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UNDA Project 1819AE: Montenegro - Financing environmental protection

Kotor Bay

The third EPR of Montenegro recommended that the existing system of pollution charges be reviewed and that consideration be given to the possibility of entrusting a governmental institution to act as an environmental investment centre. Such a centre would create incentives for polluters to change their behaviour towards the environment, as well as improve access to information on the amount of revenues collected with a view to gauging the incentivizing effects of pollution charges at the level of individual polluters.

In March 2020, to implement the EPR recommendations, Montenegro established an eco-fund that requires a stable fund inflow, especially during the COVID-19 crisis when considerable amounts of public funds were redirected towards other priorities such as health protection and support to small and medium enterprises. With support from UNECE, the country conducted an analysis of all existing environmental taxes and developed recommendations for their update to ensure a stable inflow into the newly established eco-fund.