BiH on the path of green transition: From linear to circular economy for a sustainable future
A healthy ecosystem is of essential importance for the economy of any country, considering that it represents a source of resources and economic activities and directly affects the quality of life of its population.
Today's challenges, such as increase of economic activity and living standards, lead to unsustainable exploitation of resources, accompanied by the production of a large amount of waste.
Bosnia and Herzegovina's economy, as a resource-intensive economy with a low productivity rate, which is mainly focused on traditional sectors such as metallurgy, wood industry and mining, is still characterized by a significant application of the linear model of the economy with a high degree of resource consumption, the production of a large amount of waste, as well as a significant level of energy inefficiencies.
In order to ensure the long-term sustainability of the economy, environmental protection and preservation of natural resources for future generations, as well as a more socially responsible and socially balanced approach in the long term, Bosnia and Herzegovina should seriously approach the process of transformation of resource-intensive industry towards a green transition and circular economy.
The circular economy, as a regenerative economic system, is focused on reducing waste and extending the life of resources by making a circle and extending the production cycle, and as such is in contrast to the linear economy, which is based on the exploitation of natural resources. The circular economy is based on the following 3 principles: elimination of waste and pollution, circulation of products and materials and nature regeneration.
After BiH officially received the status of a candidate for membership in the European Union and considering that the circular economy is currently a key topic in Europe, one of the primary conditions for continuing the path to joining the European Union is the application of "green" business in order to accelerate the green transition where energy efficiency and the use of renewable energy sources are in focus. A number of companies in BiH have, to a greater or lesser extent, introduced elements of circularity into their operations, which indicates the fact that some of the assumptions for progress in this area exist. Export-oriented and economically stable companies, which have felt the benefits of using renewable energy sources, are currently mostly turning to the green transition in Bosnia and Herzegovina.
As a resource-intensive economy with a relatively low rate of resource productivity, BiH has significant potential for achieving environmental, economic and social benefits from the transition to circular economy models. Likewise, the BiH economy should seek its chance in the fact that it is a smaller system, and as such more flexible and adaptable to new trends. It is necessary to work more on the promotion of the green transition and its positive aspects, in order to encourage changes. A key step is to establish a set of measures that can lead to value creation, reduce risks, but also contribute to improving competitiveness in resource supply chains. The aforementioned measures should be aimed at improving the regulations governing the circular economy, fiscal incentives, waste management, green public procurement and awareness-raising and education programs for all stakeholders in the community when it comes to the green economy.
Given that there is still no clear strategy for the transition to a green economy, entrepreneurs who have recognized the importance of this kind of business are an example to others in their community, respectively the leaders of green, sustainable ideas and projects
The path of sustainable development and green transition takes time, and the speed with which the goals will be achieved will depend on a number of factors, such as the legislative framework and administration, property law relations and the capacity of local and regional self-government units to plan and implement projects in the green transition, but also on financial component. Another key factor in this process is the level of development of the awareness of all stakeholders in the community regarding the green transition, which includes decision-makers, citizens, civil society organizations and the business community, which is extremely important in order for everyone to join global trends and achieve goals.
By transitioning to a circular economy, BiH could reduce the consequences for health and the environment, reduce greenhouse gas emissions, and increase the efficiency of material and energy consumption. All these benefits would be reflected on several levels, from the regional through the increase of efficiency in the waste management sector, to the local, where environmental aspects would be improved, such as the reduction of environmental, water and air pollution. Achieving a balance between economic development and preserving a healthy ecosystem is crucial for the long-term sustainability and prosperity of BiH and for ensuring a better and more sustainable future for all its citizens.
In order to achieve all of the above, the decision-makers, with the support of other relevant stakeholders in the ecosystem, should develop a comprehensive strategy for the circular economy of Bosnia and Herzegovina, which will set goals, policies and measures for promoting circularity in all sectors, and which will include representatives of the private sector, citizens, academic institutions and non-governmental organizations.
