Đedović Handanović: Partnership with the French Development Agency (AFD) for better management of the energy transition process in Serbia

The program will be financed from the 2050 Program, through which AFD provides support to partners in the transition to a low-carbon development model, and the value of donations for this project amounts to 650,000 euros.

"Energy is taking an increasingly important place in the bilateral cooperation between Serbia and France, as witnessed by several agreements signed this year in the field of nuclear energy and critical and strategic mineral raw materials. The memorandum represents a new phase in the cooperation between the Republic of Serbia and AFD, and we will use this project to improve the planning and management of the energy transition process, in line with our strategic goals. We want to apply the best experiences and knowledge of developed countries in Serbia, to develop renewable energy sources, improve our energy security and ensure that the energy transition process is fair," said the Minister of Mining and Energy Ms. Dubravka Đedović Handanović.

Rémy Rioux, Director of the French Development Agency, stressed the importance of the partnership with Serbia. ““The complex challenges of the energy transition require the mobilization of all actors to achieve targets of the Paris Agreement on climate. Following the EU Green Deal, the Serbian authorities are raising the ambition for sustainable development of its economy. With this new agreement, AFD reaffirms its commitment to stand by the Serbian people by providing tailored tools for a just energy transition, based on research and with a comprehensive view of the transition.” said Rioux.

The technical assistance program will focus on key priorities such as the gradual elimination of lignite-based energy production, the development of the RES sector, the development of a just transition framework, and will also facilitate the alignment of Serbia's strategic energy objectives with the goals of the Paris Agreement and the EU's Green Agenda.

The project aims to help assess the socio-economic impacts of energy transition scenarios up to 2050, using a macroeconomic-energy model. This tool will offer decision-makers reliable projections of GDP, employment, energy security and greenhouse gas emissions, providing a roadmap for Serbia's decarbonization efforts. The program will be implemented in close partnership with the French International Research Center for Environment and Development (CIRED), which will lead the development of the model, along with academic institutions from Serbia, to bring long-term effects through capacity building and knowledge transfer.

This initiative is part of the AFD Group's broader engagement in the Western Balkans, for which it has allocated more than 1.5 billion euros since 2019 for projects that support low-carbon development and climate resilience.