Green and Digital Reforms in North Macedonia: Asymmetries, Gaps, Constraints and Financial Risk
The green and digital transitions are two interconnected transformations shaping the development of the European Union and candidate countries. For the Western Balkans, meeting the obligations associated with the twin transition is a prerequisite not only for alignment with EU legislation, but also for access to significant financial support. For North Macedonia, the indicative allocation under the Reform and Growth Facility amounts to €750.4 million, with final access depending on results achieved.
This analysis assesses North Macedonia’s preparedness to meet its green and digital obligations under the European reform framework, positions the country in relation to the region and examines the factors behind key delays.
Key Findings
- The twin transition brings together two fundamentally different processes under a single policy and financing framework. Faster implementation of digital reforms does not necessarily indicate an equally advanced transformation of the economy as a whole.
- Synergy is not an inherent property of technology, but depends on how it is introduced. Digital infrastructure carries its own energy and water footprint, which can place the two transitions in tension rather than in support of each other.
- The Reform Agenda does not measure progress in the green and digital transitions in the same way. Green reforms are more often linked to substantive implementation and measurable outcomes. Progress in the digital component is more frequently demonstrated through regulatory alignment, adoption of legislation, and the establishment of institutional or technical frameworks.
- The chain Climate law → MRVA → carbon pricing or/and ETS represents a systemic risk for the region. For North Macedonia, adopting the Climate Action Law would provide the first two links, making it the reform step with the greatest leverage over the rest of the chain.
- Integration between the two transitions remains largely declarative at the level of reform steps. North Macedonia places them under the same sub-area, which provides a natural starting point for introducing reform steps that link them.
- North Macedonia enters this phase with notable strengths: its National Energy and Climate Plan was adopted on time, installed renewable capacity has outpaced the planned trajectory, and several digital reform steps have already been fulfilled. However, three gaps can be identified in North Macedonia’s twin transition: the cross-sectoral gap, the implementation gap and the coordination gap.
- The analysis identifies five recurring constraints, which are institutional rather than sector-specific. None of the five constraints is primarily financial, which means that most responses lie within reach of organisational and administrative decisions.
- The financial risk is three-tiered and cumulative. It is not limited to non-disbursement under the Reform and Growth Facility (RGF), but extends from public finances to investment and ultimately to the competitiveness of export-oriented companies.
Recommendations
For the Assembly
- Prioritising the Climate Action Law in the legislative programme.
- Regular parliamentary oversight of the Reform Agenda.
For the Government
- Establishing organisational units for climate policy in parallel with the legislative process.
- Introducing climate expenditure tagging in the budgetary process.
- A horizontal coordination mechanism for the twin transition.
- Moving from electronification towards interoperability.
- Linking renewable-energy investment with grid investment.
For Local Self-Government Units
- A defined role in the climate framework.
- Integrated green-digital local projects.
For the European Commission and other partners
- Linking selected foundational legislative measures to payment conditions.
- Placing greater emphasis on permanent staff in technical assistance.
For Civil Society
- Contributing to a broader public discussion on the Climate Action Law.
- Monitoring the underlying constraints, not only the status of the law.
The common denominator of these recommendations is shifting from sectoral fulfilment of obligations to managing the twin transition as a single reform and investment process. North Macedonia already has many of the necessary strategies, institutions, and instruments in place. The next step is to connect them into a system capable of translating obligations into measurable results, European funding, and greater competitiveness in a timely manner.
The full publication is available here:
Green and Digital Reforms in North Macedonia: Asymmetries, Gaps, Constraints and Financial Risk
This is a joint publication of the Konrad Adenauer Foundation and Wilfried Martens Centre for European Studies. This publication receives funding from the European Parliament. The Konrad Adenauer Foundation, Wilfried Martens Centre for European Studies and the European Parliament assume no responsibility for the facts and opinions expressed in this publication or in any subsequent use of the information contained therein. Sole responsibility lies with the authors. This publication is intended for the purposes of information only. It may not be used for election advertising during an election campaign.