Greening the Western Balkans: A Path to Sustainable Agriculture

A new World Bank report, "Greening Agriculture in the Western Balkans," outlines the challenges and opportunities for transforming the agricultural sector in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. Key recommendations include improving regulatory frameworks, increasing support for climate-smart agriculture, and leveraging digital technologies. This transformation is vital for environmental sustainability and economic competitiveness.

The Western Balkans, a region rich in history and culture, faces a critical challenge: transforming its agricultural sector to meet modern environmental and economic standards. A recent report by the World Bank titled "Greening Agriculture in the Western Balkans" sheds light on the necessary steps to achieve this transformation. The agricultural sector in these countries is not just an economic pillar but also a crucial component of rural livelihoods, making its sustainability vital for the region's future.

A Sector in Transition

The agricultural sector in the Western Balkans (WB6) countries—Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia—has been undergoing significant changes. While the sector's contribution to GDP has decreased, it remains a key source of income, employment, and food security, particularly in rural areas. However, the sector is plagued by structural challenges, slow adoption of green practices, and the impacts of climate change.

The report highlights that despite having low absolute greenhouse gas (GHG) emissions, the per capita emissions in the WB6 are comparable to those in the EU. This paradox is due to low chemical usage and low-intensity crop and livestock production. Unfortunately, underinvestment in climate-smart agriculture (CSA) technologies further hampers progress.

Barriers to Greening Agriculture

The transition to greener agriculture in the WB6 faces several hurdles. Structural constraints, policy gaps, weak institutional capacity, and insufficient funding are significant barriers. Agricultural budgets are primarily used for direct farm payments, with limited support for CSA and agri-environmental measures. These factors collectively slow down the adoption of sustainable practices and hinder the sector's alignment with EU standards.

The World Bank report underscores the importance of aligning WB6 agricultural policies with the EU's environmental and climate objectives. Drawing lessons from successful global and EU practices, the report provides a roadmap for enhancing the region's agricultural competitiveness and sustainability.

Tailored Recommendations for Each Country

The report offers specific recommendations for each WB6 country to address their unique challenges and opportunities. For Albania, the focus should be on high-value agricultural products, improving agricultural credit markets, and enhancing CSA infrastructure. Serbia needs to accelerate the establishment of digital agricultural systems, improve food safety standards, and reduce coupled livestock payments. North Macedonia should expand digital agriculture initiatives, increase the range of agri-environmental measures, and promote private sector engagement in advisory services. Montenegro can leverage the agriculture-tourism nexus, increase financing for CSA infrastructure, and improve monitoring and advisory systems. Bosnia and Herzegovina should establish a functional paying agency, develop digital agricultural systems, and promote agroforestry and nature-based tourism. Lastly, Kosovo needs to develop agricultural institutions, broaden food safety regulations, and increase support for sustainable practices and infrastructure.

Moving from Strategy to Action

The World Bank emphasizes that greening agriculture in the WB6 is not only necessary for environmental sustainability but also crucial for the sector's competitiveness and productivity. To achieve these goals, the report recommends improving regulatory and institutional frameworks to support CSA practices, increasing budgetary support for CSA and agri-environmental measures, investing in climate adaptation and mitigation technologies and practices, and enhancing knowledge transfer and innovation systems to support sustainable agricultural practices.

The journey towards sustainable agriculture in the WB6 is complex but imperative. By adopting the report's recommendations, the WB6 countries can ensure their agricultural sectors remain resilient, competitive, and aligned with EU standards, thereby securing a greener and more prosperous future.