The United Nations Development Programme (UNDP), in partnership with Serbia’s Ministry of Environmental Protection and the European Investment Bank’s EIB Global arm, has launched a new green financing model under the EU for Green Agenda in Serbia initiative. This model combines donor grants with favorable bank loans that offer lower interest rates and longer repayment terms than typical market options, aiming to accelerate Serbia’s transition to a greener economy.
Supported by financial contributions from Switzerland, six projects have already received funding through this initiative. These projects focus on reducing emissions, improving resource efficiency, and enhancing climate resilience in local communities. They include Serbia’s first low-temperature geothermal power plant, energy-efficient upgrades in industrial processes, integration of renewable energy, wastewater treatment projects, and advanced recycling solutions.
Damien Sorrell, head of the EIB Regional Hub for the Western Balkans, highlighted that the partnership helps identify and prepare projects suitable for multi-source financing while mediating between commercial banks and companies, significantly contributing to Serbia’s green transition. Serbian Minister of Environmental Protection Sara Pavkov emphasized that collaboration with UNDP and the EIB demonstrates the feasibility of sustainable financing for green investments, encouraging domestic businesses to adopt EU and global environmental standards.
The initiative is supported by several partner banks, including OTP Bank, Banka Intesa, ProCredit Bank, Erste Bank, NLB Komercijalna Banka, UniCredit Bank, UniCredit Leasing, and ALTA Leasing. Jakup Beriš, UNDP resident representative in Serbia, noted that including the banking sector in the co-financing model broadens profitable opportunities for green investments. Energy efficiency projects are already recognized as viable, and banks are increasingly willing to finance other environmentally beneficial projects.
Richard Kohli, head of Cooperation at the Swiss Embassy, added that active involvement of the private sector and commercial banks is crucial to advancing Serbia’s green transition. He stated that this co-financing model has strong potential to accelerate sustainable and cost-effective solutions across the country.
Building on the EU for Green Agenda in Serbia’s ongoing support, this financing model follows previous efforts that have already delivered 94 projects since 2022, valued at €52 million, including €6.3 million in co-financing. The initiative is implemented by UNDP in cooperation with Sweden and EIB Global, in partnership with Serbia’s Ministry of Environmental Protection, and receives technical and financial support from the European Union as well as the Swedish, Swiss, and Serbian governments.
