Montenegro Sets Roadmap for a Carbon Neutral Future

Montenegro is only responsible for 0.0009% of the global carbon emissions. However, this tiny nation decided to play an ambitious role in the international community and set the pathway for other nations to contribute to reaching the global net zero goals. The net-zero refers to the balance between the number of greenhouse emissions produced and the amount reduced in the atmosphere.

This Balkan nation was one of the first countries in the region to increase its climate change commitments through the reduction of emissions, Montenegro has taken part in initiatives such as the United Nation No New Coal agreement and the Global Ocean´s Alliance.

The government is currently working to develop climate change measures through intergovernmental reforms that would support a transition to a green economy in the near future. In this area, the authorities are working closely with the United Nations to build a greater institutional capacity.

Montenegro also developed the National Adaptation Plan (NAP) where the project beneficiaries, ministries, and institutions responsible for ecology and all the economic sectors are gathered to inform mitigating investment projects.

By way of a conclusion, this country represents an example for other small nations that are addressing the challenges that humankind is facing in the 21st century.

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Montenegro´s economic recovery and the green future.

Europe was heavily affected by the Covid-19 pandemic. Lockdowns, new variants and a huge economic recession are some of the issues the old continent has faced since 2020. Even though the Balkans were not the exception, this region has witnessed an important recovery in the last months. The Gross Domestic Product is projected to grow 5,9% by the end of 2021, contrasting with 2020 when they suffered a heavy 3,1% contraction. That even came faster than expected according to the Western Balkans Regular Economic Report. 

Regarding Montenegro, this country reached a spectacular growth pace of 19% in 2Q-2021; a rate even better than the regional average. This amazing growth pace can be attributed to the rebounding tourism, which represents 25% of the country's GDP. 

The domestic and external demand is another factor that has to be taken into consideration when talking about economic recovery in the region, as the rebound in the consumption and travel across the continent enhanced the tourism flows and remittances along the year. The rise in the demand for the region´s export also boosted the government revenues, leading to a reduction of the fiscal deficit caused by the pandemic.

Undoubtedly, Montenegro's economy was one of the worst affected nations by the pandemic in the region. However the country is also looking to the post-pandemic future, according to the World Bank official Linda Van Gelder, focusing in areas such as impediments to jobs creation and economic transformation including a green transition.

Climate change is also producing changes in the consumer’s preferences as the new business models and technologies are gaining space in the different markets. The green transition is a groundshaking fenomenon for many sectors in the economy, turning into an important factor for the attraction of international investment and finance.

This trend is present in the Balkan region, and specifically in Montenegro, as the transitions to a green economy represent a significant opportunity for integration into the Euro-centric global value chain. If you want to know more about the business opportunities in this country you can contact us here at Mundo.

Montenegro and Turkish economic relation represents a key pathway to the future

The relation between Turkey and Montenegro is continuously reaching all-time highs every quarter. According to Jakov Milatovic, a Montenegro official, Turkey has the potential to become one of the most important commercial partners in the country. According to the official, Turkey already represents one of the top ten investors as the trade between the countries is around USD 150 million and might double in the near future.

Milatovic also talked about his official visit to Turkey and the different meetings that were held during that period. The minister met Turkey´s Foreign Economic Relations Board and the Union of Chambers and Commodity Exchanges of Turkey, also met with Turkish businesspeople.

According to the Minister, already one-third of the foreign companies that are present in the country come from Turkey, and this represents a positive sign for the economic relationship as the Turkish investors have already started to identify Montenegro as a good destination for business.

The main sectors where the Turkish companies are leading are port management, banking, steel, tourism, real estate, information technologies. However, opportunities are still being considered as good investment possibilities as Montenegro´s economy is expected to grow strongly in the next few years.

It is important to highlight that Montenegro counts with acceptable tax rates, and this is one of the elements that caught the Turkish investors’ attention in the first place. If you want to know more about this country and the business opportunities, then you can contact us here at Mundo.

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