Dozens of environmental groups have called on German state-owned bank KfW to cease financing biomass energy projects in Serbia, citing concerns over deforestation and the reliance on carbon-based energy sources.
KfW is currently financing a 32-million-euro ($34.6-million) program aimed at developing biomass facilities in Serbia. Biomass energy, derived from organic material such as trees, plants and urban waste, can be used for heating, electricity generation, and the production of transport fuels. Proponents of biomass energy argue that it emits significantly less carbon than fossil fuels. However, environmental groups criticize it for its potential negative impacts on forests and biodiversity.
In an open letter, 41 environmental groups from Serbia and across Europe called on KfW to suspend the project and all financing for wood biomass energy in Serbia. The letter stated that the “planned investment threatens Serbia’s forests … and exacerbates the existing high levels of air pollution.” The groups urged KfW to redirect its support towards “energy efficiency and conservation measures as well as wind, solar, and geothermal energy, which protect nature and public health.”
Since the program began in 2017, four combined heat and power plants have been constructed in four Serbian municipalities. In May, KfW approved two new contracts for six additional wood biomass plants, amounting to a further 9.9 million euros in loans.
The open letter coincides with a recent agreement signed by Serbia and the European Union to develop the supply of lithium in the Balkan country. KfW representatives were present during the signing of the deal in Belgrade. This agreement follows a court decision that reapproved a controversial lithium mining project in western Serbia, which had been on hold for two years due to mass protests.
