Green Growth, Innovation, and Climate Change

Outcome 2

By 2026 innovative and integrated policy solutions accelerate sustainable, productive and inclusive economic development, enhancing climate change adaptation and mitigation and transition to a green and blue economy.

Employment and Skills Development

In 2025, Albania advanced inclusive labour market and skills reforms aligned with EU accession benchmarks, strengthening governance and evidence-based policymaking under the
National Employment and Skills Strategy 2030 and EU acquis (Chapters 19 and 26), while expanding access to employment, VET and social services for youth, women, refugees and persons with disabilities.

A Skills Needs Assessment was completed, and a Digitalization Impact Assessment, accompanied by improved policy coordination through the Integrated Policy Management Group on Human Capital Development, strengthened the effectiveness of Active Labour Market Programmes through evidence-based reforms and the rollout of new measures targeting vulnerable jobseekers. Progress was also achieved in reinforcing VET quality and lifelong learning foundations, including expanded accreditation of VET providers and strengthened institutional capacities and the regulatory framework for implementation of the validation of non-formal and informal learning, contributing to more inclusive and labour-market-relevant skills pathways.

A woman working in a textile enterprise benefiting from the ILO SCORE Programme, which has contributed to improved workplace conditions.

Youth legal and policy frameworks were significantly strengthened, with approval of the revised laws on Youth and on Volunteerism, expanding participation, protection and recognition for 590,000 people of age 15–29 years nationwide. The Youth Guarantee was successfully piloted in Shkodra, Tirana and Vlora, enrolling 2,207 NEET young people, reaching 46,000 youth with service information, and engaging more than 500 young people through Youth Guarantee Ambassadors. These results informed development of the National Youth Guarantee Action Plan 2026– 2028, providing a government-owned roadmap for national scale-up.

More on Employment and Skills Development

Employment and service delivery for vulnerable groups improved at the national and local levels. A total of 1,138 vulnerable jobseekers (800 women) enrolled in Active Labour Market Programmes that included intensive reintegration counselling and basic skills development. Some 581 jobseekers completed job-relevant training and 136 individuals secured employment in the public or private sector.

At the local level, the Journey Towards Employment programme was implemented in 15 municipalities, directly benefiting 1,041 individuals, over half of whom were unemployed 16–29-year-olds from the Economic Aid schemes, with an additional 128 young people supported through the Youth Guarantee. Preventive and soft-skills interventions in VET schools reached 500 vocational students, reinforcing sustainability through a training-of-trainers model.

Inclusive employment systems and LTC were strengthened through evidence generation, skills development and labour market integration. The national LTC study Ageing in Albania informed the design of three innovative LTC service models (home-based, community-based, and mobile teams) and a national vocational training curriculum on Assistance in LTC. A total of 131 professionals were trained in LTC models and curricula, while pilot LTC employment initiatives across six municipalities enabled 93 women to transition from unpaid or informal caregiving into paid care jobs.

Knowledge and awareness of labour market actors increased, with 215 stakeholders (70% women), including 62 employers across 12 municipalities, strengthening understanding of inclusive employment, active ageing, disability inclusion and the national legal and policy framework. In parallel, access to formal employment pathways for refugees and asylum-seekers improved, with 20 individuals registered in job placement services and enrolled in certified skills training, reducing reliance on informal work.

Employability in tourism and hospitality was enhanced through skills development, employer partnerships and formalization efforts. Support to municipal and sectoral roadmaps, training and placement initiatives contributed to employment pathways for more than 147 women and vulnerable jobseekers in care, tourism and hospitality, promoting decent work and social insurance coverage in highly informal sectors.

Gender equality and rural economic inclusion were strengthened through evidence-based planning, with Gender-Sensitive Value Chain Analyses finalized in four northern municipalities. The participatory process engaged 266 stakeholders (218 women), validated findings with 37 women entrepreneurs and consulted 29 institutional representatives, generating actionable priorities for women’s economic empowerment.

Women’s entrepreneurship and market access were accelerated through Women’s Entrepreneurship EXPO 2025, which convened 70 women entrepreneurs, including 40 first-time participants. More than 80% of participants established new professional connections and engaged in direct B2B exchanges with financial institutions and development agencies, strengthening visibility, investment readiness and cross-sector collaboration for women-led enterprises. With practical skills, the right tools and the confidence to move forward, women are building 32 small businesses and strengthening their independence, while, at the same time, supporting their families.

Sustainable and Resilient Economic Growth

Albania made strong progress in advancing green, digital and inclusive economic transformation in 2025, strengthening capacities in e-Mobility, quality infrastructure,
sustainable tourism, cultural industries and circular economy practices, while reinforcing alignment with EU standards and market requirements.

Under the Joint Project Business Partnerships & Solutions for SDGs, implemented by UNDP, FAO, ILO and UNIDO, Albania’s private sector was further supported in advancing sustainable, competitive and EU-aligned business practices. Measurable results were delivered in strengthening sustainable competitiveness across agro-processing and the TCLF
sectors. More than 350 companies were engaged through sustainability initiatives, including the Business #2030 Conference and the SDG Business Pioneers Award, attracting 100 applications. Four knowledge products were published, strengthening the evidence base for future sustainability-related dialogue and policy.

In agro-processing, 12 enterprises improved performance and market readiness through the Growing with Your Business methodology, while mobilizing EUR 200,000 in counter-investment. Climate-resilient agriculture was advanced through SDG Demonstration Farms and a Farmer Field School, equipping 35 farmers with sustainable production practices. Support to chestnut value chains further enhanced rural incomes while contributing to improved environmental outcomes and sustainable land use.

Quality infrastructure modernization and agri-food compliance capacity were strengthened significantly, advancing alignment of standardization, metrology, accreditation and laboratory systems with EU and international requirements. Digital access to standards were improved, accreditation schemes expanded and laboratory capacities reinforced
was through the Albanian Lab Network. Compliance among SMEs and farmers improved through Local Action Groups in 14 municipalities, targeted certification support and the introduction of digital and AI-based tools for medicinal and aromatic plants production.

More on Sustainable and Resilient Economic Growth

Albania’s transition to a green and circular economy accelerated, with Resource Efficiency and Cleaner Production practices applied in 32 enterprises across the TCLF and agro-food sectors. Sixty-five concrete efficiency measures were identified, covering energy and material savings, waste reduction, renewable energy integration, and process optimization, delivering clear economic and environmental benefits with short investment payback periods. A national culture of quality was promoted at scale, reaching more than 100,000 stakeholders through educational partnerships, including the development of a master’s programme with the Agricultural University
of Tirana. e-Mobility and critical raw materials governance were strengthened, with the delivery of a country-specific e-Mobility strategy assessment, providing a high-level analysis of infrastructure readiness and policy frameworks. Targeted national workshops adapted regional e-Mobility recommendations to the Albanian context and advanced sustainable critical raw materials management.

Regional digital trade and data-sharing cooperation advanced through policy dialogue in the Western Balkans, supporting the design of pilot projects for multimodal data exchange aligned with UN Centre for Trade Facilitation and Electronic Business Standards, strengthening compliance with multilateral trading system requirements.
Gender equality was mainstreamed across quality infrastructure institutions, with Gender Action Plans under development for standardization, metrology and accreditation bodies, promoting gender-responsive outputs and improved gender balance in management and technical committees.

Cultural heritage, tourism and creative industries delivered tangible economic results. 9 cultural heritage sites were restored, bringing to 21 the total of revitalized or digitally enhanced sites, attracting approximately 70,000 visitors and generating around ALL 20 million in revenue through innovative ticketing and cultural products.
Some 22 cultural and agro-tourism enterprises integrated new digital platforms, supporting employment and sector growth.

Civil society-led cultural innovation expanded, with nine new grant initiatives involving 41 Civil Society Organizations (CSOs; 60% women-led). These projects generated 227 culture-related products and five major digital outputs, reaching 3,303 direct and 9,424 indirect beneficiaries across seven municipalities. Together, these results strengthened Albania’s competitiveness, sustainability and EU market readiness, demonstrating the value of integrated approaches linking digitalization, gender quality, quality infrastructure and circular economy practices to inclusive and sustainable industrial development.

Innovation

Albania continued to advance its digital transformation and innovation agenda, positioning digitalization as a key driver of inclusive growth, youth innovation and improved service delivery, yet gaps in rural connectivity, digital skills and gender equality continued to limit equitable access to digital and innovation opportunities.

Albania strengthened digital governance and innovation ecosystems, with finalization of a Digital Innovation Profile and Implementation Report, updated Digital Development Country Profile and ongoing work for upgrading the national spectrum monitoring system supporting more coherent digital infrastructure planning and policy implementation.

UNIDO and Switzerland driving smarter agriculture through AI empowering quality, traceability and global market access for Albanian SMEs.

The new flagship UN JP DART, implemented by FAO, ILO and ITU, is positioning digital agriculture as a governance and service delivery reform rather than a standalone technology intervention. Through a nationwide survey of 800 farmers, and comprehensive system assessments, DART is contributing to formulation of the forthcoming National Digital Agriculture Strategy, strengthening cross-sector coordination across agriculture, digital government, connectivity, education and innovation actors, and advancing user-centred digital service design and institutional ownership.

Climate and Ecosystem Resources

Albania continued to advance its climate action and environmental sustainability agenda in 2025, strengthening adaptation, disaster risk management (DRM), and sustainable natural resource use. Progress was made across climate adaptation planning, energy transition and climate finance, biodiversity protection, and risk-informed infrastructure, while rising flood, wildfire and ecosystem risks underscore the need for sustained investment and coordination.

As part of the EU4Nature project, UNDP has begun preparing Albania’s National Reference Lists for Species and Habitats of Importance to the EU — a key step towards establishing the Natura 2000 Network in the country.

EU-aligned nature protection and biodiversity governance were strengthened, with advances in legal and administrative compliance and Protected Area revenues increasing significantly. Land-use revenues rose from ALL 14.7 million (2021) to ALL 35.4 million (2025), while ecotourism revenues increased from ALL 6.8 million to ALL 18.2 million, supporting conservation financing and local development. Albania also advanced EU alignment through an updated Red List, development of Access and Benefit-Sharing legislation and adoption of a National Forestry Programme, contributing to Global Biodiversity Framework Targets 2, 3 and 13.

Additionally, the country finalized the first draft of a valorisation study for the Albanian Alps National Park, strengthening the evidence base for improved management effectiveness, climate resilience and sustainable financing. Climate adaptation planning and financing were substantially advanced through the development of the Climate Change National Adaptation Plan (NAP) 2026–2036, with identification of 66 priority adaptation measures across six sectors and need for an estimated USD 9.8 billion investment by 2036. Eight Local Adaptation Plans supported subnational climate action. The NAP process directly informed Albania’s National Determined Contribution 3.0, strengthening evidence-based adaptation priorities, institutional coordination, financing frameworks, and monitoring and transparency systems aligned with the Paris Agreement.

Disaster Risk Reduction

Albania made substantial progress in strengthening DRM and civil protection, consolidating institutional reforms, scaling local resilience systems and advancing alignment with
EU and international standards, including EU accession requirements.

Preparedness and response capacities were significantly strengthened, with seven local civil emergency plans endorsed and 14 Continuity of Governance and Planning Frameworks developed, supporting system-wide resilience across civil protection institutions. Albania also strengthened engagement with the EU Civil Protection Mechanism, enhancing interoperability, coordination and readiness to respond to climate-induced disasters.

firefighters — On the front lines against last year’s devastating wildfires: Albanian first responders displayed immense courage in the face of crisis.

National and local operational capacity was enhanced through delivery and use of critical emergency assets, including Albania’s first mobile emergency unit vehicle, fully operational during wildfires and floods. Training was delivered across 12 counties, engaging 232 civil protection personnel through five standardized core modules, strengthening knowledge of the civil protection system, legal framework and operational procedures. In parallel, 17 cultural and heritage sites, including museums, theatres, castles and other cultural buildings, were retrofitted to withstand disaster shocks, strengthening resilience of critical public infrastructure.

Risk-informed planning and local resilience progressed, with advanced DRM pilots initiated in five municipalities and Shkodra County, including disaster risk assessments, disaster risk reduction (DRR) strategies and action plans, and local civil emergency plans. Local and regional risk assessments and emergency planning were launched, supporting evidence-based preparedness.

AT A GLANCE:

$25,293,947

Resources Executed

1,138

VULNERABLE JOBSEEKERS enrolled in Active Labour Market Programmes

2,207

NEET YOUTH enrolled in the Youth Guarantee pilot

590,000

YOUNG PEOPLE benefited from new Youth and Volunteerism Laws

32