Smart Packaging Waste Management


Improper  waste  management  is  widespread  in  North  Macedonia  and  a  pressing  environmental  issue  threatening public health and environment. To address it Switzerland engages with Pakomak to enhance the effectiveness,  efficiency and  transparency  of  its packaging waste  recovery system1 through  digitalization and modernization of packaging waste selection2, collection, sorting, transportation and recycling. These efforts will significantly decrease the amount of waste disposed in landfills and contribute to the Green Agenda. 

Country/region Topic Period Budget
North Macedonia
Climate change and environment
Inclusive economic Development
Environmental policy
Urban development
01.03.2025 - 28.02.2029
CHF  1’540’000
Background The poor management of communal waste in North Macedonia is a  pressing  environmental  topic.  The  principal  responsibility  for  its  management is with the municipalities and their Public Utilities. The provision of  waste  services  is  poor  due  to  obsolete  and/or  lack  of  equipment  and infrastructure,  poor management  practices  and  deficient  law  enforcement. This  results  in  littering,  illegal  dumpsites  and  widespread  pollution  of  the  environment, posing threats to public health and environment. The Extended Producer  Responsibility  (EPR)  law  was  adopted  in  2009  to  reduce  the amount  of waste  disposed  in  landfills,  by  transferring  responsibility  for  the environmental impact of packaging waste (PW) to its producers and setting recovery targets. PW is among the biggest fraction in communal waste (25%). To date, only about 40% of the PW  is collected and  recovered, while over 60% still ends up on landfills and/or are dumped illegally in the environment. The lack of landfill disposal fees and “flat fee” for waste disposal for citizens is a disincentive for separate collection and recovery of PW and citizens select waste on  voluntary basis.   While  fulfilling  the ERP  law  requirements  is an individual obligation for the producers, in practice they often work collectively to outsource this service by setting up Packaging Recovery Organizations (PROs). These PROs are  responsible for meeting PW  recovery obligations on behalf of the producers, who in return finance the PROs. Since 2009, five PROs emerged on the market, however until 2025 only Pakomak, managed to demonstrate constant growth and fulfilment of targets holding 48.2% of the market share.   
Objectives

Long-term  vision:  An effective  packaging  waste recycling  system  enables  the country  to  reach  national targets  and  in  line  with  the Western  Balkans’  Green Agenda.

Overall  Goal:  Pakomak`s packaging  waste  recovery system  is  more  effective  and enables  North  Macedonia  to reach  national  packaging waste recycling targets. 

Target groups Primary  target  group  are  over  50  private businesses  that  are  part  of  the  Pakomak network  of  companies.  Main  partners  are  the producers (870+) that are part of the Pakomak ERP  scheme,  paying  for  its  operation.  Local governments  will  be  both  partners  and beneficiaries,  as  they  will  support  the  system, benefitting from less waste ending up in landfills. End  beneficiaries  are  the  citizens  who  will benefit from cleaner environment 
Medium-term outcomes

Outcome 1: Citizens are more aware  of  the  benefits  of selecting packaging waste and have  improved  access  to selection  packaging  waste infrastructures.  

Outcome  2:  The  packaging waste  collection  network  is modernized and more efficient.  

Results

Expected results:  

  • Municipalities incentivize packaging waste selection and engage with civil society to increase public awareness 
  • Private and public institutions are supporting the installation and use of RVMs  
  • Collection of packaging waste is more effective, efficient and greener (streamlined operation) 
  • Sorting of packaging waste is further extended (scale), modernised and more efficient (contribution to meeting the set higher targets for PW recovery) 


Results from previous phases:  

70 RVMs  installed  in  15  municipalities, with  42.700  active  households  by 2024. Collected 524 tons of R-PET and aluminum from RVMs, interest from retailers  and  municipalities  to  participate  gained  momentum.  Improved management of igloo containers contributed to increase collection of PW by 45% -  from 24000t  in 2021  to 35`000t  in 2024. Smart sensors  from  igloos allowed  for  better  management,  as  well  as  increased  transparency contributing  to  optimized  routes  for  collection,  with 2 new  vehicles  for PW transportation. Private sector and municipalities contributed with CHF 140k in RVMs and green points.   

Main insights: Improper waste management contributes  to degradation  of the environment; it also has dire effect on the country’s reputation especially its tourism segment. Awareness raising and education remains key, and the Swiss involvement acts as “proof of quality” for the citizens who often do not select waste due to disbelief in the system. Private sector is willing to coinvest,  however they need the PRO as facilitator to help with the maintenance of the system.  The  EPR  scheme  is  complex,  and  apart  from  the  selection infrastructure set up by the PRO (visible to the common citizen), the PROs need  significant  support  to  strengthen  their  supply  chain  dealing  with collection, sorting, transport and ultimately recycling. 


Directorate/federal office responsible SDC
Project partners Contract partner
International or foreign NGO
  • Pakomak


Coordination with other projects and actors SDC: Increasing Market Employability, Strengthening Municipal Resilience to Corruption, Civica, Parliament Support Programme, Electoral Support Programme, Swiss Import Promotion Programme. SECO: Solid Waste Management (EBRD) 
Budget Current phase Swiss budget CHF    1’540’000 Swiss disbursement to date CHF    200’000 Total project since first phase Swiss budget CHF   1’301’000 Budget inclusive project partner CHF   2’841’000
Project phases Phase 2 01.03.2025 - 28.02.2029   (Current phase) Phase 1 01.11.2021 - 31.12.2024   (Completed)