Globally, lignite-dependent economies struggle with decarbonization due to the dual challenge of mitigating emissions while ensuring economic stability in regions reliant on fossil fuels (Unruh, 2000) (Frank W. Geels, 2017). The Paris Agreement (United Nations Framework Convention on Climate Change (UNFCCC), 2015), setting long-term objectives for limiting global temperature increases through net-zero emissions strategies, underlines the ongoing global energy transition mainly to (i) policy shifts and (ii) technological advancements. In Kosovo and other lignite-dependent economies, path dependency (David, 1985) plays a crucial role, as historical investments in coal-fired power plants, mining infrastructure, and labor markets linked to lignite extraction shape present-day policy decisions. To address this concern, the NEEP, adopted in (2022), aims to achieve a 32% reduction in primary energy consumption by 2028, with a particular focus on retrofitting public buildings and modernizing industrial processes. These measures align with global best practices in energy efficiency, where demand-side management (DSM) strategies (Gellings, 2005) play a crucial role in reducing consumption and promoting conservation efforts. However, DSM implementation in Kosovo faces financial and institutional constraints, reflecting broader issues seen in post-socialist economies transitioning to sustainable energy frameworks. Similarly, the NWMS, adopted in 2021, outlines goals to improve recycling rates and manage hazardous waste. While waste management and energy efficiency are often treated as separate policy domains, emerging research highlights the interconnections between the two, particularly in the context of circular economy principles (Foundation Ellen MacArthur, 2013). Nevertheless, at the national and local levels, these synergies are not fully grasped due to fragmented governance structures and financial constraints. This chapter tries to examine energy and waste management reforms within the broader global shift towards decarbonization, recognizing that successful transitions require policy coherence, financial incentives, and multi-stakeholder engagement.