BAKU, Azerbaijan, June 12. The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to 50 million euros to Serbia for the decommissioning of environmentally harmful boiler houses in six self-governing municipalities and to enable investments in sustainable heat sources, Trend reports, citing EBRD's latest reports.
The loan is being provided to Serbia’s Ministry of Finance and will be disbursed by the Ministry of Environmental Protection to public entities across the country.
In addition to backing the bucks for heat pumps and the nitty-gritty of industrial and urban waste heat systems, the loan will pave the way for hooking up to district heating networks where the rubber meets the road, sprucing up buildings with energy-efficiency retrofitting, and putting in thermostatic valves to keep energy demand in check.
This investment will pave the way for a substantial drop in emissions of CO₂ and other nasty air pollutants like sulfur dioxide, fine particulate matter, carbon monoxide, and soot, helping to clear the air and breathe easier. It will also decrease Serbia’s reliance on imported energy sources, reduce overall energy costs, and drive decarbonization of the building sector, while improving the sustainability and comfort of public buildings nationwide.
The investment came to fruition as a piece of the EBRD’s Renewable District Energy in the Western Balkans technical assistance program, backed by the Austrian government, which is all about getting the ball rolling on renewable energy sources for district heating and cooling systems. The Swedish International Development Cooperation Agency also provided financial support for the project.
The loan agreement was signed by Siniša Mali, Serbia’s First Deputy Prime Minister and Minister of Finance, while the project agreement was signed by Sara Pavkov, Serbia’s Minister of Environmental Protection. Both agreements were signed by Matteo Colangeli, EBRD Regional Head of the Western Balkans, on behalf of the Bank.
“This loan marks a vital step towards a cleaner, more sustainable future for Serbia and its citizens. By reducing air pollution across many Serbian cities and decreasing reliance on imported energy, the project will lower energy costs for public institutions while improving the comfort and sustainability of buildings nationwide. Supporting the phase-out of harmful boiler houses and investing in modern, renewable heating solutions such as heat pumps, solar thermal, biomass, and photovoltaics, this initiative will accelerate Serbia’s transition to a low-carbon economy and enhance energy independence across multiple local communities”, said Colangeli.
“Today is a big and important day for me as the Minister of Environmental Protection, because we are opening a new chapter in the field of air protection. Based on the agreements we have signed, we will invest an extremely large amount of money, 50 million euros, targeted at the cities we have mapped as those with the largest excesses of harmful emissions. This is important above all for the citizens of Belgrade, Niš, Valjevo, Zaječar, Novi Pazar, and Smederevo, where this series of projects will be implemented. These projects are the crowning achievement of many years of demanding work and signal the start of a phase where we can intensify the fight for cleaner air, which is one of our main priorities and which our citizens deserve. We will fight with all our strength to achieve this goal”, said Pavkov.
The EBRD is the leading institutional investor in Serbia, having invested more than 10 billion euros through 379 projects to date. The Bank’s focus in Serbia is on private-sector competitiveness, the green economy transition, and sustainable infrastructure.
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