Green Growth, Innovation, and Climate Change

Albania is making progress in the areas of renewable energy, waste management, tourism and digitalization, though it faces challenges in agriculture, rural development and infrastructure. The agriculture sector, vital to the economy, is hindered by fragmentation, aging labour and limited access to technology, while the country works to diversify its energy sources and tackle climate change. Its digital transformation and climate action strategies focus on expanding access to technology and ensuring resilience in the face of natural disasters. Foreign visitors surged by 40 per cent in 2023 and, in Q1 2024, the number of travellers grew by 121 per cent year-on-year, placing the country second globally in growth. Micro-, small and medium enterprises dominate the private sector and account for 99.8 per cent of all active businesses, which between them employ 81.6 per cent of the workforce. Despite significant progress in urban development, further efforts are required to align with EU standards and ensure sustainable growth, with an emphasis on affordable housing, urban regeneration and environmental sustainability.

Albania’s NESS 2030 aims to foster an inclusive labour market by addressing challenges such as youth unemployment, gender inequality and skills mismatches, with a focus on gender-responsive policies and initiatives such as the EU-supported Youth Guarantee. While progress is seen in reducing gender pay gaps and advancing digitalization, challenges remain in decent work opportunities, formal employment for refugees and flexible working arrangements. Women continue to face significant barriers, including high care burdens and limited access to non-traditional sectors, necessitating targeted actions to ensure their participation in green and digital economies.

The technical assistance provided in 2024 to the Ministry of State for Youth and Children (MoSYC) contributed directly to revision of the laws on voluntarism and youth, aiming to empower youth structures, increase funding for youth-led projects and ensure legal recognition of voluntary work for young people in the country. The Ministry of Economy, Culture and Innovation, along with the Ministry of Health and Social Protection (MoHSP), were supported in jointly designing the new Strategy on Occupational Health and Security (OSH) in workplaces 2025–2030. Expected to be endorsed early in 2025, the OSH Strategy intends to bring working standards to a new level by mobilizing in its implementation public institutions, employers’ and workers’ organizations and relevant CSOs.

Newly Renovated Ethnographic Museum of Kruja Opens Its Doors To The Public

An important Albania’s cultural heritage site, the Ethnographic Museum of Kruja, has reopened its doors following extensive restoration work. The museum, damaged in the 2019 earthquake, has been transformed into a modern space thanks to an €850,000 investment from the European Union through the EU4Culture programme. UNOPS, in partnership with the Ministry of Economy, Culture and Innovation, managed the two-year restoration project.

Kruja’s Ethnographic Museum

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Employment and Skills Development

Albania’s NESS 2030 emphasizes the creation of an inclusive labour market while addressing youth unemployment, skills mismatches and an aging workforce. As part of this vision, 2024 marked significant progress in implementing transformative programmes such as the EU4Youth Programme under the Youth Guarantee (YG) flagship initiative. These efforts aimed to reduce the number of NEET youth by creating accessible, youth-friendly education, training and employment services. Key interventions in 2024 included outreach strategy development, fostering of local partnerships, adopting of advanced YG implementation models and launching of a nationwide campaign to connect youth with tailored YG services. While advancements in digitalization and gender pay gap reduction are evident, challenges such as limited decent work opportunities, formal employment for refugees and flexible working arrangements persist. Women and girls continue to face barriers, including high care burdens and restricted access to non-traditional sectors. The strategy prioritizes women’s economic and social rights, emphasizing participation in green and digital economies.

More on Employment and Skills Development

EMPOWERING YOUTH AND BUILDING SKILLS
• More than 7,163 youths (60% girls) participated in skills-building and innovation programmes. The Upshift Programme enabled 1,047 of them to design and implement innovative community solutions that address local challenges.
• Through coordinated UN support, 9,010 individuals gained access to skills and lifelong learning programmes, including CSE, in an effort enhancing employability and labour market integration.
• Five new Vocational Education and Training providers were accredited, raising to 15 the total number of such providers. Skills development, entrepreneurship and employment readiness initiatives reached 40,000 adolescents, contributing to better labour market outcomes.

ADVANCING REFUGEE INCLUSION AND ECONOMIC EMPOWERMENT
• The UN and partners significantly improved economic inclusion for refugees and forcibly displaced persons through targeted interventions. Tailored vocational training, job placement services and coaching programmes reached 39 refugees and provided tailored counselling to 80 individuals.
• Collaboration with the Albanian Microfinance Association provided financial literacy training, equipping participants with business budgeting skills and pathways to entrepreneurship. These interventions led to 15 per cent of the target group reporting increased income and a 59.7 per cent reduction in unemployment among refugees and asylum seekers.
• Advocacy materials, such as information leaflets on refugee rights, were distributed, improving awareness among public institutions and stakeholders.

PROMOTING WOMEN’S ECONOMIC PARTICIPATION
• Capacity-building initiatives in Elbasan, Gramsh and Kolonja supported women’s labour market access. A traditional product incubator in Leskovik, operated by the entity Duarartat e Leskovikut, empowered local women by facilitating production and marketing of local goods.
• Establishment of the Recognition of Prior Learning framework and the National Training Fund10 enabled lifelong learning opportunities for diverse groups.

STRENGTHENING WORKPLACE STANDARDS
• The Ministry of Economy, Culture and Innovation and MoHSP, with UN support, developed the OSH Strategy 2025–2030, targeting enhanced workplace standards. Scheduled for endorsement in early 2025, this strategy aims to mobilize public institutions, employers, workers’ organizations and CSOs to improve compliance with OSH standards.

By investing in targeted programmes and fostering inclusive policies, Albania is advancing towards a resilient, inclusive labour market. Continued collaboration, innovative programming and sustained investments will be critical to addressing remaining challenges and ensuring transformative outcomes for vulnerable populations.

Sustainable and Resilient Economic Growth

Albania’s transition to a green and blue economy is making strides toward sustainability. Progress is being made in renewable energy, waste management, and digital transformation in the country. However, along with the challenges of growth rates and ensuring sustainability, enforcement gaps, underfunding, and climate-related impacts remain. Agriculture is constrained by fragmented land ownership and, together with fisheries, impacted by aging labour and limited access to technology and markets. Meanwhile, rural depopulation and inadequate infrastructure are hindering progress. Nevertheless, Albania is aligning with European standards and orientating itself to the EU market.

The UN’s collaborative efforts focus on addressing systemic gaps in agriculture, fisheries, and cultural tourism while fostering resilient economic practices. By driving green economy and promoting climate-smart solutions, these initiatives aim to transform Albania’s socio-economic landscape, enhancing its alignment with the Sustainable Development Goals and accelerating sustainable economic transformation.

More on Sustainable and Resilient Economic Growth

The UN’s collaborative efforts focus on addressing systemic gaps in agriculture, fisheries and cultural tourism while fostering resilient economic practices. By driving GE and promoting climate-smart solutions, these initiatives aim to transform Albania’s socio-economic landscape, enhancing its alignment with the SDGs and accelerating sustainable economic transformation.

Albania has made substantial progress in promoting resilient economic practices through targeted private sector engagement and fostering gender equity. A total of 63 companies committed themselves to the Women Empowerment Principles, demonstrating a strong focus on workplace GE. Furthermore, 106 micro-, small and medium enterprises adopted innovative business models that integrate elements of environmental, social and economic sustainability. Of these, 66 businesses were supported, and 19 others enhanced their market access, through the ‘Growing with Your Business” initiative. The emphasis on sustainability was further recognized through the SDG Business Pioneers Award, which acknowledged 15 businesses for their commitment to advancing sustainability and alignment with the SDGs.

UN-supported initiatives have significantly bolstered Albania’s capacity to align with European standards and expand its export potential. Efforts that focus on enhancing compliance with quality and standards across value chains include those made in the medicinal and aromatic plants, and fruits and vegetables sectors. By strengthening national systems for standardization, accreditation, metrology and conformity assessment, Albania is better positioned to integrate into regional markets and meet European market requirements. Transformative achievements include advancing digital standardization practices in collaboration with the International Organization for Standardization (ISO) and European standards bodies such as the European Committee for Standardization and the European Electrotechnical Committee for Standardization. The National Accreditation Body has been reinforced to validate conformity assessments and technical capacities in agrifood laboratories have been upgraded through an action plan targeting key institutions such as the Food Safety and Veterinary Institute and the Agricultural Technology Transfer Centre. Additionally, the UN has finalized the structure of a new MSc in Quality and Standards in partnership with the Agriculture University in Tirana, alongside a digital platform serving farmers, exporters and industry stakeholders. GE remains central to these efforts. Gender consideration reports and policies have been developed to promote women’s roles in quality infrastructure, with targeted support for women-led businesses. The translation of ISO 53800:2024 guidelines further underscores Albania’s commitment to inclusive practices.

In the realm of agriculture and rural development, significant steps were taken to strengthen sustainable practices. FAO introduced climate-smart farming methods through ‘SDG Demo Farms’, leveraging a Training of Trainers (ToT) methodology under the ‘Farmer Field School’ approach. This initiative has fostered a broad adoption of best practices among small-scale farmers, leading to tangible improvements in agricultural productivity. The value of production per hectare increased to $4,868 in 2024, up from $3,889 in 2022. Furthermore, 11 businesses integrated environmental, social and governance principles into their operations, reinforcing the country’s dedication to sustainable rural development.

Efforts to revitalize cultural tourism have delivered considerable results. By 2024, 18 cultural sites were revitalized in total, with nine completed within the year, enhancing the tourism landscape and providing economic benefits to local communities. Development of cultural tourism was further bolstered by eight grant initiatives in 2024, bringing the total so far to 32 grants. These grants emphasize the integration of digital elements and cultural products, showcasing cultural heritage as a key driver of Albania’s green economy transition.

In support of the Blue Economy, the UN has played a pivotal role in designing Albania’s fisheries and aquaculture reforms, aligned with EU Green Deal principles. Key projects include reactivating the Vessel Monitoring System and preparing a national fisheries food safety policy. Efforts also focused on sustainable aquaculture, responsible fishing and waste reduction, ensuring alignment with the Green Agenda for the Western Balkans. The UN’s global action initiative One Country One Priority Product (OCOP) made progress in enhancing chestnut value chains in Tropoja. Activities included health and value chain assessments, establishing biological control programmes, constructing cold storage facilities and organizing capacity-building workshops alongside international study visits. These efforts are poised to expand further in 2025 with additional support from the UK and Albania’s Ministry of Agriculture and Rural Development (MoARD).

Collaborative initiatives have established Local Action Groups in Korca, Shkoder and Vlora, engaging over 80 stakeholders, including municipalities, universities and local businesses, to help drive sustainable regional development. In the wood manufacturing sector, capacity-building efforts and export catalogues have enhanced market access for 25 companies. Meanwhile, the UN’s International Conference on Competitiveness and Climate Change highlighted agrifood sector challenges, bringing together over 120 key stakeholders to discuss transformative solutions.

Moreover, the UN continued to support the government and relevant institutions in strengthening the trade policy framework for competition and consumer protection with the organization of two main trainings for 15 judges and magistrates, in cooperation with the School of Magistrates of Albania.
Through targeted initiatives and collaborative efforts, Albania is steadily advancing its transition to a sustainable, green and inclusive economy. By addressing systemic gaps, fostering innovation and driving partnerships, the country is well-positioned to meet its SDG commitments and ensure a resilient future for its citizens.

Innovation

Albania has achieved significant progress in its digital transformation journey, with 95 per cent of public services now online, ranking it 8th in Europe for digitalization (as of 2022). Widespread Internet access has surpassed EU averages, illustrating the country’s commitment to aligning its digital agenda with the SDGs. However, challenges remain: rural areas experience connectivity gaps, there is a shortage of digital skills, generally and especially among disadvantaged groups, while a persistent digital gender divide limits women’s participation in ICT. Addressing these disparities and fostering a people-centric approach to digital transformation is crucial for ensuring equitable access to the benefits of technology.

UPSHIFT goes to Durres

To bridge these gaps, the UN supported transformative digital initiatives aimed at fostering innovation, building digital skills and enhancing digital infrastructure. A landmark achievement was the launch of a national employment platform targeting youth. This platform, along with a professional network, connected nearly 400,000 individuals to employment opportunities, facilitated by hackathons and targeted skill-building programmes. Additionally, akademi.al expanded its reach to more than 534,800 students, offering 29,773 video lessons while laying the groundwork for AI-powered courses designed to revolutionize learning experiences.

Climate and Ecosystem Resources

Albania has demonstrated significant progress in addressing climate action, biodiversity conservation, energy transition and equitable resource access, all of which align with its broader sustainability goals. The country has committed to reducing greenhouse gas emissions by 20.9 per cent by 2030 and achieving climate neutrality by 2050, as outlined in its National Adaptation Plan and renewable energy strategies. Conservation milestones include the establishment of the Vjosa River as a National Park and the expansion of marine protected areas, reinforcing Albania’s dedication to preserving biodiversity and enhancing resilience.

Marking the Earth Day

While hydropower remains Albania’s dominant energy source, efforts to diversify into wind and solar energy are under way to address both legacy coal mining impacts and future energy needs. Access to water and sanitation has also been prioritized, ensuring compliance with EU directives while addressing disparities in affordability and access, particularly for vulnerable populations. These multi-faceted efforts, supported by international collaboration and funding, exemplify Albania’s commitment to an inclusive and green transition.

Disaster Risk Reduction

Albania has embraced a proactive approach to disaster risk reduction (DRR), aligning its strategies with the Sendai Framework and prioritizing resilience and preparedness. In a landmark move, the country approved its first National DRR Strategy and Action Plan, which sets a comprehensive framework for disaster preparedness and response. Efforts to align with EU directives and regional initiatives are ongoing, reflecting Albania’s commitment to fostering regional cooperation in disaster management.

Vromoneri’s natural hot springs, also known as Sarandopori, chosen as a pilot area for the #EU4Nature project due to their ecological value

Ten DRMs, protocols of disaster preparedness, mitigation, response, recovery, and prevention have been established for the Albanian cultural heritage framework. Capacity building workshop for disaster risk organized for 50+ site managers, caretakers and other stakeholders.

Sustainable Cities

More people in Albania now live in urban areas than ever before (65%, 2023 census, compared to 53% in 2011), the rapid pace of urbanization, particularly in Durres and Tirana, combined with growing tourism and infrastructure development, poses significant challenges with traffic congestion, poor air quality, municipal waste management, affordable housing and urban planning. To address these issues that impact quality of life, Albania is implementing comprehensive reforms aimed at aligning with EU standards with an emphasis on affordable housing, urban regeneration, land administration transparency and environmental sustainability to drive equitable and sustainable urban growth.

Restoring and safeguarding Albanian cultural heritage for future generations together

In 2024, the partnership between Albania and the UN continued to deliver impactful results through the Child-Friendly Municipality (CFM) initiative. Diber Municipal Council approved its Child-Friendly Municipality Action Plan for 2024–2026, while the CFM Cross-Sectoral Steering Committee maintained oversight of the Korca Municipality Child-Friendly Action Plan for 2023–2025. These action plans have created robust frameworks for advancing child rights and integrating child-friendly policies into local governance structures.