Serbia
Country profile
Serbia is a landlocked country in the Balkans, featuring a diverse landscape of fertile plains in the north and mountainous regions in the south and west, with the Danube River as a key waterway. It faces environmental challenges such as air pollution, deforestation, and water quality issues, particularly in urban areas. Serbia is rich in mineral resources like copper, coal, and gold, with a significant agricultural sector, while it also seeks to expand renewable energy, particularly hydro and solar power.
Opportunities
Serbia has significant potential for carbon projects, especially in renewable energy and reforestation. With its extensive hydropower capacity and growing interest in solar and wind energy, Serbia could expand these sectors to reduce carbon emissions. Additionally, projects aimed at restoring forests and enhancing sustainable agriculture practices could contribute to carbon sequestration, helping the country meet its environmental goals.
Challenges
Serbia faces several challenges in implementing carbon projects, including its ongoing reliance on coal for energy production and industrial activity. The country’s aging infrastructure, limited financial resources, and regulatory hurdles can slow the transition to renewable energy. Additionally, political and economic instability, as well as weak enforcement of environmental regulations, complicate efforts to scale up carbon offset projects, particularly in rural and industrial areas.
- Serbia’s energy sector is heavily reliant on coal, with significant contributions from the Kolubara and Kostolac coal fields, which poses a challenge for decarbonizing its energy sector.
- Additionally, Serbia's progress towards EU integration is complicated by its need to address political issues, including the normalization of relations with Kosovo, which impacts its overall reform and green agenda efforts
Key figures
GHG emissions reduction target by 2030 (compared to 1990 levels)
of the country’s electricity is generated from coal
increase in share of renewable energy by 2025 as part of its Energy Community Treaty commitments
Key focus areas
In Serbia, the key focus areas for carbon projects should include expanding renewable energy sources, particularly solar and wind, to reduce its reliance on coal. Additionally, reforestation and sustainable agriculture are crucial for carbon sequestration, while improving energy efficiency in industry and buildings can significantly cut emissions. Policy reform and investment in green infrastructure are essential to enable these projects.
- Serbia’s climate actions are supported by various international organizations, including the UNDP, the World Bank, and the European Union. These partnerships help Serbia develop and implement climate policies, enhance energy efficiency, and promote renewable energy investments.
- The European Bank for Reconstruction and Development (EBRD) and other international financial institutions are expected to co-finance significant portions of Serbia’s green transition projects.
- Serbia is also preparing to integrate into the EU’s Emissions Trading System and adapt to the Carbon Border Adjustment Mechanism to remain competitive in the European market.
Notable Initiatives
- Several laws and regulations on energy efficiency were approved in 2021, and the creation of the Administration Unit for Energy Efficiency Financing and Promotion marks a step towards better implementation of energy efficiency measures.
- On 18 March 2021, Serbia adopted its first Law on Climate Change, which includes a system for monitoring, reporting, and verification (MRV) of GHG emissions, paving the way towards a potential future national ETS.
- The Just transition project helped to identify and use technologies and innovative business models in sectors most affected by decarbonization, while ensuring the principles of a just transition are incorporated into it.
