Albania is poised to enhance its resilience against climate change and explore new economic avenues through strategic investments, as highlighted in the World Bank Group’s Country Climate and Development Report for Albania. Released today, the report emphasizes the necessity for Albania to invest $6 billion over the next decade to safeguard its citizens and property from climate-related risks such as floods, wildfires, and landslides. The absence of proactive measures could result in climate-related damages amounting to 7% of Albania's GDP.
The report further suggests that investments in climate adaptation can drive economic development. Similar studies indicate that for every €1 invested in climate adaptation, returns can reach up to €10, encompassing reduced losses and increased opportunities alongside social and environmental benefits.
Emanuel Salinas, World Bank Country Manager for Albania, stated: “Climate action is a pathway to sustainable growth and a resilient future. Building resilience unlocks opportunities for businesses and households, drives job creation, and supports long-term economic growth.”
To accelerate Albania’s energy transition towards net-zero emissions by 2050, the report recommends investing in wind, solar, and biomass technologies with carbon capture capabilities. These initiatives aim to diversify the energy system, improve efficiency, reduce import dependence, and electrify transportation and heating.
Nicolas Marquier, IFC Regional Manager for the Western Balkans remarked: “The private sector will be crucial for financing Albania’s green transition, with an estimated 85% of the investment needed expected to come from private sources.” He added that advancing regulatory reforms is essential for enabling green financing instruments like green bonds.
The report provides a roadmap focusing on immediate investments in resilience and adaptation strategies to mitigate disaster impacts. It also advocates shifting towards renewable energy for decarbonization over time while reforming public finance structures to support climate initiatives. Enhancing regulatory frameworks is recommended to promote efficiency and innovation.
In collaboration with Albanian authorities, the World Bank Group is engaged in projects aimed at developing resilient infrastructure, improving water supply services, sanitation systems, and fostering sustainable agriculture.