Over the past two decades environmental awareness in the Western Balkans has undergone a profound transformation. What was once a fragmented landscape of donor-driven projects and symbolic compliance is now evolving toward a more strategic, integrated understanding of sustainability and ESG (Environmental, Social and Governance) principles.
According to Ana Popović, Professor of Applied Studies in Environmental Engineering and Sustainability at the Academy of Applied Studies Polytechnic in Belgrade, “ESG has shifted from being an environmental duty to becoming a condition for market access.”
With over 20 years of international experience in environmental management, sustainability and education Popović has worked across Southeastern and Central Europe as well as in the Middle East and North Africa. Her career spans positions such as Senior Expert at the Regional Environmental Center for Central and Eastern Europe (REC), Global Sustainability Specialist at Ball Corporation, and numerous consultancies for international organisations including UNDP, SIDA and the EU. Today she combines academic expertise with real-world insight into how industries and institutions can align with EU sustainability standards.
The Evolution of ESG in the Western Balkans
Reflecting on the region’s progress Popović recalls that in the early 2000s environmental action was often reactive, environmental impact assessments were treated as formalities and ISO 14001 certification was unevenly implemented. However, over the past decade environmental awareness has strengthened significantly.
“Efforts to align with the EU have accelerated positive change,” she explains. “We have seen the transposition of industrial emissions directives, improvements in wastewater and waste frameworks and the introduction of integrated permitting.”
Today EU initiatives such as the Green Deal, CBAM, CSRD and the EU Taxonomy are reshaping how sustainability is perceived – no longer as a moral or regulatory obligation but as a fundamental driver of competitiveness and survival in global markets. Export-oriented industries, particularly in metals, automotive components and agribusiness, increasingly recognise that ESG performance directly affects their access to financing, partnerships and supply chains.
Still, challenges remain. “In certain cases capacity is limited, environmental data inconsistent and cross-sector governance structures are still maturing. While strategies often look progressive on paper, implementation tends to lag behind,” Popović notes. She adds that integrating sustainability into education, though improving, remains a continuous challenge.
Green Skills for Growth and EU Alignment
“To ensure competitiveness under emerging EU frameworks such as CBAM, CSRD and the EU Taxonomy, vocational education must prioritise skills that directly support decarbonisation, circularity and digital-enabled efficiency,” she explains.
She identifies four key areas for skill development:
- Renewable Energy and Energy Efficiency
- Resource Efficiency
- Circular Economy, Sustainable Manufacturing and Materials
- ESG, Data Competence and Reporting
“Qualifications should be modular, stackable and co-developed with employers while being nationally and regionally recognised,” she adds. “Green skills must be integrated into existing vocational practices, not added as optional stand-alone modules.”
Bridging Education and Industry for a Greener Economy
During the RCF Annual Regional Conference 2025 in Montenegro Popović moderated the session “Green Skills for Growth – aligning with EU sustainability standards”. The discussion highlighted one of the region’s central challenges: bridging the gap between education and industry to accelerate the green transition.
“As discussed during the conference, despite the urgency, integrating sustainability and emerging technologies into curricula remains difficult,” she says. “We need to move from project-based cooperation to systemic, continuous collaboration.”
For Popović this means co-creating curricula, apprenticeship pathways and innovation agendas between businesses, educational institutions and local governments. She points to the concept of living labs as a promising model – training centres that unite schools and enterprises where students can learn from real operational data while companies test new sustainability measures.
“These projects should have measurable outcomes – kilowatt-hours saved, CO₂ reduced, waste avoided, efficiency improved. The goal is not just to train students or workers, but to co-evolve a green industrial ecosystem.”
Learning from Global Experience
Drawing on her experience in Europe, MENA and through Erasmus+ programmes Popović highlights several international practices that could be adapted in the Western Balkans.
In Germany she notes, sustainability is integrated into job descriptions rather than treated as an add-on. “The ‘Standard Job Profile Positions’ for sustainability map concrete tasks to operational procedures, ensuring green skills are not sidelined.”
From the Nordic countries she emphasises phenomenon-based learning – an approach where students solve real-world problems across disciplines, fostering creativity and collaboration.
Meanwhile, in MENA countries she worked on projects addressing water scarcity, introducing innovative practices to improve local water security. “The Western Balkans could greatly benefit from similar approaches focused on efficient water use and pollution prevention,” she says.
Erasmus+ programmes she adds have been instrumental in strengthening international cooperation and should continue to support regional knowledge exchange, development of micro-credentials and the integration of VET systems with the European Qualifications Framework.
Making Sustainability Accessible for SMEs
While large companies are often equipped to adopt complex ESG frameworks, small and medium-sized enterprises (SMEs) can find the process intimidating. Popović believes that the key is to simplify and contextualise.
“SMEs often feel overwhelmed, so we must make sustainability financially relevant and tangible,” she says. “A simple ESG roadmap tailored to their sector, with a handful of measurable indicators for energy, materials, waste, water can make a big difference.”
She recommends gradually introducing digital tools such as greenhouse gas calculators and waste tracking dashboards. “ESG should not be seen as bureaucracy, but as a value strategy that improves market access, productivity and resilience.”
Digitalisation as a Driver of Change
Digitalisation is also transforming environmental management and education. With the help of IoT sensors, smart meters and AI, data collection and decision-making are becoming faster and more precise.
“AI models can detect irregularities, optimise processes and support prediction,” Popović explains. “Satellite data helps verify land-use changes while VR technology allows students to simulate industrial environments safely and effectively.”
However, she warns that technology cannot replace expertise. “Digital tools enhance and support sustainability knowledge – they multiply precision and speed, but expertise remains at the core.”
Educating for a Mindset, Not Just a Profession
For Popović sustainability is far more than a technical skillset – it is a mindset. “Teaching sustainability has never been only about job-ready skills,” she says. “It’s about preparing young people to imagine and design a world that is sustainable, digital and inclusive.”
Through her work with students of bachelor and master applied studies she encourages practical understanding through real-world examples – from life-cycle assessments and resource efficiency to circularity, renewable energy integration and sustainable design. “This approach makes sustainability a lived reality, not a distant policy concept,” she concludes.