Western Balkans need $37b for climate protection

The Western Balkans must invest at least $37 billion over the next decade to protect people and property from escalating climate change impacts.

This recommendation comes from the World Bank Group’s Western Balkans regional Country Climate and Development Report (CCDR) released on Wednesday.
The report highlights the significant benefits of climate action for Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, including avoiding loss of life, property, and productivity while accelerating economic growth.

The region, already severely impacted by climate change, has experienced floods affecting two million people in the past decade, a 21 per cent increase in wildfires in 2021, and heatwaves contributing to thousands of premature deaths annually.

Xiaoqing Yu, World Bank Country Director for the Western Balkans, emphasised the need for climate adaptation to save lives, protect communities, and stimulate growth, with a $4 return for every $1 invested.

To achieve climate neutrality by 2050 and align with EU objectives, the region requires an additional $32 billion in investment.

This involves increasing renewable energy generation to over 95 per cent from the current one-third, decarbonising the building sector through energy efficiency, and transforming the transport sector by reducing vehicle demand and shifting to electric vehicles.

The report also stresses the importance of mobilising private sector investments, requiring stable regulatory environments and attractive financial markets to facilitate the transition.