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Positive Momentum for Green Transition

North Macedonia is now a sought-after destination for investments in renewables, particularly wind and solar, attracting both domestic and foreign investors

In the dynamic landscape of the North Macedonian economy, the country’s Foreign Investors Council (FIC NM) is a pivotal force in driving economic growth and development. This robust community, comprising over 130 esteemed member companies hailing from 20 countries, plays a significant role across various sectors, including agriculture, automotive, food production, energy, telecommunications, IT, pharmaceuticals, banking, insurance, consulting and auditing services.

North Macedonia became very attractive for investment in renewable energy recently, specifically for wind and solar, for both foreign and domestic investors.

The global electric vehicle (EV) value chain has been reshaping and advancing constantly, particularly over the last few years. As global automakers go electric, they are driving green FDI in new automotive hubs in developing countries, and North Macedonia has also found itself on the receiving end of this process.

A significant number of foreign investors currently operating in the country’s automotive industry are deeply involved in the most sophisticated processes in the field of green transitions and in general, contributing to environmental sustainability in the regions where they operate. As suppliers to OEMs for electric and plug-in hybrid vehicles, mainly for the EU market, they bring to the fore the importance of the electrification trend in industry for all workers involved in this part of the supply/ value chain.

Foreign investors in the country’s automotive sector prioritise sophisticated green methods that advance sustainable regional environmental practices

Power electronics units and on-board chargers for EVs, battery management systems, batteries for industrial applications and catalytic converters are just some of the products being produced by Tier-1 and Tier-2 automotive suppliers in the country. With an awareness of the relevance of these jobs and the industry for the country’s GDP growth, the rise of public awareness in the environment and green transitions is becoming apparent.

The KOSTAL Group received this year’s ESG Transparency Award, which recognises the exemplary willingness of the company to integrate ideas of progressive sustainability into its business model, which can thus be shared as an experience in other foreign or domestic companies.

During the energy crisis that came with the outbreak of the war in Ukraine, many foreign investors took active steps in the green transition process and strove to reduce their electricity costs by making significant investments in installing photovoltaic roof systems, with regulations having previously been adapted to investors’ needs, in order to encourage and simplify such investments, on the basis of FIC NM lobbying. There are still limits and obstacles to selling excess electricity generated by the PV systems of companies located in Free Zones, but we are striving to have legislation amended before year’s end. Most FIC NM member companies engage constantly in various projects and activities with the local community, pursuing a more inclusive and systemic approach in preserving the environment and wellbeing of the county (e.g. forestation actions, cleaning of Lake Ohrid etc.).

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