LIBRARY: State of play of green economy and innovation in the transnational area

The joint report on the state of play of green economy and innovation at GREENSMEs project level, compared the current situation and good practices across nine countries/regions (Puglia-Italy, Central Macedonia-Greece, Slovenia, Zadar-Croatia, Banja Luka (RS)-Bosnia & Herzegovina, Serbia, Albania, North Macedonia, and Montenegro) to understand how small and medium-sized enterprises (SMEs) are moving towards a greener economy.

 

Key Findings

  • Shared commitment, uneven progress: All countries have strategies aligned with the European Green Deal or the Green Agenda for the Western Balkans. EU members (Italy, Greece, Slovenia, Croatia) are generally more advanced in implementation, while candidate countries (Albania, North Macedonia, Montenegro, Serbia) and potential candidate (Bosnia Herzegovina) are in a process of capacity building.
  • Circular economies are emerging: Recycling and waste management rates vary. From Italy (Puglia Region) displaying advanced recycling with waste- to-energy plants and recycling centers and Slovenia presenting 59% of waste being recycled, to other countries/regions presenting either less than 6% of recycling or not specified rates. Stronger collaboration among key stakeholders, infrastructure, capacity building and public awareness are underlined as key needs.
  • Renewable energy expansion: Italy, Greece, and Slovenia although seem to be leading, nevertheless all countries underline financial and technological challenges.  Suggestions for multi-stakeholder collaboration networks and exploitation of transnational cooperation initiatives are mentioned in several of the countries’ reports.
  • Innovation & eco-investments: Some countries/regions (Puglia in Italy, Slovenia and Central Macedonia in Greece) show uptake of eco-innovation in businesses, Banja Luka (RS) (Bosnia Herzegovina) and Albania reported data of business making innovation efforts. Structural barriers that are pointed out through several countries’ reports include private-public collaborations, financing, consumers and SMEs awareness.
  • Green jobs & skills: Demand for new skills is growing, but training opportunities remain uneven. Regions such as Puglia (Italy) and Slovenia show strong job growth in green sectors, while others need reskilling programs to ensure just transition.
  • Good practices are transferable and present sectoral focus: From women-led energy cooperatives in Greece to sustainable textiles in Slovenia and olive oil waste into cosmetics in Albani, most proven models can be adapted across borders. A sectoral focus of good practices reveals a dominance of the “Energy & Sustainable Environment” Sector (40%), followed by Manufacturing (27%), ICT Integration as a Key Enabler (18%), and Smart City / Smart Mobility (15%) as emerging.

Why it matters

The emerging trends as previously highlighted pave the way for:

Quadruple Helix Collaboration: Growing cooperation among SMEs, academia, public authorities, and civil society highlights the importance of systemic partnerships for sustainable innovation.

Knowledge Transfer and Good Practices: Most identified good practices are highly transferable, offering practical models for scaling solutions across borders.

Develop Resilience against Persistent Challenges: Limited financial resources, uneven infrastructure in circular economy, and differences in policy implementation need to be outweighed for a balanced transition within the region.

SMEs as Engines of Change: SMEs are crucial to the green transition.  To unlock their potential, support is needed in areas like access to green finance, practical tools, skill development and eco-innovation consultancy (powered by BSOs), alongside stimulating policy frameworks that promote Environmental, Social, and Governance (ESG) practices and circular economy models.

 

The findings show that regional cooperation and knowledge-sharing are essential. By exchanging good practices, strengthening support for SMEs, and investing in skills, the Adriatic–Ionian region can accelerate its green transition and ensure sustainable, inclusive growth.

D1.1.2 Joint report on the state of play of green economy and innovation at project level