Building a Greener Kosovo: A Path to Sustainable Growth in a Rapidly Developing Landscape

Kosovo’s strong potential in agriculture, ICT, tourism and manufacturing positions it well for green economic transformation. However, the country also faces significant challenges, including a reliance on coal for 92% of its electricity, limited green financing and gaps in environmental governance.

The capital, Prishtina, suffers from severe air pollution, especially in winter when coal and wood heating are common. The city's air quality often reaches hazardous levels on the Air Quality Index, highlighting the urgent need for cleaner energy solutions. 

But this landscape is evolving. Kosovo is increasingly aligning with European initiatives like the EU Green Deal and the Sofia Declaration, which are aimed at reducing carbon emissions, promoting circular economy practices and transitioning to renewable energy sources. This alignment not only sets the course for Kosovo's future but also lays a solid foundation for meaningful engagement with international donors. 

Green growth opportunities in Kosovo 

Kosovo's green economy is in its early stages, supported by a growing interest in organic products and eco-friendly practices across industries like energy, ICT, plastics manufacturing and food processing. Sustainable agriculture, ecotourism and green manufacturing also have more untapped potential. With strategic support, these sectors can adopt more efficient technologies and circular practices, positioning themselves competitively in European markets.

Private businesses in Kosovo have started to invest in renewable energy sources to reduce their carbon footprint. For example, businesses in the manufacturing sector are installing solar panels and wind turbines to generate clean energy, thereby reducing their reliance on coal-based electricity. Some companies have started to implement measures to improve resource efficiency and manage waste more effectively. This includes adopting circular economy practices, such as recycling and reusing materials, and investing in technologies that minimize waste production. For instance, the wood processing industry is using waste wood to produce pellets for heating, reducing waste and generating renewable energy. Businesses have also started to seek green certifications, such as ISO 14001, to demonstrate their commitment to environmental sustainability. These certifications help companies improve their environmental performance, gain a competitive edge and meet international standards. 

According to Muela Ibrahimi from the Chamber of Commerce of Kosovo, small and medium enterprises in Kosovo have an important opportunity to enhance their competitiveness by adopting circular models and decarbonizing their operations. “Embracing sustainable practices not only reduces environmental impact but also improves resource efficiency. Committing to sustainable standards further drives cost savings, ensures regulatory compliance and strengthens resilience, positioning the enterprises for long-term success in an evolving global marketplace,” she said. 

Helvetas: Catalyzing change through targeted interventions 

Through the RECONOMY program, Helvetas is actively transforming the construction sector by promoting energy-efficient technologies and eco-friendly building materials. One initiative involves establishing Green Building Councils that drive industry-wide standards and open doors to green jobs for women and youth. These councils are structured following well-established models, such as the Croatian one, and have clearly defined services for their members and focus activities. Given construction’s impact on land use, waste production and energy, this initiative doesn’t just improve Kosovo’s infrastructure—it helps steer the entire region toward a low-carbon economy.

The Decentralisation and Municipal Support (DEMOS) project has focused on building resilient public infrastructure that serves as a model for climate mitigation and adaptation. In partnership with the Climate Awareness Association, Helvetas promotes designs for municipal capital projects that are both environmentally sustainable and climate resilient. These projects are then financed through the Municipal Performance Grant.  

For example, the municipality of Rahovec used the Municipal Performance Grant to construct a drainage system and to reinforce the riverbanks. “We used to have problems every year,” said Nehat Canziba, a citizen living in an area where a new flood relief canal was constructed.  “We used the dry creek as a road. When there were heavy rains, holes would open up and we’d get stuck with tractors and cultivators. It was a hassle, and this is the most valuable investment of the municipality.” Several other municipalities also used their grants to reinforce the riverbanks. These measures have significantly reduced the risk of flooding in vulnerable areas, protecting homes, agriculture, businesses and critical infrastructure.  

Other municipalities are investing in energy-efficient measures for buildings, as well as green public spaces such as the construction of parks, squares and public lighting. The design of these projects was guided by a green checklist developed by Helvetas in cooperation with the Climate Awareness Association to make sure that the investments are resilient to climate change.  

Between 2020 and 2024, 36 projects that contribute to environmental protection and climate resilience were financed through the Municipal Performance Grant (totally 5.7M euros) in 14 municipalities. 

Helvetas has further invested in building a skilled workforce for Kosovo’s expanding renewable energy sector. With demand for trained professionals in solar and wind energy anticipated to grow 25-30% annually, Helvetas, through the Enhancing Youth Employment (EYE) project, partnered with ELING, a leader in solar installations, to create the first solar panel installation training program in the country. The program is designed to increase diversity within the renewable energy field, equipping participants—particularly women—with both theoretical and hands-on training. The project plans to train up to 100 individuals annually, fostering an inclusive, skilled workforce ready to lead Kosovo’s green energy transition. “The solar energy sector is growing rapidly; investments are increasing and the demand for qualified workforce has also increased. We are working to help in the growth and consolidation of the sector,” said Rita Nitaj, Executive Director of Solarit Academy, which operates under ELING company.   

Helvetas' commitment to green skills development extends beyond Kosovo, reaching youth across Eastern and Southeastern Europe through various training programs and initiatives. By preparing young people for green jobs, Helvetas fosters innovation and supports the regional green transition while addressing youth unemployment.  In line with these goals, on November 5 Helvetas hosted a regional conference on Youth Engagement for Green Transition in Kosovo, highlighting the role of young professionals in driving sustainable change across sectors. During the conference, Matthias Herr, Regional Director of Helvetas Eastern Europe, emphasized the need for tangible action: “Today’s conference isn’t just about talking; it’s about action. Our focus is on equipping young people with the skills and knowledge to thrive in the green economy—an economy that isn’t about business as usual but about blazing new, sustainable trails.”

The way forward for Kosovo’s green transition 

Kosovo’s commitment to the Western Balkans Green Agenda (WBGA) and the European Green Deal sets a strong foundation for a sustainable future. To move forward effectively, several key actions are necessary, including: 

• Strengthening policy implementation and enforcement by enhancing institutional capacities and developing concrete action plans  
• Improving access to green financing through long-term funding mechanisms and promoting green bonds and sustainable finance initiatives  
• Enhancing knowledge and skills via capacity building programs and vocational training  
• Fostering public-private partnerships and community engagement to drive large-scale green initiatives and ensure inclusivity 
• Supporting innovation and technology adoption  

“Addressing the challenges of climate change and promoting sustainable development in Kosovo requires a collective effort,” said Ertan Munoglu, Helvetas Kosovo Country Manager. “At Helvetas, we are committed to empowering local communities and businesses to adopt green practices and innovate for a sustainable future. Our strategy focuses on building resilience, fostering inclusive growth, and ensuring that no one is left behind in the green transition.”