CIRCULAR ECONOMY TO BRING UP TO 160 BILLION DINARS AND 110,000 NEW JOBS

Photo: freepik.com

On December 1, the Government of the Republic of Serbia adopted the Circular Economy Development Program in the Republic of Serbia for the period 2022 to 2024, a complex and comprehensive document that defines the areas of waste management, water, renewable energy sources and energy efficiency.

On the website of the Government of Serbia, it is stated that this document defines the priorities for the next three years and sets the basis for the further development of the circular economy and the creation of a stimulating environment for the development of the green transition in Serbia. As well as that this way will enable further contribution to sustainable development and climate neutrality in order to preserve people's health and raise citizens' awareness of the importance of environmental protection, writes biznis.rs.

The document itself emphasizes that in the next 40 years, the global consumption of materials such as biomass, fossil fuels, metals and minerals is expected to double, and annual waste production will increase by 70 percent by 2050.

It is added that at the global level, with the adoption of the United Nations Agenda 2030 and the Law on Ratification of the Paris Agreement, the world decided on sustainable development and mitigating climate change.

"This is a multi-sectoral topic that covers a number of areas: waste management, water and wastewater management, extended producer responsibility, green public procurement (GPP), voluntary instruments, eco-design, innovation and technology development, finance and investment, use of renewable resources energy and energy efficiency, management of chemicals, new patterns of production and consumption, and more," the Program says.

The program contains a three-year action plan in which general and specific goals are defined. The general goal of this document is to create a stimulating environment for the development of the circular economy in order to support the green transition in Serbia. For its fulfillment, five special goals are foreseen, with measures and activities that will be implemented in the period from 2022 to 2024.

"One of the priorities is to support business entities with the aim of improving the efficiency of production and removing waste from supply chains, keeping components and materials in a closed cycle through reprocessing and recycling, applying new technologies and replacing old materials with advanced and renewable ones, switching to the use of renewable energy sources and materials, prolonging the life of products through design and maintenance and virtual delivery of goods and services", stated in the Program.

ECONOMIC SAVINGS FOR THE ECONOMY (INDUSTRY, AGRICULTURE, CONSTRUCTION)

Data within the Program show that the total potential economic savings for the three economic sectors, based on the reduction in the use of resources and energy for the period from 2022 to 2032, range between 1,049 and 1,668 billion dinars (discounted value).

"Reducing the use of resources and energy due to the application of circular economy principles has a positive impact on the increase in productivity in the observed economic sectors, which further results in a change in the gross domestic product," the Program says.

The table shows values expressed in millions of dinars, as well as price constants from 2021. It is about economic savings for the economy (industry, agriculture, construction):

SOURCE: CIRCULAR ECONOMY DEVELOPMENT PROGRAM IN THE REPUBLIC OF SERBIA FOR THE PERIOD FROM 2022 TO 2024, PHOTO: PRINTSCREEN BIZNIS.RS

When it comes to employment, it was emphasized that previous empirical research indicates that the greatest positive impact of the circular economy is visible in the waste management sector (including recycling).

On the other hand, it is pointed out that there may be a negative impact in the construction sector, as a result of increased productivity and the use of new construction techniques, but also in sectors related to the production of durable consumer goods, such as electronics and motor vehicles.

"The estimated effects on employment may be different, depending on the degree of mechanization and automation of those jobs." The proposed options are based on the assumption that sectoral shifts in the labor market due to the application of the circular economy concept in accordance with this program will have a positive net effect on overall employment in the economy in the coming period," the Program says.

NUMBER OF EMPLOYEES (CHANGE IN RELATION TO THE STATUS QUO SCENARIO)

The total increase in employment for the period from 2022 to 2032 ranges between 50,000 and 110,000 new employees.

SOURCE: CIRCULAR ECONOMY DEVELOPMENT PROGRAM IN THE REPUBLIC OF SERBIA FOR THE PERIOD FROM 2022 TO 2024, PHOTO: PRINTSCREEN BIZNIS.RS

Due to the increase in employment in the Program, it is estimated that the average household income will increase. Also, that individuals and households will realize economic benefits (savings) based on a longer period of replacement of durable consumer goods, i.e. a longer product life.

Potential economic benefits for households, based on the application of the circular economy concept for the period from 2022 to 2032, range from 33 billion to 72 billion dinars in total.

It is added that the increase in labor productivity, GDP and employment will have a positive impact on the budget revenues of local self-government units and the state.

According to the Program, the total increase in budget revenues of local self-government units in Serbia from 2022 to 2032 ranges between six billion and 14 billion dinars. In the same period, the total increase in state budget revenue is expected to be between 56 billion and 161 billion dinars.

ECONOMIC SAVINGS BASED ON THE REDUCTION OF CO2 EMISSIONS

The application of the circular economy concept will also result in a reduction of carbon dioxide (CO2) emissions. In addition to the significant impact on improving the quality of the environment, the reduction of CO2 emissions will also have an impact on the competitiveness of the Serbian economy and lead to significant economic savings.

Economic savings based on the reduction of CO2 emissions from 2022 to 2032 will total between 16 billion and 50 billion dinars.

The change compared to the Status Quo scenario is expressed in millions of dinars, in constant prices from 2021:

SOURCE: CIRCULAR ECONOMY DEVELOPMENT PROGRAM IN THE REPUBLIC OF SERBIA FOR THE PERIOD FROM 2022 TO 2024, PHOTO: PRINTSCREEN BIZNIS.RS

The Program concluded that it is necessary to support local self-governments in the development of local roadmaps for the circular economy, which will contribute to the formation of sustainable communities. Also, that it is necessary to educate relevant stakeholders (media, schools, universities, consumers), strengthen cooperation between the business and academic sectors for innovations that contribute to the circular economy and encourage the application of green public procurement and voluntary instruments in the field of environmental protection.

"The complete transition to the circular economy exceeds the duration of this program of three years, so this document starts the process and lays the foundations for the further development and application of this concept", is one of the conclusions of the Government of Serbia.

Source: biznis.rs