Western Balkans: Environmental groups challenge Commission’s breach of Reform and Growth Facility safeguards

On 23 October, the European Commission approved the Reform Agendas of Albania, Kosovo, Montenegro, North Macedonia and Serbia (2). These include lists of reforms to be undertaken by the countries in order to access funds from the Facility, as well as proposed investment projects to be financed through the Western Balkans Investment Framework.

According to the Regulation governing the Facility (3), the Reform Agendas were to be developed ‘in an inclusive and transparent manner, in consultation with social partners and civil society organisations’. Both the reforms and investment projects have to comply with various principles such as ‘do no significant harm’ (4) to the environment and exclusion of fossil fuels.

Yet Serbia and North Macedonia’s Reform Agendas include fossil gas pipelines and power/heat plants among their proposed investment projects. And all the countries include other projects likely to cause serious environmental damage, such as the Kruševo hydropower plant in Montenegro and motorways in sensitive locations. None of the Reform Agendas included any ‘do no significant harm’ assessments, and the lists of projects were not available to civil society organisations or the wider public to comment on.  

Although CAN Europe and Bankwatch raised concerns in July about a lack of transparency and consultation on the Reform Agendas, the Commission’s Directorate General for Enlargement (DG NEAR) failed to take corrective action or to pick up the issue in its country assessments.

Pippa Gallop, CEE Bankwatch Network – ‘The Reform and Growth Facility has the potential to contribute to a sustainable future in the Western Balkans, but only if its safeguards are applied. Too often in recent years, the Commission has taken hurried, non-transparent and ineffective action and sidelined civil society in the region. The new Enlargement Commissioner, Marta Kos, must urgently turn this around. Public scrutiny and proper environmental screening of EU funds are a must.’ 

Frosina Antonovska, CAN Europe – ‘The Western Balkan countries have been more successful in developing plans and committing to climate and energy goals, than delivering them in reality, with a lack of funding as a common excuse. The Reform Agendas could be a transformative tool, but so far, the absence of transparency, inclusiveness and consistency, are hindering this opportunity. The national agendas’ priorities and related investments must adhere to environmental safeguards and public participation principles, otherwise what “reformative” approach is being promoted for the region?’

Contacts:

Pippa Gallop, Southeast Europe Energy Policy Officer, CEE Bankwatch Network

pippa.gallop@bankwatch.org
Mob: +385 99 755 9787
Skype: pippa.gallop

Frosina Antonovska, Climate and Energy Policy Coordinator for the Western Balkans, CAN Europe

frosina.antonovska@caneurope.org
Mob: +389 70 913 193

Notes for editors:

1. The groups have initiated a legal procedure through a request for internal review – a mechanism that allows NGOs and the public to challenge certain EU decisions that breach environmental law. The Council now has sixteen weeks to respond. The request can be found here
2. The Commission implementing decision of 23 October 2024 and its country assessments can be found here.
3. Regulation (EU) 2024/1449 of the European Parliament and of the Council of 14 May 2024 on establishing the Reform and Growth Facility for the Western Balkans
4. ‘Do no significant harm’ means not supporting or carrying out economic activities that do significant harm to any environmental objective under Article 17 of Regulation (EU) 2020/852, also known as the Taxonomy Regulation. The principle was introduced as part of the European Green Deal and has been applied to various EU funds, including the Recovery and Resilience Facility.