From Linear to Circular: Rethinking the Economy for a More Resilient BiH

For decades, Bosnia and Herzegovina’s economy—like much of the world’s—has been built on a linear model: take, make, use, and dispose. It’s a system that has delivered industrial growth, but also one that has left behind growing landfills, wasted resources, and rising environmental costs.

A linear economy has historically helped develop innovation, put money into the economy as it’s increasing our consumerist behaviour - but we realise now that a linear economy is not a sustainable model. The waste we leave behind is not just a missing an opportunity to be transformed into a resource, when it’s not dealt with correctly it becomes costly both environmentally and economically. 

Now, as Europe accelerates its transition towards a circular economy, Bosnia and Herzegovina (BiH) stands at a pivotal moment. The shift from linear to circular is not simply an environmental choice—it is a strategic and economic opportunity to strengthen competitiveness, create local jobs, and build long-term resilience.

What Does a Circular Economy Mean for BiH?

A circular economy replaces waste with resourcefulness. It means designing out waste and pollution, keeping products and materials in use for as long as possible, and regenerating natural systems. In practical terms, it means turning yesterday’s waste into tomorrow’s raw material.

For BiH, this transition could bring tangible benefits:

  • Reduced import dependency on raw materials by reusing what already exists within our borders.
  • New green industries and innovation, from repair and remanufacturing to recycling and eco-design.
  • Job creation, particularly in local communities where waste is generated and managed.
  • Improved environmental quality—cleaner rivers, greener cities, and healthier living conditions.

These are not abstract ideas. Across Europe, circular models have already delivered measurable results: lower waste generation, new revenue streams, and more stable economies. For BiH, adopting these principles can unlock growth and investment in sustainable sectors, while further aligning with EU environmental standards.

An Economic Shift Rooted in Resilience

In a linear economy, the value of the product disappears the moment it is thrown away. In a circular one, value circulates—retained through reuse, recycling, and smarter design. This makes economies more resilient to shocks such as resource shortages or price fluctuations, while being less dependent on imports.

Bosnia and Herzegovina currently imports a large proportion of its raw materials. By building systems that keep resources in circulation, the country can protect itself against global market volatility. Circular models also encourage innovation and entrepreneurship—offering small and medium-sized enterprises new ways to compete and grow.

Moreover, global investors are increasingly prioritising sustainability. Countries that can demonstrate circularity, transparency, and green credentials are becoming magnets for funding. For BiH, embracing the circular transition means not just protecting the environment, but future-proofing the economy.

Turning Policy into Practice

Circularity requires collaboration: between governments, businesses, academia, and citizens. This is where Project CETAP (Circular Economy Transition and Awareness Programme) plays a key role. Supported by the EU and local partners, CETAP is helping Bosnia and Herzegovina develop the legal, institutional, and cultural foundations for a circular future.

CETAP’s mission is twofold:

  1. Policy support – helping align national waste and resource management frameworks and Plans with the EU Green Deal, which looks to make the EU become the first climate neutral area by 2050.
  2. Public awareness and engagement – inspiring citizens, schools, municipalities, and companies to rethink waste as value, through our public awareness campaign which is due to launch in January 2026.

The transition process will not happen overnight but it will happen. And every action—every separated bottle, repaired appliance, or recycled material—builds momentum. CETAP’s approach is rooted in the AKAP model: Awareness, Knowledge, Attitude, and Practice. Awareness begins with understanding why circular principles (reduce, reuse, recycle and recover) matter.

Building a Future That Lasts

Circular economy thinking offers a new vision for Bosnia and Herzegovina—one where progress doesn’t come at the expense of the planet. It challenges the outdated notion that growth and sustainability are opposites, showing instead that smart resource management fuels prosperity.

By rethinking production and consumption, BiH can reduce environmental pressure, stimulate innovation, and strengthen economic sovereignty. More importantly, it can join the growing European community of nations proving that sustainability and success can go hand in hand.

The move from linear to circular is not a step back—it’s a leap forward. A leap towards cleaner industries, more stable jobs, and a future that regenerates rather than depletes. With the right mix of policy, partnership, and public participation, Bosnia and Herzegovina can become a regional leader in circular transformation—showing that resilience begins with rethinking how we use what we have.

About Project CETAP

The Circular Economy Transition and Awareness Programme (CETAP) is an EU-funded initiative supporting Bosnia and Herzegovina’s shift towards a sustainable, resource-efficient economy. By combining policy alignment, stakeholder engagement, and public awareness, CETAP aims to build a greener, more resilient future for all.