The transition to a green economy is a great chance for the Serbian economy to recover from the corona virus pandemic, it was said today at the presentation of the Green Recovery Study, which was presented at the Mixer Festival by the Delegation of the European Union and the United Nations Development Program.
The aim of the study was to assess the current possibilities for financing the “green” recovery, ie the transition of Serbian companies to more energy efficient and environmentally friendly business models, the UNDP said in a statement.
The study included practical experiences of micro, small and medium enterprises, which are the backbone of the Serbian economy, but also the banking sector and international financial institutions.
The results show that many micro, small and medium enterprises in Serbia are ready to invest in “green” business models, but still face numerous obstacles.
These include lack of funding, lack of skills and information on green technologies and funding opportunities, as well as overly complicated legal procedures.
On the other hand, micro, small and medium-sized enterprises are particularly at risk of the economic consequences of a pandemic, because they are unable to withstand long periods of revenue loss.
Due to liquidity problems and efforts to save jobs, some companies have already postponed and reduced much-needed green investments, which jeopardizes their competitiveness in regional and global markets, and especially in the main export market – the European Union.
When it comes to access to finance, the European Green Agreement will provide impetus to Serbia through the Green Agenda for the Western Balkans.
With this economic and investment plan, the European Union has allocated nine billion euros in non-refundable aid to the countries of this region for the green transformation of the economy and the public sector.
“Green is the key word for growth, jobs and health. The Covid-19 pandemic is a tragic reminder of how much human health is linked to the health of the planet. The economic recovery and transition to a sustainable economy proposed by the EU should go hand in hand with what we call a green recovery. This is a great challenge, but also a huge opportunity,” said Ingve Engstrom, head of the co-operation department of the EU Delegation to Serbia.
As he stated, investing in environmental protection and climate action is an investment in the future.
“If we do nothing, the price of climate change that the economies of countries and society as a whole will have to pay – will be much higher than the cost of fighting climate change now,” Engstrom said.
UNDP Resident Representative in Serbia Francine Pickup pointed out that due to the impact of the pandemic, the world is now facing an economic recession and accelerating climate change at the same time.
“It has been shown that the still prevailing linear business models have a devastating effect on nature. Future economic growth must no longer be based on overuse of resources, and energy production should rely as little as possible on the use of fossil fuels,” she said.
She stated that a “green recovery” is needed in order to increase the resilience of economies and societies to future challenges.
“That is why now is the right time to invest in green business and green transformation in Serbia. These investments should come from all sectors, including public and non-profit, but there are no solutions to environmental issues and climate change without the participation of the private sector,” Pickup said.
As pointed out, the benefits of increasing “green” investments would be multiple, including economic development and job creation, greater opportunities for innovation and new market opening, reduction of economic and social inequalities, as well as reduction of costs associated with pollution and environmental degradation.
The study “Increasing the share of green financing in the private sector in Serbia in the post-pandemic period” is available on the UNDP website, Novi Magazin reports.
