EU supports competitiveness in the Eastern Partnership through Circular Economy
Vienna, 3 June 2025 – As Europe advances its green transition, the European Union in partnership with the United Nations Industrial Development Organization (UNIDO) is supporting neighbouring economies in the Eastern Partnership (EaP) region advancing Circular Economy practices as a pathway to competitiveness and resilience.
Under the newly launched EU4 Green Recovery East: Recovery through a circular economy and pollution reduction in the Eastern partnership countries (EU4GRE) regional programme, UNIDO is leading a project component supporting the regional shift towards circular production practises in the countries of the EU’s Eastern Partnership (EaP). The EaP comprises Armenia, Azerbaijan, Georgia, Moldova, and Ukraine. The initiative is part of a broader €20 million programme funded by the European Union and implemented in collaboration with OECD, UNECE, and EU Member States (Austria and France).
A timely response to common challenges
Initial assessment across the region highlights persistent challenges, including high material dependency, low resource productivity, and limited access to CE-relevant tools and knowledge, especially for Small and Medium-sized Enterprises (SMEs). Despite these obstacles, a momentum is growing, and local actors are increasingly recognizing CE as a strategic opportunity to increase their competitiveness and resilience.
Throughout the inception phase of the EU4GRE program, national exchanges and stakeholder consultations revealed promising areas for action. Building on this foundation, the program will deliver tailored support to help partner countries develop enabling environment, build institutional and enterprise-level capacity, and identify scalable circular solutions in priority sectors.
Supporting competitiveness through practical tools and partnerships
Under the dedicated component of the programme, UNIDO will work closely with national counterparts to promote the adoption of circular economy practices to strengthen industrial performance and sustainability. After identifying the priority value chains as entry points, the program will support countries in CE integration through demonstration assessments and stakeholder engagement.
To ensure that enterprises, particularly SMEs, can effectively plan and implement CE measures, a set of digital tools for CE will be developed at the regional level, offering structured guidance, self-assessment, and planning support. This toolbox will be accompanied by regional learning events and dialogues to facilitate knowledge exchange and align approaches across countries. Further on, the programme will promote access to digital and sector-specific tools adapted to national contexts.
In parallel, existing platforms such as the Resource Efficient and Cleaner Production Clubs will be revitalized and expanded to serve in conjunction with CE and innovation Hubs for peer learning, technical exchange, and innovation.
Furthermore, the programme will contribute to enhancing the alignment of CE practices with European Union standards and market trends, ultimately helping local industries to improve their market readiness and competitiveness in the context of green transition and trade integration.
About the programme
The EU4Green Recovery East initiative is a regional action funded by the European Union to promote environmentally and climate-resilient development in the Eastern Partnership countries from 2025 to 2028. UNIDO leads Component 1 – Circular
Economy, supporting the development and uptake of circular solutions in key economic sectors. This component is implemented in collaboration with Environment Agency Austria (UBA) and UNECE.
About UNIDO
The United Nations Industrial Development Organization (UNIDO) is the specialized
agency of the United Nations with a unique mandate to promote, dynamize and
accelerate industrial development.