The European Bank for Reconstruction and Development (EBRD) has approved a €50 million loan to Serbia to support the closure of environmentally harmful boiler plants in six municipalities and to promote investment in sustainable heating solutions across the country. The loan, granted to Serbia’s Ministry of Finance and managed via the Ministry of Environmental Protection, aims to reduce carbon dioxide (CO2) and other harmful emissions, while decreasing Serbia’s dependence on energy imports.
Funds will be used to finance the purchase of heat pumps, systems utilizing heat from industrial and municipal waste, connections to district heating networks, energy-efficient building renovations, and installation of thermostatic valves to cut energy consumption.
This initiative is expected to significantly lower emissions of CO2, sulfur dioxide, particulate matter, carbon monoxide, and soot, contributing to cleaner air in Serbian cities like Belgrade, Niš, Valjevo, Zaječar, Novi Pazar, and Smederevo.
The project is part of the EBRD’s technical assistance program “Renewable District Heating Systems in the Western Balkans,” funded by the Austrian government, with additional support from the Swedish International Development Cooperation Agency.
Contracts were signed by Serbia’s Finance Minister Siniša Mali, Minister of Environmental Protection Sara Pavkov, and EBRD Regional Director for the Western Balkans Matteo Colangeli.
Colangeli highlighted the loan as a vital step toward a sustainable, low-carbon future for Serbia, improving public facility comfort and energy independence. Pavkov emphasized the importance of the project in addressing air pollution and marking a new chapter in Serbia’s environmental protection efforts.
The EBRD remains Serbia’s leading institutional investor, focusing on private sector competitiveness, green economy transition, and sustainable infrastructure, with over €10 billion invested in 379 projects so far.
