Advancing sustainability with green tokens in Western Balkans 

The Green Tokens project, led by the UNDP IRH Innovation Team, is a new pilot initiative designed to assess how using a reward-based token system can address environmental challenges in urban areas. In Skopje, North Macedonia and Podgorica, Montenegro, the project looks into emerging technologies to tackle major city pain points such as bio-waste management and public transportation, to promote eco-conscious behaviour among residents and businesses.   

Backed by the Slovak Transformation Fund and the Resource Mobilization Facility in this exploration phase, the project has also drawn on the expertise of several Web3 leaders and organizations. Furthermore, through collaboration with local municipalities we ensured that the research integrates the specific conditions of the cities of Skopje and Podgorica. 

Hold on – what are green tokens?  

Green tokens refer to digital or blockchain-based tokens that are used to promote and support environmental sustainability and eco-friendly initiatives. In essence, it is a digital reward system designed to encourage eco-friendly behaviors among residents and businesses in cities. They can represent various types of assets or rights and are typically associated with projects that have a positive environmental impact. For example, by earning tokens for actions like reducing waste and conserving energy, residents and businesses can directly contribute to environmental sustainability while benefiting from rewards.  

Building the green path forward 

To understand whether green tokens would be a good fit, the Green Tokens project has undertaken a series of feasibility studies and blueprint development for both Skopje and Podgorica. These studies were essential in identifying existing challenges and opportunities in bio-waste management and public transportation improvement. 

1. In Skopje, the feasibility study looked into significant challenges in bio-waste management, which constitutes a large portion of the city’s municipal solid waste. The study identified inefficiencies in the current system, leading to increased landfill usage and greenhouse gas emissions. It proposed integrating blockchain technology, IoT-enabled smart bins, and a user-friendly mobile application to incentivize waste separation and recycling. 
   
2. In Podgorica, the feasibility study focused on promoting sustainable public transportation to reduce greenhouse gas emissions. Given the city’s current public transport challenges, such as outdated infrastructure and high-ticket prices, the study suggested a token-based reward system to encourage residents to shift from private car usage to public transport, walking, and cycling. 

During a co-creation workshop, held in Podgorica in June 2024, which engaged 30 participants from Skopje, Podgorica, and Bar, plus external experts from various institutions and Web3 communities worldwide, we designed potential interventions and gathered valuable feedback to finalize the blueprint development. The event helped build momentum and foster collaboration among stakeholders for the project’s next phases. 

The blueprints for Skopje and Podgorica provided detailed technical specifications, system architecture, and implementation strategies.  

1. For Skopje, the blueprint emphasized leveraging the Cardano blockchain for secure and transparent transaction management and deploying smart bins equipped with IoT sensors for real-time bio-waste monitoring, enhancing biowaste separation and recycling. Additional recommendations included integrating urban farming initiatives, using compost from bio-waste, for community gardens and rooftop greening projects, as well as organizing educational campaigns to boost public awareness about the benefits and value of bio-waste. 
   
2. In Podgorica, the blueprint included modernizing the bus fleet, improving route coverage, and integrating electronic ticketing systems to make public transport more attractive and reliable. It also recommended developing a raising awareness campaign to promote sustainable mobility and adapting an existing app to track eco-friendly activities as well as earn tokens and redeem rewards to encourage the use of public transport, walking and cycling. 

Next steps 

In its exploratory phase, the Green Tokens project has paved the road to understanding how green tokens and other technologies can transform the management of public assets and services in cities. Going forward, engaging local and international partners, as well as securing funding from municipal, private, and community sources, will be critical for the project’s expansion and long-term sustainability. Additionally, the developed model has the potential to be scaled, with plans in place to roll out the token system in other cities, using the blueprints and feasibility studies to assess its applicability and possible integration, bringing environmental and economic benefits across cities in the region.