The World Bank Group has today published a report which emphasizes that together, the six economies of the Western Balkans must invest at least 37 billion dollars over the next ten years for the efficient protection of their people and assets from damaging and escalating impacts. of climate change.

In the regional report on Climate and Development in the Western Balkans (CCDR) of the World Bank Group, which was published today, it says that the benefits of climate action would be very significant for the Western Balkans, consisting of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.

"Investments in this framework would help to avoid the loss of human lives, property and productivity decline, as well as contribute to faster economic growth. For this region, which is currently seriously affected by climate change, inaction is not a viable option. For example, flooding has directly affected over two million people over the past ten years, while impacts are expected to worsen with more extreme rainfall expected. Fires are another growing threat. In 2021, 1.500 eyes were registered, with an increase of 21% compared to the last ten years. Droughts are negatively affecting agricultural production, while heat waves are increasing air pollution, causing thousands of premature deaths in the Western Balkans every year," says a World Bank communique.

"Climate change is a clear threat to economic development in the Western Balkans," said Xiaoqing Yu, World Bank Country Director for the Western Balkans.

"The costs of adaptation investments are significant. But the good news is that their benefits are even greater. Preparing for climate risks enables us to save lives, protect local communities, and boost economic growth."

According to World Bank estimates, climate change adaptation investments, especially in low- and middle-income economies, bring significant benefits, with every $1 invested translating into about $4 in benefits.

"Western Balkan countries also need to reduce their greenhouse gas emissions in order to remain competitive, strengthen energy security and attract international investment. However, achieving climate neutrality by 2050 in fulfillment of European objectives would require additional investments worth 32 billion dollars. Economy-wide net-zero greenhouse gas emissions by 2050 are achievable if solar, wind and hydro energy produce 95% of all energy, which would be a significant increase compared to the current level of a solvent of all energy production. Furthermore, the decarbonisation of the construction sector through energy efficiency investments is an essential element. Even the transport sector must be profoundly transformed through the reduction of the demand for vehicles and the transition to more sustainable modes of transport and the transition to electric vehicles", the report states.

The report points out that a significant part of the financing can come from the private sector. However, in order to mobilize private investments, the countries of the Western Balkans must guarantee stable legal frameworks and attractive financial markets to encourage societies to engage in the opportunities created by the transition.

"Adapting to climate change is a key element for the countries of the Western Balkans in order to increase their potential and promote strong and sustainable growth," said Nicolas Marquier, IFC Regional Manager for the Western Balkans. "In this context, the participation of the private sector is essential. The report presents a clear path with relevant deadlines for achieving this change towards net zero and to guarantee the protection and benefits of local communities from this green transition".

The CCDR for the Western Balkans recommends a series of policies aimed at guiding the region's transition to climate neutrality by 2050. These recommendations are organized into the following three policy categories:

• Cross-linked: It is necessary that adaptation and mitigation efforts are integrated across institutions, in order to implement effective climate change actions. For example, specialized and climate-focused agencies or commissions should be established, and national climate change commitments should serve as an advisory capacity on all climate-related issues:

• Cross-border: Cross-border cooperation is essential for addressing climate risks that go beyond geographic borders. Strengthening regional institutions is a key action for enabling coordination in areas such as early warning systems, management of common resources, or harmonized energy systems.

• Targeted: Addressing the special needs of vulnerable communities is an essential element for effective solutions and policy implementation. Targeted policies include education and training reforms aimed at improving labor force mobility, as well as efforts to implement climate-smart practices.

The World Bank Group is helping countries curb carbon emissions and increase resilience to extreme weather. The group is setting an ambitious target of devoting 45% of its funding to climate action by 2025, which will be split equally between mitigation and adaptation. During fiscal years 2023 and 2024, the World Bank committed approximately $1,2 billion in climate-related financing in the Western Balkans.

Information on Climate and Country Development Reports

The World Bank Group's Climate and Development Country Reports are new ground-breaking diagnostic reports that integrate climate change and development considerations. They help countries prioritize the most impactful actions that can reduce greenhouse gas (GH) emissions and accelerate adaptation, while helping to achieve broader development goals. The CCDRs are based on rigorous data and research and identify key pathways to reducing GHG emissions and reducing climate vulnerabilities, including the costs and challenges, as well as the benefits and opportunities arising from these activities. The reports suggest concrete and prioritized actions to support the renewable transition to lower carbon levels. As public documents, the CCDRs aim to inform governments, citizens, the private sector and development partners, and enable engagement and the development and climate agenda. The CCDRs will contribute information on other fundamental instruments to the diagnosis of the Bank Group, commitments in the relevant countries and operations, as well as help to absorb funds and direct financing for actions.