Smart Growth, Green Future – Accelerating Investment in Montenegro

Written By Boris Kartal

Prime Minister Milojko Spajić and European Commission President Ursula von der Leyen officially opening the “Smart Growth, Green Future – Accelerating Investment in Montenegro” conference at Luštica Bay, Montenegro (14 October 2025). The high-level event convened government leaders, EU officials, international financiers, and investors to catalyze sustainable investment partnerships in Montenegro.

Introduction: A Landmark Green Investment Conference

Montenegro has taken a major step toward a sustainable future by hosting the “Smart Growth, Green Future – Accelerating Investment in Montenegro” conference on 14–15 October 2025. Co-organized by the Government of Montenegro and the European Commission, this high-profile forum was opened by Prime Minister Milojko Spajić alongside European Commission President Ursula von der Leyengov.me. The event brought together senior Montenegrin officials, EU representatives, international financial institutions, and prominent investors to showcase Montenegro’s growing potential for strategic, green, and sustainable investmentsgov.me. The aim was to position Montenegro as a key investment destination in the Western Balkans by encouraging projects in renewable energy, sustainable agribusiness, eco-tourism, green transport, and digital innovationgov.me. This focus aligns with European values and sustainable development goals, firmly embedding Montenegro’s investment strategy within its EU integration pathgov.megov.me. In his welcome remarks, Prime Minister Spajić noted that the conference marks “a new chapter of development” for Montenegro, as the country brings its vision of “green and smart growth to life” in partnership with the European Uniongov.me.

Event Highlights: New Partnerships, Projects and Announcements

High-impact agreements and initiatives were unveiled during the conference, underscoring a wave of international partnerships and investments in Montenegro’s green sectors. At the event, 14 new partnership projects were launched between Montenegrin and European companies, demonstrating the transformative potential of Montenegro’s European pathgov.me. These projects span a wide range of industries – from clean energy infrastructure to sustainable tourism – and were formalized through memoranda of understanding (MoUs) and collaboration agreements. Key announcements and takeaways include:

  • Renewable Energy Projects: Multiple deals will advance wind, solar, and energy storage capacity. State utility EPCG (Elektroprivreda Crne Gore) alone signed three MoUs with European renewable firms – one with France’s Akuo for developing floating solar farms, a photovoltaic plant, and energy storage; one with UK-based SS&A Power Group for thermal energy storage technology; and a third with Wind Fisher (Germany) to pilot high-altitude wind power generationbalkangreenenergynews.com. Additionally, CWP Europe agreed with the Montenegro Investment Agency (MIA) to develop the Montečevo solar park with battery storagebalkangreenenergynews.com, and Alcazar Energy partnered with Montenegro’s Project Management Office to finance a pipeline of renewable projectsbalkangreenenergynews.com. Notably, Alcazar Energy announced its intent to boost total investments in Montenegro from $200 million to $500 million in the coming years, reflecting confidence in the market’s potentialbalkangreenenergynews.com. Several partnerships also aim to introduce Montenegro’s first utility-scale Battery Energy Storage System (BESS) and innovative generation techniques, positioning the country at the forefront of clean energy innovationgov.me.

  • Modernized Grid and Energy Connectivity: A memorandum was signed between the Ministry of Energy and Mining and France’s EDF International Networks to modernize and digitize Montenegro’s power distribution gridbalkangreenenergynews.com. This cooperation will launch pilot projects and feasibility studies for smart grids and better integration of renewables, accelerating Montenegro’s energy transitionbalkangreenenergynews.com. In parallel, the government announced plans for a second submarine electricity cable to Italy, expected by 2031balkangreenenergynews.combalkangreenenergynews.com. This €500 million project – for which an interstate agreement is in the works – will strengthen Montenegro’s role as an energy bridge between the Western Balkans and the EU, enabling export of surplus green energy to European marketsbalkangreenenergynews.com. Energy Minister Admir Šahmanović highlighted that Montenegro has fully harmonized its energy legislation with EU standards, creating a stable investment environment, and even launched its first solar power auction to spur private investment in renewablesbalkangreenenergynews.com. “Montenegro strives to position green energy as a recognizable export product, thereby strengthening the country’s economic sustainability,” Šahmanović noted, underlining the government’s commitment to investors and urging that “now is the time” to invest, with authorities available “24/7” to support projectsbalkangreenenergynews.com.

  • Sustainable Transport and Infrastructure: The conference showcased Montenegro’s push for green transport infrastructure. A flagship initiative is the “Green Logistics Hub” – a partnership to transform the Port of Bar into the first net-zero carbon port on the Adriaticbalkangreenenergynews.com. Modern transport investments were also highlighted as critical for improving connectivity with Europegov.me. Prime Minister Spajić noted that hundreds of kilometers of new highways and upgraded airports/ports (worth nearly €3 billion) are currently underway in Montenegrogov.me, complementing the sustainable projects announced at the forum. These developments not only improve logistics and mobility but are aligned with climate goals (e.g. shifting to cleaner operations and electrification). At one panel, Montenegro’s Transport Minister and industry leaders discussed plans for smart infrastructure – including port upgrades, digital rail/road solutions, and data connectivity – to increase competitiveness and attract further foreign direct investmentmia.gov.memia.gov.me.

  • Agribusiness and Eco-Tourism Initiatives: Given that agriculture and tourism are pillars of Montenegro’s economy, the conference emphasized sustainable growth in these sectors. Among the 14 partnerships launched was “Farm2Fork Montenegro,” aimed at strengthening sustainable agribusiness value chains and farm-to-table food productionbalkangreenenergynews.com. This initiative will promote high-value organic agriculture and agrotourism, aligning local food producers with eco-tourism opportunities. Indeed, agrotourism projects announced at the event will help diversify rural economies and encourage environmentally friendly practices in farming and hospitalitygov.me. A dedicated panel on agribusiness and tourism underscored how green certification, value-chain integration, and sustainable forestry can create synergies between Montenegro’s farmland and its fast-growing tourism sectormia.gov.memia.gov.me. The outcome is a strategy to market Montenegro as both a culinary-agricultural destination and a model for sustainable tourism, leveraging its rich natural resources while preserving them.

  • Digital Innovation and Startups (“Station M”): A particularly exciting announcement was the plan to establish Montenegro’s first dedicated innovation and startup campus, informally dubbed “Station M.” This project, launched as one of the sustainable investment partnerships, aims to create an incubation hub for tech startups and entrepreneursgov.megov.me. Ursula von der Leyen highlighted that this digital innovation campus could create thousands of jobs in the coming yearsgov.me. During a panel on the startup ecosystem, experts from international incubators and local tech parks discussed how nurturing innovation is vital to diversifying Montenegro’s economy beyond traditional sectorsmia.gov.me. Station M will focus on building a supportive environment for early-stage companies, attracting venture capital, and connecting Montenegro’s talent with global tech trendsmia.gov.memia.gov.me. This initiative signals that Montenegro is not only investing in hard infrastructure, but also in the digital and human capital needed for a knowledge-based, green economy.

  • Environmental and Social Resilience (“NICER”): Another notable partnership launched is the Northern Investments Compact for Ecology & Resilience (NICER)balkangreenenergynews.com. Led by the operator of the Pljevlja Coal Mine in northern Montenegro, NICER is a just-transition initiative focused on sustainable development in the country’s northern region. As Montenegro moves to reduce coal dependency, this partnership will channel investments into ecological restoration, clean industries, and community resilience projects in areas historically tied to coalbalkangreenenergynews.com. NICER exemplifies how Montenegro plans to ensure that the shift to a low-carbon economy is inclusive and regionally balanced – providing new opportunities in green sectors for communities that have relied on carbon-intensive industries.

Alongside these projects, several institutional MoUs were inked. The European Bank for Reconstruction and Development (EBRD) and Erste Bank signed an MoU to expand a Regional Energy Efficiency Program (REEP) in Montenegrobalkangreenenergynews.com, bringing more financing for building retrofits and energy-saving technologies. France’s SUEZ and the Montenegrin Investment Agency agreed to cooperate on improving wastewater management infrastructurebalkangreenenergynews.com, an important step for environmental protection and sustainable tourism along the coast. These agreements illustrate a comprehensive approach – tackling everything from clean energy generation to energy efficiency and environmental services – to achieve Montenegro’s green growth vision.

European Commission President von der Leyen, in her opening speech, summed up the significance of the day’s announcements: “Just look at some of today’s announcements. In clean energy, we will see floating solar farms, high-altitude wind power, and Montenegro’s first battery storage facility. In transport, the Port of Bar will be the first zero-carbon facility on the Adriatic. And in technology, Montenegro’s first innovation campus can create thousands of jobs. This is just a flavour of the 14 projects we will sign today, uniting investors from Montenegro and across Europe – with strong backing from us [the EU].”gov.me. Indeed, the strong EU support was evident. Von der Leyen’s key message to the business community was “do not wait for accession to invest in Montenegro, because by then you may miss the opportunities that others will seize”gov.me. The robust turnout of investors and the breadth of deals signed at the conference clearly reflect growing confidence in Montenegro’s reform-oriented government and its commitment to a green futuregov.me.

Montenegro’s Green Investment Opportunities and Economic Outlook

The conference underscored that Montenegro is emerging as a hotspot for green investment opportunities, thanks to its natural resources, strategic location, and pro-reform agenda. In the renewable energy domain, Montenegro’s ambitions are especially noteworthy. The country enjoys abundant sun, wind, and hydro potential relative to its size, and it aims to become a regional clean energy leader in South-East Europemia.gov.mebalkangreenenergynews.com. By showcasing projects like floating solar plants on its reservoirs and wind farms utilizing cutting-edge technology, Montenegro is inviting investors to participate in a burgeoning sector with regional export potential. The planned second undersea power cable to Italy will effectively connect Montenegro to the EU electricity market, turning excess renewable generation into an export commoditybalkangreenenergynews.com. This enhances the bankability of solar, wind, and hydro projects in Montenegro – investors can be confident there will be demand for green power both domestically and abroad. It also aligns with the EU’s push to integrate the Western Balkans into its Energy Union, meaning Montenegrin projects could in future benefit from EU market rules and funding support.

Critically, the government has been improving the investment climate and regulatory framework to facilitate these opportunities. As Minister Šahmanović noted, Montenegro has harmonized its laws with EU energy directives, providing a stable and predictable environment for investorsbalkangreenenergynews.com. The launch of competitive renewable energy auctions for solar and other projects is an example of regulatory reform that increases transparency and attracts reputable international developersbalkangreenenergynews.com. Such measures, coupled with incentives available through the Montenegrin Investment Agency, strengthen the case for investing now. “Montenegro is open for investments… We will be at your service 24 hours a day, seven days a week,” Šahmanović told investors at the conferencebalkangreenenergynews.com – a clear signal of the government’s pro-business stance in the green economy.

Beyond energy, diversification into sustainable agriculture, tourism, and technology provides further avenues for investment. Montenegro’s unspoiled nature and rich cultural heritage have long been the bedrock of its tourism industry. Now, there is a concerted effort to pivot towards eco-tourism and sustainable agribusiness, which opens new investment niches. Projects like Farm2Fork Montenegro will capitalize on the country’s organic food production and traditional farming by linking them with tourist experiencesgov.me. Investors in agro-processing, organic food export, or rural tourism infrastructure can find support in these initiatives, as they align with Montenegro’s strategy to extend tourist stays and expenditures beyond the coast and into the northern and central regions. The government and international experts at the conference discussed expanding green certifications and value-chain integration – for instance, farm cooperatives supplying hotels with local organic products – to ensure that growth in tourism also benefits local farmers and is ecologically sustainablemia.gov.memia.gov.me. This integrated approach means opportunities in agritech, food processing, and sustainable hospitality are set to grow, backed by both policy focus and partnership models coming out of the conference.

In the transport and infrastructure sector, Montenegro’s ongoing highway construction, port upgrades, and energy interconnections are part of a broader plan to become a regional logistics and energy hub. With the Port of Bar aiming for carbon-neutral operations and capacity expansion, there is room for investment in port infrastructure, intermodal transport facilities, and green shipping services. Likewise, modernization of rail lines and roads (with environmental considerations) will be on the agenda as Montenegro seeks to improve land connectivity with EU neighbors. Projects improving connectivity not only fuel construction and engineering opportunities, but also have multiplier effects on trade and tourism. The backing of the European Investment Bank (which had a presence at the conference) and other development banks for green infrastructure means investors could leverage favorable financing for qualifying projects. Notably, an MoU on a Regional Energy Efficiency Programme was signed to funnel funds into energy-efficient infrastructure and buildingsbalkangreenenergynews.com, indicating public-private investment opportunities in retrofitting public buildings, installing smart energy systems, and beyond.

Another take-away from the conference is Montenegro’s bet on the digital and innovation sector as a growth engine. The planned Station M innovation campus exemplifies this, as does the presence of tech investors (e.g. Plug and Play Tech Center from France) at the forummia.gov.me. For investors and startups, Montenegro offers the advantage of being a smaller market that can serve as a sandbox for innovation – with government support, new tech solutions in energy, fintech, or agri-tech can be piloted in Montenegro and then scaled regionally. The country’s recent entry into the Single Euro Payments Area (SEPA) and upcoming removal of roaming charges with the EU are also significant for the digital economyeuropeanwesternbalkans.com. SEPA integration (announced by von der Leyen during her visit) means easier cross-border payments and banking, which facilitates fintech startups and lowers costs for businesses operating with EU partnerseuropeanwesternbalkans.com. Likewise, eliminating EU–Montenegro mobile roaming fees in 2026 will improve connectivity for digital nomads and IT companies, making Montenegro more attractive as a location for tech talent and foreign businesses. All these developments point to Montenegro positioning itself as a modern, connected economy open to innovation – an appealing prospect for venture capital and tech investors looking for untapped markets.

In short, Montenegro’s investment outlook is brighter than ever, particularly in sectors that marry economic growth with sustainability. The country’s comparative advantages – from renewable resources to natural beauty – are being actively leveraged through policy reforms and international partnerships. With strong political will and EU backing, Montenegro is inviting investors to participate in projects that not only promise financial returns but also advance the country’s green transition. Early movers stand to gain first-mover advantages as Montenegro integrates further with the EU single market. As President von der Leyen put it, Montenegro’s EU accession goal is “truly within reach,” and those who invest now will be well-placed when that milestone arriveseuropeanwesternbalkans.comeuropeanwesternbalkans.com.

Significance for Montenegro’s Economic and Environmental Strategy

The “Smart Growth, Green Future” conference is more than just a series of investment deals – it is a strategic milestone for Montenegro’s development trajectory. It signifies a alignment of Montenegro’s national strategies with broader European objectives, reinforcing that economic growth and environmental stewardship must go hand in hand. For Montenegro’s economic strategy, the conference’s outcomes accelerate a shift from traditional, often unsustainable industries to future-oriented, green sectors. Prime Minister Spajić emphasized that Montenegro “now ranks among the most dynamic investment destinations in the region”gov.me, a statement backed by the €3 billion+ in ongoing infrastructure projects and the new investments announced. The active participation of the European Commission and EU investors in the conference sends a powerful signal that Montenegro is considered a credible and promising place to do businessgov.meeuropeanwesternbalkans.com. This confidence is partly a result of Montenegro’s governance reforms in areas like rule of law and transparency. Von der Leyen highlighted that continued reforms – for example in public procurement and judiciary – will “send a clear signal that Montenegro is serious in its intentions and is a serious and credible place for business development”europeanwesternbalkans.com. In other words, the conference’s success is both a product of Montenegro’s reform progress and a boost to its reform momentum: the government can point to tangible investment wins as it pushes further improvements in institutions and regulations.

Crucially, the event underlines Montenegro’s deepening integration with the European Union’s economic and environmental frameworks. All the priority projects are aligned with the EU’s Green Deal goals and the 2030 Agenda for Sustainable Developmentgov.me. By pursuing renewable energy, energy efficiency, and low-carbon transport, Montenegro is effectively adopting the EU’s climate targets ahead of membership. This alignment not only makes eventual accession smoother, but it also opens access to EU pre-accession funds and investment support. Indeed, during the conference Ursula von der Leyen announced the disbursement of an additional €8 million in EU funds to Montenegro as a reward for reform progress, and noted that over €380 million could be unlocked through the EU’s new Growth Plan for the Western Balkans if Montenegro continues on its reform patheuropeanwesternbalkans.com. Such financial incentives underscore the significance of the event: it ties investment projects with policy progress in a virtuous cycle. Every solar farm or digital startup hub launched is not only an economic project but a stepping stone toward Montenegro’s EU accession and its vision of sustainable prosperity.

From an environmental strategy perspective, the conference solidifies Montenegro’s longstanding aspiration to be an “ecological state” (as declared in its constitution) with concrete action. The comprehensive scope of initiatives – covering clean energy generation, grid modernization, waste and water management, and ecological transition in industrial regions – shows that Montenegro is embracing a holistic environmental approach. This is important for a country known for its stunning natural landscapes; sustainable development is the only path that ensures economic gains do not come at the cost of environmental degradation. By committing to net-zero ports, green energy exports, and eco-tourism, Montenegro is effectively safeguarding the natural capital (clean air, rivers, forests, and coastline) that underpins both quality of life and key industries like tourism. Additionally, the just transition efforts (like NICER in the coal region) highlight the social dimension of Montenegro’s environmental strategy – ensuring communities and workers are not left behind as the country pivots to cleaner growth. This approach can serve as a model in the Western Balkans, a region where managing the phase-out of coal and heavy industry is a pressing challenge.

Another significant aspect is how the conference outcomes contribute to Montenegro’s energy security and independence, which are strategic priorities for both the economy and environment. New domestic renewable capacity combined with improved cross-border infrastructure (e.g. the Italy power link) will reduce Montenegro’s reliance on imported fossil fuels and stabilize its energy supply. In times of European energy uncertainty, Montenegro’s moves to become a net exporter of renewable electricity strengthen not only its own security but also contribute to regional energy stabilitybalkangreenenergynews.combalkangreenenergynews.com. The environmental benefit is clear: more renewables mean lower greenhouse gas emissions and pollution. The economic benefit is equally compelling: energy exports can become a steady revenue stream, and stable power supply attracts energy-intensive industries and investors. This synergy between economic and environmental goals is precisely what “smart growth” implies – leveraging green solutions for competitive advantage.

It is also worth noting the geopolitical and regional significance of Montenegro’s strategy as highlighted by this event. As the frontrunner in EU accession among Western Balkan countries, Montenegro’s success in attracting green investment sets a benchmark. It demonstrates how a smaller economy can harness the EU integration process to drive reforms and investments that directly benefit its citizens. President von der Leyen’s remark that “every time I come here, I can feel the heart of Europe beating in Montenegro”europeanwesternbalkans.com may be sentimental, but it reflects the EU’s embrace of Montenegro’s progress. By aligning with EU climate and investment standards now, Montenegro is effectively fast-tracking some benefits of membership (such as SEPA, roaming-free communication, and access to larger capital pools) even before the formal accession. This strategic alignment accelerates economic convergence with the EU and helps ensure that when Montenegro does join (the target is 2028), it can hit the ground running within the single market. The conference’s title “Smart Growth, Green Future” encapsulates Montenegro’s development thesis: smart growth means investing in sustainable, innovative sectors that future-proof the economy, and a green future means prosperity that is environmentally and socially sustainable.

In summary, the conference represents a significant leap forward for Montenegro’s national strategy. It operationalizes the country’s commitments to the Paris Climate Agreement and the regional Green Agenda through concrete investments. It strengthens the partnership with the EU, not just politically but in very practical economic terms – the EU is clearly Montenegro’s largest investor and strategic partner in this journeygov.meeuropeanwesternbalkans.com. And it galvanizes domestic stakeholders (government agencies, businesses, communities) around a shared vision of a modern, green economy. The enthusiasm and outcomes from “Smart Growth, Green Future” suggest that Montenegro is entering a new phase where economic development and environmental responsibility advance together, each reinforcing the other.

Kartal Consult Team’s Participation and Insights

As Kartal Consult, a consultancy deeply engaged in fostering investments and sustainable growth in the Balkans, our team was proud to participate in the “Smart Growth, Green Future” conference. We attended key sessions and panels over the two days, gaining first-hand insights into Montenegro’s investment landscape and contributing our expertise to the dialogue. Our representatives were present at the renewable energy panel “Scaling Montenegro’s Energy Transition,”where government officials and industry leaders discussed how regulatory reforms and financing can accelerate solar, wind, and hydropower projectsmia.gov.memia.gov.me. In the Q&A portion of that session, the Kartal Consult team underscored the importance of clear legal frameworks and bankable Power Purchase Agreements (PPAs) for renewables – a point welcomed by panelists in light of Montenegro’s new auction system. We also highlighted successful case studies of public-private partnerships in neighboring countries, offering ideas on structuring investments in battery storage and grid upgrades to ensure investors and the public sector both benefit.

Our team additionally took part in the discussions on smart infrastructure and digital connectivity, where the focus was on ports, data centers, and mobility solutionsmia.gov.me. We shared insights on how digitalization can streamline infrastructure projects, noting that Montenegro’s adoption of e-government services and digital permits would further improve the ease of doing business for foreign investors. The Kartal Consult delegation emphasized the synergies between digital connectivity and green growth – for example, how deploying smart traffic management and IoT technology in logistics can reduce emissions and operating costs. These contributions resonated with the session’s theme that modern, data-driven infrastructure is key to competitiveness and sustainability in Montenegro’s next development phase.

Throughout the conference, the Kartal Consult team engaged in extensive networking and bilateral meetings. We met with officials from the Montenegro Investment Agency (MIA) to discuss the pipeline of projects and clarify investment incentives available for international clients. Our consultants also connected with representatives from the European Investment Bank and EBRD present at the event, exploring potential collaboration on blended finance schemes for green projects. Notably, during the B2B matchmaking session on Day 2, we held discussions with renewable energy developers and technology startups interested in entering the Montenegrin marketmia.gov.me. We were able to provide them with on-the-ground perspectives regarding local regulatory procedures, permitting timelines, and risk mitigation, drawing on Kartal Consult’s legal and business advisory experience in the region.

One of the most illuminating aspects for our team was the Strategic Investor Roundtable (an invitation-only session) where leading companies and chambers of commerce reviewed Montenegro’s progress and priority reformsmia.gov.me. While attending this roundtable, we contributed to the identification of pressing policy priorities, advocating for streamlined permitting processes and clarity in public-private partnership laws as critical areas to accelerate investment. Our suggestion to develop a one-stop “green investments” facilitation desk – to guide investors through red tape in renewable energy and environmental projects – was well received by participants. We were pleased to see that many of our insights aligned with the government’s own reform agenda and the expectations of foreign investors: namely, the need for transparency, efficient bureaucracy, and robust rule of law to support the ambitious projects being launched.

Overall, Kartal Consult’s presence at the conference reaffirmed our commitment to Montenegro’s sustainable development journey. We returned from Luštica Bay with a wealth of up-to-date information on policy developments, contacts with new potential partners, and a refreshed perspective on the opportunities for our clients. The conference confirmed that Montenegro is on a dynamic trajectory, opening sectors that were previously nascent – from solar energy parks to tech incubators – to international investment and expertise. For our consultancy, this means we are better equipped than ever to advise investors looking to engage in Montenegro’s green growth story. We have already begun integrating the insights gained into our services: whether it’s guiding a renewable energy company through Montenegro’s licensing process, or helping an agribusiness venture structure a sustainable investment with local partners, the knowledge and connections we gained at “Smart Growth, Green Future” are proving invaluable.

In conclusion, the Kartal Consult team was delighted to be part of this landmark event. We congratulate the Government of Montenegro and its partners on the successful conference, and we are excited to continue supporting the resulting initiatives. The optimistic energy coming out of Luštica Bay was palpable – a sense that Montenegro’s green future is not a distant vision but is being built right now, project by project. As a firm dedicated to facilitating impactful investments, we find Montenegro’s trajectory inspiring and are eager to play our role in accelerating smart growth in this emerging EU member state.

Sources:

Boris Kartal
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