The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for green economy investments in Serbia.
The EBRD, with the support of the EU, is launching a new credit line to local financial institutions for on-lending to small and medium-sized enterprises (SMEs) under the SME Go Green programme.
In its initial phase, the programme will provide 120 million euros of targeted SME financing in the Western Balkans region, including Serbia. The expectation is that the programme will reach 400 million euros in overall size over the next few years
The programme is regional and supported by grants from the EU via the Instrument for Pre-accession Assistance under the Western Balkans Investment Framework (WBIF). The EU is providing 24.94 million euros (split into 19.45 million euros for investment incentives for SMEs and 4.9 million euros for technical assistance) to support 120 million euros of EBRD credit lines.
The programme will encourage the competitiveness of SMEs by helping eligible Serbian businesses to access finance for investments that meet EU and international standards.
The funding will be fully dedicated to green economy investments, including energy efficiency, resource efficiency and renewable energy investments, and will help to reduce greenhouse gases in the country.
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SME Go Green aims to help the agribusiness sector in Serbia reduce its environmental impact and become more sustainable and resilient to the risks of climate change. It further aims for 100 per cent of the proceeds of the programme to be used to finance green technologies.
Another key aspect of the programme is empowering women in business through dedicated funds to support women-led SMEs.
On successful completion of their investment projects, SMEs will be eligible for a cashback grant of 10 per cent of the loan amount, or 15 per cent for investments in renewable energy and the agribusiness value chain.
SME Go Green builds on the success of the Serbia SME Competitiveness Support Programme, which delivered a total of 50 million euros in EBRD funding, complemented by 9.54 million euros in EU funds.
The SME Go Green programme was launched at an event dedicated to the EBRD’s and EU’s support for SMEs in Serbia. Matteo Colangeli, EBRD Regional Director for the Western Balkans, attended, along with Nicola Bertolini, Head of Cooperation, Delegation of the European Union to Serbia, and Katarina Obradović Jovanović, Serbia’s Assistant Minister of Economy, Sector for Development of Small and Medium Enterprises and Entrepreneurship.
During the event, a 5 million euros loan agreement was signed with NLB Komercijalna banka under the SME Go Green Programme.
The EBRD is a leading institutional investor in Serbia and has invested more than 9.3 billion euros through 364 projects to date, the majority of which have supported the private sector. The Bank’s focus in Serbia is on boosting private-sector competitiveness, the green energy transition and sustainable infrastructure.
Source: EBRD
