Montenegro’s key international commitments, in this area, include the following:
INDUSTRIAL POLICY UNDER the GOALS of SUSTAINABLE DEVELOPMENT of the UNITED NATIONS – UN SDGs 2030
– Industry policy activities, stemming from the document “Industrial Policy of Montenegro until 2023, do not have an equal scope of industrial sectors, deriving from the Montenegrian Law on classification of business activities (Official Gazzette “SLCG” 18/11, dated 2011). Activities are adjusted with the needs of the modern digital and green economy, following the priorities of the goals of the UN and the priority policies of EU.
Montenegro strives to contribute to the achievement of the goals of the UN 2030 Agenda, as one of the UN member states. Objectives of the Agenda of UN represent the wide scope of activities of sustainable and inclusive industrial development. SDGs:
Strategy promotes the principles of sustainable production and consumption and sustainable use of resources, including electric power generation and supply, as well as materials for industrial purposes. Montenegro will gradually adopt and apply EU policy on products. The Strategy envisaged optimisation of technological processes towards reducing waste generation, more efficient use of inputs and less by-products, less energy and water use, and lower GHG emissions. The economy is not diversified enough. Additional rural development is needed and the new implementation of new and efficient technologies (green and blue economy). It is concluded that “economic activities are not adjusted enough with the goals of sustainable development (forestry, hunting, energy, industry, exploitation of mineral resources, maritime economy, transport, spatial planning, construction, tourism), as well as the relatively high level of domestic material consumption – DMC and the low level of Resources Productivity – RP”. Under the environmental protection and waste management, focus is on the necessary implementation of the Best Avaialble Technicques – BAT and the mitigation of the industrial hazards. It is necessary to realise the Programme of harmonisation of economy areas with the Law on the integrated restriction and control of pollution of the environment (Integrated certificates issued to the Steel-plant in Nikšić, Coal-power Plant in Pljevlja, etc.). Strategy will provide the funds, necessary for the reconstruction of the industrial plants.
Mid-term Working Programme of the Government of Montenegro 2022-2024 is in line with the goals of NSSD.
Global indicators of sustainability of the national development: index of human development, ecologic footprint, DMC, RP, public space utilisation.
Economic development indicators: GDP growth rate, % of employment, sustainable consumption and production.
 The current process of plastic production and discard doesn’t meet the criteria of the circular economy. The aim is to protect the environment and lay the foundations for a new economy, where the design and production are in accordance with the needs of reuse, recycling and development of sustainable materials. By gradually reducing production and usage of light plastic bags and disposable plastic products, in the next three years, Montenegro will create good preconditions to join the standards of EU countries (SDG 12). (Source: ERP 2022-2024)
NSSD goals in the area of industry:
Key documents of EU: Industrial strategy; Green Agenda, Paris Agreement, Plan of climate mitigation, Action Plan on critical raw materials, strategies of EU about SMEs / plastics / hydrogen / low-carbon GHG / chemicals, Mobility Strategy, etc.
List of strategies (hyperlinked):
|1||GREEN DEAL 2050|
|2||European Green Deal Investment Plan|
|3||EU long-term Strategy for submission to the UNFCCC, 2020-2050|
|4||Updating the 2020 New Industrial Strategy, 2021|
|5||A New Industrial Strategy for Europe, 2020|
|6||The new SME Strategy, 2020|
|7||Organic production action plan, 2021-2030|
|8||EU Standardization Strategy|
|9||Programme Digital Decade 2030|
|10||European Sustainable and Smart Mobility Strategy 2050|
|11||A strategic rollout plan of alternative fuels infrastructure, 2021-2030|
|12||EU Strategy for Energy System Integration 2030|
|13||Strategy for financing the transition to a sustainable economy 2021-2023|
|14||new EU Adaptation Strategy, 2021-2050|
|15||“Fit for 55 Strategy”- EU’s 2030 Climate Target – climate neutrality|
|16||Western Balkans Enterprise Development and Innovation Facility (WB EDIF)|
|17||Climate Target Plan, 2020-2030|
|18||EU Missions’ Plans 2030|
|19||CEFTA Common Regional Market Action Plan, 2021-2024 (WB6)|
|20||Action Plan on Critical Raw Materials, 2020-2050|
|21||A new Circular Economy Action Plan, 2020-2030|
|22||Research Programme of the Research Fund for Coal & Steel, 2020|
|23||EU Action Plan of entrepreneurship, 2020|
|24||Long term action plan- single market rules, 2020|
|25||Communication eu: Repair & Prepare for the Next Generation, 2020|
|26||Chemicals Strategy, 2020-2028|
|27||Strategy on Hydrogen for a climate-neutral Europe, 2020-2030|
|28||EU Strategy to reduce methane emissions, 2020-2050|
|29||Delivering on low-Emission Mobility Strategy 2030|
|30||EU Action Plan Towards a Zero Pollution Ambition, 2021|
|31||EU Plastics Strategy, 2020-2030|
|32||Clean Energy for all Europeans 2030|
|33||Renovation Wave Strategy, 2020-2050|
|34||An EU Strategy On Smart Sector Integration, 2020 (energy systems)|
|35||2030 Climate & Energy Framework|
|36||White Paper on Artificial Intelligence, 2020-2027|
|37||Masterplan for transformation of EU energy intensive industries, by 2050|
|38||the New EU Forest Strategy for 2021-2030|
|39||Action Plan on Synergies between civil, defence and space industries, 2021|
|40||Annual Sustainable Growth Strategy, 2021|
|41||Intellectual Property Action Plan, 2020|
25th out of 137 countries (2022)Growth rate of industrial production - EU
5.8% (2021)Industrial confidence indicator - EU
-4 (2021)Annual growth rate of index of industrial production - monstat
9.5% (December, 2021)Index of the annual turnover in industry - monstat
32.4% (December, 2021)Rate of Industrial production - monstat
15.2% (1Q 2022/ 1Q 2021)- extraction of ores and stones - monstat
7.4% (1Q 2022/ 1Q 2021)- processing industry - monstat
11.2% (1Q 2022/ 1Q 2021)- supply by electric energy/gas, air-conditioning - monstat
33.4% (1Q 2022/ 1Q 2021)UNIDO Competitive Industrial Performance Index
127/ 152 (2020)Labour input Index/index of labour, 2015=100, total industry - EU
108.3 (4Q 2021)Energy import dependence rate (SDG 7)
Industry policy and production within the strategic framework of Montenegro
By adopting the Industrial Policy of Montenegro 2019-2023, Montenegro has renewd its industrial frameowrk of activities and achieved a visible progress in the field. All activities are absorbed regarding the fulfillment of the only one closing benchmark left, taking into consideration the obligation to continuoulsy monitor and report about the implementation of this document, which is considered as the most importaint strategic document for the policy. The document entails the development of the competitiveness, with focus on industy (extraction of ores and stones, processing industry, suppling through the electric energy, water, waste water management, process of waste disposal.
 Source: Office for EI.
The Industrial Policy strategic goals:
The Government adopted the Action Plan for the implementation of the Industrial policy of Montenegro, 2019-2023, for period 2021-2022. The Plan is importaint for the purpose of following the policy implementation, in order to fulfill measures for temporarily closing benchmarks of the Chapter 20. Plan is made, based on the determined recommendations, stemming from the adopted Report on realisation of the Industry policy ’19-2020. g. and with the aim of meeting the needs, of importaince to the industrial development. The Plan (worth €450.8 mil.) entails: growth of industry competitiveness, cooperation between the economy and the science, support to the green, climate neutral and circular ecenomy and digital transformation of the entreprises. (source: 42nd Session of the Government of Montenegro, 2021). This assumes investments in domestic companies and financing of the projects in the energy sector (Thermal Power Plant Pljevlja -TEP, Hydro-electric Power Plants – HE Perućica, HE Piva; HE Komarnica (under planning process); electricity distribution networks; Solar Power Plant – SE Briska gora, Wind Power Plants -VE Gvozd, VE Brajići). Emphasis of the EU policy is transition from the fossile fules to the clean energy and Montenegro is harmonising its legislation in this area with the EU. Additionally, it is planned to support the waste management (export of grit); growth of goods export, growth of the processing industry , diverzification of the production, strengthening the regulatory framework and business environment, introduction of the projects of the green economy, by enhancing trade and respecting the principles of clusters.
The most importaint export goods are metal products, agricultural and food products, raw materials, processed wooden products.
Processing industry participated in 70% of total export of goods, in 2018.
Key drawbacks for the growth of the Montenegrin competitiveness, recognised in the industry strategy, are de-industrialisation; predominance of traditional sectors in exports – basic metals, wood and food industry products; low utilisation of the scientific and research potential; regional disparities; Insufficient investment in SME development. number and type of export products, and the number of countries exported to. The key challenges for the increase of Montenegrin competitiveness in the context of its industrial policy, as recognised by the Industrial Policy 2019-2023 include the following: The development opportunities are seen in the greater diversification of the processing industry, energy & transport. By setting priorities for industrial development, a value added will be given to the tourism of the country, through the digitalisation, using EU funds and through the international trade.
 Processing industry: production of food products, processing of fresh fish, beverage production, pasteurization of milk, tobacco production, textile, clothing, footwear, leather processing, printing, wood, printing and paper production, plastic production, metal processing, production of petroleum products, machine processing, car tire processing, pharmaceutical products, etc.