The sustainable transition: a crucial opportunity for manufacturing industries in the Western Balkans
Summary
Embracing sustainability, however, is not just a necessity but an opportunity for increased growth, competitiveness, and long-term resilience.Climate change is no longer a distant problem its impacts are being felt both globally and locally. The regions manufacturing industries are heavily reliant on energy from coal and other non-renewable sources, which means they will be hit hard when CBAM becomes fully operational.The sustainable transition is hindered by several interrelated challenges. Policy gaps are another issue, with governments still lagging in introducing the necessary enforcement mechanisms, incentives, and strategies.These challenges and lack of cohesion are slowing progress and leaving industries vulnerable to external pressures. The Western Balkans are well positioned to play a significant role in the European supply chains of the future.Implementing energy-saving measures in the manufacturing sector would also increase efficiency and lower costs, and lead to an estimated 10% reduction in energy consumption by 2050. IFC also offers advisory services to bridge the technical knowledge gap, equipping companies with the tools to decarbonize operations and optimize supply chains.