Serbia can bolster its economic growth and generate employment by investing in climate change resilience and decarbonization, according to a report released today by the World Bank Group. The Country Climate and Development Report for Serbia suggests that $9.5 billion should be invested over the next decade to safeguard against the increasing threats of floods, landslides, droughts, heat waves, wildfires, and earthquakes.
The report states these investments represent about 0.5 percent of Serbia's GDP annually. They are necessary to mitigate climate change impacts on critical sectors like water and energy security, agriculture, transportation, and road infrastructure. Without these investments, Serbia could face a potential 15 percent economic contraction due to climate-related disasters by 2050.
"The benefits that come with those investments will outweigh the cost by far," said Nicola Pontara, World Bank Country Manager for Serbia. "They will help protect people and property but also pave the way for employment growth, add new skills and create greater trade opportunities."
To achieve net-zero emissions by 2050, an additional investment of $10.4 billion over the next 25 years is required. This involves phasing out coal in favor of solar, wind, hydroelectric power, natural gas capacity development while electrifying transport and enhancing energy efficiency across various sectors.
The report indicates that 85 percent of decarbonization investments can originate from private sector contributions under favorable regulatory conditions. Nicolas Marquier from IFC stated: "Serbia’s private sector is positioned to lead the country’s transition to a greener economy."
Transitioning towards climate resilience requires comprehensive changes including financial sector reforms for improved access for small enterprises and startups. It also calls for developing a green debt market along with advancements in education and training.
For more information or to download the full report visit their website.