The French Development Agency (AFD) supports the green transition in Serbia with two dedicated programs in the total amount of 204.6 million euros. These are two new programs that will support the key institutions of Serbia in harmonizing public policies with the trajectory of low-carbon development, in accordance with national priorities.
Agreements on programs were concluded on June 30 between Serbia and AFD.
The first program is the “Program Development Loan for the Green Agenda”, prepared in partnership with the World Bank and the German Development Bank (Kreditanstalt für Wiederaufbau, KfW).
“AFD financing, in the amount of 135 million euros, is the first in a series of two programs that will speed up the adoption of key public policy reforms in the areas of the macro-budgetary system, energy and environmental protection, in order to support Serbia in achieving a greener and more inclusive economic growth,” the announcement states.
The second program ”Improving public finance management for the green transition”, prepared jointly with the World Bank, includes AFD financing in the amount of 69.6 million euros, which will support the development of institutional and organizational capacities of the main institutions of the Government of Serbia involved in the implementation of the Green Agenda.
The AFD support package also consists of a technical cooperation program in the amount of 300,000 euros aimed at the elaboration and implementation of the green budget evaluation methodology, with the engagement of relevant public French institutions that would present France’s experiences in that area.
As announced, this approach will enable better measurement and monitoring of public expenditures that contribute to the goals of the Green Agenda for the Western Balkans, with the aim of improving transparency and accountability, as well as informing about the successive budget preparation process.
“These two complementary programs reflect the ambitions of the competent authorities to take the lead in implementing innovative, environmentally friendly and inclusive models of public action and significantly increase budgetary efforts in favor of ecological transition in Serbia,” said AFD’s regional director for the Western Balkans, Dominique Hautbergue.
He pointed out that this cooperation contributes to the fulfillment of Serbia’s obligations within the process of European integration and the Paris Agreement on climate change.
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