Environment Bill Proposes National Fund and Up to 100% Financing for Environmental Projects

The Council of Ministers has proposed amendments to the Law on Environmental Protection to strengthen nature restoration, carbon removal certification and financial support for environmental projects.

The draft law adds the “restoration of natural elements” as a new measure for environmental protection. The Council of Ministers will approve specific measures based on a proposal from the minister responsible for the environment.

Another key change introduces a carbon removal certificate. The ministry will issue the certificate to individuals and legal entities that remove, collect and store carbon through their activities and production processes, in line with established criteria.

Meanwhile, the Council of Ministers will define the criteria, procedures and requirements for the certificate. It will also regulate its issuance, use and validity, as well as the work of the commission responsible for issuing it.

The draft law also reshapes the responsibilities of the ministry responsible for the environment. It defines the ministry as the central policymaking and coordinating authority for environmental protection.

The ministry will prepare national environmental strategies and plans. It will also issue permits, licenses and authorizations and provide financial support for environmental projects.

In this framework, the government proposes the creation of a National Environment Fund as a public financial fund. The fund will support Albania’s national environmental protection policy. Its resources will come from the state budget and domestic or foreign financing allocated for this purpose.

The fund will provide grants, subsidies and other financial instruments to support environmental projects and activities.

Under the draft law, the ministry will finance projects submitted by non-profit organizations and individuals whose activities focus on environmental issues. It will also support large-scale projects and initiatives proposed by the ministry and its subordinate agencies.

The financing scheme could cover up to 100% of approved project costs.

Meanwhile, a commission will select the projects. The commission will include five senior and middle-level public administration officials who lead structures responsible for environmental issues.

The commission will assess and classify projects. It will also propose environmental activities and projects to the minister.

The draft law further establishes criteria and procedures for financial support. The minister responsible for the environment will approve regulations governing the commission’s work.

Finally, the proposed amendments state that the law will enter into force 15 days after publication in the Official Gazette. Its financial effects will begin on January 1, 2027.

/a.c/

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