On a planet with limited finite resources, the use of raw materials is limited. The circular economy model addresses the preservation of increasingly scarce resources and the reduction of the environmental impact of their use. The goal is for products and raw materials to maintain their useful and financial value over time. The transition to a low-carbon economy represents a development opportunity. It brings benefits to companies and the economy, encourages innovation, and reduces negative environmental impact in supply chains.
Slovenia has also included measures to accelerate the transition to a circular economy in the Recovery and Resilience Plan (RRP).
Establishing a framework for sustainable and green transformation – reform
Through the implementation of the reform, a strategic and legal framework was established that promotes the transition to a circular economy.
- The Decree on packaging and packaging waste management and the Decree on waste have been amended, increasing the organizational and financial responsibility of producers and encouraging the inclusion of recycled materials in new products.
- Green budgetary planning has been established, introducing a methodology for defining and assessing elements of the public budget that impact environmental policies. The methodology has been in effect since January 1, 2024.
- A single point was also established to support companies, especially small and medium-sized enterprises, in the transition to a circular economy.
The Ministry of the Environment, Climate and Energy, the Ministry of Finance and the Ministry of Economy, Tourism and Sport (MGTŠ) participated in the implementation of the reform.
The first two milestones related to the implementation of the reform, namely the “Operational One-Stop Shop for the Circular Economy” and the “Entry into force of changes to extended producer responsibility and waste processing,” were claimed by Slovenia as part of the second payment request, which the European Commission (EC) paid in December 2023. The third milestone, “Development and application of the green budgeting methodology,” was claimed by Slovenia as part of the fourth payment request, which the EC paid in full in November 2025.
Comprehensive strategic project for the decarbonisation of Slovenia through the transition to a circular economy – investment
The objective of the investment was to support the transition of companies to a circular economy by awarding grants.
Within the framework of the investment, the MGTŠ supported 154 Slovenian companies and 291 projects/activities, thereby exceeding the original investment target of 150 projects.
The investment was implemented by the ministry together with the Public Agency of the Republic of Slovenia for the Promotion of Investment, Entrepreneurship and Internationalisation in two sets. Part of the first set consisted of strategic development projects, within which companies prepared strategies and developed business models for the transition to a circular economy, while in the second set, based on these, they implemented priority projects that specifically contribute to the transition to a low-carbon economy.
For the implementation of the investment, the European Union contributed EUR 14.7 million in grants from the Recovery and Resilience Facility (the Facility).
The investment milestone »Issued co-financing decisions to support companies in the transition to a circular economy« was claimed by Slovenia as part of the fourth payment request, while the investment target »Number of projects to support companies in the transition to a circular economy« is being claimed as part of the sixth payment request, which the EC submitted in March 2026.
Increased wood processing for a faster transition to a climate-neutral society – investment
Slovenia, as one of the four most forested European countries, has sufficient quantities of wood for long-term development based on domestic raw materials.
The objective of the investment under the RRP is to encourage wood-processing companies to invest in new wood processing capacities and the expansion of existing ones.
Through a public tender, the MGTŠ supported the implementation of projects by Slovenian companies that follow the principles of environmentally friendly production and sustainable construction. This will contribute to greater domestic wood processing based on an environmentally friendly production process and efficient use of resources.
28 million euros in grants from the Mechanism are planned for the implementation of the investment.
The milestone and the first target related to the investment – »Grant decisions for projects supporting wood processing« and »Number of projects to support wood processing« – are part of the fifth payment request, which the EC has already positively assessed. Slovenia expects the payment within this month.
The second target »Number of projects supporting wood processing« will be included in the last, seventh payment request, which Slovenia will submit to the EC by the end of September 2026.
Slovenia will exceed the initially planned target. At least 28 projects are expected to be implemented as part of the investment. Already, 46 out of a total of 56 projects have been completed.
Source: Office of the Republic of Slovenia for Recovery and Resilience