New Jobs and Better Living Standards with Green Economy

The first Serbia-European Union Forum was held on September 9, 2011 in Belgrade, where the Minister of Environment, Mining and Spatial Planning, Oliver Dulic, stated that both Green Economy and Sustainable Development imply huge investments in this sector, which should contribute to new job openings and better living standards in the country, but also rationalize the use of natural resources.

In the past several years there were 8.000 new jobs opened in domestic recycling industry and renewable energy. By the end of this year there will be 10.000 employees. green economy is the countries biggest potential and Serbia could solve an economy problem that faces by some great investments in this sector, said Minister Dulic in his speech at the green economy panel relating to European integrations.

Experts say that by producing biofuel, Serbia could cover expenses for about 2.5 million tons of oil. Serbia also possesses great potential in wind energy, hydropower, and other renewable energy sources. The green economy implies investing in energetic efficiency, reducing production expenses, along with greater competitiveness and sustainable economical growth.

The partnership with private and public sector is necessary in order to successfully conduct the concept of green economy. Serbia has made an important progress in European integrations, and achieving the standard in environmental protection and sustainable development area. In the final run of this Government another two laws should be adopted; Utility Activities Law and Public-Private Partnership Law, said Minister Dulic.

The Minister indicated that green economy and sustainable development are priority topics in all of the International meetings, and that "there is no global forum in which climate changes, energetic crises and natural resource reduction are not mentioned".

The green economy and sustainable development panel attended 56 state institution representatives from Serbia and the region, as well as people representing: European Union, different international organizations, economy and industry, civil society organization, academics and other public experts.

Some of the ideas that European integrations office has is to consider all the questions related to socio-economic development of green economy and sustainability, in the process of national politics harmonization and legislation. Firstly, all the regional countries, including Serbia, need to invest certain amount of effort into defining the growth of green strategies in accordance with strategic guideline and decisions that have been brought up by the European Union. Secondly, the regional countries have to contribute to development of infrastructural needs for realization of a green economy concept which considers higher investments in environmental infrastructure and development of new skills for institutional and mankind capacity strengthening. Last but not least, Serbia and other regional countries are projected to accept and use European and International available funds, but also to define innovative collaboration and financial mechanisms. As the matter of fact, Republic of Serbia will receive important financial resources from the European Union between 2011 and 2013, in the amount of €600 million, as well as significantly higher financial resources in the long-term run, which will be used for previously stated priorities.

During the panel, all the participants have recognized the key regulations which will contribute to development of green economy and sustainability in the context of European integrations:

• The panel has strongly contributed to exchange of views, ideas and visions, in political, professional and business plan, for more successful following of European and international flows related to implementation of green economy concept and sustainable growth.
• A significant shift has been noted in the field of national politics development which has been accordant to sustainable development concept, sustainable production and consumption, as well as green economy, which furthermore reflects on legislature changes, strategic guidance, and economical instruments. However, there is a need for improvement of not only "greening" of existing economical practice, but also development of significant guidelines, instruments and practical politics in the partnership of public and private sector.
• It has been concluded that green economy needs to be based on adequate evaluation of natural capital, and followed by financial policy changes along with innovative professionally-political and technological measurement introduction.
• In context of regional European integrations, it is important to provide sufficient terms of financing the program, projects, and activities which contribute to socio-responsible, sustainable and green growth, starting with infrastructural investments and ending with capacity development, both on local and national stage. European Union funds have vital importance for the region. It is important to provide access to international financial institutions, and to advance existing bilateral and multilateral financial mechanisms, according to the needs and priorities of regional countries and European integrations office.
• The green growth and sustainability in key economical sectors, from energetics to waste management and agriculture, gets realized by public and private sector partnership, local government, civil society organizations, scientific institutions, international and regional organizations, etc. According to this, an additional effort is needed for creating new "green" jobs and skills.
• Economical principles based on knowledge require adjustment and development of educational systems, as well as higher awareness of sustainability, adjustment to green economy requests, and market needs.
• Panel participants have supported the sustainable development and green economy concept, in context of upcoming World Summit on Sustainable Development (Rio +20) which will be held in Rio de Janeiro, 2012. The participants have also expressed commitment to European integrations and to the context of activities in organization of European Union, which relates to the use of green economical development process.              

Summary of panel discussion about sustainable development and green economy

State investments into green economy are crucial, and easier to take place using European Union funds and European banks credit lines (European Investment Bank, European Bank for Reconstruction and Development, and others).

Investing into the usage of renewable energy deserves special importance. For example, the local government spends about €40 million on standard public lighting, according to experiences from Paracin community, while using renewable energy could save the country up to €10 million.

The new legal framework in Serbia, which has been harmonized with European Union legislature, has enabled investing into environmental infrastructure, therefore, strengthening of European Union fund capacities are necessary.

Investing into energetic efficiency directly contributes to green economy achievements, in compliance with Republic of Croatia's experiences, those investments bring savings in building design and construction industry which consumes about 40 percent of total energy produced in this country. 

Investing into sustainable transport, such as railway development and supporting infrastructure, costs Republic of Croatia about €500 million yearly, but it brings a long-term benefit in terms of reducing harmful gas substances and moderating the climate changes.

A great example of successful business in Serbia and the region represents "Victoria Group," a company that has been investing, since 2005, into technology development and facility construction of biofuel production made of agricultural waste, which is an annual company investment of about €3 million for environmental protection. Another 10,000 workers are expected to get hired in the harvest residues collection field, which represents a significant contribution toward creation of new "green" jobs.  

Providing suitable use of regulations in environmental protection sector, for all industrial subjects, is necessary for Serbian and other regional countries market. Evaluation of energy production investments from renewable sources would provide equal market conditions.  

Infrastructural projects represent a key step of green economy concept realization, since realization of these projects is a prerequisite for executing a heavy European Union investment directive in the industrial pollution area, waste management, and wastewater. It is estimated that the largest amount of money from the funds will go into environmental projects, both before and after becoming a European Union member.  

The overall cost of accessing the European Union, for both Republic of Serbia and Republic of Croatia, is between €10 and €15 billion. The majority of these resources (about 85 percent) are possible to cover from pre-accession European Union funds, which has been confirmed by Croatia's previous experiences. Montenegro has also forfeited between €7 and €8 million of ecology tax income which they plan to compensate by using pre-accession funds and loans.

The accession to the European Union plan has made the largest shift in environmental sector and sustainable development politics implementation, which represents an important condition for the use of green growth concept in context of upcoming 2012 World Summit on Sustainable Development (Rio +20).