The French Development Agency (AFD) Foreign States Committee has approved on Wednesday the first phase of a Public Policy Loan program to support Serbia’s reform agenda on climate change. Under this program comprising in its initial 2-year phase a 50 million euros loan and a 500,000 euros grant, the Government of Serbia will benefit from the financial and technical support of AFD to support transition to low carbon development pathways and achieve green growth.
Policy actions and activities embedded in the program are based on the roadmap defined in the Law on Climate Change adopted by the National Assembly of the Republic of Serbia on March 18. By establishing a reference framework for the adoption of measures to reduce greenhouse gas emissions and support the resilience of the different sectors of the Serbian economy to climate change, the Law provides the legal basis for the implementation of the country’s climate action commitments under the Paris Agreement.
“Through this program, which is the result of joint initiative developed with the World Bank, AFD demonstrates its commitment to support Serbia in carrying out its climate policy roadmap and establish a favorable institutional setting to enhance the development of climate-resilient and green infrastructures at the national and local levels, delivering concrete and meaningful outcomes for the population.”, said Dominique Hautbergue, AFD Head of Western Balkans Regional Office.
“This program is also part of the commitment undertaken by France to support Serbia’s reforms in view of EU accession. The adoption of the Law on Climate Change is an important step forward contributing to this roadmap, which we are proud to support.”.
“As part of this initiative, AFD will continue to work with the authorities to mobilize additional financial support and expertise to foster this positive dynamic of reforms, in all sectors covered under the EU’s Green Deal and the Green Agenda for the Western Balkans.”.
On AFD in Serbia and the Western Balkans
AFD is a public financial institution and the pivotal operator implementing the French Government’s official development assistance policy. Present in the Western Balkans since 2019 through its Belgrade-based Regional Office, AFD has been given a mandate to support countries in the region to meet EU standards and implement the Paris Agreement on climate change towards an inclusive and low-carbon growth trajectory. From 2019, more than 300 million euro were committed by AFD in different Western Balkans countries, most of them in partnership with International Finance Institutions.
In this perspective, AFD can mobilize a wide range of financing solutions to respond to the needs of its clients and partners, including inter alia: public policy loans to support reform programs linked to the EU accession process; investment loans to finance infrastructures conducive to greener and sustainable growth; loans for natural risk coverage; Credit lines and guarantees through banking sector to support SME’s; private sector financing via its subsidiary PROPARCO; technical assistance solutions through the financing of feasibility studies, peer-to-peer cooperation and expertise. AFD is also a member of the Western Balkans Investment Framework (WBIF) and is accredited by the European Commission to manage funds and projects under the Instrument for Pre-Accession Assistance (IPA).