environment
Niš Recyclers: Thousands Lose Jobs Due to Subsidy Cuts, Waste Piles Up
Factories in Serbia that employed 15,000 people have been forced to reduce their workforce by 70 percent after incentive funds for the treatment of special waste streams were abolished by a Serbian Government Decree on January 1st this year, stated Ninoslav Milenković, director of the company 'E-reciklaža' from Niš.
TL;DR
- Recycling factories in Serbia, previously employing 15,000 people, have reduced staff by 70% following the discontinuation of government incentives for special waste stream treatment.
- This has led to thousands of job losses and the shutdown of related businesses, with an estimated 30,000 tons of waste not collected for recycling in the last three months.
- Without a sustainable funding solution, 120,000 tons of waste are projected to end up in the environment in 2026, potentially causing an ecological disaster.
- The 'polluter pays' principle generates approximately 10 billion dinars annually, which is deemed sufficient for waste treatment, but the funds are not adequately directed.
- The proposed government decree classifies financing as state aid, which has limitations (€100,000 annually) and is unsuitable for the continuous operational costs of the waste management system.
- Global standards suggest waste treatment costs are covered by approximately 80% from polluter-paid funds and 20% from material market value.
- Recyclers are dissatisfied with the new draft decree, viewing incentives as a right of polluter responsibility rather than limited state aid, and are concerned that funding would only benefit waste collectors and sorters, not recyclers.
- Sustainable funding models globally include funds, collective operators, or concessions.