BAKU, Azerbaijan, June 5. The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are scaling up their support for Montenegro’s transition to a green economy by rolling out their SME Go Green programme in the country, Trend reports via EBRD's latest reports.
The SME Go Green programme will support small and medium-sized enterprises (SMEs) in Montenegro, with dedicated credit lines channelled through local partner banks, as well as technical assistance to help SMEs prioritise their investments and plan accordingly.
In addition to loans, SMEs will also benefit from grant incentives totalling 10 per cent of the loan amount, with a higher figure of 15 per cent for investments in renewable energy and agribusiness (including agribusiness value chains). Both the grant incentives and the technical assistance will be financed by the EU.
The programme will support the competitiveness of Montenegrin SMEs by helping those businesses to access financing for investment that cuts energy waste and improves energy efficiency, aligning them with EU and international standards.
Remon Zakaria, the EBRD’s Head of Montenegro, said: “We are delighted to be rolling this programme out in Montenegro, providing businesses with technical and financial assistance for green investments. These investments will help local SMEs to improve their productivity, cut their operating costs and reduce their carbon footprint, making them more competitive in local and EU markets.”
Yngve Engstrom, Head of Cooperation in the EU Delegation to Montenegro, added: “SMEs are key drivers of growth and change. We are therefore proud to support this initiative with the EBRD, which brings 145 million euros in funding to boost green innovation, agribusiness, and competitiveness among SMEs in the Western Balkans, with a strong focus on women-led businesses. We strongly encourage all eligible SMEs to seize this opportunity and help build a greener, more inclusive future.”
The SME Go Green programme is already operating in a number of other Western Balkan countries. In this initial phase, the programme will provide a combined total of 120 million euros of targeted SME financing across the Western Balkans region, with that figure expected to reach 400 million euros over the next few years.
A launch event in Podgorica to mark the programme’s rollout in Montenegro was attended by representatives of the EBRD and the EU, as well as local partner banks and businesses. Montenegrin SMEs can now access financing from Crnogorska komercijalna banka (CKB) and NLB Banka Podgorica under the programme.
The Bank has invested 943 million euros in Montenegro through 99 projects since Montenegro joined the EBRD in 2006. The EBRD's priorities in Montenegro are competitiveness, green transition and further integration into regional and global markets.