The World Bank’s Board of Directors has approved a Program Loan for Green Growth Policy Development (DPL) – Phase 2, valued at 153.7 million euros (160 million dollars), to support Serbia’s continued green transition reforms.
Nikola Pontara, the World Bank’s director in Serbia, expressed his satisfaction with the progress, stating, “It is great to see that the Government of Serbia has used the results of previous reforms to accelerate the transition towards a more resilient, sustainable, and inclusive economy.”
Phase 2 of the program loan highlights Serbia’s commitment to diversifying its energy sector and aligning its domestic environmental, legal, and regulatory frameworks with EU standards.
This loan represents the second phase of a two-part program series that builds upon ongoing reforms, including systematizing the inclusion of environmentally and gender-sensitive items in the national budget and assessing the potential financial impacts of natural disasters.
One of the key objectives of the loan is to expedite Serbia’s energy sector transformation by increasing the share of renewable energy sources. Additionally, the loan supports reforms to strengthen legal and regulatory frameworks to improve resilience, including measures to reduce and measure greenhouse gas emissions.
As with Phase 1 of the Green Growth Development Policy Program Loan, adopted in 2023, Serbia will also benefit from parallel financing from the French Development Agency (AFD) and the German Development Bank (KfW) to aid the implementation of these reforms.
