CIN-CG Battle for the Eco-Fund: Who will manage the millions

After, at the end of 2025, Drasko Boljević resigned as executive director of the Environmental Protection Fund (Eko-fond), his successor has not yet been chosen. The reason, as he learns, Center for Investigative Journalism of Montenegro (CIN-CG), is not just a procedural blockade, but a months-long behind-the-scenes struggle between various party actors for control over an institution that already has large funds at its disposal, which will most likely exceed one hundred million this year.

When Boljević took over the Eco-Fund in 2021, there were only 490 thousand euros in the account. Four years later, the balance is 24 million. However, this is just the beginning. The new management of the Eco-Fund will decide on the distribution of around 100 million euros per year - how much, according to estimates, could flow into the Fund through domestic CO2 emission fees.

The state is introducing these fees as part of harmonization with the rules of the European Union (EU) - the Carbon Cross-Border Adjustment Mechanism (CBAM), which began to apply on January 1st of this year.

Minister of Ecology Damjan Ćulafić He has repeatedly emphasized that the Eco-Fund has invested 18 million euros directly in improving the environment and supporting citizens, businesses, and local governments.

103 illegal landfills were remediated, funds were provided for the purchase of utility equipment for all 25 municipalities, the greening of more than 225.000 square meters of public areas was enabled, and around six thousand households received subsidies for energy efficiency in the total amount of 10 million euros.

Despite the results previously praised by the government itself, Boljević was not re-elected, but his resignation was not accepted.

The government forwarded CIN-CG's inquiry to the Ministry of Ecology, Sustainable Development and Northern Development (MERS), which said that "the Environmental Protection Fund demonstrates a high level of professionalism, legality and transparency in its work," and that, based on a thorough analysis, it is recognized as "one of the most successful companies."

The conflict between the Democrats and PES: Summer 2025.

While there is controversy today about Boljević's successor at the Fund, last summer the public had the opportunity to follow the multi-day drama surrounding the attempt to remove Boljević and bring him into his place. Ljubiše KonataraThe media then reported on the conflict between the two ruling parties - the Democrats (to which Boljević is close) and the PES (to which Konatar is affiliated, as well as the three members of the Board of Directors of the Eco-Fund at the time).

A few weeks before the term of office of the members of the Board of Directors of the Fund expired, they announced a competition for the election of a new director on 30 June 2025. The Government of Montenegro adopted the financial statements on 17 July, which automatically terminated the term of office of the members of the Board of Directors under the Statute. However, the session at which the decision on the election of the new director was made was held on 22 July, five days after the Board's term of office formally ended.

Of the four applications received, the Committee assessed that only the application of Assoc. Prof. Dr. Ljubiša Konatar was complete and in accordance with the competition conditions. Konatar holds a PhD in the field of security, and from 2020 to 2024 he worked on the control and management of policies related to planning documentation, illegal construction and environmental protection. During the term of office of the former Minister of Ecology Ratko Mitrović he was the head of the Directorate for Inspection Supervision.

The application of Boljević, who graduated from the Faculty of Economics in Belgrade and has experience in international companies, was disqualified. The Board explained that the application was invalid due to the electronic seal, which they did not recognize as proof of work experience. On the other hand, Boljević claims that the electronic seal is valid under Montenegrin legislation, and that this is an international company “Podravka” that operates in 60 countries around the world.

After that, Minister Ćulafić filed criminal charges against three members of the Board of Directors of the Eco-Fund: Svetlana Drobnjak, Director General of the Directorate for Preschool and Primary Education, Andreja Vučeković from the Directorate for Inspection Supervision in the Field of Tourism and Biologists Miloje Šundić from the University of Montenegro. Ćulafić accused the Board members of violating the Statute, because they remained on the Board after their mandate expired, and also for violating lengthy procedures. In addition to this complaint, criminal charges were also filed against three Board members by Boljević.

Procedural scandal: Inspection and verification

Since the summer, the Fund has been in a legal interregnum, which deepened after Boljević's resignation in December, which the government has not yet accepted. However, the backstage games continued. In November 2025, an anonymous complaint triggered a labor inspection in connection with Boljević's previous mandate.

An extraordinary inspection at the Eco-Fund was carried out by a labor inspector Azren Vučetović November 11 and 12, 2025. During the inspection, the inspector determined that Boljević graduated from the Faculty of Economics, University of Belgrade in 2008, but that he only had his diploma validated in February 2025, a full 17 years after completing his studies.

In the inspection decision, Vučetović argued that the length of service at the qualification level is calculated exclusively from the date of nostrification of the diploma. According to this interpretation, Boljević has only 10 months of recognized work experience, which does not meet the five-year requirement for a director position. Boljević defends himself by referring to Article 82 of the Law on Higher Education, which stipulates that the qualification is acquired on the day of completion of the study program, and not by the act of nostrification.

Documentation reviewed by CIN-CG shows that the inspection report was submitted to the Government and the Prime Minister's Office on the same day it was delivered to Boljević, before the legal deadline for his statement expired. Secretary General of the Government Dragoljub Nikolic He then twice urged Minister Ćulafić to act on the findings, although no one at that moment had insight into Boljević's counterarguments.

Inspector Azren Vučetović had not responded to CIN-CG's numerous questions by the time this article was published.

MERS told CIN-CG that they had submitted information on the findings of the labor inspection, which they forwarded to Boljević.

"We believe that in this case it is useful to consult the legal principle 'audiatur et altera pars' (let the other side be heard) or Boljević's position on the inspection's findings," the Ministry stated.

Aleksandar Perovic from the environmental movement OZON believes that the developments surrounding the Eco-Fund are an indication that successful management opens up space for pressure.

"Instead of appreciating successful leadership that has shown dedication to the work and building of the institution, we have come to a position where procedures that are the responsibility of those who selected and appointed the staff are being prioritized, which is a paradox," Perović told CIN-CG.

He points out that attempts are being made to make the results of the Eco-Fund meaningless for reasons he sees as "party or personal interests" and warns that "important institutions must not be allowed to be hindered in their development."

The interregnum lasts

When he resigned in December, Boljević cited disagreement with the authorities' actions towards the residents of Botun who were protesting against the wastewater treatment plant as the reason. However, the government did not accept the resignation, and Boljević formally continues to hold office.

The Ministry of Ecology said that "the Fund continued to function smoothly and without any disruptions in its work."

Boljević confirms to CIN-CG that the Fund's balance is regular and that it operates in accordance with the law.

While solutions are awaited, while inspection findings travel to the prime minister rather than the accused, and while political options compete for the director's seat, the Eco-fund has remained in a kind of limbo. And the stakes are rising because, as the Eco-team warns, if the system is not established on time and if clear priorities are not defined, 100 million euros per year will not go to Pljevlja projects and the green transition, but to the European Union budget.

The Climate Change Law stipulates that funds collected through the sale of emission units, eco-fees and other climate financial instruments are directed through the Eco-Fund, but in accordance with strategic policies defined by the Government and the relevant ministry, and if this does not happen, the money can flow out of the country.

Money to stay in Montenegro

Diana Milev-Čavor from the Eco-team points out to CIN-CG that the experience from the first two months of full implementation of CBAM shows that the effects are already being felt: the difference in electricity prices since the beginning of this year has been harmonizing between the EU and Western Balkan markets. In the region, electricity has already increased by an average of about 32 euros per megawatt-hour, in our case due to the penalties that Montenegro pays when exporting electricity obtained from the major polluter Thermal Power Plant, which emits C02. As a result, electricity exports have become less profitable.

Some analysts point out that the cost of CBAM is currently shared between EU consumers and producers from the Western Balkans, that is, part of it goes through higher prices in the EU, and part through lower incomes for producers in the region.

"For Montenegro, this means several things at once. First, lower revenues from electricity exports. Second, additional pressure on the Electric Power Company of Montenegro (EPCG) and the overall electricity sector, especially regarding the future of the Pljevlja TPP. Third, the urgent need for the state to reform the domestic carbon pricing system, so that money does not 'go out' through CBAM to the EU budget, but remains in the country and is used for transition, consumer protection and support for the people of Pljevlja. If Montenegro does not introduce a clearer and more realistic CO2 pricing system, CBAM will collect the difference, and the state will lose," says Milev-Čavor.

The Eco Team emphasizes that it is important that CO2 emissions fees are collected in the domestic system, because the essence is where that money ends up and how it is used. If this does not happen, the difference in the price of emissions will be collected at the EU border, which means that the money will end up in the EU budget. Therefore, it is in Montenegro's clear interest to develop a credible domestic emissions charging system not only to comply with EU rules, but also so that the funds from the carbon price remain in the country and are used for its own needs.

"It should be borne in mind that the Eco-Fund's budget will grow significantly only if the price for CO2 emissions paid by operators at the national level increases. In other words, higher revenues from emissions fees depend primarily on whether the state will establish a more effective carbon pricing system and bring it closer to European rules. For now, this is not the case," says Milev-Čavor.

In addition to the importance of keeping the money in the country and using it for the green transition, primarily in Pljevlja but also in the rest of Montenegro, from the example of the Eco-Fund it is obviously of crucial importance who will manage it.

Affair and court proceedings

While the fight for the management of the Fund is ongoing, the past of the Eco-Fund remains the subject of legal proceedings. The first year of operation of this institution, which was registered in the register of business entities on March 3, 2020, was marked by the scandal involving free emission credits.

In April 2023, former CEO of Eco-Fund Jovan Martinović and Director of the Finance Sector Andrej Nedović were arrested. The Special State Prosecutor's Office charges them with the criminal offense of abuse of office in business operations for improperly granting free emission credits to the company Uniprom DOO Nikšić, owned by businessman Veselin Pejović. It is estimated that this provided Uniprom with a benefit of over 20 million euros.

Martinović was released on bail in real estate worth around 505.000 euros, and Nedović after witnesses were questioned.

Six months after his release from detention, Nedović was hired as a consultant to the then Minister of Urban Planning, Janko Odović. In April 2024, the government of Milojko Spajić appointed him as a member of the Commission for the Implementation of the Basic Agreement with the Serbian Orthodox Church. In March 2025, the proposal to become the acting director general of the Ministry of Health was withdrawn after media reports. Martinović is a long-time member of the Cetinje board of the DPS.

According to the criminal complaint, Pejović settled his debt to EPCG in 2020 through CO2 credits, causing the state to suffer tens of millions of euros in damages. The complaint also mentions the then Prime Minister Duško Marković, Marina Spahić from the Ministry of Ecology, and the management of EPCG. Uniprom received loans even though the system was not established, and the value of the loans it had is estimated at tens of millions of euros.

EPCG filed criminal charges against Marković, Pejović and others, while Uniprom sued former Prime Minister Dritan Abazović, former Minister Ana Novaković Đurović and Boljević.

"EPCG has initiated court proceedings regarding the electricity debt owed to Uniprom. In 2024, the Commercial Court issued a first-instance verdict in favor of EPCG, but the proceedings have not yet been finalized," EPCG told CIN-CG.

Uniprom told CIN-CG that the Commercial Court upheld EPCG's lawsuit and ordered Uniprom and Uniprom-metali to pay the electricity debt in cash. However, the Court of Appeals of Montenegro overturned the ruling and stated that the first-instance court erred in finding that emission credits in this case could have been intended as a means of payment, and not just as a means of securing the debt. "Therefore, it was ordered that the contract on assignment of claims, by which CO2 credits were transferred to pay the electricity debt, be re-evaluated in a new proceeding. The court also proposed hearing the executive directors of EPCG and Uniprom in order to determine the real will of the contracting parties, i.e. whether the intention was to settle the electricity debt with emission credits," Uniprom told CIN-CG.