Eco Fund – a key institution for implementation of the environmental protection projects

Environmental Protection Fund of Montenegro (Eco Fund) is set to become a leading financial and institutional unit tasked with all projects relating to the environmental protection, climate change, energy efficiency and renewable energy sources, as well as a key institution in decision-making, coordination and implementation of the projects pertinent to this field, says director of this institution Draško Boljević.

Mr. Boljevic, it has been three years since the Eco Fond was established in Montenegro. For those not familiar with the subject, how would you make an introduction with impact, in other words what is your mission?

The Eco Fund in Montenegro has recently marked its three-year anniversary. During this time we have endeavoured to strike a balance between the financial inflows and enabling the citizens, companies and public sector with the opportunity to benefit the most from the various subsidies that we have been offering. Right at the beginning, I would like to clarify that we are an off-budget entity and we fund our activities through collection of the environmental tax that is levied on polluters responsible for air emissions and generation and disposal of hazardous waste. This source of revenue yielded financial resources that are needed for our activities and support to environmental protection. Our mission is to support achievement of the sustainable development and environmental protection goals and by virtue of different programmes and subsidies encourage the citizens, businesses and public sector to undertake environmental protection measures, starting with the reduction of the greenhouse gas emissions. Our focus is on improvement of environmental quality, support to the environmentally sustainable projects and facilitation of low carbon transition and shift to sustainable development. As a closing note to this question, it is safe to say that Eco Fund grows into a key institution in Montenegro for provision of financial support to environmental projects and initiatives and that through our activities, at all times based on the principles of transparency and sound financial management, we strive to contribute to the sustainable development of the country and create better and healthier future for all the citizens.

2. Would you say there is a proper legal and institutional framework in Montenegro allowing for financial management in the field of environmental protection?

As an institution we can rely on a strong legal framework which allows us to operate in compliance with the legislation and regulations. Nevertheless, we do raise concern about the improper implementation of such legislation as some cases have been observed for partial implementation of regulations, yet certain cases showed otherwise. When speaking of the institutional framework for our activities, I cannot but mention certain challenges it also entails. Some studies that preceded setting up of the Eco Fund gave cause to a concoction of diverse solutions. On one hand, being a limited liability company allows us to be relatively flexible and adaptable to changing circumstances. On the other hand, however, the state is inclined to perceive us as a profitable enterprise. These two approaches are often opposed to the presently effective legal arrangements. Therefore, I have to reinstate that our institution is not a profit-based organisation but rather oriented to repayment of funds to three groups of beneficiaries through subsidies. For such a reason, we remain committed to huge efforts and engagement in implementation of laws and regulation in practice and will continue to promote the need for the improvement of the institutional framework so to fulfil our role in the society more efficiently and offer palpable benefits to the citizens, businesses and public sector of Montenegro.

3. The untapped potential of energy efficiency could be put to good use in Montenegro. How do you raise awareness about this potential and what are your specific projects in this area?

Something that makes us proud, and not only us but also the Government of Montenegro as our founder, is the first project of Eco Fund that was implemented in cooperation with UNDP. In 2021, we implemented the photovoltaic installations project, then a vague concept as the energy crisis still had not taken its full swing at the time.

Notwithstanding the modest number of received applications, this project has opened the way for many new initiatives, as we can witness today. Thereafter, in cooperation with EPCG we have launched Solari 3000+ and 500+ Project that become public knowledge as a project oriented to citizens and businesses, enabling them to use solar panels to generate electricity. But we did not stop there. Our annual work plan has provided for the project of energy efficiency measures at the local self-government buildings. The goal of this project is to make the local self-government buildings an example and showcase of implementation of different energy efficiency measures. It is worth noting that solar panels represent just one part of the solution to household energy efficiency and that our goal is to ensure energy-efficient buildings to the full extent. By means of these initiatives, acting as the implementation unit, we have the opportunity to contribute to environmental protection, reduce dependence on fossil fuels and encourage citizens and businesses to turn to renewable energy sources. Aware that this is just the beginning, we intend to continue developing new projects that will facilitate energy sustainability and improve the quality of living in our country.

“It is worth noting that solar panels represent just one part of the solution to household energy efficiency and that our goal is to ensure energy-efficient buildings to the full extent. By means of these initiatives, acting as the implementation unit, we have the opportunity to contribute to environmental protection, reduce dependence on fossil fuels and encourage citizens and businesses to turn to renewable energy sources.”

4. How many applications have you received so far and who is eligible to apply?

It is important to note that there are rulebooks which define the mode of operation and announcement of public calls, as well as the possibilities for receiving subsidies. No matter if it comes to one, one hundred or one thousand Euro, every single project that has been granted a subsidy needs to be justified by ecological parameters. On such a basis we are able to monitor the success of the project and determine whether the subsidy beneficiaries have actually taken any steps towards improvement of the environmental quality. When launching public calls for subsidies for the purchase of electric and hybrid vehicles, we aimed to reduce air pollution emissions. Montenegro has been facing the problem of excessive number of cars per capita, with almost 300 thousand vehicles per 620 thousand citizens. Traditionally, we record high consumption of diesel fuel. This key parameter was indeed recognised as a leeway for us to try to mitigate environmental pollution through these public calls. We are very proud of the success of the public calls, given that the citizens and businessmen have best availed of each opportunity we have offered. Our wish for this year is to have the funds used above all by the governmental institutions as they often use vehicles for their daily activities. Additionally, we are committed to the training of citizens and raising environmental awareness. All our activities would be in vain if we were not highly aware that each and every one of us can pose a threat to the environment.

“No matter if it comes to one, one hundred or one thousand Euro, every single project that has been granted a subsidy needs to be justified by ecological parameters.”

5. In terms of low-carbon development, where is Montenegro today? What projects have you been pursuing in this area?

Any project concerning energy efficiency is oriented towards reducing carbon pollution in Montenegro. An interesting project we have been planning to launch is replacement of the energy consuming home appliances. This project provides for citizens to receive a voucher from Eco Fund when purchasing a new energy-efficient appliance, while the old appliances will be properly disposed of in landfills. Taken together, these measures form a mix of initiatives that will contribute to the improved quality and reduced pollution of the environment. While engaged in a lot of initiated processes and faced with challenges, we try to awake awareness of as many citizens as possible. Our goal is to have us as a society start using the benefits of nature and ensure the citizens use the funds we offer to replace their old energy-hungry appliances. It is important to maintain continuity in the development of such projects and encourage cooperation with the citizens, businesses and public sector so as to jointly build a sustainable future and preserve our natural environment.

6. How does Montenegro deal with climate change as one of the most pressing global problems?

The importance of climate change has been increasingly acknowledged in Montenegro and the country has joined developed countries that are taking actions to mitigate negative effects of climate change. We are currently involved in drafting a new law solution and secondary legislation with a view to the global volatile intensity of climate change on a daily basis. What we find encouraging is a recently signed agreement with the Green Climate Fund that provides support to climate change projects, programmes and policies and which has recognised our institution as a capable potential implementer of their projects. Now we are at early days of our engagement, as we are building a legal and institutional framework which will enable us as a society not to resort to the ad hoc solutions but to establish a system and a strategic orientation of the country towards combating negative environmental effects.

7. Illegal dumping features as one of the biggest Montenegrin problems. Which projects have you implemented so far and what awaits you in the forthcoming period?

In cooperation with the local self-government of Bar, we have converted a vast landfill site in the Roma settlement within this municipality into a children’s playground equipped with all necessary facilities. Moreover, striving to preserve nature and protect the environment, we have rehabilitated the tributary of Tara River, at the time a floating garbage dump that directly threatened to contaminate Tara River. The rehabilitation works were performed by the local self-government which fenced out the area to prevent further waste dumping and placed containers for proper waste disposal. However, we are still facing the challenges as there are as many as 400 unresolved sites of this kind. I would take this opportunity to urge local self-governments to make use of the subsidy we have provided. As we are financing up to 80% of costs, we believe their contribution of mere 20% will not wreak havoc on their budget. This is a chance for us to jointly bring an end to these problems and generally improve the environmental conditions.

8. As regards environmental protection, where do you see a development opportunity for Montenegro?

I would like to single out a very interesting project – Možura Landfill which provides for conversion of landfill gases generated by decomposition of waste into electricity. This project brings much benefit both to the operator – the Municipality of Bar and all of us committed to the achievement of our mission – environmental preservation. The reach of Možura project goes beyond the matter of landfill gases to address a broader scope of waste treatment, in particular plastic waste, used tires and packaging waste. Nevertheless, it is worth emphasizing that any successful implementation of such projects requires prior adoption of the waste management law that is presently in its final stage. Once this law is passed, Montenegro will become 99% compliant with the EU waste treatment standard, thus opening huge opportunities for developments in the field of environmental protection. The projects of this kind are a development opportunity, allowing us to demonstrate that we can ensure efficient waste management and while doing so contribute to environmental protection. With a sound legal framework in place and dedication of all parties concerned, Montenegro has a chance to become a leader in this field.

9. In your previous interviews you would mention that the wider community was still vaguely aware of the Fund that you have managed since 2021.

Despite its instrumental role in the support to the environmental protection related projects, the Eco Fund has often remained anonymous to the wider community. Further on, notwithstanding the importance of the Eco Fund’s activities, its role still awaits to be duly acknowledged by the wider community. So many citizens and organisations are not even aware of the existence of the Fund or the opportunities it has to offer. What is needed to make a change to his end is better reporting on and promotion of the activities of Eco Fund and establishing a clear and transparent communication between Eco Fund and the wider community.

Debates, public presentations and information campaigns can be useful tools for raising awareness of the Eco Fund and the role it plays in the support of environmental protection, thus becoming a more identifiable institution. In Bosnia and Herzegovina, the environmental protection funds feature as important contributors to the environmental cause. Moreover, Croatia and Slovenia also have well-developed funds that have been recognised for their support to environmental protection. The work of those environmental protection funds is governed by the laws which provide for the efficient management and allocation of funds with clearly specified sources of finance.

10. What would be your mid-year reflections on the achievements in 2023?

Well, it all depends on the parameter you consider to measure success. Our internal discussions suggest that the number of citizens and businesses receiving subsidies grows with every new public call, thus indicating the positive trend and making the identity of the Fund more recognisable to the society.

In addition to the foregoing, there has been an evident increase in the number of calls and messages from our social media followers. This is yet another confirmation that the citizens have started to recognise the importance of the Fund’s existence and actively engage in the support and following of the activities of the Fund. However, the assessment of the overall performance and satisfaction with the achieved results must take into account all parameters and factors. It is important to maintain continuous monitoring of progress and challenges faced by the Fund and find the way to cope with them.

“Our internal discussions suggest that the number of citizens, businesses and representatives of the public sector receiving subsidies grows with every new public call, thus indicating the positive trend and making the identity of the Fund more recognisable to the society. In addition to the foregoing, there has been an evident increase in the number of calls and messages from our social media followers. This is yet another confirmation that the community has started to recognise the importance of the Fund’s existence and actively engages in the support and following of the activities of the Fund.”

11. How do you see the Fund in future, with or without you at the helm?

Nothing pleases me more than awareness of the financial consolidation and stability of the Fund. I profoundly believe the Fund is set to become a leading financial and institutional unit tasked with implementation of all environmental protection related projects and also a key stakeholder in decision-making, coordination and implementation of the projects pertinent to this field. The Fund should have sufficient capacity to keep pace with the most recent trends and approaches in the field of environmental protection, climate change, energy efficiency and renewable energy sources and to maintain active collaboration with other relevant institutions, experts and organisations. This will enable the Fund to spearhead initiatives that are fostering sustainable development and better protection of natural resources of Montenegro. Such a leading position of the Fund will allow for an efficient use of financial resources and proper project management in compliance with the priorities and goals of environmental protection. The Fund will have a key role in identification, evaluation and support to the projects recognised for the most positive environmental and social impact.