This article is published in association with European Investment Bank.
In partnership with Serbia’s Ministry of Environmental Protection and the European Investment Bank’s EIB Global arm, the United Nations Development Programme (UNDP) has launched a new green financing model under the EU for Green Agenda in Serbia initiative.
Combining donor grants and favourable bank loans, which feature lower interest rates and longer tenors than otherwise available on the market, the package will help accelerate Serbia’s green transition.
With financial support from Switzerland, six projects have already secured financing under this initiative, driving emission cuts, resource efficiency and climate resilience in local communities.
They include Serbia’s first low-temperature geothermal power plant, energy-efficient upgrades in production processes, renewable energy integration, wastewater treatment, and advanced recycling solutions.
“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.”
“Cooperating with UNDP and the EIB demonstrates that it is possible to secure a sustainable financing model for green investments,” said Serbian Minister of Environmental Protection Sara Pavkov. “Such programmes not only encourage investments in modern technologies but also help domestic businesses adopt EU and global environmental standards, which is our strategic goal.”
Partner banks supporting this effort include OTP Bank, Banka Intesa, ProCredit Bank, Erste Bank, NLB Komercijalna Banka, UniCredit Bank, UniCredit Leasing and ALTA Leasing.
“Including the banking sector in the co-financing model expands the range of areas that are profitable for green investments,” said Jakup Beriš, UNDP resident representative in Serbia. “Partner banks have already recognised energy efficiency investments as profitable, and now they are ready to support other types of investment that significantly contribute to environmental protection and people’s well-being.”
According to Richard Kohli, head of Cooperation at the Swiss Embassy, the active involvement of the private sector and commercial banks is key to advancing the green transition. “This co-financing model has strong potential to accelerate the implementation of sustainable and cost-effective long-term solutions across Serbia.”
This new financing model builds on the EU for Green Agenda in Serbia’s ongoing support for green investments, which has already delivered 94 projects since 2022 worth €52 million, including €6.3 million in co-financing.
The initiative is implemented by UNDP in cooperation with Sweden and EIB Global, and in partnership with the Ministry of Environmental Protection, with technical and financial support from the European Union and the Swedish, Swiss and Serbian governments.
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