Washington, March 6, 2025 - The World Bank Board of Directors approved today the Second Green Transition Programmatic Development Policy Loan (DPL), providing EUR 153.7 million ($160 million equivalent) to support Serbia's ongoing reforms toward implementing the green transition.
"It is great to see that the Government of Serbia has built on previous reforms to further boost the transition toward a more resilient, sustainable and inclusive economy,'' said Nicola Pontara, World Bank Country Manager for Serbia. "This second DPL underscores the commitment of the authorities to making the energy sector more diversified and aligning environmental, legal and regulatory frameworks with those of the EU.''
The loan is the second in a programmatic series of two operations building on ongoing activities to systematize green and gender budget tagging and assessing the potential impact of natural disasters on public finances. Serbia is also expected to accelerate sustainable transformation of its energy sector by increasing the share of renewables in its energy production. Further areas of reforms supported by this loan focus on strengthening legal and regulatory frameworks to make the country more resilient, including measures to reduce and measure greenhouse gas emissions.
As in the First Green Transition Programmatic Development Policy Loan, approved in 2023, it is expected that Serbia will also mobilize parallel financing from the French Development Agency (Agence Française de Développement, AFD) and the German Development Bank (Kreditanstalt für Wiederaufbau, KfW) to support the reforms.
