The Western Balkans 6 Country Climate and Development Report (CCDR) examines how the region can enhance climate adaptation and reduce greenhouse gas emissions while continuing to meet broader development goals. This comprehensive report covers six economies of the Western Balkans: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia.
According to the CCDR:
"Adapting to climate change is urgent - an initial, comprehensive package of investments in the Western Balkans is estimated to reach US$37 billion. Frontloading investments within a 5–10-year period will cushion the effects of climate change-related shocks and stresses. Investing in adaptation brings the triple dividend of avoided losses, accelerated economic potential, and amplified social and environmental co-benefits – with returns estimated to be around US$4 for every US$1 invested."
The report suggests that the Western Balkans can achieve climate neutrality by 2050 without compromising growth potential. Achieving net zero will require an investment of US$32 billion to transform the power system and decarbonize transport, buildings, and industrial sectors. "Notably, 85% of this funding can be sourced from the private sector if countries develop enabling regulatory environments and incentivize private sector participation in the transition."
The CCDR highlights multiple benefits beyond climate effects. For example, transitioning to net zero could decrease air pollution-related mortality by 15 percent by 2050, potentially saving thousands of lives. Early-warning systems yield high benefits in terms of avoided mortality and hospitalization costs. Flood management and nature-based solutions can also support local economic development.
The green transition will affect skills requirements across various occupations in the Western Balkans. "One out of every six current workers in the region will need to upskill in their current jobs or retrain into alternative green jobs in the medium term."
The CCDR provides several policy recommendations categorized under Transversal, Transboundary, and Targeted policies.
Transversal Policies aim to coordinate efforts across different sectors:
- Establish climate-focused agencies or commissions.
- Limit energy and transport fuel subsidies while protecting vulnerable communities.
- Reform state-owned enterprises (SOE) for better financial performance.
- Develop green finance markets through green bonds or similar instruments.
- Retrain workforce for the green economy.
- Boost accountability in climate action.
Transboundary Policies address shared natural resources:
- Invest in regional early warning systems.
- Coordinate carbon pricing in power and gas markets.
- Increase economic integration by aligning energy, transport, and agricultural systems.
Targeted Policies focus on specific sectors or locations:
- Implement disaster risk management systems.
- Transform power sector efficiency.
- Modernize agriculture with improved irrigation systems and climate-smart practices.
- Remodel cities for greener coordination of land investments.
- Ensure coal phaseout strategies support affected communities with reskilling programs.
- Boost energy efficiency programs.
- Decarbonize transport through urban design promoting walking, cycling, and public transport use.
The CCDR concludes that investing in climate adaptation and mitigation is both urgent and important for saving lives, driving growth, and making the planet more livable.