Slovenia experienced rapid economic growth throughout most of the 2000s, with GDP per capita converging with the OECD average. Relatively favourable business- and export-oriented macroeconomic policies, combined with structural reforms stimulated by EU accession, were key factors driving growth. Even though environmental pressures were reduced towards the end of the 2000s due to the impact of the global economic and financial crisis, Slovenia will face a number of pressing environmental challenges as economic growth resumes. This chapter examines Slovenia’s framework for sustainable development and green growth. It analyses how the country has used investment, both public and private, supported by EU funds, to pursue environmental objectives. It also examines the use of economic instruments (i.e. energy and vehicle taxation), the removal of fiscal benefits, environmental fees and charges, and subsidies that encourage environmentally friendly activities or reduce environmentally harmful impacts. Included is an assessment of eco-innovation performance, as measured by environment-related R&D and patenting activity. This chapter also examines policies to encourage green corporate responsibility and investment, as well as green public procurement.

Over the last ten years, Slovenia has established a comprehensive framework of environmental policies and strengthened its environmental institutions. It has also successfully transposed most of the EU environmental directives into key national laws. This chapter examines Slovenia’s environmental governance, including horizontal and vertical co-ordination, as well as the coherence of the design and implementation of environmental and land use policies. Also analysed are the drivers of improved compliance with environmental requirements and the effectiveness of environmental permitting, enforcement and liability systems. Progress in promoting environmental democracy (through open access to information, improved public participation, education and access to justice) is discussed. In addition, this chapter evaluates environmental performance in two selected policy areas: nature protection and biodiversity conservation; and surface and groundwater management.

The main focus of Slovenia’s international environmental co-operation has been on co-operative activities with neighbouring countries, particularly those in the Balkan region with which it shares ecosystems and water catchments. Slovenia has also taken several important initiatives under the Danube and Alpine conventions and in the Dinaric Arc area. It has a good record of honouring its commitments under the multilateral environmental agreements to which it is a party. This chapter reviews initiatives to promote sustainable development undertaken by Slovenia in bilateral, regional and multilateral contexts and evaluates their results. It also presents Slovenia’s progress in fulfilling international commitments made in trade and environment-related agreements. Finally, the environmental dimensions of the country’s newly established official development assistance programme are addressed.