Greater connectivity through upgraded infrastructure boosts local employment, reduces travel times, and fosters inclusive economic growth. Improved access to services promotes equity and community well-being.

Cleaner transport solutions and smarter designs help lower emissions, protect ecosystems, and enhance public health. Such green improvements also attract responsible investors, spurring long-term sustainability.

While transitioning to renewable energy and smart infrastructure, workers in traditional energy sectors (coal, oil, gas) may face job losses, requiring re-skilling programs​

Initial investment costs for green energy infrastructure might lead to higher electricity tariffs before cost efficiencies are realized, disproportionately affecting low-income households​.

Increased digitalization in smart cities and industries may exclude populations with low digital literacy, widening the urban-rural digital gap​.

Large-scale projects in transport modernization and digital infrastructure may cause temporary disruptions in urban areas, leading to traffic congestion and reduced business activity​.

Gender inequality and/or marginalization risk: Women and marginalized groups may be underrepresented in new infrastructure and energy jobs, reinforcing existing employment disparities​.

Delays or inconsistencies in policies on renewable energy, smart infrastructure may hinder investment momentum, limiting expected and economic benefits and slowing sustainable development.

Insufficient private sector financing or failed Public-Private Partnerships (PPPs) may stall key infrastructure projects, limiting their economic and environmental impact.

Public opposition to transport upgrades or renewable energy expansion due to land use, displacement, or cultural concerns may delay implementation.

Large-scale projects may cause land degradation, biodiversity loss, or water depletion if sustainability measures are inadequate.

Gender inequality and/or marginalization risk: Without inclusive policies, women and marginalized groups may remain underrepresented in STEM and energy sectors, widening employment disparities.

Sustainable construction materials manufacturing aims to enhance sustainable infrastructure, expand renewable energy access, and promote economic inclusion by creating jobs and reducing disparities.

The National Development Strategy stimulates investment in eco‑friendly construction materials and processes that adhere to circular‑economy principles. Creates demand and financial incentives for firms producing or supplying low‑carbon, recyclable building materials. (1)

The NSSD prioritises resource efficiency, sustainable urban planning and low‑carbon materials for long‑term sustainability. Embedding these aims in building codes, procurement rules and incentives fosters markets favouring eco‑material suppliers. (4)

National Spatial Planning Strategy. Emphasizes eco-resilient urban growth and the use of environmentally sound materials in national and municipal projects. (16)

Strategy for Balanced Regional Development 2021-2031. Directly encourages development of region-specific infrastructure using sustainable construction approaches to reduce disparities. (17)

Law on Sustainable Regional Development (2021). Ensures consistent funding and institutional mechanisms for projects related to green construction materials and inclusive development. (18)

Financial incentives: Subsidized grants and loans from the Fund for Innovation and Technology Development (FITD) for green technologies, including energy-efficient materials and sustainable construction. (24)

Reduced VAT and tax exemptions for certified energy-efficient construction materials. Accelerated depreciation applies to eco-construction machinery and insulation systems. (25)

Law on Construction (Official Gazette No. 130/09, amended). Defines legal procedures, technical standards, and quality control for construction activities. Encourages the use of eco-materials and energy-efficient designs, aligned with EU standards for sustainable development. (19)

Law on Environment (Official Gazette No. 53/05, amended). Mandates environmental impact assessments (EIAs) for construction and infrastructure projects. Supports green building and resource-efficient practices, crucial for regulating sustainable material manufacturing. (20)

Rulebook on Energy Performance of Buildings. Establishes energy efficiency standards for new and renovated buildings. Encourages the use of materials that enhance insulation and reduce energy consumption, directly promoting sustainable construction. (21)

Law on Waste Management. Regulates construction and demolition waste management. Promotes recycling and reuse of materials in line with circular economy principles, enabling a legal basis for sustainable material supply chains. (22)

Law on Spatial and Urban Planning. Provides zoning and planning conditions that promote compact urban development, low-emission zones, and integration of green infrastructure using sustainable materials. (23)

Private construction companies, green material manufacturers, and engineering consultancies engaged in eco-friendly building, smart infrastructure, and circular economy innovation.

The Ministry of Transport and Communications, Ministry of Environment and Physical Planning, and Ministry of Economy regulate infrastructure, energy, and environmental standards, while providing funding and policy support.

European Union institutions, EBRD, and the World Bank support sustainable construction through technical assistance, concessional finance, and infrastructure co-investment.

Environmental NGOs and professional associations promote sustainable building codes, provide technical training on green materials, and advocate for inclusive, low-carbon urban development.

PPP arrangements under the Western Balkans Investment Framework (WBIF) and national PPP law enable collaboration between municipalities and private sector actors for green infrastructure delivery. (35)