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Environmental information systems
The Albania country profile provides a concise overview of key trends across three dimensions: environment and climate; socio-economic change; and system change (energy, mobility and food) in the country. It highlights the main developments and challenges in these areas, including measures to support progress towards sustainability in Albania. An assessment for each of the three dimensions was prepared by national experts from the European Environment Information and Observation Network (Eionet) in Albania, based on 20 established indicators from the EEA or Eurostat.
Albania signed the Sofia Declaration on the Green Agenda for the Western Balkans in 2020, committing to reaching carbon neutrality by 2050. Through the implementation of measures included in strategies and plans related to renewable energy sources (RESs) and energy, Albania has already achieved the EU’s 2030 targets for using RESs and has made progress in reducing energy consumption.
However, despite the decrease in greenhouse gas (GHG) emissions from the land use, land use change and forestry (LULUCF) sector, the increases in emissions from other sectors mean that meeting the target set out in the Nationally Determined Contributions (NDC) 2021–2030, which aims for an overall reduction of 20.9% of GHG emissions by 2030, will be difficult.
Improving the road infrastructure and mobility system and increasing the number of new and electric cars, with lower emissions, has led to progress being made towards reducing the rate of premature deaths due to air pollution. Moreover, the area covered by organic farming has increased in the last two years due to national schemes implemented within the Instrument for Pre-Accession Assistance in Rural Development (IPARD) measures, but high levels of effort are still needed to meet the EU policy target of 25% coverage by 2030.
These schemes have had a positive impact in terms of food quality and producers. Terrestrial protected areas have also expanded during the last decade; in particular, it is worth mentioning the designation of the Vjosa Wild River Natural Park as such an area in 2023. With the reduction in municipal waste generation per capita and the increase in waste recycling, Albania is also making good progress in moving towards a circular economy.
Finally, the social protection strategy 2024–2030 aims to combat energy poverty by consolidating financial schemes and promoting the use of solar panels in rural areas, and economic policies show that progress is being made towards the green transition in innovation and renewable energy.
Key trends and assessments
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Summary assessment
Albania has adopted its first energy and climate action plan (NECP) for 2021–2030, which is based on the national energy strategy and the Nationally Determined Contributions (NDC) adopted at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC). Albania’s energy policies pursue three objectives: supporting overall economic development, increasing the security of the energy supply and protecting the environment.
Albania is in an excellent position in relation to the Green Deal, with an energy sector based almost entirely on hydropower plants that produce clean energy, but it is often exposed to shortages in dry years. Albania aims for a 15.5% reduction in energy consumption and is making efforts to achieve the EU target of 87% by 2030. Renewable energy, especially from sources other than hydropower, is a solution for issues related to energy production and climate change mitigation. The challenge for water management in relation to the environment is to balance the needs of diverse ecosystems with the needs of other water users. Protected areas, wetlands and forests are the three main habitats considered to directly affect and be affected by water. Protected areas have increased because of reviews of their boundaries, the declaration of new protected areas and the expansion of existing ones.
Albania is one of the countries with the lowest levels of greenhouse gas (GHG) emissions in the region, but, at the same time, it is the most vulnerable to the effects of climate change due to natural disasters. The NDC document sets out measures for mitigation and adaptation. National legislation on ambient air quality has been aligned with that of the EU at an advanced level, but air-quality-monitoring practices need to comply with EU standards. Increased investment is needed to ensure continuous monitoring, data provision and reporting on air emissions from all contributing sector.
Challenging socio-economic conditions and fragile support for sustainability
Albania has faced socio-economic challenges following the 2019 earthquake and the COVID-19 pandemic, which disrupted tourism and strained public budgets. Public support for green policies remains uneven, especially in rural areas. The Gini coefficient improved from 36.8 (2017) to 33 (2021), and energy poverty is decreasing but is still much higher than the EU average. Social schemes address rising electricity costs through cash benefits, yet only 80.2% of eligible individuals accessed them in 2021. The social protection strategy 2024–2030 aims to combat poverty and energy poverty by consolidating financial schemes and promoting renewable energy, particularly the use of solar panels in rural areas.
Economic policies show progress, but green investment remains limited
Albania has made progress in aligning economic policies with EU standards, particularly in environmental innovation. Innovation activity among companies with 10 or more employees increased from 36.6% (2018–2020) to 42.9% (2020–2022). Environmental tax revenues have increased overall but have decreased as a percentage of total revenues since 2014, highlighting the need for targeted incentives for green growth.
Renewable energy investments are insufficient. Meeting the EU targets requires new hydro, solar, biomass and wind projects, including proposed schemes like energy purchase agreements and favourable loan terms (e.g. 7- to 10-year maturities, 2-year grace periods). While the gross value added of goods and services fell from 6.0% (2021) to 4.4% (2022), the contribution of water supply and waste management increased slightly.
Business community’s engagement in Albania’s green transition
The level of engagement of Albania’s business community is inconsistent. Larger firms are innovating, while small and medium-sized enterprises (which account for 82.1% of employment) face resource constraints. The construction and manufacturing sectors are improving their material efficiency, reflected in better material productivity and reduced per capita material consumption. Only 4.3% of innovative enterprises received public financial support, underscoring the need for expanded tax relief and business–research partnerships. Increased public spending on tertiary education supports innovation but requires further alignment with green goals.
Urban–rural divide risks an unequal transition
Albania faces challenges in ensuring the green transition benefits all populations. Energy poverty is widespread, particularly in rural areas, with vulnerable groups being disproportionately affected by transition costs. While cash benefits and energy efficiency subsidies are being implemented, the Albanian national energy and climate plan (NECP) highlights the lack of dedicated energy poverty policies. Expanding inclusive measures will be essential for a fair and sustainable transition.
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The food system
With the signature of the Green Agenda for the Western Balkans, Albania expressed its interest in following the EU Farm-to-Fork strategy, thus ensuring that agriculture, fishing and aquaculture can contribute properly to the goals of EU legislation. There is a particular focus on the use of pesticides and antimicrobials, a reduction in excess fertilisation, the increased use of organic farming and the improvement of animal well-being and biodiversity protection. As Albania nationalised all the sustainable development goals (SDGs) and the vast majority of the SDG targets, the integration of the concept of sustainable food systems into plans for the implementation of the SDGs will help Albania carry out all aspects of the 2030 Agenda.
The national Food Systems Solutions Dialogues outlined the key trends influencing the development of a sustainable food systems in the country by 2030. The national food security strategy for 2023–2027 defines the objectives for improving the food security system. To strengthen the agro-food regulatory system, a number of specific challenges need to be addressed, including (i) the availability of data to inform risk-based monitoring and surveillance, (ii) the weaknesses in food safety and animal health systems in relation to scientific evidence, (iii) the necessary infrastructure, (iv) the training and human resources required, (v) the development of the food-safety culture and (vi) applicable regulations. The security offered to Albanian consumers in terms of food has increased significantly. In this context, the standards adhered to by the network of food safety laboratories have been more closely aligned with EU standards, and the number of analysis and accredited laboratories has increased.
Since 2017, agriculture, rural development and fishing have been supported through national schemes. These schemes have helped increase livestock and honey production, through payments per head (cattle) or beehive. They have also helped increase the areas planted with crops of high value and with potential for export, as well as the surface area covered by greenhouses. Finally, the schemes have also provided better equipment for the fishing fleet to become more efficient. Since 2021, the implementation of the support scheme for farmers – who can now use oil for mechanised works in agriculture without paying excise duty, carbon tax and circulation tax – has been in place. About 20 000 farmers benefited from this scheme in 2021. Producer groups with a focus on the joint marketing of production are more applicable to and appropriate for the current phase of Albanian agriculture. Currently, work is under way to align the legal framework with the EU acquis for producer organisations and associations of producer groups and to provide sufficient support measures within the framework of the Instrument for Pre-Accession Assistance in Rural Development (IPARD). Agricultural activities have an impact on the environment and human health through chemical use, waste and emissions. Some of the waste from the production of animal and non-animal products is disposed of in designated landfills. The greenhouse gas (GHG) emissions from the agriculture sector increased by 4.7% between 2009 and 2019.
The energy system
Albania is a member of the Berlin Process and the Western Balkans 6 (WB6) initiative and is engaged in the regional integration of the electricity market as a step towards implementing the intended European electricity model. The Albanian energy sector covers subsectors such as supply safety and infrastructure (of energy), energy market adjustment, energy efficiency, hydrocarbons and renewable energy. In the Albanian energy system, the level of use of oil by-products is highest in transport (about 53.3%), followed by electricity produced by hydro sources (about 28.17%) and biomass (wood, about 6.8%). Current import dependence is one of the main reasons why the Albanian energy system should be developed and transformed into a diversified power system that uses alternative energy sources, such as gas and renewable resources with lower greenhouse gas (GHG) emissions.
The challenges currently faced by the Albanian energy sector are related to fulfilling the demand for energy in line with economic developments in various sectors and the growing demand for energy consumption per capita; improving performance against the energy intensity indicator; and increasing the security of energy supply by improving energy efficiency, increasing the contribution of renewable energy sources (RESs) and other conventional energy sources, and increasing cooperation and regional integration. Measures and targets in relation to these challenges are set out in policy documents on energy.
The national energy strategy 2018–2030 aims at an open electricity market rate of 100% by 2025 while building a simple and applicable scheme for the protection of low-income family consumers. Within this framework, the government of Albania and the government of Kosovo – with the support of the United States Agency for International Development and the Secretariat of Energy – are working on the integration of the electricity markets of Albania and Kosovo. The government of Albania has established a support scheme for RESs through incentive tariffs for solar, wind and biomass energy to promote the areas best suited for such energy sources and help to achieve the related targets for the use of renewable resources. The development of a regional market can lead to a greater variation in prices during the day and by season (winter vs summer). By optimising the utilisation of central hydropower plants through small solar photovoltaic and wind plants to help diversify sources of electricity (renewable solar and wind energy), Albania will significantly increase the benefits at the country level.
The mobility system
In 2020, based on the Transport Community Treaty (signed in July 2017), the government of Albania adopted the sectoral strategy and action plan for transport 2016–2020, with the main goal being to have an efficient transport system, integrated within the region and the EU network, which promotes economic development and improves citizens’ quality of life. The overall objectives are to (i) further develop Albania’s national transport system and (ii) significantly improve its sustainability, interconnectivity, interoperability and integration with the wider international and European transport systems and regions. One of the priorities of the strategy is promoting the creation of cooperatives and unions for road transporters and, in addition, tax incentives for modernising the fleet of freight and passenger vehicles.
In terms of incentives for electric vehicles, the General Directorate of Road Transport Services will refund any first-time registration fees for electric vehicles (meaning the fees will be zero). Up to 2025, in accordance with the policies and priorities set out in the strategy for the application of road transport intelligence systems (TISs), TISs are expected to be deployed in the road sector and the marine transport / ports sector. After 2025, the deployment of TISs in the road sector will continue and be expanded in both scope and scale. One of the priorities in Albania is the placement of TISs in those sections of interurban roads that have serious problems related to road safety, congestion from heavy traffic and/or high levels of air pollution.
The needs and challenges that Tirana, as the largest city and the capital of Albania, faces in terms of the improvement of the mobility system are given in the plan for the sustainability of urban mobility. They include (i) making public transport more widespread, efficient, integrated, attractive and inclusive; (ii) pushing cycling and other forms of micromobility as alternatives to private motorised transport; (iii) implementing the mobility-resilient Tirana initiative by combining infrastructure investments and soft policies, making the best use of resources (both financial and spatial) and increasing the flexibility and reactiveness of the mobility system; and (iv) managing parking supply, logistics and pricing, as drivers steer the modal choice (push-and-pull approach). Albania has made progress regarding the use of electric and hybrid cars and also hybrid buses for public transport, with an increase in vehicles being recorded between 2021 (1 999) and 2023 (6 607). Increasing the use of bicycles and public transport has facilitated a reduction in the use of private vehicles. A tax has been imposed to promote the use of newer vehicles and those with lower fuel consumption, and thus reduce emissions. Finally, in terms of energy efficiency in the transport sector, measures have been taken to rehabilitate and reconstruct some roads to help reduce vehicle fuel consumption.
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