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KfW Projects in Serbia

Green Economy Facilit

Project period: 2022–2030


  • The economy of Serbia is characterized by high resource inefficiencies and greenhouse gas emissions..
  • To transition to a “green economy”, Serbia’s economic growth needs to be decoupled from the consumption and pollution of natural resources and, in particular, the emission of greenhouse gases
  • ”Green investments” are still insufficient mainly due to (i) a lack of awareness on the part of enterprises, municipalities and households and (ii) limited access to long-term financing for ”green” investments


The Project “Green Economy Facility” addresses these challenges. Under this Project, up to three partner financial institutions (PFIs) will implement green credit lines (“Credit Lines”) to be extended as “green loans” to micro, small and medium-sized enterprises (MSMEs), public utility companies and municipalities.

The objective of the Credit Lines is to increase and deepen access of MSMEs, public utility companies and municipalities to ”green finance”, thus contributing to the deepening and broadening of the financial sector as well as to climate protection through the reduction of consumption and pollution of natural resources and the emission of greenhouse gases in Serbia.

In addition to the above-mentioned credit lines, KfW offers advisory services to the Serbian financial institutions participating  in the Programme

Expected Impact

The programme:

  • enhances long-term efficient and environmentally friendly use of resources,
  • supports the establishment of a “green” banking product in Serbia.
  • Reduction of consumption and pollution of natural resources and/or the emission of greenhouse gases of at least 20% (compared to a baseline reflecting the status prior the investment) at end-borrower level for each investment.

KfW will financially support the implementation of credit lines for environmental projects with a total volume of EUR 75 million.

Also, with accompanying measures provided by the programme, FIs will be able to recognize and monitor green projects. The Ministry will be supported in awareness raising of green financing


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