EBRD and EU Expand Green Finance Programme for Small and Medium-Sized Enterprises in the Western Balkans

The European Bank for Reconstruction and Development, together with the European Union, is expanding the SME Go Green programme, which is aimed at supporting green investments by small and medium-sized enterprises across the Western Balkans.

Under the second phase of the programme, the EBRD plans to provide credit lines totalling up to €233 million through local partner financial institutions. The financing will be complemented by European Union investment incentives of up to €23.3 million and technical assistance amounting to €5.6 million.

The programme covers six countries in the region: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.

The financial support is intended to help businesses invest in technologies and solutions that reduce their environmental impact, improve energy and resource efficiency, strengthen resilience to climate change and enhance competitiveness.

The implementation mechanism provides for the EBRD to allocate funding to local banks and other financial institutions for onward lending to eligible small and medium-sized enterprises. EU-funded investment incentives will reduce the cost of green investments for final beneficiaries. Technical assistance will support project preparation and verification, increase business awareness and strengthen the capacities of financial institutions.

Particular attention will be paid to agribusiness value chains, renewable energy and support for women-led enterprises. The programme is also expected to help companies adapt to EU standards and expand their access to new markets.

SME Go Green was launched in 2023. By mid-2025, the EBRD had already provided €110 million to 15 partner financial institutions to support green investments by small and medium-sized enterprises across the region. According to the Bank, the implemented measures contributed to energy savings, lower carbon emissions and improved business resilience to rising energy prices and climate-related risks.

EU support is provided through the Western Balkans Investment Framework (WBIF).

Comment by Institute of Danube Research

The expansion of SME Go Green demonstrates a gradual shift from individual environmental projects towards the systemic modernisation of small and medium-sized enterprises. Within this model, green finance is viewed not only as an instrument for reducing emissions, but also as a mechanism for improving business competitiveness, lowering energy costs and strengthening regional economic resilience.

The combination of three elements is particularly important: accessible credit resources, investment incentives and technical support. For small and medium-sized enterprises, such integrated assistance is often decisive, as it enables businesses not only to secure financing, but also to prepare projects properly, assess their efficiency and reduce implementation risks.

Experts of the Institute note that the experience of the Western Balkans is relevant for Ukraine in the context of economic recovery and preparations for further integration with the European Union. Similar instruments could be effective for modernising enterprises in Ukraine’s southern regions, particularly in agribusiness, processing industries, energy efficiency and renewable energy.

With regard to the Danube Region specifically, experts of the Institute of Danube Research emphasise the importance of supporting local value chains and small businesses. Such enterprises create jobs, sustain economic activity within communities and can become key participants in the green transformation.