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Support of the green transition roadmap of Montenegro
Project
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Project start date
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Status
Ongoing
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Project end date
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AFD financing amount
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€ 50 000 000
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Country and region
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Location
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Montenegro
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Type of financing
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Beneficiaries
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Montenegro
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Type of beneficiary
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State
AFD provides its first green transition programmatic budgetary loan for Montenegro, in partnership with the World Bank, to accelerate convergence with European standards in the waste, energy, forestry and climate change sectors, and implementation of the green agenda.
Context
Montenegro, a candidate country to the EU accession since 2010, is facing environmental challenges affecting its development and the quality of life of its inhabitants. In the context of a revived accession process since 2023, transposition of the European Union legislation (EU acquis) is its main roadmap to join the European Union quickly but also address its key challenges in line with the implementation of the Green agenda - based on the European Green Deal - such as fight against climate change, decarbonisation, as well as forest and solid waste management.
Description
This budgetary public policy loan supports Montenegro’s green transition ambitions through a programmatic and pluriannual approach. It is associated with a matrix setting policy objectives aiming to develop and strengthen the regulatory and institutional framework of Montenegro in four different sectors:
- Waste management: ban on single-use plastics, extended producer responsibility ;
- Energy transition: introduction of auction mechanisms for the development of renewable energy capacity ;
- Sustainable forest management (departure from the private concession model and creation of a dedicated public company); and
- Climate change adaptation and mitigation: preparation of a legal framework favorable to climate change resilience and the introduction of a carbon pricing mechanism.
This programme is accompanied by a set of technical assistance measures for the energy and waste sectors.
The first phase of the programme of a maximum total amount 130 million euros is co-financed by the World Bank, and AFD. AFD’s financing will take the form of a multi-tranche facility with a first tranche of an amount of 50 million euros.
Impacts
This programme aims to foster the implementation of the Green agenda, and the convergence towards EU standards in the waste, energy, forestry and climate change areas.
Sustainable Development Goals
Life on Land
Goal 15 aims to implement the sustainable management of terrestrial ecosystems – forests and mountains – by preserving biodiversity and soils and limiting the long-term impacts of natural disasters. It calls for integrating ecosystem and biodiversity protection into national planning and poverty reduction strategies. SDG 15 also stresses the need to protect endangered species through strengthened international cooperation against poaching and trafficking, and by implementing controls—or even eradication—of invasive alien species that harm ecosystems.
