2020
COMMENT
How To Turn A Pandemic Into An Opportunity In its latest assessment, the UNDP in Serbia recognises the good and timely response of the Serbian government to the first impact of COVID-19. The report also suggests that the country should use the COVID crisis as an opportunity to accelerate its transition to a green economy.
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he good news is that many of the targets related to Serbia achieving the UN’s Sustainable Development Goals (SDGs) are already written in our EU accession process. Yet despite the comprehensive policy framework guiding our path to EU membership, Serbia still needs clearer strategies and realistic and tightly written action plans related to many of the SDGs. One of the most important questions is how we want our economy, society and environment to work and look like by 2030. Serbia indeed faces many human development and environmental challenges. A few of the SDGs speak about that. When it comes to Serbia’s assets and constraints related to inclusive and environmentally sustainable economic growth, SDG 9 (focusing on infrastructure, industrialisation and innovation), 7 (energy), parts of SDG 6 (water management), 12 (sustainable production and consumption), and 15 (forests and biodiversity) are largely interconnected. For example, Serbia has human capital in the engineering/technical sectors, which
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are sine qua non for the development of a productive, sustainable and high value added industry. However, these resources are relatively scarce and are not deployed well to
Related to that, waste management presents a major challenge for Serbia. There are an estimated 3,000 wild waste disposal dumps, with only 20% of municipal waste not ending up at municipal landfill sites. Turning the page will require tremendous effort. As we learned throughout this publication, a number of different initiatives are underway. Some important strategies, such as those related to smart specialisation, artificial intelligence and industry development, are already there and contain specific goals
Short and long-term recovery solutions have to increase the well-being of people and create a healthy environment serve the growth of the domestic economy. Most of our export-orientated products and investments at present are in the medium-low to medium-high technology range. Energy policies are particularly complex. First, we are highly energy inefficient. Existing hydrocarbon reserves will be exhausted soon after 2030, while green energy resources are not well developed. There is a need to develop more sustainable production and consumption patterns, based on the premises of the circular economy, as well as adequate policies related to climate change. Yet we are still in the very infancy in both aspects.
leading to the development of the circular economy. They are also tightly woven into other policies related to addressing environmental challenges, climate change and related issues. Many economies that are much stronger and better developed are still struggling with the same issues, which have been further exacerbated by the pandemic. But there is no way back. As the UNDP Socio-Economic Impact Assessment suggests, more support to green businesses is of key importance for health and environment, but also for ensuring the competitiveness of Serbian companies in the EU and on other markets. â–
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INTERVIEW
ANĐELKA ATANASKOVIĆ, SERBIAN ECONOMY MINISTER
Sustainable Development And Economic Efficiency One of the specific goals of the Industrial Policy Strategy of Serbia from 2021 to 2030 is to transition from a linear model of industry to a circular one. Considering that our industrial production is based on older technologies, this will be a demanding task, in which the economy will have the support of the state. This is also a demanding job for many other economies.
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he dominant principle of most economies around the world at present is a linear model that implies the use of resources to produce as many products as possible, with minimal attention paid to the management of waste materials and more efficient use of available resources. “If one is pursuing the objectives of sustainable development and environmental protection, such a system is not viable,” says Anđelka Atanasković, the Minister of Economy in the new Serbian government. “The circular economy principle is very important for the Serbian
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economy, but also for all other economies, because the goal is the achieving of sustainable development at the global level. The essence is that the circular model should ensure a high quality of life for people in a healthy natural environment, without this having a negative impact on the decline of production and the profitability of business entities.” Based on a proposal of the Ministry of Economy, during March this year the Government of Serbia adopted its Industrial Policy Strategy from 2021 to 2030. The general objective of this strategy is to increase the
competitiveness of industry, whereas one of the five specific goals is the transformation of industry from a linear to a circular model, which should contribute to achieving the aforementioned general objective. “Measures and activities from the Action Plan for the implementation of this strategy, which is a circular model intended to push the transition from a linear to a circular model, will consist of promotions and education, as well as the redefining of incentives within existing programmes of the Ministry of Economy for the procurement of production
SUPPORT
DIRECTION
GOAL
The Ministry of Economy provides funds for the procurement of machinery and equipment which will improve energy efficiency and the environmental aspects of production
The state needs a clear strategic direction to transform the economic model towards the circular economy and reduction of greenhouse gas emissions
The essence is that the circular model ensures a high quality of life, without this having a negative impact on production and profitability for businesses
equipment,” says Minister Atanasković. “The aim is to enable the provision of more significant support for the procurement of production equipment which is energy efficient and uses recycled resources. I would like to note that these activities will be coordinated by the Ministry of Economy, with the support of the Centre for Circular Economy at the Chamber of Commerce & Industry of Serbia and the Ministry of Environmental Protection.“
transition from a linear model to a circular one implies an innovative approach, and this is where the IT sector comes to the fore.
velopment and increase its competitiveness on international and European markets, it is essential for us to follow European and global economic trends, including new criteria for competitiveness (type and method of material use, business models, cleaner technologies and innovations, resource and energy efficiency). In this regard, it is necessary for the SME sector to be provided with a wide array of various financial instruments, which will enable them to access capital in a way and under the conditions that correspond to the current stage of the said company’s development cycle. Through its SME Support Programme for the Procurement of Equipment and its Programme of Entrepreneurship Encouragement Via Development Projects, the Ministry of Economy provides funds (partly grants and partly favourable loans) for the procurement of machinery and equipment which will improve energy efficiency and the environmental aspects of production. Support is also provided by international organisations operating in Serbia, so we have the EBRD Support Programme for SME Competitiveness, through which it is possible to introduce standards in the field of environmental protection through loans and grants. Funds are also available from the EU Programmes. Apart from financial assistance, advisory assistance is also essential and we provide this, among others, through the EBRD Programme of Advisory Services for SMEs.
• How can a circular economy help to stimulate innovation among businesses? - The circular economy and innovation are directly linked directly, because the very
• Digital platforms, smart devices, artificial intelligence, the Internet of Things and blockchain technology are already contributing to the development of circular economy. To what extent are these elements of digital transformation presengt in our country? - One of the priorities of the Government of Serbia is the digital transformation of the economy, and in accordance with this, a series of activities have been undertaken, aimed at the successful implementation of the digitisation process successfully. We
The Ministry of Economy will support the digital transformation of the economy through promotions and the education of enterprises in the field of digitisation, as well as via direct subsidies transition from a linear to a circular model of production implies innovative solutions which will enable stable and profitable business operations, on the one hand, and protect the environment, on the other. Therefore, achieving the objectives of the circular economy is an inextricable part of the innovative approach in all segments of production and services. • Numerous technological challenges exist in production processes and the application of the circular design of products, but also in reusing products which are currently in use. To what extent can a well-developed IT sector help in this domain? - The IT sector in Serbia has recently been recording excellent results, and it is today recognised as a sector which can provide great assistance in the domain of the circular economy. As I’ve already stated, the
have adopted the Strategy for Artificial Intelligence and the Strategy for Smart Specialisation, while the improved digitalisation of industrial production business models is another of the special goals of the Strategy for Industrial Policy. Within the scope of this goal, the Ministry of Economy has prepared a set of measures and activities which will strive to digitally transform the industry and raise its competitiveness to a higher level, through promotions and the education of enterprises in the field of digitisation, but also via direct subsidies to companies traversing the path of digital transformation. • What kind of help do SMEs need in order for them to be able to switch to solutions which conserve resources and enable efficiency in the use of raw materials and energy, while also protecting the environment? - In order for Serbia to continue its social de-
• How well developed is the legal framework regulating this area and how much does it rely on the work of your ministry? - Through a series of regulating amandments, the European Union has placed a special emphasis on preserving material resources and improving the energy efficiency of industrial capacities, but also on the comprehensive
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introduction of the circular economy concept. According to the European Union’s new Strategy for Industry, which was adopted in March this year, the circular economy and digitisation will represent the two most important pillars of industrial development. It is necessary to harmonise domestic regulations with EU regulations in the fields of the circular economy and climate change in the forthcoming period. This area is not under the direct jurisdiction of the ministry that I head, but we will provide full support to activities that encourage the process of transforming the economy to a circular model. • What dilemmas arise when it comes to creating an acceptable system for our companies in terms of preventing the excessive use of resources, increasing the flow of raw materials in circulation and reducing uncontrolled pollution and waste dumping at landfill sites? - According to the conclusions of the public-private dialogue conducted within the framework of adopting the Industrial Policy Strategy, awareness about the importance of the environment and the fight against climate change in general is still underdeveloped among representatives of industry in our economy. This is especially true in terms of the issues of waste management and the possibilities of using waste as a raw material in industrial processes. Industrial production in the country is predominantly based on older techniques which are among major environmental polluters and greenhouse gas emitters. Such technologies are associated with higher energy consumption and waste production per unit of product, with significant losses incurred in material flows. A low level of the treatment of waste and wastewater has also been identified among individual industrial companies in the country. The potential of renewable energy sources is also insufficiently utilised. Producing energy from renewable resources requires additional investment, which makes it more expensive compared to the use of conventional fuels. Likewise, there is also insufficient use of energy from renewable sources among industrial companies in the country, due to their insufficient financial strength or awareness.
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In accordance with the aforementioned, the state needs a clear strategic direction to transform the economic model towards the
dialogue with the economy, i.e. with all stakeholders. The process began with the holding of public-private dialogues during
We collaborate closely with the CCIS Centre for Circular Economy and the Ministry of Environmental Protection in implementing the new strategy for industrial development circular economy and reducing greenhouse gas emissions, and the sectors identified as having the greatest potential for applying the circular economy concept in our country include the food industry, construction, the wood industry as well as primary agriculture. • In which ways is your ministry involved in cross-sector cooperation to address these issues? - The actual Industrial Policy Strategy from 2021 to 2030 itself, presents a document which included the participation of a large number of ministries, bodies and institutions in its development and in the implementation of measures and activities included in the Action Plan. This process is also conceived as a continuous
the drafting of the Strategy, then continued with further dialogue with the economy and public debate, while the plan is for dialogue to continue following the adoption of the Action Plan and its implementation, with the aim of improving evaluations and possibly correcting and supplementing measures and activities undertaken from the Action Plan. Thus, there is intensive cooperation with the Ministry of Environmental Protection and the Centre for Circular Economy of the Chamber of Commerce & Industry of Serbia, through activities in the implementation of the mentioned strategy of the Ministry of Economy, but also through the development of the Programme for the Circular Economy, which will be adopted next year by the Ministry of Environmental Protection.
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BUSINESS
Rio Tinto, Jadar Project, Large Diameter Drill Rig, Loznica , Serbia
PRODUCING MATERIALS ESSENTIAL FOR HUMAN PROGRESS, SUSTAINABLY Rio Tinto is one of world’s leading mining companies with operations in over 35 countries worldwide. Rio Tinto has a strong focus on sustainability and products for the future, such as lithium, which sits at the heart of the energy storage and electric vehicle revolution.
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io Tinto launched its first integrated sustainability strategy in 2018, which obligesthecompany,initsownwords, to adopt high standards, because the issue of sustainability is crucial for its operations, employees, the communities in which it operates and the customers who use its products. Rio Tinto implements the strategy by conducting safe, responsible and profitable business operations, cooperating with partners and customers and producing pioneering materials for human progress. Rio Tinto strongly supports the development agenda for 2030 and the sustainable development goals (SDGs) proclaimed by the United Nations (UN). Leveraging innovative technology and solutions, RioTinto has reduced CO2 emissions from its operations by 50 per cent since 2008, and 76 per cent of the electricity used by the company now comes from renewable sources with low carbon emissions.
CARE FOR PEOPLE AND THE ENVIRONMENT Health and safety are Rio Tinto’s foremost priorities. That’s why it has strictly defined standards, processes and procedures to protect the health and safety of the people, environment and communities in which it operates. The business prioritizes the rights and welfare of employees, ethics and integrity in business, respect for every link in the supply chain, but also respect for, and preservation of, the environment. Transparency in doing business is also important to this company, as the foundation to building trust with stakeholders. Maintaining and increasing profitability is also crucial for Rio Tinto, because only a profitable business can create sustainable, long-term value – not only for shareholders, but also for communities, governments and employees.
PARTNER TO SERBIA Rio Tinto has had a presence in Serbia, where it has been present since 2004 – when it discovered the unique Jadarite mineral near the town of Loznica – starting the Jadar Project. Since then, Rio Tinto has carried out 300 drilling operations as part of its geological research on the ore body, using the best available methods and technologies, and established technical cooperation with more than 90 domestic and international partners on a variety of areas. Rio Tinto will invest an additional $200 million in the feasibility phase of project development, which will bring the total invested to $450 million till the end of 2021. The project is expected to create more than 2,000 jobs during the construction phase. Construction could begin in early 2022 and last approximately four years. When it starts operating at full capacity, Jadar is expected to employ more than 700 high skilled workers. The project has set an ambitious goal for 30 per cent of future project leaders to be women, and development plans also include intensive cooperation and partnerships with universities, trade schools, high schools and adult education programmes. JADAR IS MORE THAN A MINING PROJECT Jadar is the only place in the world where you can find jadarite – a lithium sodium-borosilicate mineral. Lithium is a key component of batteries for electric vehicles and energy storage, and borates are an indispensable ingredient of many household products. Of Jadar’s three major products (lithium carbonate, boric acid and sodium sulfate), the most important will be lithium carbonate – a key input for the production of electric vehicle batteries. Lithium is a material of the future, a material that’s vital to the development of the future low-carbon economy, and Jadar is more than just a mining project. It will be a modern underground mine, with accompanying processing technology and infrastructure, built with a sustainable approach to environmental protection. The Jadar Project team is dedicated to understand our communities priorities and concerns and share all information about the project and its impacts in our two Rio Tinto Information Centres in Loznica and Brezjak. Over the past 12 months alone, 19 Open Day events have been held with the community, covering topics including environmental compliance, biodiversity, cultural heritage, land acquisition workshops and supplier development. The Jadar project does prioritizes environment protection. It is of strategic importance, both for the exploitation and production of lithium, and for the development of the green economy, Serbia’s GDP and new jobs. The Jadar project will be based on modern technological exploitation and production, which - according to Marnie Finlayson, Rio Tinto Managing Director for Borates and Lithium - will also contribute to preserving the environment.
Bunoodra, Processing Plant, Melbourne, Australia Twelve environmental studies have been conducted since research on the project began, covering air and water quality, noise pollution, waste management, project impact on soil, biodiversity etc. Three Environment Impact Assessment Studies will haven be completed by the end of the Feasibility study phase – for the mine, processing plant and waste management solution. All project solutions will apply all recommended measures and solutions defined on the basis of these studies, to ensure safe and sustainable operations and long term benefits to the communities, Serbia and the company. FINDING THE BEST POSSIBLE SOLUTIONS RioTinto is committed to finding the best ways to minimise potential impacts on the environment and the community. The industrial waste from processed ore has undergone significant improvements as the project has advanced in terms of knowledge and the confidence in the processing technology. The Serbian and international team of technical experts, chemical and processing engineers spent several years trying to find stable and reliable ways to convert the slurry waste into filter cake as a more sustainable solution. And they succeeded! They strive to minimise waste generation and at Jadar will be using ap-
proximately 20% of generated waste as backfill in the underground mine, while Jadar team is committed to constantly improve the waste solutions in order to minimize footprint. PLANNING FOR THE FUTURE The way Rio Tinto manages its plants is vital for the future of local communities, both during operations and after work has ceased. The company considers the decommissioning of a mine before it even opens, because everything will be returned to its original state. The way Rio Tinto gradually rehabilitates land can be seen in places like Richards Bay Minerals, KwaZulu-Natal in South Africa or the bauxite mine in Queensland, Australia. A great example of operating sustainably in challenging environments Is the Diavik diamond mine, located on an inaccessible island near the Arctic Circle in northwest Canada. The mine was designed with consideration for its ultimate closure in mind. The site’s buildings can be removed, and after excavation concludes the embankments will be renewed, while the open pits will be filled with lake water. Rio Tinto continues to seek ways to additionally process mineral waste, including tailings, in the coming years, and will also strive to increase the percentage of low-carbon renewable electricity used in its operations.
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INTERVIEW
SINIŠA MITROVIĆ, DIRECTOR OF THE CENTRE FOR CIRCULAR ECONOMY AT THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA
Renewals Should Be Green The circular economy could represent a channel for the swifter recovery of the Serbian economy following the pandemic. This is because it is based on resource independence and the use of internal reserves and domestic resources – waste, recycling and energy, which would create room to generate a large number of jobs, which are essential for us now.
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he circular economy is a fourth industrial revolution platform for applying a new industrial model that envisages the deep integration and management of production and information flows, as well as the interaction of technological and thought processes. It represents a new business model that foresees the maximum optimisation of economic processes, along with the reuse of available raw materials and energy resources from waste streams, the efficient use of energy and human resources, and savings in time and ways of organising business, alongside the greatest possible reduction of negative impacts on the environment and climate. “It is extremely important for circular economy principles to be applied in the
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Serbian economy, because it helps the national economy to build its own capacity and become more competitive on the European market, helps open up new markets and create new jobs,” says Siniša Mitrović, Director of the Centre for Circular Economy at the Chamber of Commerce & Industry of Serbia. “The circular economy, which is increasingly discussed in Serbia, could be a channel for the swifter recovery of the Serbian economy following the pandemic, because it is based on resource independence and the use of internal reserves and domestic resources - waste, recycling and energy, which would create room to generate a large number of jobs, which are essential for us now,” adds our interlocutor.
• Companies very often consider that they should be exempt from paying environmental tax, explaining that they don’t contribute to environmental pollution and viewing this tax as one of the many para-fiscal charges burdening the economy. What is the stance of the CCIS on this issue? - The charge for protecting and improving the environment is necessary and isn’t a problem for companies, provided the “pay as you pollute” model is applied consistently and, of course, the money collected from charges is spent transparently. The Chamber of Commerce & Industry of Serbia has been addressed by numerous companies with complaints regarding the methodology for calculating this tax, and the CCIS has
INCENTIVE
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SUPPORT
If a company applies circular economy tools, saving both resources and energy, then it should be exempt from environmental charges
We have no third way other than to transition from a linear to a circular model if we plan, both now and in the future, to grow our GDP by up to six per cent annually
The proposal of the Instrument for Pre-Accession Assistance, IPA III, envisages a dedicated space for implementing the Green Agenda and sustainable connectivity
responded by sending a letter to all relevant parties, including the Office of the Prime Minister, the Ministry of Environmental Protection, the Ministry of State Administration and Local Self-Government and the Ministry of Finance, with the aim of identifying the most efficient, and at the same time sustainable, systemic solutions in this area. We must build a transparent and predictable model of charges that’s stimulating for companies. If a company applies circular economy tools, saving both resources and energy, and invests new usage value gains from generated waste in the environment, then it should be exempt from environmental charges.
investments, securing technical assistance in schemes for emissions trading and fossil fuel alternatives, researching opportunities for early inclusion of the Western Balkans in the EU emissions trading, and the region’s inclusion in the European Climate Pact and its activities. The transition to clean energy implies assistance in harmonising regulations with EU legislation, helping partners to draft national energy and climate plans, assistance in the development of private and public schemes for the renovating and securing of buildings, adequate funding, expanding the “EU renewal wave” to encompass the Western Balkans, assistance to partners
We are confronted by numerous difficulties in the green transition, and they can be identified through inconsistent laws and the lack of a fully systemic solution for transitioning to a circular economy • Very few companies in Europe are also switching to a circular economy, despite innovative solutions being available to them, simply because it’s easier for them to stick to classic approaches. What would motivate our companies to adopt this philosophy? - We have no third way other than to transition from a linear to a circular model, if we plan, both now and in the future, to grow our GDP by up to six per cent annually. The Green Agenda for the Western Balkans envisages five pillars. The first pillar is climate change, including decarbonisation, energy and mobility. Climate change encompasses initiatives such as rapid alignment with EU climate law, assistance to partners in preparing and implementing long-term climate adaptation strategies for increasing resilience, especially through the climate protection of
in implementing programmes for resolving energy poverty in the region, the inclusion of the Western Balkans in the Coal Regions in Transition initiative, conducting an evaluation of the socio-economic impact of decarbonisation across the region. Smart and sustainable mobility entails the implementation of a regional plan for the transformation of railways, a strategy to increase the capacity of railways and develop new transport models, the implementation of EU standards, via the European Rail Traffic Management System, an action plan to ease transport, with the implementation of the road safety and road action plans, assistance in developing resilience to climate change, and the defining and implementing of sustainable urban mobility plans and sustainable mobility solutions. The circular economy, especially when it comes to dealing with waste, recycling,
sustainable production and the efficient use of resources, entails supporting the entire region in improving the sustainability of raw material production, working on integrating the Western Balkans into the EU’s industrial supply chains, supporting the region in developing circular economy strategies, implementing targeted consumer initiatives aimed at raising citizens’ awareness of waste, separated collection and sustainable consumption; preparing and implementing programmes for preventing waste generating, waste management and recycling strategies, building and maintaining waste management infrastructure, developing a regional agreement on the prevention of plastic pollution, including special solutions for the priority issue of marine waste, and supporting the establishment of sustainable development policies. Biodiversity, aimed at protecting and restoring the region’s natural wealth, relates to regional support for the development and implementation of the Western Balkans Biodiversity Action Plan 2030, assistance in preparing and implementing forest landscape restoration across the Western Balkans, assistance in analysing the benefits of biodiversity solutions based on nature and opportunities to integrate them into the development of plans for the climate and other areas, strengthening the mechanism for regional cooperation on biodiversity conservation, as well as engagements with the UN Convention in Rio, supporting exchanges of knowledge between research centres of the Western Balkans and the EU, and researching the possibilities of establishing a Western Balkans Biodiversity Information Centre. In the area of combatting air, water and soil pollution, activities entail assistance to the region in developing and implementing air quality strategies, consisting of increasing the applying of the best available techniques in accordance with the Directive
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on Industrial Emissions, the accrediting of networks for monitoring air quality and the region’s inclusion in pan-European networks that support initiatives for removing pollution. There is also support for the modernisation of water monitoring infrastructure, implementation of the Water Framework, the Directive on Urban Wastewater and Extractive Waste, support for regional and/ or bilateral agreements and/or protocols on cross-border water pollution and pollution on land-based sources, investments in waste management and wastewater treatment plants for water to be reused in agriculture, investments in the collection and treatment of urban wastewater. In the area of sustainable food systems and rural areas, support relates to harmonising the agri-food and primary production sectors with EU standards on food safety, plant and animal health, the strengthening of official sanitary controls throughout the food supply chain and improving food labelling in order to ensure food safety, improve consumer information and promote sustainable food. This area also includes the promotion of ecological and organic agriculture and reducing the use of synthetic chemicals, support for cooperation between scientific and educational institutions and producers and processors operating in the agri-food sector, support for actions aimed at reducing waste in rural and coastal areas (along roads, in rural rivers), bolstered efforts to ensure the sustainable development of rural areas and the improving of rural infrastructure within the scope of IPARD. The implementing of such an ambitious agenda would require significant public and private funding at the national, regional and international levels. External instruments under the auspices of the next EU Multiannual Financial Framework (MFF 2021-2027) are currently being negotiated with the Council and the European Parliament. Financial assistance provided to date in the areas of the environment and climate change has been mainly sector specific, focused on the process of harmonisation with the EU acquis, in line with the requirements of Chapter 27, at the bilateral (mainly investment) and regional (mainly capacity building) levels. The proposal of the Instrument for Pre-Accession
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Assistance, IPA III, envisages a dedicated space for implementing the Green Agenda and sustainable connectivity. • How will the Operational Team of the CCIS and the Ministry of Environmental
standards, environmental taxes and charges, as well as the new credit mechanism GREEN FUND (green credit bank). We are confronted by numerous difficulties in the green transition, and they can be identified through inconsistent laws and the lack of a
We are extremely well aware of the fact that at this moment there is a particularly exasperating situation for the economy as a consequence of the spread of the COVID-19 virus, which is why businesses need additional support and responses from all relevant institutions Protection function and what will be this body’s mission? - We are very grateful to Minister Vujović for accepting that the model of the operational team, which is in constant coordination, sets the priorities and solutions. We have several pillars of coordination: a regulatory framework (amending the Law on Waste Management, the Law on Packaging and Packaging Waste and the Law on Climate Change), the National Strategy for Waste Management to 2030, problems in operations and the applying of environmental
fully systemic solution for transitioning to a circular economy, then poor waste management (low level of recycling, illegal landfills, insufficiently elaborated regulations, lack of infrastructure), a low level of knowledge and awareness about the circular economy and its benefits for society as a whole, a small level of investments and a lack of financial incentives for technological modernisation, inefficient energy consumption and a high percentage of fossil fuel inclusion in the energy balance, and poor engagement of the media…
BUSINESS
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How Nestlé's Surčin Factory Achieved The Goal Of Zero Waste To Landfill
he tour of the factory was held live online, adhering to the preventative measures and social distancing prescribed by the Government of the Republic of Serbia. Tanja Žigić, director of the Surčin factory, led those in virtual attendance through the factory, the production plant and the recycling yard. Tanja Žigić highlighted the infrastructure and the method of working that has led to a reduction in the consumption of all the most important factors needed in production. The company invested 30,000 euros in LED lighting, thereby reducing the consumption of electricity by as much as 20 per cent. By reducing the dimensions of packaging material, paper consumption has been reduced by as much as 60 tonnes per year, and along with it negative emissions of carbon dioxide. The largest investment locally is 1.2 million euros and relates to the modern treatment of wastewater, which enabled water consumption to be reduced by 50,000 cubic metres annually. Separation at source removes as much as 80 per cent of municipal waste that’s disposed of in specially separated recycling bins, which are reused in production after recycling, either as bio fuel or for some other purposes. “Apart from sustainable production and environmental protection efforts, Nestlé is also committed to raising awareness about the importance of this topic, so recently the first ecological online education of young people #NestléProtectsNature was conducted, in the scope of which young people addressed daily challenges in saving water and electricity and using ecological packaging instead of plastic,” said Žigić. Attendees were also addressed by Marian Marinov, Nestlé’s Head of Finance & Control for the Southeast European market. He spoke about the year that’s coming to an end, the challenges that everyone has faced and the timely reactions of the company, emphasising that the Nestlé factory in Surčin is part of
Eco tour of the Serbian factory of the world's largest food and beverage producer
the Nestlé operating system and is tasked with behaving responsibly towards the environment. Marinov also used this occasion to announce his departure from the position of director of Nestlé Serbia and introduce Marjana Davidović, who succeeded him in that position as of 1st November.
viewed as the backbone of the development of the food industry. Stevan Šuša, President of the City Municipality of Surčin, stated that Nestlé pays special attention to creating new values and preserving old ones in our local community. The successful recycling process that
Apart from sustainable production and environmental protection efforts, Nestlé is also committed to raising awareness about the importance of this topic, so recently the first ecological online education of young people #NestléProtectsNature was conducted, in the scope of which young people addressed daily challenges in saving water and electricity and using ecological packaging instead of plastic Assistant Minister of Agriculture, Forestry and Water Management Aleksandar Bogićević also noted that achieving zero environmental impact is extremely important for the community, emphasising that Nestlé is an excellent example of a model that is
gives Nestlé a sense of pride was achieved in cooperation with Sekopak, the leading operator in the system of packaging waste management in Serbia, which was further explained Sekopak Operations Manager Ivana Pavlović.
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SUSTAINABLE DEVELOPMENT
EMMA NAVARRO
THE PLASTICS PANDEMIC Although the world's attention is understandably focused on COVID-19, we must not lose sight of longer-term priorities such as reducing plastics pollution, which the pandemic has exacerbated. The imperative is clear: invest in policies and infrastructure to protect a resource that is vital to our economies and our very survival
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lastic is entering the world’s oceans and seas in ever-greater quantities, and the COVID-19 pandemic is compounding the problem. Masks, gloves, and other forms of personal protective equipment are ending up in waterways. And the World Wildlife Fund estimates that if just 1% of the billions of masks made with a thermoplastic polymer called polypropylene are tossed on the ground rather than deposited in proper disposal bins, as many as ten million per month will end up in the environment as pollution.
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Such warnings should serve as a reminder that no matter how urgent the COVID-19 crisis may be, our response to it must include long-term commitments to the environment. Even without the pandemic, tackling the problem of plastics and ocean pollution would be a massive undertaking. In fact, it is difficult to overstate the challenge. About ten million tons of plastics are discharged into the oceans each year, and the Ocean Conservancy believes there are already some 150 million metric tons circulating in marine environments. Pollution generated by larger plastic items, such as bottles, could be stopped by implementing proper waste management around the world. But small plastic waste, in the form of so-called microplastics, will be a harder problem to solve, not least because it is barely visible. Some microplastics are added to products like toothpaste and sunscreen. Other are created when vehicle tires wear down on roads, when clothes rub together in washing machines, or when nylon fishing nets break down in the ocean. Many of the solutions for keeping these tiny plastic particles out of waterways are still in development. Microplastics harm aquatic life and biodiversity in many ways, and are probably hurting humans, too. When animals eat plastic, it can block their digestive tracts and send incorrect feeding signals to their brains. Fish, in particular, often mistake plastic particles for food. And because these small particles accumulate in their digestive systems without killing them, they often end up inside humans when we eat seafood. Plastic pollution is expected to keep increasing, particularly in lower-income countries with expanding economies. That means the need to improve waste management everywhere in the world, and to help poorer countries control plastic waste, is becoming increasingly urgent. The European Union has made this a high priority, and several policies are in the works to address the problem. The European Commission’s new Circular Economy Action Plan, for example, proposes mandatory requirements for recycling and reducing the waste associated with key products such as single-use plastic packaging. And a revision to the EU Drinking Water Directive would ensure that drinking water is regularly monitored for the presence of microplastics. If all storm and sewage water in the world were collected, and if we averted all other discharges into bodies of water, we could stop most microplastics
Plastic pollution is expected to keep increasing, particularly in lower-income countries with expanding economies. That means the need to improve waste management everywhere in the world, and to help poorer countries control plastic waste, is becoming increasingly urgent from reaching the oceans. The EU’s rule changes for urban wastewater and drinking water would represent major steps toward a more effective collection and treatment regime for microplastics. But it will take several billion euros in investment each year to reduce the volume of microplastics reaching waterways. And that is just within the EU. Another problem is that the private sector often cannot afford (or is unwilling) to invest in the required solutions. As such, there is also an urgent need for stronger public-sector regulation of microplastics, which can be accompanied by stricter emissions standards as well as more affordable
financing for investment in compliance. As the EU’s lending arm, the European Investment Bank is working on many new ways to finance projects that would advance solutions to the plastics problem. To address ocean pollution directly, the bank has committed to financing better wastewater management systems around the world. Two years ago, we adopted a new lending framework for the water sector, so that we now funnel more support and long-term financing to water utilities, resource managers, and industrial wastewater users. As this is a global problem, we hope that all other development banks will follow suit.
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21
INTERVIEW
VIOLETA BELANOVIĆ KOKIR, GENERAL MANAGER, SEKOPAK
Good Personnel & Partners Lead To Success
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Since the adoption of the Regulation governing the management of packaging and packaging waste, Sekopak has been the only company in Serbia to have exceeded the figure of 100,000 tonnes for the reuse of packaging waste. This company has achieved a leadership position through its knowhow, devotion and optimism 22
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itizens increasingly recognise the importanceofcaringfortheenvironment, and Sekopak offers them content that prompts them to reconsider their attitude towards waste. Also serving this end are the company’s educational campaigns through digitalchannelsanddoor-to-doorcampaignsthat serve to educate citizens through direct contact.
tection Agency. I believe that the recipe for success is a good selection of employees, because they are the greatest wealth a company can possess, as well as a good selection of reliable partners. For Sekopak those partners are collectors with whom we’ve spent many years building a successful network for the collection of packaging waste in Serbia.
• How does one become a leader in the packaging waste management industry? - With its great commitment and effort in the field of packaging waste management, Sekopak has developed and grown with its clients and associates. Our development has implied listening to the needs of the market and adjusting to meet all the requirements that are demanded of us from the turbulent market in Serbia. Thanks to the commitment and optimism of Sekopak employees, we have achieved exceptional results, which has propelled us to a leadership position on the market for the last five years. We succeeded in collecting and submitting more than 100,000 tonnes (100kt) of packaging waste for recycling last year, which represents almost half of the total collected and recycled quantities reported to the Environmental Pro-
• When will we see the launch of the project for managing glass packaging in Niš and Sombor, which you worked on together with GIZ and NALED? How much progress has been made on installing infrastructure for disposing of packaging waste? - We’ve already launched this project and to date the first phase has been implemented. It implied the scanning of cities to determine the number of containers to be installed, as well as the selection of a team of experts who will work with us on the project. It remains for us to procure containers and start installing them in cities by year’s end. The emphasis in 2021 will be on actively educating citizens and measuring results, alongside optimising the process of collecting glass packaging waste. This is a project that will help us a lot in the future as a guide – on how to install
TOTAL AMOUNT REUSED AND RECYCLED OPERATOR SEKOPAK EKOSTAR PAK DELTA PAK CENEX TEHNO EKO PAK EKOPAK SISTEM UNI ECO PAK Total:
Total amount of reused packaging waste (tonnes) 103,325.60 75,797.00 10,545.10 16,320.80 13,609.30 6,955.80 1,992.90 228,546.40
Total amount of recycled packaging waste (tonnes) 95,249.20 75,797.00 10,545.10 15,487.20 12,635.50 6,995.80 1,992.90 218,662.60
infrastructure, determine the real possibilities and take the best approach to Serbian citizens to ensure they carry out the primary selecting of packaging waste. • To what extent has the Coronavirus Pandemic hindered you in implementing the activities and projects that you’d envisaged for this year? - The Coronavirus Pandemic didn’t hinder us in our daily activities, because we quickly accustomed ourselves to new ways of working. Collectors showed themselves to be very reliable partners, with collections carried out without hindrance even during the state of emergency, which is very important. Thanks to our shared timeliness, continuity in the collecting of packaging waste was not brought into question. At the same time, we complied fully with prescribed protection measures and adjusted our work to the conditions. During the period of the state of emergency, the team was divided into groups of two each, with duty shifts set at once a week. And once the state of emergency was lifted the entire team was split into two groups that are on duty every other day. • You’ve spent years organising a CO2 conference at which you award certificates to companies for making savings on CO2. Will that conference be held again this November? - Unfortunately, as a consequence of the situation caused by the
coronavirus outbreak, we cannot organise our traditional annual conference, but we have prepared certificates and will send them to all clients. Reason to celebrate certainly exists. We’ve managed, together with our clients and partners, to make savings of 62,519 tonnes of CO2 in 2019,
the population. This form of promotion has proven particularly effective during this time of the pandemic. Citizens are increasingly recognising the importance of caring for the environment, and we provide them with content that prompts them to reconsider their relationship to-
We organise door-to-door campaigns that include paying visits to the population and educating them through direct contacts which is 110% more than in 2018. When it comes to Serbia as a whole, thanks to the system of extended responsibility for manufacturers, savings amount to 85,654 tonnes of CO2 • How can we bring the topic of recycling closer to citizens? Should campaigns shift to digital channels? - We are increasingly using digital channels to communicate with and educate
wards waste. However, we must take into consideration that a good part of Serbia’s population doesn’t use social networks and likes to be spoken to in person. That’s why we organise door-to-door campaigns that include paying visits to the population and educating them through direct contacts. This approach has yielded exceptional results and we will resume door-to-door campaigns once the situation stabilises with regard to the coronavirus outbreak.
December
23
SUSTAINABLE DEVELOPMENT
WAKE-UP CALL FOR A MORE SUSTAINABLE WORLD
The ambition of the Sustainable Development Goals (SDGs) is as important as ever, but fresh thinking about the best ways to achieve them is needed, with the pandemic having rendered the original 2015 targets unachievable. 24
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he World’s Sustainable Development Goals Aren’t Achievable – proclaimed The Guardian this autumn. It is time to rewrite them and make them more realistic. Five years have elapsed since September 2015, when world leaders adopted the 2030 Agenda for Sustainable Development and its interlinked 17 goals that cut across disciplines, sectors and institutional mandates. Now many authors have challenged that vision, but also the ability of the world’s nations
to achieve the goals that were set. With the pandemic, these goals – or at least some of the most important ones – seem unachievable. In the preamble of the 2030 Agenda document it is stated that world leaders are determined to protect the planet from degradation, including through sustainable consumption and production, sustainably managing natural resources and taking urgent action on climate change, for the sake of current and future generations.
The aim was to develop and enhance integrated approaches to sustainable development that will bring both social and economic benefits. This includes reducing environmental risks, increasing the resilience of societies and addressing environmental issues in a comprehensive manner. With COVID-19 having decimated economic growth, the goals of eliminating poverty, hunger and inequality, and promoting health, well-being and economic growth, have been strongly challenged. Some UN science advisors today suggest that the existing 17 SDGs and 169 associated targets should be organised around 6 “entry points”, including human well-being (which would include eliminating poverty and improving health and education); sustainable economies; access to food and nutrition; access to, and the decarbonisation of, energy; urban development; and the global environmental commons (combining biodiversity and climate change). Others are suggesting actions that are similar yet somewhat different, such as reducing the 17 goals to just six, namely education, gender and inequality; health, well-being and demography; energy decarbonisation and sustainable industry; sustainable food, land, water and oceans; sustainable cities and communities; and the digital revolution for sustainable development. This is not to say that countries will have an opportunity to ignore the need to meet the SDGs. Still, some major points have to be taken into account. Firstly, the world that we knew in 2015, which saw the rising economic growth and positive international cooperation that led to the Paris climate agreement, no longer exists. Instead we have depression, governments preoccupied with national goals and unready to press companies to swiftly switch to the circular economy. Furthermore, cooperation is lacking in fields such as protecting the climate, biodiversity and wetlands. Things have changed. For example, many experts are suggesting the decoupling of the SDGs from economic growth targets. It is not merely that growth is unattainable, but that it is usually achieved by underpinning low quality jobs, traffic jams and pollution. For example, government subsidies for the fossil fuel industry totalled $4.7 trillion in 2015, while that figure probably now exceeds $5 trillion, The Guardian suggests. While it adds to economic growth, this very industry is among the main causes of climate change and unsustainable development. Experts suggest that the pandemic is radically altering economic and social realities, while it is also pressing governments to take radical action to address poverty and inequality, health, education, biodiversity and climate. The World Economic Forum also tried to provide its own answer to sustainable development under new circumstances. Some business leaders who are running the
Progress towards achieving the SDGs was uneven even before the COVID-19 outbreak. Today implementation of many of the SDGs is even more challenging, while in some cases decades of progress have been undone production of synthetic fertilisers for the agricultural sector, which accounts for a quarter of global greenhouse gas emissions, are considering how they can make their companies more sustainable by developing new solutions after the Paris Climate Agreement. Indeed, the Global Risks Report released ahead of the WEF annual meeting listed environmental factors as the biggest threat to world order. As such, some of the most influential CEOs suggest that the companies that fail to take sustainability seriously could run into trouble when seeking financing in the future. Economist Mariana Mazzucato thinks that, given the crisis we’re facing — not just the climate crisis, but also crises of inequality and healthcare systems – governments should rethink how they invest in the economy, and particularly what they demand in return. As an example, Mazzucato mentions the German government, which tied public loans granted to steel companies to their ability to reduce their carbon footprint. Yet in
the words of climate scientist Johan Rockström, such examples are rare: “We’re still having islands of success in an ocean of ignorance”. The latest Sustainable Development Goals Report 2020 does not deny the detrimental impact of the pandemic. Yet, as the report suggests, “far from undermining the case for the SDGs, the root causes and uneven impacts of COVID-19 demonstrate precisely why we need the 2030 Agenda, the Paris Agreement on climate change and the Addis Ababa Action Agenda, and underscore the urgency of their implementation”. This is why the UN is calling for a coordinated and comprehensive international response and recovery effort, guided by the SDGs. It calls for the most developed countries to combine their efforts to support the recovery of the hardest hit countries by basing their efforts on a low-carbon, climate-resilient economy and universal access to high-quality public services.
December
25
SUSTAINABLE DEVELOPMENT
HELEN CLARK
SUSTAINABLE DEVELOPMENT STARTS WITH CHILDREN
The emergence of teen climate activists like Greta Thunberg is no gimmick. In fact, to galvanize climate action and achieve sustainable development, children must be put at the center of national strategies, and giving them a healthy future must be placed above all other concerns
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ur house is on fire - warned the teenage climate activist Greta Thunberg at last year’s World Economic Forum meeting in Davos. Her pointed words – accusing adults of sitting idly by as the planet burns – quieted a roomful of global leaders, inspired young activists worldwide, and underscored the critical importance of putting children at the center of global action to build a better future. Climate change is happening now. That was apparent in Australia’s recent unprecedented bushfires, in which 18 million hectares burned and an estimated one billion animals died. It was also reflected in India’s 2019 heat wave, among its longest and most intense in decades. And a warming planet is contributing to the global spread of dengue, a mosquito-borne viral infection. Yet, even as the clock runs out on our ability to avert a catastrophe, global climate action is not gaining the needed momentum. As Thunberg and other youth activists have underscored, it is our children who will bear the brunt of this failure, as they inherit an increasingly inhospitable planet. Climate change is not the only area where we are failing our children. Predatory commercial marketing that targets children and their caretakers is contributing to the widespread consumption of unhealthy products, such as alcohol, tobacco, e-cigarettes, and sugar-sweetened beverages. The global economic losses associated with the inappropriate use of breast-milk substitutes – associated with lowered intelligence, obesity, and increased risk of diabetes and other non-communicable diseases – amount to an estimated $302 billion. Children are our most precious resource, and they deserve to live long, healthy, and productive lives. To determine how to enable them to do just that, the World Health Organization, UNICEF, and the Lancet recently convened a landmark commission – which I co-chaired, along with Awa Marie Coll-Seck, Minister of State in Senegal – that brought together 40 experts on child health and wellbeing. As the commission’s report – “A Future for the World’s Children?” – notes, the key is to invest in people while they are young. Evidence shows that hungry children have poorer health, worse educational outcomes, and earn less as adults. Children who are exposed to violence are more likely to commit violence. Conversely, children who receive proper nutrition, appropriate care, and quality education grow up to be healthy, productive citizens, who are presumably better equipped to raise healthy, productive children of their own. In short, investing in children today brings lifelong, and even inter-generational benefits. This brings value to all of society. For example, a school-building program undertaken in Indonesia in 1973-1979 has helped to boost today’s living standards and tax revenues.
Climate change is not the only area where we are failing our children. Predatory commercial marketing that targets children and their caretakers is contributing to the widespread consumption of unhealthy products, such as alcohol, tobacco, e-cigarettes, and sugar-sweetened beverages The return on investment in children is remarkably high. In the United States, every dollar invested in a preschool program was found to bring $7-12 in societal benefits per person, via reductions in aggressive behavior and improved educational attainment. In lower-middle-income countries, every $1 invested in maternal and child health can bring over $11 in benefits.1 But we should not pursue such investments only because of the numbers. If we can’t protect our children’s futures, what is the measure of our humanity? TheWHO-UNICEF-Lancet Commission calls upon leaders at every level, from heads of state and government to civil-society and community leaders, to place children at the center of strat-
egies to achieve sustainable development. This will require long-term vision, with presidents and prime ministers ensuring that sufficient funds are directed toward the needed programs and supporting effective collaboration among ministries and departments.1 Every sector has a role to play in building a world fit for children. For example, traffic accidents are the number-one killer of children and young people aged 5-29, implying an urgent need for interventions to improve road safety. Likewise, with 40% of the world’s children living in informal settlements – characterized by overcrowding, poor access to services, and exposure to hazards like fires and flooding – housing reform is essential.
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