The World Bank Board of Directors has approved a loan of EUR 153.7 million ($160 million equivalent) to support Serbia's ongoing green transition reforms. This marks the second Green Transition Programmatic Development Policy Loan (DPL) aimed at advancing Serbia's shift toward a more sustainable and inclusive economy.
Nicola Pontara, the World Bank Country Manager for Serbia, expressed satisfaction with the progress made by the Serbian government. "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," he stated. Pontara also highlighted the significance of this loan in diversifying Serbia's energy sector and aligning its environmental frameworks with those of the European Union.
This recent approval follows an earlier development policy loan granted in 2023 and is part of a series aimed at supporting green initiatives in Serbia. The program focuses on systematizing green and gender budget tagging while assessing potential impacts of natural disasters on public finances. Additionally, it aims to accelerate renewable energy production within Serbia's energy sector.
Serbia plans to strengthen its legal and regulatory frameworks as part of these reforms, targeting increased resilience and reduced greenhouse gas emissions. In line with previous initiatives, it is anticipated that Serbia will secure additional funding from international partners such as the French Development Agency (Agence Française de Développement, AFD) and the German Development Bank (Kreditanstalt für Wiederaufbau, KfW).