A new green financing model has been launched in Serbia to speed up the country’s shift toward a low-carbon, sustainable economy, the European Investment Bank (EIB) announced. The initiative, created through a partnership between Serbia’s Ministry of Environmental Protection, the EIB’s global development branch, and the United Nations Development Programme, combines donor grants with favourable bank loans that feature lower interest rates and longer terms than those available on the market.
With support from Switzerland, six projects have already secured funding under the initiative, focusing on reducing emissions, improving resource efficiency, and strengthening climate resilience in local communities. These include Serbia’s first low-temperature geothermal power plant, energy-efficient upgrades in industrial production, renewable energy integration, wastewater treatment, and advanced recycling systems.
“Through this partnership initiative, we jointly developed an approach to help identify and prepare projects with potential for multi-source financing,” said Damien Sorrell, Head of the EIB Regional Hub for the Western Balkans. “We provided support and mediated between commercial banks and companies, significantly contributing to Serbia’s green transition.” Serbian Minister of Environmental Protection Sara Pavkov added that the collaboration with UNDP and the EIB “shows it is possible to secure a sustainable financing model for green investments.”
She said such programmes help domestic businesses attract investment and align with EU environmental standards—a key government priority.
Partner banks include OTP Bank, Banka Intesa, ProCredit Bank, Erste Bank, NLB Komercijalna Banka, UniCredit Bank, UniCredit Leasing, and ALTA Leasing.
“Including the banking sector expands the range of areas that are profitable for green investments,” said Jakup Beriš, UNDP Resident Representative in Serbia. “Banks already recognize energy efficiency as a strong investment area and are now supporting other projects that deliver both environmental and social impact.”
According to Richard Kohli, Head of Cooperation at the Swiss Embassy, the active participation of private banks and businesses is crucial to accelerating Serbia’s green transition. He said the new model “has strong potential to deliver sustainable, cost-effective long-term solutions across the country.”
This financing model builds on the EU for Green Agenda in Serbia initiative, which has already supported 94 green projects worth €52 million since 2022, including €6.3 million in co-financing. The programme is implemented by UNDP in cooperation with Sweden and EIB Global, and in partnership with Serbia’s Ministry of Environmental Protection, with support from the European Union and the Swedish, Swiss, and Serbian governments.
