Serbia Secures EUR 153.7 Million World Bank Loan to Advance Green Transition Reforms

This financial support is aimed at accelerating Serbia’s ongoing reforms and commitment to implementing a greener, more resilient economy.

In a significant step towards a more sustainable future, the World Bank Board of Directors has approved the Second Green Transition Programmatic Development Policy Loan (DPL) for Serbia, amounting to EUR 153.7 million ($160 million equivalent). This financial support is aimed at accelerating Serbia's ongoing reforms and commitment to implementing a greener, more resilient economy.

The loan builds upon previous efforts to enhance sustainability and environmental resilience, as highlighted by Nicola Pontara, World Bank Country Manager for Serbia. "It is great to see that the Government of Serbia has built on previous reforms to further boost the transition toward a more resilient, sustainable, and inclusive economy. This second DPL underscores the commitment of the authorities to making the energy sector more diversified and aligning environmental, legal, and regulatory frameworks with those of the EU," he stated.

A key focus of this financial support is the transformation of Serbia's energy sector. The country is set to accelerate the adoption of renewable energy sources, diversify its energy mix, and strengthen regulatory frameworks to ensure long-term sustainability. Additionally, Serbia will enhance its disaster risk assessment capabilities, implementing measures to evaluate the financial impact of natural disasters on public finances.

Beyond energy reform, the loan aims to promote systematic green and gender budget tagging, ensuring that sustainability and gender inclusivity are prioritized in financial planning. The strengthened legal framework will also contribute to reducing and measuring greenhouse gas emissions, supporting Serbia's alignment with European Union environmental standards.

This second loan follows the First Green Transition Programmatic Development Policy Loan, which was approved in 2023. Similar to the first loan, Serbia is expected to secure parallel financing from the French Development Agency (Agence Française de Développement, AFD) and the German Development Bank (Kreditanstalt für Wiederaufbau, KfW), reinforcing the collaborative international effort to support Serbia's transition to a greener economy.

With these comprehensive reforms, Serbia is positioning itself as a regional leader in sustainable development, ensuring long-term economic resilience and environmental responsibility.