Serbia’s specialised recycling sector is facing financial pressure as companies report delayed state incentives, workforce reductions and growing volumes of untreated waste. Industry representatives say operators received only 30% of expected payments for eligible treatment activities in 2025, while more than 38,000 tonnes of waste requiring specialised processing remained untreated during 2026.
The industry is seeking the allocation of approximately RSD 1.9 billion (€16.2 million), which representatives say remains undistributed under existing support arrangements.
Recycling companies cut operations and employment
Božić i sinovi, a recycling company based in Omoljica near Pančevo, has reduced its workforce from 155 to 47 employees, a decline of approximately 70%. The company continues operating using its own funds but reports losses and warns that closure remains possible.
The sector handles waste electrical and electronic equipment, used oils, tyres, batteries and other regulated materials. These operations require collection networks, transport, specialised equipment, maintenance and environmental controls, with treatment costs sometimes exceeding revenue from recovered materials.
New incentive system faces criticism
Serbia replaced its previous incentive regulation at the end of 2025, with the change taking effect on January 1, 2026. A new support framework for 2026–2028 introduced competitive auctions for incentives covering waste tyres, electrical and electronic equipment, used oils, batteries, accumulators and end-of-life vehicles.
Operators argue that the available support does not cover actual collection and treatment costs. Some electronic-waste recyclers reportedly declined to participate in the relevant auction because the proposed compensation was insufficient even to cover transportation.
Companies also say payments for eligible treatment carried out in 2025 remain largely unsettled. The reported 30% payment level has not been independently reconciled with official records, and the total amount legally owed to individual operators has not been established.
Collection restrictions add to electronic-waste backlog
Božić i sinovi has also raised concerns about restrictions affecting household electronic-waste collection in Vojvodina. Managing director estimated that approximately 25,000 tonnes of household electrical and electronic waste had been affected by the disruption. This figure has not been independently verified.
Reduced collection capacity can leave refrigerators, washing machines, televisions and other discarded equipment without access to authorised treatment facilities, increasing the risk of improper storage or disposal.
Industrial businesses face higher waste-management costs
Disruption to specialised treatment capacity could affect manufacturers generating waste oils, batteries, electronic equipment and other regulated materials. Businesses may face higher transport costs, longer storage periods and fewer authorised contractors, alongside additional compliance risks.
The reported €16.2 million in undistributed support has become central to the industry’s demands. However, budget allocations, unused appropriations and legally enforceable outstanding obligations are distinct financial categories. Establishing the amount available for distribution requires reconciliation of programme allocations, eligible treatment volumes and payments already made.
The financing dispute also raises concerns for future investment. Unpredictable compensation weakens cash flow for existing operators and makes new recycling facilities less attractive to lenders, despite the importance of authorised treatment capacity to industrial waste management.
