4.

bottom line is that we need to allow the business sector to breathe, and that means that there should be a partnership relation, I emphasize – a partnership relation, between the state and economy with regard to meeting deadlines. We are talking about four to five years. 2015 is the deadline for

ECOLOGY AND ECONOMIC CRISIS

ccording to the latest OECD study from June 2009, many countries continued to invest in research, development, and environmental protection, despite the economic downturn. I am talking about eco-innovations and anything that advances environmental protection. These are mostly highly-developed countries like Germany and Sweden. Have a look at Korea, which invests five times more than Germany and Sweden, around 5.14% of its GDP, and the country is currently number one in the world. 52 | The Road to Green Serbia

How much money does the economy have to spend on this? It is very difficult to talk concrete numbers. Each directive is made up of individual acts and each individual act defines what they call ‘available techniques.’ These documents are called BAT and BREHT, for short. These are just recommended technologies to use. Each industry is allowed to find for itself technologies that meet the required standards. There are three key branches that have the biggest effect on ecology – energy, traffic, and agriculture. People like to say that it is industry that takes the brunt of the EU integrations. This is true to a certain extent, but in the end, it is the citizens who are at the short end of the stick. For example, Slovenia calculated that the application of EU environmental standards cost between 1,000 and 2,000 euros per capita.

NEWS HAZARDOUS MATERIAL FOUND ON FRUŠKA GORA Barrels containing dangerous materials were found on Fruška Gora on the Vrdnik – Irig road, the Serbian Ministry of Environmental Protection says. The barrels have been removed and temporarily stored in the Jacob Becker Company in Ruma, while the chemicals they contained did not leak into the area. Each barrel weighs around 250 kilograms, looks brand-new, and has its original top with a label that reads ‘Huntsman Holland Rozenburg Works - Mersezweg 10.’ The chemical they contain is diphenylmethane-4,4-diisocyanate, and the barrels, aside from being marked with the letter ‘H,’ bear the production date November 19, 2009. An investigation into the whole case has been launched with the aim of finding the as yet unidentified offenders. FOR A CLEANER ŠTIRA

World Water Day was celebrated in Loznica with the campaign ‘Cleaner Water for a Healthier World.’ On the occasion, volunteers cleaned up the bed of the Štira River that runs through the town’s centre. Also, health workers and other NGO volunteers were handed out promotional materials with information about the consequences of water pollution. The campaign was put together by experts from the local Health Clinic’s Prevention Services in cooperation with volunteers from civil organizations ‘Iskra’ and ‘EKO-LO’ from Loznica. The organizer’s representative, Valentina Petrović, said

for the Beta press agency that the quality of drinking water in Loznica was quite good, adding that prevention was vital in order for water quality to be maintained. The international observance of the World Water Day is an initiative that grew out of the 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro in order to raise awareness about the worldwide lack of drinking water.

and containers for recyclable waste. Also, we are going to have an educational campaign emphasizing benefits that come from recycling. We are not going to secure sepa-

NATIONAL PARK EXHIBITION An international photo exhibition entitled ‘National Parks of Europe’ opened in the Information Centre on Iriški Venac on Fruška Gora. At the exhibition, 43 photographs of

rate recycling containers for different materials since these materials will be collected in one type of container. At this moment, having separate containers is something that is financially unsustainable for Serbia,” the Minister said in Subotica, where he visited the recycling yard of the public utility company Čistoća i Zelenilo as a part of the campaign ‘Green Caravan of Serbia.’ On the occasion, the Minister said that this year, the ‘Let’s Clean Up Serbia’ campaign would focus on recycling yard projects. The Minister also said that the aim of the Green Caravan was to enable local communities to establish direct contact with the Ministry.

European national parks were showcased, from awe-inspiring mountains to prehistoric woods and sandy beaches. The exhibition was put together following the centenary celebration of national parks in Europe, organized by the Europark Federation, as well as for the celebration of the 50th anniversary of Fruška Gora National Park. There are 6,500 national parks all over the world today, areas of outstanding natural beauty, with exceptionally rich flora and fauna and cultural heritage. “Fruška Gora National Park should be preserved not only because of its bird population, mammals and plants, but also for the people who are going to enjoy it if we manage to preserve it,” said provincial Secretary in Charge of Environmental Protection and Sustainable Development Slobodan Puzović on the occasion.

51 TONS OF CONTAGIOUS WASTE In 2009, a total of 51 tons of contagious medical waste was processed in the Dr. Milenko Marin Health Clinic in Loznica. According to the leader of the team in charge of waste disposal, Dragana Vasiljević, the waste is treated on a daily basis, and occasionally, health clinics from Ljubovija, Mali Zvornik, and Banja Koviljača bring their waste to the Loznica clinic for treatment. The team has five people, especially trained to work with waste treatment machinery. The machines were installed in the clinic back in April 2008, and in June of the same year, the clinic started to use contemporary technology to prevent an outbreak of contagious diseases. The equipment is worth close to 100,000 euros and was bought with the help of the Serbian Health Ministry. According to the Ministry, over 40,000 tons of medical waste is generated in Serbia each year, with 1/5 of it being contagious.

CONTAINERS TOO EXPENSIVE The Serbian Minister of Environmental Protection and Spatial Planning, Oliver Dulić, said that allocating separate recycling containers would be “too expensive for Serbia at this particular time. We do plan to provide funds for recycling yards

The Road to Green Serbia | 53

INTERVIEW

MILAN KINDJIC, DIRECTOR OF THE “LET’S CLEAN UP SERBIA” CAMPAIGN

IMPROVING WASTE DISPOSAL MANAGEMENT We have identiﬁed around 4,500 illegal dumps in Serbia. During 2009 we managed to clean up 2,427 (56.1 percent) of them he Ministry of Environment and Spatial Planning has recognized a poor position toward waste, more precisely a low level of waste management as one of the biggest environmental problems in Serbia. Bearing in mind that it is under the authority of local self-management, which needs support in these hard times without funding in order to finish the job, the Ministry started a campaign to raise public awareness regarding this problem.

This was one of the reasons for a conversation with Milan Kindjic, Director of “Let’s up Clean Serbia.” What are the results of the campaign “Let’s Clean up Serbia?” At the beginning of the campaign, we were told that we in Serbia collect only 60 % of communal waste and all the rest ends up on illegal dumps. We have identified around 4,500 illegal dumps in Serbia. In 2009, we managed to clean 2,427 (56.1 percent) of

REGIONAL DUMPS

he problem in Serbia so far was that there was 40 percent of uncollected waste, over 160 dumps very similar to illegal dumps. Although those spaces are reserved for that purpose, their character does not make possible any kind of serious protection of stopping seepage to underground waters and other things. Serbia now is building a model which will have around 20 regional dumps to be built in such a way that you could later build on them a golf course, playground, or anything else according to world standards.

54 | The Road to Green Serbia

them, a result we didn’t expect. In comparison, our neighbors, who were doing similar jobs, didn’t manage to complete them within a five-year interval. We are continuing this

New laws and regulations established in 2009 make it possible for us to deal with the waste problem in Serbia work in order to eradicate illegal dumps. New laws and regulations established in 2009 make it possible for us to deal with the waste problem in Serbia. Waste is definitively not garbage, but rather secondary raw material, and its separation is necessary. In comparison, the recycling business in European economies participates between 30

We think that it is not realistic to expect Serbia in 2010 to set up a complete system for waste separation, because the capacities of public sanitation companies and local self-management are not at a satisfactory level to do that all at once to 70 percent. Information that our agency for environmental protection shows that for 2008, Serbia’s participation in the recycling business is only around 0.3 per cent. This is the one of the biggest potentials for business development, making it possible not only to save, but to open up new job opportunities. Laws regarding packaging materials and the law regarding waste disposal which The Ministry passed, along with a number of bylaws, allow someone who wants to invest in environmental protection to have a serious market for doing that over the next few years, and to have a stable business, meaning that they will have adequate funding for the work they are doing. First of all, this refers to special waste flows. For example, a regulation concerning tires, passed at the end of the last year, includes a fee of around 17,000 RSD per ton, which goes to the Fund for Environmental Protection. The one who buys tires and recycles them will receive 15,000 RSD per ton in funding. In this way, we have motivated industry to collect tires. We believe that by the end of this year, we won’t have any tire waste. Already we have

one plant for tire recycling, and one more to come, which will be operated by the Tigar company. What are your plans for this year? This year we are planning to continue to clean up illegal dumps, but above all, our goal is to improve waste disposal management. Here, on one hand, I refer to expanding a territory on which waste would be collected, meaning that more citizens will have the possibility to dispose of their waste in bins or containers, and also public sanitation services in a given territory will collect waste and transport it to a regular landfill. Another goal regarding waste disposal is to start dealing more with primary selection or separation in order to preserve a significant part of these potentially secondary raw materials. The Management of Communal waste

is 100 percent under the authority of local self-managements. According to information from 2009, there was a lack of around 250 dump trucks and around 25,000 street bins. To expand the territory for organized waste disposal, we consider that the purchase of vehicles is of high importance, and therefore, through the action “Let’s Clean up Serbia,” The Ministry and the Fund for Environmental Protection will subsidize the purchase of vehicles by giving a 20 per cent non-refundable deposit when public sanitation companies apply for a loan. These loans will not require any additional guarantee. Purchased vehicles will be the guarantee. After that, we are planning to motivate the development of recy-

The Road to Green Serbia | 55

INTERVIEW

cling yards. This is a space which is projected, built according to highest standards, and safe for communal waste disposal. At the same time this will be an area where small, privatelyowned waste-collecting companies can legally dispose of waste. Here we see an opportunity for opening new working positions. Besides that, we will continue to remove illegal dumps, and help municipalities continue to remove illegal dumps this year.

which we will sign very soon about cooperation with NGOs. We are thinking about how to include the economy sector in the best possible way, and one of the ways is our box for paper disposal. We think that it is not realistic to expect Serbia in 2010 to set up a complete system for waste separation, because the capacities of public sanitation companies and local self-management are not at a satisfactory level to do that all at once. Our task in 2010 is to set up and to create an oasis in Serbia where it will be possible to separate waste immediately, and not to wait to set up the system in an entire city or territory. In order to show that this is possible and realistic, the first step that we are taking is within the Serbian government building and within state administration buildings. We made 30,000 boxes for paper disposal. Straight away it was clear to us that one of the main faults in this procedure is that someone can collect paper in an appropriate way. Smaller collectors are necessary to be between us and the final processors.

basis is necessary. I can say that last year in Serbia a total of around 20,000 tons was gathered, but we expect to generate over 500,000 tons and we expect that this year In Serbia the amount of plastic packaging may be at least double and maybe triple. What is new this year is regulations about special flows of waste, which raise potential for development of this business. Is industrial waste taken care of in an adequate way, and does industry respect regulations of the law on environmental protection? When we speak about industrial waste, we have to separate two things. One is the issue is that something, according to the law, is treated as waste, but basically is a secondary raw material. In gathering secondary raw materials and their use, until the 80’s Serbia was at the top level of development, like EU countries or any other developed country. Our task today is to make those waste flows that are subject to the market and not part of industrial waste that has a clear purpose not end up in the environment. I would say that industrial pollution in Serbia is not the result of neglect, but rather the consequence of a need for a certain economy development during the years when standards and environmental protection were not at that level, and therefore we now have factory chimneys with no filters, but we are installing them now. We have old technologies that pollute a lot. Things regulated by the 2004 law are that in Serbia, all facilities have to be harmonized with high environmental protection standards by 2015. Industry is working on that. Today, all technology about to be installed is examined and has to receive an attestation from the Ministry confirming that it is the best available technology. New technologies are much better for the environment and they save electrical energy. Within industry, is imperative to protect the environment and companies are aware that they have to implement new technologies in order to be more efficient and competitive and because they won’t have the possibility of placement in other markets if they don’t respect environmental standards.

We don’t have any problems getting investors in any sphere of waste disposal, but the question is how much raw material basis we have for its work

What other tasks you will have this year? Especially important for all of us in 2010 is creating a partnership with those parts of the society that have the goodwill and energy to help “Cleaner Serbia” and who are influential within their local community. First of all, I think of NGOs and the need to set up goals together with them, and to work on those goals jointly in order to achieve results and accomplish those goals. There is a memorandum under preparation

The second step that we are working on intensively is the gathering of electronic and electric waste within the state administration, and our attempt in the next few months is to regulate plastic, glass, and other flows of waste in use there. One project in its initial phase here is the gathering of oil waste disposal from restaurants. We don’t have any problems getting investors in any sphere of waste disposal, but the question is how much raw material basis we have for its work. In order to create one factory in Serbia that would produce synthetic fiber from plastic packaging, an amount of 20,000 tons of raw material

FREE LOCATIONS

lready, local self managements, mainly undeveloped ones interested in attracting investors, offer free locations for building recycling factories on the condition to employ a certain amount of people. The essence is the fact that now a space for a large number of investors has been created. 56 | The Road to Green Serbia

NEWS HOT YEAR BEHIND US This year is likely to rank as one of the ‘ten warmest’ since 1850, the World Meteorological Organization (WMO) said in a report, providing further evidence that the world is heating up. The report by the Genevabased organization also found that the current decade was already warmer than the 1990s, which were in turn warmer than the 1980s. The data collected by the WMO between January and October 2009 suggests that average global temperatures were already between 0.34 to 0.56 degrees Celsius above the annual average for the 1961-1990 reference period. It was also confirmed that the first decade of the 21st century is the warmest in the WMO records. POLLUTED WATER MORE DANGEROUS THAN WAR More people die from polluted water every year than from all forms of violence, including war, the U.N. said in a report that highlights the need for clean drinking water. The report, launched to coincide with World Water Day, said an estimated 2 billion tons of waste water, including fertilizer run-off, sewage, and industrial waste, is being discharged daily. That waste fuels the spread of disease and damages ecosystems. “Sick Water” said that 3.7 percent of all deaths are attributed to water-related diseases, translating into millions of deaths. More than half of the world’s hospital beds are filled by people suffering from water-related illnesses, the report from the UNEP (The UN Environment Programme) says.

‘NO’ TO IVORY TRADE

The United Nations wildlife panel says it rejected Tanzania and Zambia’s request to sell stockpiled ivory because it could encourage poaching. The Convention on International Trade in Endangered Species denied the one-time sale from government stockpiles in Doha, Qatar. Allowing the sales would have supported an ongoing market in which crime rings sell poached ivory, the panel said. The price of ivory on the black market has risen from about $200 a kilo in 2004 to as much as $1,500 now. African elephants have seen their numbers drop in the past 40 years to 600,000, mostly due to poaching. A global ban on the ivory trade in 1989 briefly halted their decrease. But conservationists said that poaching, especially in central Africa, now leads to the loss of as many as 60,000 elephants each year. Without intervention, elephants could be nearly extinct by 2020. GREENPEACE CHARGING AT THE CHIMNEY

Twelve Greenpeace activists today climbed the 300-metre-high chimney of the Prunerov II coal-fired power station to hang a banner denouncing it as a ‘Global Shame’. The action follows the forced resignation of the Czech minister of the environment after he refused to approve a 25-year extension to the plant’s operating life. From the top of the chimney stack in Northern Bohemia, Greenpeace Climate

and Energy campaigner Jan Rovensky said, “The Prunerov coal plant is a global shame. Plans to extend its life make a mockery of efforts to protect the environment, people, and to avoid catastrophic global climate change. It should be shut down by 2015 and replaced with energy-efficient measures and investments in renewable energy. Then the Czech Republic’s global shame would become a global example.” Jan Dusik has resigned as Minister of the Environment rather than accept the plans of Czech power company CEZ to extend the life of the Prunerov coal-fired power plant. Greenpeace and Environmental Law Services praised the Minister for not cracking under pressure from both CEZ and the Prime Minister to issue a positive statement. Dusik requested from CEZ to re-do the project, but Prime Minister Jan Fischer exerted pressure on Dusik to abandon the idea. “My conscience will not be clear if I give permission (for the extension plans) or if I refuse to give it,“ Dusik said. EU TO REDUCE GAS EMISSION The Greens/ EFA group has launched a new study by the independent research organisation CE Delft outlining why the EU needs to increase its current emissions reduction target of 20% by 2020. The launch coincides with today’s council of EU environment ministers, who are discussing the conditions under which the EU would be willing to increase to its promised 30% emissions reduction target. The EU needs to urgently step up its emissions pledge to an unconditional 30% domestic reduction target by 2020. A significant drop in industrial production and energy consumption brought on by economic crisis has already led to lower gas emissions and already makes up 1/3 of the planned reduction. Hence, the EU needs to do better than other parts of the world since, speaking long-term, it contributed more to global warming, the report outlines. The Road to Green Serbia | 57

ECOLOGY AND ECONOMY

NEW DOCTRINE Economy sees a relationship with nature as a rationality of exploitation of resources, more precisely as an active relationship. Ecology, contrary to that active role of economy which we can deﬁne as a “beneﬁt,” has a contemplative role in seeking mutual relations between everything alive and the physical environment. By Ph.D. Jordan ALEKSIC, Faculty of Applied Ecology Futura he main goal and task that economy has in regard to environment is to find mechanisms and methods for securing the most efficient ways possible to “process” natural resources into goods and services which will satisfy human needs. On the other hand, a basic “interest” of ecology, also with the goal to satisfy certain human needs, is to preserve the environment’s resources. This relation between economy and ecology toward the environment is manifested in all of four basic characteristics (usable value or usefulness) that the environment has for humankind: 1.Appears as a giver of renewable and nonrenewable raw materials used as inputs under the process of manufacture

(they fall under the category of manufactured factor “earth”) 2.Has public resources, which in their natural condition (unchanged by the man) can satisfy a number of essential needsair for breathing, drinking water, natural panoramas to enjoy, and recreation and similar. 3.Represents a “natural collector” of all kinds of waste which man produc-

The opposing goals of economy and ecology regarding the use of natural resources are most expressed through opposite stands between ecological principles and measures for environmental protection (in regard to all its above-mentioned purposes) and using the market as a main (and so far known, the most efficient) mechanism for allocation of the public resources that economy is using. Theoretically, when the plan is implemented as the only and exclusive mechanism of allocation of all resources of one society, “conflict” between needs of “economical exploitation” and “ecological immunity” of the environment and its resources, there would be fewer problems. The previous empirical-historical development of the world’s economies shows that the implementation of the plan as the only mechanism for allocation of all public resources is practically impossible at today’s level, as well as regarding predicted level of scientifically-technological development in the near future. The need of the market’s coexistence as an allocator of the work and capital on the one hand, and planned allocation of natural resources on the other is shown as a link for organizing economic activity of every modern community. Economy sees a relationship with nature as a rationality of exploitation of resources, more precisely as an active relationship. Ecology, contrary to that ac-

First question which is extremely interesting these days is how to protect natural resources and beauties for the future and for which the market don’t have appropriate answer es by manufacture and biological activity (including noise and heating of the atmosphere), and 4.Offer land as a place for rebuilding all human and economic activities.

THE OPPOSING GOALS

he opposing goals of economy and ecology are basically a problem in finding and implementing a mechanism for allocation of public (including natural) resources, which will, through realization of its basic function – maximizing the economic efficiency of that allocation, secure maximal protection of ecological balance. Bearing in mind that the market, as an allocation mechanism only, is not capable of achieving any other social development goal on its own (except economical efficiency), as well as inviolability and pureness of the environment. Alternatives are: - Implementation of the plan (as the other theoretical historically-known but most efficient mechanism of allocation) - Combined use of both, so far only known mechanisms of allocation of public resources. 58 | The Road to Green Serbia

tive role of economy which we can define as a “benefit,” has a contemplative role in seeking mutual relations between everything alive and the physical environment. Therefore, ecology does not have for its goal to maximize profit in any way. Rather we could say that ecology has as a goal to minimize loss for the environment, which occurs in consequence of exposure to expansion of human industrial activity. Even from this brief definition of economy and ecology terms, the necessity for mutual conflict relations arises, which does not mean that between them there are no points of integration. Considering offer limitation of non-renewable resources leads to the conclusion that with growing economies, limited resources are transferred by neutral price/zero price, although they have a positive value (for the example, air). Contrary to this, a number of economic activities have for consequence dumping waste in the surroundings and that economy waste is unwanted pollutants of the environment, which are also transferred by neutral price/zero price, but they have a negative value. Economy theory has appointed some of the questions in relatively early stages, questions which are subject of interest for the ecology. First question which is extremely interesting these days is how to protect natural resources and beauties for the future and for which the market don’t have appropriate answer. In the predominant laissez-faire doctrine, the issue of imperfection of the market’s allocation of resources and freedom of private ownership has been presented and raised the problem of the relationship between the entrepreneur’s rational behavior and public expenses for which nobody is responsible for. More precisely, regarding nonrenewable resources which don’t have substitutes and their requirement is not flexible, the resource’s owner aspires to maximize his profit for the ex-

struments are not perfect. Respecting the aforementioned facts, we can conclude that the relationship between the environment and the economy has still not been sufficiently researched. Because of this, we are explaining the issue of environmental protection, by using traditional economy instruments (marginal expenses and incomes, interest, rent, discounts, and similar). The necessity to harmonize industry development, which uses the market as a main and dominant mechanism for allocation of its resources with a need to preserve healthy and clean environment, has become, over the past 20 years, a fact about which nobody can argue in the modern World; nor experts, politicians or public. In that regard, the connection between economic goals, maximizing efficiency of resource usage, and ecology goals to protect the environment, has been more often expressed in past years through the formula “sustainable development,’ as a development which is according to needs and nature limitation. This clear situation about mutual interests between ecology and economy whose formula “sustainable development” is shown as a very complex and very problematic regarding the selection of concrete, empirical-operative instruments and measures for regulation and coordination of the economy system with its natural environment. The essence of that complexity and problems leads to the problem of selection of specific mechanisms of protecting the environment. As a main criteria of that selection is the request for maximizing efficiency in finding the solution for the aforementioned confrontation between basic goals of the economy and ecology, in other words the request for realization of coordinated acting the market activity, as a main and dominate allocator of resources in total of a society, with stateplanned regulation of human usage of the environment.

The connection between economic goals, maximizing efficiency of resource usage, and ecology goals to protect the environment, has been more often expressed in past years through the formula “sustainable development” penses which would go for protection of the environment. Modern economy doctrine is facing with a problem of quality of life, which implicates the question of management of public and social goods which are concerning general consumption. Public, in other words free goods, have a neutral value, meaning they don’t get value formulation in the market transactions. The modern economy doctrine has developed instruments for researching the legality and flows of behavior based on economic life on the relation: maximize profit – minimize loss (expenses), but when we analyze protection of the environment issue, the aforementioned in-

The Road to Green Serbia | 59

COMMENT

ENVIRONMENTAL PROTECTION AND LOCAL AUTHORITIES

A GREAT CHALLENGE Only a decade or two ago, local self-governments had virtually no authority in matters of environmental protection. The new Constitution drastically changes that position, since a clean environment has become a constitutional stipulation.

By Ljubinka KALUĐEROVIĆ, Secretary General of the Standing Conference of Towns and Municipalities’ (SKGO) Environmental Protection Committee healthy and safe environment has been one of the most frequently made requests lately. A clean environment is a standard when it comes to contemporary living in the developed world. This is nothing new or unusual, but rather something that it is implied. However, a safe and clean environment is something that is quite difficult to achieve, and it is not possible to have it everywhere to the same extent, although there is plenty of experience to show how to clean up the environment in the most efficient way. A clean and safe environment is not an isolated occurrence, but has been at the centre of a historic backdrop created throughout time, as well as a political, social and economic setting in which we are trying to achieve that goal. When it comes to cities and municipalities in Serbia, which now have significant authority in dealing with environmental issues, this is a great challenge for them. Strategic documents that cover environmental protection are being implemented with a great difficulty at the national level, and the extent and pace at which they are implemented are below expectations since there simply isn’t enough mon-

60 | The Road to Green Serbia

ey provided. It seems that the situation is more difficult at the local level. What further complicates the matter is the fact that funds transferred to towns and municipalities have been cut back. The situation is not better with other required local capacities. Only a decade or two ago, local selfgovernments had virtually no authority in matters of environmental protection. In accordance with that, there were no people employed in local self-governments to work on environmental issues since these issues were a fine privilege that only NGOs had. The situation changed somewhat for the better during the first decade of the 21st century, when a first set of environmental laws was adopted where local

Towns and municipalities have begun to harmonize their administration and this is a process that will last for quite some time self-governments are recognized as one of the main actors in environmental protection issues. The new Constitution has drastically changed that position, since a clean environment has become a constitutional stipulation. Towns and municipalities have begun to harmonize their administration, and this is a process that will last for quite some time since we are talking about a brandnew and quite specialized profile of workers that are currently deficient, especially

in small, underdeveloped areas where the same legislation is applied with one difference – the conditions in these municipalities are not conducive to harmonizing their administration with environmental stipulations. Regardless of this difficult situation, the overall changes to this sector are heralding better conditions both in towns and municipalities. The new set of laws has been adopted, as have bylaws that will facilitate the implementation of these laws. We have known for a very long time that there aren’t opposing sides when it comes to environmental protection, but everybody is working towards the same goal. The Ministry of Environmental Protection and Spatial Planning, the Standing Conference of Towns and Municipalities, and municipalities are working together to make it possible for relevant laws to be successfully implemented at the local level. Conferences, training sessions, seminars, manuals, brochures, national strategies, regional, and local environmental plans are jointly prepared and implemented with the aim of achieving a clean and safe environment as fast and as efficiently as possible. In addition to having the Environmental Protection Committee, the Standing Conference of Towns and Municipalities also has the Utility Committee, the Urban Planning and Residential Issues Committee and the Energy Efficiency Committee. Although there are great environmental challenges lying head of us, only by all actors having a synergy of environmental action are we going to succeed in having a healthy and safe environment for every single citizen of Serbia.

RECYCLING

NEBOJŠA ĐORĐEVIĆ, CHAIRMAN OF THE MANAGING BOARD OF THE GALENIT CLUSTER, AND MIŠO

PROFITABLE SEC

By Katarina LAZAREVIĆ ecycling is a very profitable branch in developed countries, with the annual turnover generated by recycling market amounting to $160 billion globally. Although still not properly regulated, in the last few years the market has grown from initial 60 recycling companies to 300. In the European Union, close to 60% of waste is recycled, while in Serbia only 8%. According to many experts, Serbia has a huge potential in this branch, which,

62 | The Road to Green Serbia

with the help of economy and state, could create at least 10,000 new jobs. Despite being quite a profitable branch, recycling is also a very sensitive issue since it is still not entirely regulated, which leaves a lot of room for manipulations and different interpretations.

Bearing all of this in mind, business people have managed to find a solution and establish an association called ‘Green Economy’ that assembles all recycling and renewable energy companies, consultancies, NGOs, secondary raw-material collectors, and construc-

SOCIALLY CONSCIENTIOUS COMPANIES

“

In Italy, for example, 24% of the country’s GDP is generated by social companies, and we are an ideal base for such project. We have launched a relevant initiative, and have both the USAID and the U.S. Embassy’s backing,” says Mišo Babović, Project Manager in the Centre for Development of Social Entrepreneurship

O BABOVIĆ, PROJECT MANAGER IN THE CENTRE FOR DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP

CTOR tion companies, i.e. everybody who participates in so-called green economy or green building. The association was formed in February of this year, but it is still not operational. The initiative for its establishment came from the Galenit Cluster, which is in its third year running and which assembles recycling companies. The association cooperates with the Ministry for Environmental Protection and Spatial Planning. Aside from the companies, the Faculty of Electronics from Niš, the Mihailo Pupin Institute, and two cooperatives made of secondary raw-material collectors (which are the only two such cooperatives in the country that are officially registered) are also members.

ASSOCIATION MEMBERS The idea that brought the association members together is to have a joint approach to companies that generate waste. “If you have a large waste generating company like Petrohemija, which makes ten different types of waste, it would utterly impractical for this waste to be collected by ten different companies. Hence, we came together, so that we, as one legal entity, could collect the waste, transport it, and separate it so that every company could treat the waste that it specializes in,” explains Nebojša Đorđević, Chairman of the Managing Board of the Galenit Cluster. He adds that this makes everybody’s job much easier, both waste generating companies and the state. The state authorities plan to put together a registry that will contain information on the companies that participate in green

Close to 10,000 people could ﬁnd employment in green industry in Serbia, which is the reason for setting up an association called Green Economy.

Between 20,000 and 30,000 people in Serbia earn their living by collecting secondary raw-materials, while also being on welfare building in Serbia. “Of course, not everybody can be an association member. Only companies that meet the ministry’s requirements and other legal prerequisites can join,” Đorđević outlines. “For the time being, the association is a non-profit organization.” We are here to bring everybody in the

chain together. Since as of this year the associations are allowed to generate profit, we shall see how that is going to turn out,” Đorđević adds. “The root of the term ‘non-profit’ lies in the word ‘non-governmental,’ since NGOs are our members,” Đorđević says, and adds that the association is a classic cluster where several companies are joining forces under one business branch in order to make profit. However, the association has also a non-profit side. It initiates campaigns for promotion of socially responsible behaviour in ecology, lobbies for adoption of required legal framework, and promotes domestic economy within the regional and European framework. “In that respect, some of our aims can be viewed as a combination of socially responsible activities and business, rather than classic non-profit NGO activity. This is a business association after all, which has its socially beneficial aims and has the best interests of its members in mind. It is our intenThe Road to Green Serbia | 63

RECYCLING

The state authorities

tion to add more members. However, there aren’t enough companies that have the required permits and that meet the relevant criteria. They are also not prepared for the new legislation, so this is something that the cluster is also working on,” Đorđević explains. The cluster helps companies to collect necessary documentation for obtaining working permits. Large companies have available human resources to do that, unlike most small companies.

plan to put together a registry that will contain information on the companies that participate in green building in Serbia

WORK FORCE The branch can provide employment for many people. In Croatia, there are 4,000 people who currently work in the industry, with certain indicators showing that Serbia can create up to 10,000 new jobs in the branch. According to Mišo Babović, Project Manager in

64 | The Road to Green Serbia

the Centre for Development of Social Entrepreneurship, the recycling industry is an ideal base for hiring a substantial number of people who are on welfare, yet still generate income from collecting secondary raw-materials. There are only two cooperatives that assemble people who collect second-

ary raw-materials, which are also registered as legal entities. The problem with an inadequately organized network of collectors is one of the biggest problems that the recycling industry in Serbia is facing. On the other hand, the biggest potential of green industry is providing employment for a large

The state, businesses, NGOs, and other organizations that make green building have to talk among themselves and find solutions together number of people. “All the people who collect waste are out of the system and make up the base of the recycling pyramid. Their work needs to become formal through providing permanent employment. In EU countries, between 5% and 10% of the GDP is generated from this branch. In our country, the people who collect secondary raw materials live in slums,” Babović claims. Between 20,000 and 30,000 people in Serbia earn their living by collecting secondary raw-materials, while also being on welfare. They are simply pushed to the margins of the system. The problem also lies in insufficient legislation regulating so-called social entrepreneurship. Both of our interlocutors say that nothing new needs to be done in this area, but that it is a matter of just copying the existing laws. “Today, we are in situation where a company is not keen to hire somebody to collect waste since if this company buys, let’s say, old paper from a physical person, the tax rate is 10%, while if it employs this person to collect for the company, then the company has to pay up to 50%,” Babović says. According to Đorđević and Babović, it is absolutely vital to extend the law to include handicapped persons, i.e. for the law to have a social segment. The state would benefit from that, especially the city of Belgrade, where 150 families that life off collecting need to be registered in the system. If this happens, then various government and non-governmental

organizations could be partners to them in setting up small cooperatives. “Green economy wants to see the concept of socially conscientious employment come alive, because waste flows are generated in two places. One is the economy and the other is the population. We can deal with the economy, but how do you go about collecting waste from ordinary people?! It is very important to set up a well-organized network made up of the people who collect secondary raw materials,” Đorđević outlines. Although the existing public utility companies are bound by law to build recycling yards in local communities, they have chosen to disregard this and concentrate on their core businesses, like emptying out rubbish containers. “There is no awareness about this, no software solutions. There is a lot of talk about environmental protec-

tion and utility problems in Serbia and about raising awareness about the environment. The public enterprises that are owned by local authorities could introduce a new system, or a new service, or maybe even include private investors through providing subsidies for existing resources.” There are quite a few problems that have to be resolved so that a green economy could come alive in Serbia. Anyhow, this industry branch has a great export and production potential, and it can provide many new jobs, especially for the people who live on social margins. The state, businesses, NGOs, and other organizations that make green building have to talk among themselves and find solutions together just like in Croatia, which, although being a smaller country, has a relatively high number of people engaged in the recycling industry. The Road to Green Serbia | 65

At the end of 2009, worldwide nameplate capacity of wind-powered generators was 159.2 gigawatts (GW). Energy production was 340 TWh, which is about 2% of worldwide electricity usage and is growing rapidly, having doubled in the past three years. Several countries have achieved relatively high levels of wind power penetration (with large governmental subsidies), such as 19% of stationary electricity production in Denmark, 13% in Spainand Portugal, and 7% in Germany and the Republic of Ireland in 2008. As of May 2009, eighty countries around the world are using wind power on a commercial basis.

WORLD

WIND ENERGY INVESTMENT Worldwide investment in renewable-energy, which also includes solar and biomass facilities, may top $200 billion this year By Jeremy VAN LOON and Alex MORALES, BUSINESS WEEK hina WindPower Group Ltd., Iberdrola SA and Duke Energy Corp. will lead development of an estimated $65 billion of wind-power plants this year that let utilities reduce their reliance on fossil fuels. The estimate from Bloomberg New Energy Finance assumes a 9 percent annual increase in global installations of wind turbines, adding as much as 41 gigawatts of generation capacity. That’s the equivalent of 34 new nuclear power stations. Utilities that built natural gas-fired generators during the last decade are increasingly erecting turbines and buying wind power from competitors, tapping a renewable-energy source as governments consider ways to penalize carbon-based fuels. “Wind development

is moving fast,” James Rogers, chairman of Duke, which owns utilities in the U.S. Southeast and Midwest, said in London on March 18 at the Bloomberg New Energy Finance conference. “In the last 10 years, 90 percent of plants we’ve built have been gas. I’ve used gas plants like crack cocaine.”While gas-fired plants are relatively cheap to build and pollute less than coal plants, they still emit carbon

put of electricity from wind to 157.9 gigawatts, according to the Global Wind Energy Council, a Brussels-based industry group. A third of those turbines were installed in China, which doubled its capacity to 25 gigawatts. Wind is gaining support as turbine costs fall and government stimulus money helps pay for the plants. Prices for turbines have declined by about 15 percent to 1.05 million euros ($1.44 million) per megawatt over the past two years, according to William Young, an analyst at Bloomberg New Energy Finance.“It makes sense and it makes money,” said Michael Liebreich, founder of the London-based consultant bought by Bloomberg LP in December. If this year’s forecast holds, the new wind turbines may supply up to 12.3 million homes, less than the almost 33 million customers that the 34 nuclear plants would power with the same capacity, according to data from the U.S. Department of Energy and American Wind Energy Association. Output from a nuclear plant is steady while turbines work only when the wind blows.

If this year’s forecast holds, the new wind turbines may supply up to 12.3 million homes, less than the almost 33 million customers that the 34 nuclear plants would power with the same capacity dioxide, which will carry higher costs if governments tighten environmental rules. Last year, $63 billion was invested in turbines, adding 37.5 gigawatts of new capacity and bringing potential out-

INVESTMENT

his year, Duke plans to install 250 megawatts of wind equipment in the U.S., Rogers said. Bermuda-based China WindPower will invest about HK$900 million ($116 million) in 10 to 12 wind farms this year, nearly doubling its capacity, the company said on March 8. Iberdrola SA’s clean-energy unit expects to add 1,750 megawatts of new capacity in 2010, most of that from wind power, it said last month.

68 | The Road to Green Serbia

Worldwide investment in renewable-energy, which also includes solar and biomass facilities, may top $200 billion this year after outlays fell 6 percent to $162 billion in 2009, Bloomberg New Energy Finance estimates. That investment is moving ahead even after world leaders failed to reach a binding agreement limiting emissions from carbon-based fuels when they met in Copenhagen in December, Deutsche Bank AG Vice Chairman Caio Koch-Weser said. The cost of carbon permits for December 2010 traded in Europe has fallen 3.2 percent since that summit ended. “The renewables story is gaining momentum independently now,” Koch-Weser said in an interview at the same conference. “I see with many clients from China to California to India now a really good renewables paradigm shift happening.” Renewable energy sources may expand their share of the electric power generation market to 9 percent worldwide by 2030 from 2.5 percent now as gas use remains about 21 percent, the International Energy Agency estimates. Natural gas consumption has risen 20 percent since 2000, the IEA says. Coal, which produc-

es the most carbon when burned, also is benefiting from rising energy demand. Its market share for electric generation will grow 3 percentage points by 2030 to 44 percent, according to the IEA. The

ey set aside for clean energy projects, said Mike O’Neill, president and chief operating officer of wind project developer Element Power.“We are getting low-cost, low-risk money into this market,” O’Neill said. “You are getting money coming in.” Making wind power even more attractive is its “scalability,” or the ease with which a developer can add turbines as demand rises, said Petra Leue-Bahns, chief financial officer of Ecolutions GmbH. “Wind is relatively easy to install in big packets and then scale up,” she said. “Wind will probably reach grid parity” and be able to compete with fossil fuels without subsidies within four years, she said. Ecolutions invests in renewable-energy projects in Europe and Asia. BP Plc, the world’s biggest oil producer, is investing in wind and solar power as renewable energy gains market share on fossil fuels.

Last year, $63 billion was invested in turbines, adding 37.5 gigawatts of new capacity and bringing potential output of electricity from wind to 157.9 gigawatts, according to the Global Wind Energy Council, a Brussels-based industry group world needs to invest $26 trillion through 2030 to meet growing energy demands, the IEA, an adviser to oil-consuming nations, said last year. Proven gas reserves are sufficient to provide supply for 60 years at current production rates, the group said in its World Energy Outlook, published in November. Lower wind turbine prices mean more power for the same money, and developers are rushing to take advantage of $184 billion in economic stimulus mon-

MORE POWER FOR THE SAME MONEY

ower wind turbine prices mean more power for the same money, and developers are rushing to take advantage of $184 billion in economic stimulus money set aside for clean energy projects, said Mike O’Neill, president and chief operating officer of wind project developer Element Power. “We are getting lowcost, low-risk money into this market,” O’Neill said.

The Road to Green Serbia | 69

ECO TOURISM

THE SPECIAL NATURE RESERVE ZASAVICA

UNIQUE PLACE Zasavica is a part of a national network of Ramsar sites (wetlands protected according to the Ramsar Convention), and according to IUCN management categories, it is a category IV habitat and species management area. Zasavica has been a member of The Europark Federation since 2001. he Special Nature Reserve Zasavica is situated in Southeast Europe in the Republic of Serbia, on the territory of South Voivodina and North Macva, east of the Drina River, and south of the Sava River. It comprises the territories of Sremska Mitrovica and Bogatić municipalities. The area is dominated by the beautiful biotope of the Zasavica River, 33.1 km long. It is a mosaic of aquatic and wetland ecosystems with areas of flooded forests.

70 | The Road to Green Serbia

The protected area measures 1825 hectares, with 675 hectares in the first degree protection regime. The backbone of the Reserve makes up the Jovaca and Prekopac canals, Batar Creek, and the Zasavica River, which is connected to the Sava River directly through the Bogaz Canal. Zasavica River

is also supplied by groundwater from the Drina River. The whole system belongs to the Black Sea catchment area and presents one of few authentic and preserved wetlands of the region. This calm flatland river provides conditions for the survival of numerous and diverse wildlife. This area

VILA RUSTICA ROMANA

he second phase of development of tourism and education foresees the construction of a Visitor’s Educational center covering an area of 300m2 in the form of an original architectural structure: a ‘villa rustica romana’ (Roman village house).

was put under protection in 1997 on the proposal of the Institute for Protection of Nature of Serbia in order to preserve the river and its coastal areas as a natural asset of greatest importance. Zasavica is a part of the national network of Ramsar sites (wetlands protected according to the Ramsar Convention), and according to IUCN management categories, it is a category IV habitat and species management area. Since 2001 Zasavica is a member of the Europark Federation. FLORA AND FAUNA Zasavica is protected as a Special Nature Reserve in order to preserve natural currents and waterlands, habitats of diverse flora and fauna, some of which are rare and endangered. There have been over 600 plant species recorded in this area so far. Most species are widely distributed, but there are also some rare and relic species on the border of their disjunctive areas. Especially significant are white and yellow waterlilies (Nymphaea alba, Nuphar luteum); water soldier (Stratiotes aloides); yellow floating heart (Nymphoides peltata); marsh nettle (Urtica kioviensis), and calamus (Acorus calamus). WHAT ZASAVICA OFFERS Preserved authentic landscapes, folklore and cultural-historical monuments portray Zasavica as a unique and complete touristic whole. A picturesque mosaic of forests, meadows, river banks, and the river itself, an abundance of plants and animals, a traditional way of life on the river presented in folklore and everyday life as well, a historical heritage dating from ancient times, offer to the visitors rare, attractive, and unique experiences through-

out the year. Relaxation, recreation, sailing, watching and studying nature in the

The backbone of the Reserve makes up the Jovaca and Prekopac canals, Batar Creek, and the Zasavica River, which is connected to the Sava River directly through the Bogaz Canal

For its biodiversity, presence of relict, endemic and rare species, and their communities, insufficient knowledge of some groups (e. g. insects), the possibility to study inter- and intra-specific relations, interactions of biotic and abiotic factors, the area can be designated as one of interest for scientific research. Sport fishermen will find especially designed locations where they can catch, with a little luck, carp, pike, and golden carp. For those who like photo safaris, sailing is a true pleasure, because the nature will leave you breathless. And, aside from natural beauty, local cuisine is special attraction. THE VISITORS’ CENTRE

Zasavica Special Nature Reserve can easily become a reality for you. Educational programs for pupils and students are recommended through one or several dayprograms of expertly prepared activities.

The Visitors’ Centre is the central tourist site at the reserve. A wooden construction was built with an 18-meter- high tower which overlooks a 300 hectare meadow

MANGALITSA

mangalitsa has low fertility rate, and gives birth to 5-6 young. A sow with 9-10 young is considered to be very rare. The varieties of manglitsa considered purebred are: Blond Mangulitsa; Swallow-bellied Mangalitsa, Srem Black Lasa, and Red Mangulitsa. Why is a mangalitsa’s fat better than a modern pig’s? Fat is important and indispensable for food. Mangalitsa fat contains 8-10% more non-saturated, fatty acids like an ordinary pig’s. It takes longer for the fat to spoil and the food pickedup during the grazing gives it a special taste. As an exclusive product, Srem sausage, called “half a meter of Srem sausage,” is made of mangulitsa meat. There is also smoked ham, “kulen,” bacon, and fat.

The Road to Green Serbia | 71

ECO TOURISM

and the widest and most beautiful part of the Zasavica River. This facility also has a souvenir shop and two rooms with a total of seven beds, and two additional rooms. In front of it is a wooden pier leading to the boats and a shaded sightseeing boat that takes tourists around the reserve. Apart from the wooden facility, there is also a waterwheel as an additional tourist attraction. Other facilities include the “Bircuz kod dabra“ (Beaver’s Inn) and an ethno room with eaves that houses an ethnographic-historical exhibition of old household and farming implements and tools from the end of the 19th and the beginning of the 20th century. Visitors have

at their disposal a sanitary unit with toilets and showers inside, but there are al-

Preserved authentic landscapes, folklore and cultural-historical monuments portray Zasavica as a unique and complete touristic whole so showers outside that can be used in the summer. The “Bircuz kod dabra” offers the

use of a grill, grilling plate, and cauldron for preparing food. There is also a parking lot for cars and buses in front of the Visitors’ Centre. The entire area is open to visitors 24 hours a day, 365 days a year, and there is always a security employee to guard the facilities and welcome the visitors. This is a place where tourists get the information they need about the reserve through lectures and information billboards, maps of the reserve, the greatest attractions of the reserve (photos of flora and fauna), and a board with a small entomological exhibition, as well as other accompanying elements.

BALKAN DONKEY

onkeys in Zasavica have been ignored lately, but were used abundantly in ancient times. Donkey’s milk has been slowly finding its way to consumers. Judging from Constantin Jirechek and his works “The History of Serbs” and “Hodoski Zbornik” from the 14th century and “Physiology” from the 15th century, donkey’s milk has been used throughout these territories for centuries as a remedy for healing wounds. Donkey’s milk has a revitalizing impact on the whole organism. It is very effective for skin problems, for boosting your immune system, for recovery, and against chronic fatigue. Its ingredients are particularly useful for sportsmen, pregnant women, babies, and people suffering from asthma. Donkey’s milk regenerates intestinal flora. It is like breast milk and is easily digested. Although it contains half less fat than cow’s milk, it contains a significant amount of nutritious ingredients; it is rich in vitamins C, B, and D12. It is especially rich in immunoglobulins, which make it a perfect drink for the prevention and protection against viruses and bacteriological aggressors, which often appear in winter, such as colds, bronchitis, etc. Donkey’s milk can be drunk with no need for pasteurization, because, unlike cow’s milk, donkey’s milk does not contain any bacteria. It is whiter and lighter than cow’s milk and has a lower fat content. Donkey’s milk contains only 0.6 grams of fat in 100 grams of fresh milk, much lower than cow’s milk, which contains 3.7grams. What makes a significant difference in relation to cow’s milk is the protein content. The average protein content is 1.72 grams and is characterized by a small percentage of casein. 72 | The Road to Green Serbia

NEWS

$4 MILLION PENALTY Norfolk Southern Railway Company has agreed to pay $4 million penalty to resolve alleged violations of the Clean Water Act (CWA) and hazardous materials laws for a 2005 chlorine spill in Graniteville, S.C., the Justice Department and U.S. Environmental Protection Agency (EPA) announced today. Under the settlement filed in federal court in Columbia, S.C., Norfolk Southern will be required to pay a civil penalty of $3,967,500 for the alleged CWA violations, to be deposited in the federal Oil Spill Liability Trust Fund. The alleged CWA violations, included in an amended complaint filed in March 2009, are for the discharge of tons of chlorine, a hazardous substance, from a derailed train tank car and thousands of gallons of diesel fuel from ruptured locomotive engine fuel tanks. For the alleged Comprehensive Environmental

Response, Compensation, and Liability Act (CERCLA) violation for failure to immediately notify the National Response Center of the chlorine release, Norfolk Southern will pay a penalty of $32,500, to be deposited in the Hazardous Substance Superfund.

WASTE MANAGEMENT S4 Energy Solutions LLC, a joint venture by Waste Management, Inc. (NYSE: WM) and InEnTec LLC, announced plans to develop a plasma gasification facility at Waste Management’s Columbia Ridge Landfill in Arlington, Oregon. The planned facility will convert municipal solid waste into fuels and energy. Construction is expected to begin in the early summer, with startup scheduled by year end. With the S4 system, waste materials are prepared and fed into a first phase gasification chamber that operates at temperatures of approximately 1,500 degrees Fahrenheit. After the first phase, the waste materials flow into a second closed chamber where they are superheated to temperatures between 10,000 and 74 | The Road to Green Serbia

20,000 degrees Fahrenheit using an electricity-conducting gas called plasma. The intense heat of the second stage plasma gasifier rearranges the molecular structure of the waste, transforming organic (carbonbased) materials into a synthesis gas (syngas). The syngas may then be converted into transportation fuels such as ethanol and diesel, or industrial products like hydrogen and methanol. The syngas could also be used as a substitute for natural gas for heating or electricity generation. In a secondary stage of the process, inorganic (non-carbon-based) materials are transformed into environmentally inert products, according to a Waste Management press release. “Our goal is to extract as much value as possible from waste and this project will help us recover valuable resources to generate clean fuels, renewable energy and other beneficial products,” said Dean Kattler, area vice president for Waste Management Pacific Northwest. “This project strengthens our focus on renewable energy and new technologies that use waste as a resource.” Waste Management began generating renewable electricity at the site in January 2010 with the startup of a new landfill gas-to-energy (LFGTE) facility. The LFGTE process captures methane gas generated as waste decomposes in the landfill and then uses the gas to generate 6 megawatts (MW) of electricity. The electricity is powering 5,000 homes in Seattle through an agreement with Seattle City Light. Wind power is also generated at the landfill, with 67 windmills producing more than 100 MW of renewable energy for PacifiCorp.

ARE UTILITIES READY FOR SMART METERS? The rollout of the highly touted Smart Grid ran into another buzz saw this week, this time in Texas, when a hundreds of consum-

ers showed up at a town hall meeting, and the Grand Prairie City Hall, in the Dallas-Fort Worth area, complaining that their recently installed wireless Smart Meters were responsible for higher electric bills. That led state senator Troy Fraser to get involved, asking the Texas Public Utility Commission to halt installation of the meters and to initiate an investigation. The meters were installed by the Texas utility Oncor Electric Delivery, which services roughly three million customers in the area. The company has installed nearly 800,000 of these meters and insists that they are highly accurate. They are now running a side by side verification study, where smart meters have been installed alongside the previously used mechanical meters and show little difference thus far. That doesn’t placate folks like Tricia Lambert, one of the hundreds who have complained, claiming, “My bills average between 1,500 and 2,000 kilowatt-hours, and it goes up a little more in the summer,” she said. “That’s pretty much where I stayed. The first month with the smart meter was 4,383 kilowatt-hours.” In some cases, like that of John Colbert, there were errors made by meter readers. An audit of his meter found that the smart meter was off by about 2000 kWh. Apparently, the meters are not read automatically. “Any time you’ve got humans involved in the process, there’s always an opportunity for errors to take place,” said Oncor spokesman Chris Schein. This experience closely parallels an earlier story in Bakersfield, CA, where PG&E customers voiced similar complaints. Bakersfield residents believe their new smart meters are malfunctioning because their bills are much higher than before and they have filed a classaction lawsuit against the utility. An independent evaluator will be appointed by the California Public Utilities Commission some time this week. PG&E claims higher bills are due to rate hikes, an unusually warm summer, and customers not shifting demand to offpeak times when rates are lower. Likewise, in Texas, this past winter was unusually cold.