Montenegro soon to found Eco-fund

Montenegro has so far opened 31 of the 35 chapters in the negotiations with the EU, and the opening of the most demanding and expensive one, Chapter 27, which pertains to the environment, is expected to take place by the end of the year. To meet the obligations under this chapter, the country will need to invest EUR 1.4 billion by 2035, and the Eco-fund will play the key role in this.

However, it seems that the establishment of the Eco-fund will take some time. As the director general of the Directorate for the Environment at the Ministry of Sustainable Development and Tourism, Ivana Vojinovic, stated for Vijesti recently, the decision on the founding of the Eco-fund will be submitted to the Government of Montenegro in late August or early September.

The Eco-fund would be a legal entity owned by the state and work under the principle of “the polluter pays”. The money would be used to treat the consequences of the pollution and prevent new pollution incidents.

The study of the founding of the company was prepared by the Croatian institute Hrvoje Pozar with the support of the UNDP and it features three potential scenarios according to which 500,000 to 30 million euros might be directed through the Eco-fund annually.

– The major financing source of the Eco-fund will be the field of waste management. All fees for electronic and electrical waste, packaging, tires, batteries and so on will go to the Eco-fund and that is why we will aim to amend the Law on Waste Management – Vojinovic stated.

The Coalition 27, which brings together civil society organizations which deal with environmental protection, is skeptical about Montenegro's progress in this field. Jelena Marojevic Galic of Green Home says that the fact that Serbia has submitted its negotiation position for Chapter 27 should not be seen as a great success, because, as she says for Vecernje Novosti, “real challenges are yet to come”.

Aleksandra Kikovic, the manager of the “Development of Low-Carbon Tourism” project, through which the UNDP financed the study of the founding of the Eco-fund, earlier stated that the future company would not be able to allocate public grants for projects which bring profit.

The fund will approve money under certain favorable conditions, non-interest credits or loans, and grants will be allocated only for projects which bring no profit at all, Kikovic stated and added that the Eco-fund would deal with various fields, from environmental protection, biodiversity, endangered plant and animal species, through projects related to climate change or energy efficiency.

The Eco-fund will encompass households as well, which will be able to get subsidies of benefits in purchasing high-energy efficient devices and vehicles with lower emission of carbon-dioxide, whether electric or hybrid vehicles, for the first time, Kikovic stated.

According to her, in addition to the main, local sources, the fund will also have the support of the EU, with the World Bank, KfW, the European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF).

Vlada Crne Gore

Energetski institut Hrvoje Požar Zagreb

UNDP Montenegro Country Office Podgorica

KfW Bankengruppe Frankfurt am Main

Evropska banka za obnovu i razvoj EBRD Podgorica

Eco fund of Montenegro

Directorate for the Environment at the Ministry of Sustainable Development and Tourism of Montenegro

Ivana Vojinovic

Montenegro waste management

Law on Waste Management

Jelena Marojevic Galic

Green Home

World Bank

KfW

European Bank for Reconstruction and Development

EBRD

Green Climate Fund

GCF

Chapter 27 Montenegro

Coalition 27

benefits for the purchase of high energy efficient devices