First greenfield Eco-Industrial Park in the Western Balkans
The European Union (EU), International Finance Corporation (IFC), and local government partners have signed a landmark agreement to establish the first Eco-Industrial Park pilot in the Western Balkans, located in Šabac, Serbia. This pioneering initiative is expected to accelerate sustainable industrial development in the region, supporting the transition to a sustainable economy, aligning with EU environmental standards and the Green Agenda for the Western Balkans.
The EU through the Western Balkans Investment Framework provides a €3.6 million grant contribution to the programme, which aims to demonstrate the feasibility of Eco-industrial parks through four pilot case studies.
Eco-Industrial Parks bring businesses together in a shared location to cooperate with each other, and the local community, to optimise resource use, reduce waste and pollution, and enhance economic performance. This new site in Serbia will serve as a flagship model for low-carbon industrial development, helping the region bypass its reliance on fossil fuels and reduce levels of pollution and greenhouse gas emissions. As 60% of Serbian exports go to the EU, adopting European regulations and sustainability standards enhances competitivity in these markets.
“Hosting Serbia’s first Eco-Industrial Park is a proud moment for our city. This initiative strengthens our local economy, sets a precedent for sustainable growth, and represents a critical step in building a resilient future for our citizens”, said Aleksandar Pajić, Mayor of Šabac.
“This agreement is a milestone in supporting the Western Balkans’ green transition,” said Plamena Halacheva, Deputy Head of the EU Delegation to Serbia. “By launching the Eco-Industrial park initiative, we are driving innovation, strengthening resilience, and advancing the circular economy as an essential step achieving net-zero gas emissions by 2050.”
This collaboration highlights the region’s potential to attract sustainable investments and integrate into European value chains. The Eco-Industrial parks initiative, implemented by IFC in partnership with the EU aims to set new standards for local business ecosystems. The pilot case studies are one stage of the support provided through this initiative, which also includes developing regulatory support and policy frameworks, and engaging with the private sector to encourage investments.
“The project is part of a broader global strategy and represents our commitment to sustainable industrial development in the region,” said Nicolas Marquier, IFC Regional Manager for the Western Balkans. “Together with the EU and local authorities, we are creating a scalable model that unlocks long-term investment opportunities while addressing pressing environmental challenges.”
About the pilot projects
As part of the initiative, five pilot projects are planned across the Western Balkans, each with the potential to scale up and serve as regional benchmarks for sustainable industrial transformation. In Serbia, the first two pilot projects will be:
▪ Šabac Greenfield Eco-Industrial Park: A newly developed industrial park designed to incorporate sustainability principles from the start.
▪ MIND Park Brownfield Eco-Industrial Park: A retrofitting existing industrial park showcasing how traditional zones can adopt sustainable practices.
These pilot projects reflect the Eco-Industrial Park initiative’s commitment to positioning the Western Balkans as a leader in sustainable industrial practices.
IFC Eco-Industrial Parks Serbia video (February 2025)
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As a testament to IFC’s commitment to knowledge-sharing and collaboration with future finance professionals, students of the Geneva Graduate Institute’s MAS in Sustainable Finance and Development program, visited IFC Office in Belgrade to explore green investment strategies.
By providing insights into real-world challenges and innovative financing solutions, IFC aims to equip the next generation of experts with the skills needed to drive sustainable investment and development.
Working closely with IFC Serbia’s economic experts, this hands-on approach allowed them to explore how sustainable industrial development can drive economic growth while minimizing environmental impact. The discussions centered on best practices, financing models, and policy frameworks that support low-carbon and resource-efficient industrial zones.
Babatunde Adeleke: “It was an amazing experience to meet with the IFC team and learn about their green projects in Serbia. The field trip to the landfill site and working on the Eco-Industrial Park development process ground truth the knowledge acquired in class and it’s a privilege to apply this knowledge to real life scenarios. I really look forward to seeing these models replicated in Sub Saharan Africa.”
Heesu Jeon: “It is an exciting opportunity to get involved in an Eco-industrial park project in Serbia, the first one of such kind in the region, from the early stage. Especially in the backdrop of strengthened EU sustainability standards, I believe developing the Parks can substantially support the industrial development and transition of Serbia.”
Maximilian Steinbach: “It is a great experience to see the beginnings of the Eco-Industrial Park concept implementation in the Western Balkans. The concept seems to bring many advantages in achieving resource efficiency and improved circularity to the region, aiding its green transition.”
Amelia Diaz and Augusto Gortraire: “We are privileged to take part in this joint EU and IFC initiative of such scale and ambition. As students from Latin America, we are particularly inspired by the EU’s commitment to funding projects that prioritize decarbonization, resource efficiency, and private sector growth while also driving innovation and trade.”
The Eco industrial park pilot are the result of partnerships between the European Union, the International Finance Corporation (IFC), local governments, and the private sector.
Aligned with policies such as the European Green Deal, the Green Agenda for the Western Balkans, and the Economic and Investment Plan for the Western Balkans 2021-2027, the project aims to support industrial decarbonization and the creation of sustainable and competitive industrial zones. The European Commission, through the Western Balkans Investment Framework (WBIF), has been instrumental in supporting projects like these across the region.
More about the Eco-industrial Parks in the Western Balkans here
See all the EU-supported programmes for the private sector https://www.wbif.eu/sectors/private-sector-2024
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The WBIF is part of the Global Gateway - the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. Global Gateway aims to mobilise up to €300 billion in investments. Through a 'Team Europe approach', Global Gateway will bring together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.
