LEGAL AND POLITICAL CONTEXT OF THE EUROPEAN UNION GREEN AGENDA FOR THE WESTERN BALKAN IN BUSINESS OPERATIONS

The European Union Green Agenda represents a strategic framework for achieving sustainable development, with a particular focus on decarbonization, the circular economy, and biodiversity preservation. In this context, the legal and political aspects of the green transition are becoming increasingly significant for business operations, both in European Union member states and in candidate countries. This paper analyzes the legal framework of the European Union derived from key documents such as the European Green Deal, the “Fit for 55” package, and the Regulation on the taxonomy of sustainable investments, as well as their implementation in the legal systems of the Western Balkans. Special emphasis is placed on the obligations companies have in terms of sustainability reporting, compliance with environmental standards, and adherence to ESG (environmental, social, and governance) criteria. Through legal analysis and a comparative approach, the paper highlights the challenges and opportunities that the legal implementation of the Green Agenda brings to the business sector, including risks of non-compliance, but also potentials for innovation and competitive advantage. It concludes that the legal integration of Green Agenda principles into corporate practices is crucial for sustainable business operations and future resilience in accordance with European climate and legal norms.