Circular Transition and Responsible Business Conduct in Montenegro

Project title       Circular Transition and Responsible Business Conduct in Montenegro
   
Participating agencies       UNDP, ILO
   
Lead Agency       UNDP
   
Project manager      Samra Radončić
   
Timeframe      April 2025 – March 2027
   
Budget       572,230 USD   (EU 509,089; ILO 63,141)

 

Area of intervention 

Digital Innovation and Digitalization, Business and Industrial Symbiosis, Policy Frameworks and Incentives, Social Inclusion and Gender Equality.

 

Partners 

  • Ministry of Economic Development, 

  • Ministry of Ecology, Sustainable Development, and Northern Region Development, 

  • Ministry of Labour, Employment, and Social Dialogue, 

  • Montenegrin Employers' Federation (MEF), 

  • Union of Free Trade Unions of Montenegro (UFTUM), 

  • Confederation of Trade Unions (CTU)

  • Chamber of Economy, 

  • Associations of entrepreneurs such as Association of Women Entrepreneurs, Industrial Clusters...

 

Key objectives 

Enhance resource efficiency and reduce waste, Promote industrial symbiosis and digital innovation, Strengthen responsible business conduct and human rights due diligence, Foster cross-sector partnerships and social dialogue, Support policy development and governance for circular transition.


Major expected results 

The overarching goal of the project is to enhance Montenegro’s circular economy by fostering the application of responsible business conduct at the enterprise level, encouraging industrial symbiosis, a collaborative approach where businesses utilize waste and by-products from their processes.

  • Enhanced capacity and collaboration for industrial symbiosis in targeted clusters, with MSMEs (including women-led) actively adopting resource-sharing initiatives
  • Strengthened technical and financial support mechanisms, resulting in demonstration projects on resource optimization among participating MSMEs.
  • A user-friendly digital platform adopted by MSMEs to facilitate self-assessment and collaboration for industrial symbiosis
  • Increased integration of RBC/HRDD frameworks into social partners’ and government’s agendas as well as in MSME practices, ensuring alignment with the EU recommendations and including gender-responsive standards. Improved Policy and Governance Frameworks

 

Target groups 

Micro, Small, and Medium-Sized Enterprises (MSMEs), Women Entrepreneurs, Informal Waste Workers, Policymakers and Government Institutions, Financial Institutions, Social Partners.

 

Implementing status 

UNDP and ILO have dedicated programme interventions and related activities, in line with their organizational focus and expertise. The programme is structured around four interlinked output areas that contribute to strengthening circular economy practices and responsible business conduct in Montenegro:

  • Enhanced capacity and collaboration for industrial symbiosis in targeted clusters

The project is advancing on engaging industrial clusters and MSMEs in capacity-building processes aimed at resource optimization and circular business models. Timelines have been set for stakeholder consultations and a rapid assessment of institutional and policy frameworks, which will guide the development of the Industrial Symbiosis Manual and Training Package. A needs assessment with MSMEs, employers’ and workers’ organizations is being prepared to identify capacity gaps and opportunities for industrial symbiosis. Work has also begun on awareness-raising materials and preparatory activities for a Training-of-Trainers (ToT) programme, which will enable future replication of training at scale. These actions lay the groundwork for building the capacities of MSMEs, including women-led enterprises, to participate in industrial symbiosis initiatives, in line with the project’s targets of engaging two clusters and training at least 24 MSMEs by 2027.

  • Increased integration of RBC/HRDD frameworks into national agendas and MSME practices

The baseline study on responsible business conduct in Montenegro has been launched to map current practices and generate evidence for policy dialogue and training design. The desk research phase has been completed, and primary data collection through interviews and focus groups is underway. The findings will inform the development of a Roadmap for mainstreaming RBC, as well as the design of policy measures and training packages on RBC, labour standards, and human rights due diligence for MSMEs.
A national dialogue on RBC, scheduled for the first quarter of 2026, will serve as a key platform for engagement between government institutions, social partners, and the private sector. These actions contribute to future outputs such as the adoption of a national RBC roadmap, approval of 2–3 policy measures, and training of at least 25 MSMEs (including women-led) by 2027, supported by a network of certified trainers embedded in social partner organizations and government institutions.
 

 

 

Contribution to EU Accession 

The Circular Transition and Responsible Business Conduct in Montenegro project supports Montenegro’s EU accession by advancing alignment with Chapters 27, 20, 19, and 10 of the acquis, fostering inclusive and sustainable economic development, enhancing environmental protection and digitalization, and promoting EU-aligned business and labour standards. It strengthens national reform frameworks, contributes to competitiveness, and empowers vulnerable groups—all critical in meeting EU membership benchmarks.

 

Project brief description

The Circular Transition and Responsible Business Conduct project in Montenegro, led by ILO and UNDP, addresses challenges like weak industrial symbiosis, low private sector engagement, and fragmented governance. It promotes resource efficiency and sustainable production by combining digital innovation, capacity-building, and responsible business conduct. Targeting MSMEs, women entrepreneurs, policymakers, and financial institutions, it supports circular economy participation through improved knowledge, digital tools, and financing. Aligned with national and EU strategies, the project focuses on key sectors, integrates RBC standards, and leverages blended finance and digital platforms to enhance competitiveness, decent work, and ESG compliance.

 

 

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