Montenegro’s Green Transition Emerges as a Competitive Advantage for Employers, ILO Says

Participants stressed that enterprises which strategically embrace sustainability are better positioned to compete in both domestic and EU markets.

 

Montenegro’s green transition is increasingly reshaping how businesses compete, invest and create jobs, with sustainability emerging not just as a regulatory obligation but as a source of resilience, market access and growth, employers said at a recent business exchange.

Hosted by the Montenegrin Employers Federation (MEF) and supported by the International Labour Organization (ILO) under the ILO–GIZ project “Promoting Social Dialogue on Just Transition Issues,” the event highlighted how climate action is translating into tangible commercial benefits for enterprises across sectors.

As climate risks intensify and EU-aligned sustainability standards, investor expectations and consumer preferences evolve, Montenegrin businesses are finding that adapting early is helping them reduce costs, access finance, and strengthen long-term performance.

Sustainability as a Business Strategy

Participants stressed that enterprises which strategically embrace sustainability are better positioned to compete in both domestic and EU markets.

Aligning with EU environmental and social standards is improving access to markets, green finance and incentives, while investments in energy efficiency and cleaner production are lowering operating costs and exposure to risk. Employers also highlighted gains in innovation, productivity and brand reputation, alongside improved worker satisfaction and retention through safer workplaces and green skills development.

“Climate action is no longer a future consideration—it is already shaping competitiveness today,” employers noted during the exchange.

Real-World Gains Across Sectors

Concrete examples from Montenegrin businesses illustrated how a just transition can deliver economic, social and environmental benefits simultaneously:

• A family-run micro-enterprise has transformed recycled, plantable paper into a distinctive green product now used for official state gifts.

• A manufacturing company in Podgorica has recycled more than 140 tonnes of plastic waste into durable construction boards, creating inclusive jobs while reducing pressure on forests.

• In the tourism sector, one of Montenegro’s largest hotel groups has significantly cut water and energy consumption, reducing costs while strengthening staff awareness and organisational culture.

These examples demonstrate that sustainability investments can support higher-value production, job creation and profitability, while contributing to national climate goals.

Social Dialogue Key to a Just Transition

The exchange underlined the importance of social dialogue in ensuring that climate policies support both business competitiveness and decent work.

The ILO said it will continue to support MEF and Montenegrin employers through its ACT/EMP programme, strengthening employer engagement in climate-related policy discussions and promoting practical, business-oriented approaches to the green transition.

Together, the discussions and examples show that Montenegro’s green transition—when shaped through dialogue and innovation—can be a driver of competitiveness, quality jobs and sustainable growth.