The Austrian Development Agency and EUKI Are Joining Forces

In its Regional Strategy of the Austrian Development Cooperation (ADC) with the Western Balkans 2025–2027, Austria identified climate and environment as one of its three thematic priorities for the region. The strategy emphasises that transitioning towards climate neutrality, strengthening climate resilience, and enhancing environmental governance are key drivers of sustainable development. It also highlights the importance of advancing regional collaboration on sustainable management of shared natural resources and encouraging engagement by civil society in climate action. These principles lie at the core of the EUKI, too.

For EUKI, ADA’s co-financing is a great asset. Interest in EUKI’s annual call for project ideas has steadily increased over the past few years, showcasing a vibrant European climate action community ready to accelerate the green transition.

EUKI Co-Programme Manager Nele Bünner explains: “Thanks to ADA’s two million euros of co-financing, EUKI was able to fund three additional projects. Moreover, we can offer ADA a clear benefit with our proven expertise, supporting our shared strategic focus.”

“The Austrian Development Agency continuously supports the Western Balkans in advancing sustainable, environmentally friendly as well as climate‑neutral and climate‑resilient development. By partnering with EUKI, we combine financing with strong technical expertise to support impactful climate action and sustainable growth across our partner region”,
emphasises ADA’s managing director Bernd Brünner.

Why the Western Balkans?

The Western Balkans have a carbon-intensive energy sector, largely reliant on coal and other fossil sources. This results in high levels of GHG emissions, contributing to climate change and exacerbating local air pollution. Government bodies and the private sector often lack the capacity and expertise needed to develop and implement effective climate policies. EUKI and ADA see significant untapped potential in the region to address these challenges and are committed to leveraging local capacities to make the green energy transition happen. Local experts, NGOs, and academics are well-equipped to lead climate projects, offer technical support, and raise public awareness. Through regional cooperation via frameworks like the Western Balkans Green Agenda and the Energy Community, partners can align policies, share best practices, and pool resources. The perspective of EU accession further incentivises EU candidate countries to align with the EU climate standards, boosting political commitment and investment.

Making the Shared Vision a Reality

Three of the many high-quality project ideas, submitted in response to the ninth EUKI call for project ideas in 2025, were selected for funding by ADA as part of International Partnerships Austria.

The Solar ENergy COmmunities in Action (SENCO) project empowers municipalities, homeowner associations, installation firms and local citizens to adopt renewable energy solutions and establish energy communities across Bosnia and Herzegovina, North Macedonia and Albania. The project focuses on one of Europe’s most promising solar energy zones. The region benefits from high irradiation levels that exceed the European average.[1]

As contracting parties to the Energy Community Treaty, all three countries must adopt EU energy legislation. This legislation includes the Renewable Energy Directive (RED) III, which introduced renewable energy communities (RECs) for the first time. In practice, however, implementation has been inconsistent and complex approval procedures discourage local installers and SMEs. Lastly, citizens declare low awareness of renewables and support schemes.[2]  

To this end, SENCO analyses existing legislation and technical conditions, develops training programmes for photovoltaic installers, and creates step-by-step guides for prosumers. SENCO hosts public events to raise awareness about the tangible social, economic, and environmental benefits of a participatory energy transition. The project also supports homeowner associations in obtaining prosumer status and examines the establishment of new RECs and virtual power plants.

SENCO bridges the gap between policy ambitions and local implementation, fostering a decentralised, citizen-driven energy system. By reducing legal, technical, and financial barriers, SENCO drives lasting GHG reductions, increases energy resilience, and reduces fossil fuel dependence well beyond the project’s lifetime.

The Green Booster project is scaling up the predecessor Green Kick. It builds on the established cooperation schemes between civil society organisations (CSOs) and local self-governments (LSGs) in Bosnia and Herzegovina, Serbia, and Montenegro. Green Kick supported sixteen LSGs in developing Sustainable Energy and Climate Action Plans (SECAP). Green Booster aims to operationalise these plans. The project designs financial mechanisms to implement energy efficiency measures.

The building sector in Bosnia and Herzegovina, Serbia, and Montenegro is both carbon-intensive and energy-inefficient, far outpacing the EU average. In Bosnia and Herzegovina, the sector is four times more energy-intensive compared to the average EU Member State.[3] In response, Green Booster pilots energy-efficient retrofits in 30 dwellings in Živinice, Bosnia and Herzegovina, reaping the dual benefits of reduced GHG emissions and cost savings for households.

Public Utility Companies (PUCs) in Serbia provide district heating, waste collection, or water supply at the local level and account for a substantial source of emissions. 75% of the district-heating systems are powered by natural gas.[4] Although a mandatory Energy Management System (EMS) framework exists under the national Law on Energy Efficiency, implementation is progressing slowly. With support from Green Booster, three PUCs will introduce EMSs to reduce energy use and GHG emissions in Serbia’s Srem region.

The Circular Textile Balkans project strengthens circular textile waste management in North Macedonia and Kosovo by expanding reuse and low-carbon solutions. These solutions are crucial. Textile waste collection systems and management in the region remains fragmented and limited in scale despite large volumes from households and the garment sector.

In North Macedonia, the textile sector is the second largest industrial sector after metallurgy. The sector employs between 27,000 and 35,000 workers, which accounts for 13% in the industry’s GDP. Low recycling, reuse, and underutilisation of fabric result in considerable pressure on resources. While a legal framework for extended producer responsibility exists, implementation remains at an early stage, and existing initiatives do not scale beyond community level. Thus, the project pilots a coalition-based thrift shop with rent-free retail space for upcyclers.

The challenges in Kosovo derive from consumption waste and the volume of imported goods. The manufacturing sector is much smaller than in North Macedonia. Three-quarters of the textile industry consist of retail and wholesale businesses. In 2024, the country imported around 20.4 times more textiles than it exported.[5] This has resulted in a significant surplus of textile waste remaining within the country. Almost all textile waste in Kosovo is landfilled. There is no official system for waste separation, reuse or recycling. Municipalities have yet to implement waste separation at source.

The project therefore aims to establish textile waste collection and processing sites and to support thrift shops and social enterprises. Planned activities include capacity development and uptake, testing of compressed textile waste applications, and implementation of a reuse-first model focused on collection, sorting, reuse, resale, and shredding into stuffing-grade material.

Empowering Climate Action in the Western Balkans

Together, ADA and EUKI are contributing to the green transformation of the Western Balkans by empowering local actors, implementing practical solutions, and strengthening regional cooperation. The three funded projects demonstrate how targeted support can link political commitment and climate action. Looking ahead, the results are intended to serve as replicable models that inspire follow-up initiatives, attract investment, and foster a resilient, resource-efficient development across the region.

[1] Renewable Energy Prospects for Central and South-Eastern Europe Energy Connectivity (CESEC) – EU Agenda

[2] A green recovery in Bosnia and Herzegovina: Multi-dimensional Review of the Western Balkans | OECD

[3] https://www.eea.europa.eu/en/europe-environment-2025/countries/bosnia-and-herzegovina/final-energy-consumption

[4] https://environment.ec.europa.eu/news/utilising-sewage-waste-water-heat-district-heating-systems-serbia-2022-08-23_en

[5] https://re-ko.org/publication/raporti-hulumtues-ekonomia-qarkore-dhe-tranzicioni-i-gjelber-ne-industrine-e-tekstilit/