Incentives for recyclers abolished in Serbia, thousands of jobs at risk

Although the 2025 Law on Waste Management anticipated the adoption of a new regulation, N1 reports that a working group to draft the document has not yet been formed. In the wake of the funding cut, several recycling firms have already reduced staff wages to the legal minimum or placed employees on forced leave.

Industry leaders warn of systemic collapse

Operators within the sector describe the move as the "final blow" to a system they claim has been deteriorating since the Environmental Protection Fund was abolished in 2012. If the funding issue is not resolved by the end of January, many operators warn they may be forced to close their facilities permanently.

The crisis is expected to cascade down to waste collectors and individual scavengers, impacting an additional 13,000 workers and their families. As of January 1, licensed operators have already suspended the collection of recyclable hazardous waste.

Environmental and industrial consequences

The halt in waste processing is already leading to a buildup of waste, a situation that could soon affect both the general public and the broader industrial sector. Businesses such as tire manufacturers, importers of electronic goods, auto repair shops, and retail chains currently have no legal means to dispose of their waste.

For households, the lack of collection services for electrical and hazardous waste raises fears of a return to illegal dumping. Experts warn that stoves, refrigerators, televisions, and tires could once again end up in Serbia’s rivers.

The Ministry of Environmental Protection has not yet responded to inquiries regarding the reasons for the abolition of incentives or provided assessments on the potential impact on employment and the environment.