Net Positive Labs partnered with the United Nations Development Programme (UNDP) to explore how circular economy principles could strengthen the competitiveness and sustainability of Bosnia and Herzegovina’s wood and furniture industry — one of the country’s most important export sectors.
Through system-level analysis of value chains, industrial capabilities, and policy frameworks, the project identified strategic opportunities to integrate circular practices such as resource efficiency, waste reduction, and new business models. The work resulted in a portfolio of potential interventions designed to support industrial upgrading, increase domestic value creation, and advance the country’s broader Sustainable Development Goals (SDG) agenda.
The wood and furniture sector plays a significant role in Bosnia and Herzegovina’s economy, contributing to employment, exports, and regional industrial activity. The industry benefits from strong craftsmanship traditions and abundant forestry resources, and it has gained increasing relevance in European markets in recent years.
Despite these strengths, much of the sector’s value creation remains concentrated in lower-margin production activities within international supply chains. At the same time, circular economy practices such as resource optimisation, product lifecycle extension, and material reuse remain underdeveloped.
Recognising the opportunity to strengthen both competitiveness and sustainability, UNDP launched an initiative to explore how circular economy strategies could support industrial upgrading within the sector.
Net Positive Labs worked with UNDP to analyse how circular economy principles could be integrated into the wood and furniture value chain.
The research examined material flows, production processes, industry capabilities, and existing policy frameworks in order to identify where circular approaches could unlock new economic value while improving resource efficiency.
Based on this analysis, the project developed a portfolio of strategic intervention opportunities, spanning industrial innovation, business model development, policy alignment, and potential pilot initiatives.
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