Advancing Climate Change and Green Growth Priorities

The Western Balkans Plus Program is supported by Austria’s Ministry of Finance (BMF) and has the objective of advancing climate change and green growth priorities in countries of the Western Balkans and the broader Europe and Central Asia (ECA) region. The program’s geographic focus is primarily driven by the unique socioeconomic context of these countries, and their need for targeted support to address the climate and environmental challenges arising from high fossil fuel dependency, infrastructure gaps, and strategies associated with the European Union’s (EU) Green Agenda. 

The program provides resources to support countries in adopting impactful policy reforms and undertaking investments to reduce GHG emissions, strengthen resilience to climate shocks, and improve environmental outcomes. It is closely aligned with World Bank lending operations in the region, advancing various policy priorities and addressing investment needs for climate and green growth through such operations.

Countries Supported

The program was initially established to put the six countries in the Western Balkans – Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia – in advancing sustainable development, decarbonizing their economies, and thereby aiding their EU accession. In 2023, the program was expanded to other countries in Europe and Central Asia - Moldova, Kyrgyz Republic, Tajikistan, amongst others.

Aiding the Green Transition Amidst Regional Crises

The program impetus came from the need to assist the six countries of the Western Balkans on climate and environmental action during the COVID-19 crisis. Subsequently, in 2022, the Russia’s invasion of Ukraine triggered sudden increases in energy prices across and beyond the Western Balkans. The resulting energy crisis highlighted the need for these countries to accelerate their decarbonization efforts and strengthen energy security by transitioning away from fossil fuels towards cleaner energy sources. Resources provided by this program are being used to design and implement policies and investments to improve access to clean energy in a socially equitable manner.

What does program support look like in countries?

The program is supporting both country-specific and regional activities. These include:

  • Clean energy projects, including solar and hydropower development.   
  • Decarbonization of the transport sector, including investments and policy reforms focusing on railway networks.
  • Just transition investments and analytics.
  • Policy support and investments focusing on improving air quality.
  • Protection of coastal waters, ecosystems, and forests.   
  • Mainstreaming climate in public financial management.
  • Supporting private sector participation in climate-related investments.
  • Accelerating the transition to a Circular Economy.

Impacts and Results

Since its inception, the program has helped:

  • countries in transforming their development trajectories by shifting to sustainable, resilient, and inclusive growth paths in the aftermath of the COVID-19 crisis.
  • design and implementation of fiscal and regulatory reforms to tackle socioeconomic barriers to climate-informed development and create incentives for green growth.
  • facilitate the design and implementation of climate-related investments.
  • countries in the region to align with the EU’s climate and environmental policies and mechanisms.
By the numbers
  • More than 40 grants totaling more than $9 million are supporting target countries.
  • Grants linked to more than $1 billion of World Bank financing in active and pipeline operations.
  • Support for more than 10 policy reforms advancing climate and green growth across 7 sectors—energy, environment, finance, macroeconomics, poverty, transport, and urban development.
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