Montenegro’s €18 million forestry reform programme has entered the implementation phase, with the initiative covering forest-information systems, timber traceability, wildfire resilience, illegal-logging controls and support for wood-processing companies.
World Bank-backed project runs through 2032
The Agriculture Ministry began recruiting senior environmental and social specialists for the World Bank-backed Montenegro Forests for Shared Prosperity Project, which is scheduled to run through 2032. The programme includes measures aimed at strengthening forest-information systems, improving controls against illegal logging, introducing product traceability and increasing resilience to wildfires. It also provides support for companies operating in the wood-processing sector.
Demand for forestry technology and data systems
Implementation of the programme creates a multi-year market for GIS platforms, digital forest inventories, timber tracking, certification, environmental consulting, wildfire monitoring and wood-processing equipment. These systems are linked to efforts to increase the economic value generated from Montenegro’s forests, which cover a large share of the country’s territory. Timber traceability represents a specific area of focus. European buyers increasingly require evidence that wood has been legally harvested and sustainably managed, making digital records relevant to both conservation and access to export markets.
Focus on domestic wood-processing value
The programme also supports efforts to retain more processing value within Montenegro instead of exporting relatively low-value wood. Recent measures restricting exports of certain timber assortments used by local pellet producers are aligned with this approach. For manufacturers, however, access to predictable supplies of raw materials remains important.
Investment in kilns, automated production lines and higher-value wood products depends on companies being able to secure stable timber volumes over several years. The forestry programme provides funding for the institutional and digital infrastructure supporting the sector, alongside measures covering traceability, wildfire resilience, illegal logging and wood processing.
