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Author: Ana Slovenec, Senior Associate at Bardek, Lisac, Mušec, Skoko and partners in cooperation with CMS Reich-Rohrwig Hainz

Croatia’s energy savings trading system, governed by the Energy Efficiency Act and supported by the SMiV platform, provides a structured approach to tracking, verifying, and monetizing energy efficiency measures. The system enables participants to trade energy savings through a mechanism of so-called white certificates, while defining clear roles for obligated and voluntary actors. Staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream, as recent updates include an increase in national energy savings targets, advancements in verification methodologies, and evolving opportunities in the Croatian energy savings market.

How to generate income from trading energy savings in Croatia?

In an era where energy efficiency has become an increasingly important priority, monetizing energy savings offers a unique opportunity to turn environmental efforts into financial gains. Thanks to energy efficiency certificates, legally recognized in Croatia as “energy savings” and commonly as “white certificates” individuals and organizations can now participate in a system that tracks, verifies, and potentially capitalizes these savings.

At the heart of this process lies the System for Monitoring, Measurement, and Verification of Energy Savings (SMiV), a centralized web platform designed to systematically track energy savings resulting from energy efficiency measures and ensuring that they are accurately recorded and transferred. SMiV allows participants to verify their savings acquired on the market. It is open for participation to market participants that are, by operation of law, obliged to achieve energy savings (“obliged parties” or “OPs”), those required to register data in the SMiV, but also to all other market participants that have no such obligations but wish to earn gains on energy savings they have voluntarily achieved.  This system, regulated by the Energy Efficiency Act and the Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings is managed by the Croatian Ministry of Economy through its Directorate for Energy, Service for Energy Efficiency and New Technologies acting as the National Coordination Body.

Mandatory cumulative energy savings target in final energy consumption

For the period spanning from the beginning of 2021 to the end of 2030, the Energy Efficiency Act set the target for mandatory cumulative energy savings in final energy consumption at 2,993.7 kton. This target is designed to contribute to achieving the national energy efficiency objectives outlined in the Integrated National Energy and Climate Plan of Croatia for 2021–2030. The target is aimed to be achieved, among other, by mandatory energy savings imposed on obliged parties. Obliged parties can either achieve energy savings by their own energy savings measures, or by buying energy savings from other parties, either other obliged parties, or more frequently, from parties that voluntarily achieved and now wish to sell them.

In line with Directive (EU) 2023/1791, Croatia has recently recalculated its cumulative energy savings target and submitted the updated figure to the European Commission as part of the draft revised National Energy and Climate Plan. The total cumulative savings target for the 2021–2030 period has been increased by 44%, from 2,993.7 kton to 4,313.6 kton. To align with this update, amendments to the Energy Efficiency Act are currently in progress.

Who participates in the SMiV system by default and who can participate by choice?

Mandatory participants of the SMiV system are obliged parties and reporting parties. These entities will be penalised should they fail to submit data on achieved energy savings to the system.

Obliged parties are energy suppliers and all their associated entities that are energy suppliers, provided that in the year preceding the last year, they supplied more than 50 GWh of energy to final customers or to distribution stations selling energy to final customers. These parties must compensate the Environmental Protection and Energy Efficiency Fund for any unmet portion of their energy savings obligation, whether achieved directly or acquired from other participants.

Reporting parties are public sector bodies, energy service providers, subsidy providers, and transmission and distribution system operators. Both entities are required to enter the data in the SMiV as soon as the energy efficiency improvement measure has been implemented, and no later than 15 February of the current year for all measures implemented in the previous year, or always upon the request of the National Coordination Body. Additionally, they must appoint at least one person responsible for data entry and notify the National Coordination Body of this appointment.

Participants other than the obliged parties and reporting parties participate in the SMiV platform by choice. These participants independently financed and implemented energy efficiency improvement measures or acquired energy savings from another party without having statutory obligation to achieve savings and now wish to sell them or transfer them to obliged parties and/or reporting parties.

How are energy savings demonstrated and what can be considered an energy efficiency improvement measure?

The methodology for assessing the expected impacts of individual energy efficiency measures follows a bottom-up (BU) approach to evaluating energy savings. This approach uses mathematical formulas to calculate unit energy savings (UFES), which are expressed per unit relevant to the specific energy efficiency measure being considered. Total energy savings in final consumption (FES) are calculated by multiplying the UFES value by the relevant influencing factor for the period under review and summing the results of all individual projects within a given measure.

The calculation of UFES is based on the difference in specific energy consumption “before” and “after” implementing the energy efficiency improvement measure. When determining how much savings from implemented measures contribute to achieving national energy savings targets, the measure’s lifespan is critical. The lifespan represents the number of years during which the calculated annual energy savings remain valid and can be counted toward the national target.

Energy savings are demonstrated by the Energy Savings Study, which is prepared and signed by authorized professionals in the field of architecture, construction, mechanical engineering, electrical engineering, or those qualified to conduct energy audits and certify energy efficiency for buildings or large enterprises. Authorized professionals must be from the field relevant to the specific energy efficiency improvement measure for which the study is being prepared. By signing the Energy Savings Study, they guarantee the accuracy of the energy savings calculations and the validity of the submitted supporting evidence.

Any energy efficiency improvement measure is acceptable as long as the methodology for calculating savings and the outline of the new annual and cumulative energy savings can be provided in the Energy Savings Study. The Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings provides prescribed formulas for calculating energy savings from specific measures. These measures include informational measures (such as educational campaigns on energy efficiency, renewable energy, and energy-efficient appliances), organizational measures (such as implementing smart metering systems for monitoring electricity, heating, gas, and water consumption), measures in centralized heating systems, transportation, industry, and measures in residential and non-residential buildings. Examples of the latter include installing photovoltaic solar modules, solar thermal systems for hot water heating, heat pumps, and automated systems for regulating heating, lighting, and electricity consumption in buildings, etc.

The Energy Savings Study is submitted electronically to the SMiV, where it is verified by the National Coordination Body to ensure transparency and accountability. Following the verification, the National Coordination Body confirms that the energy savings have been achieved and are attributed to the energy savings holder.

Trading energy savings: current opportunities and limitations

Although the SMiV currently serves as a repository for verified energy savings, it has not yet been designed to operate as a functional energy savings exchange platform. However, this does not mean that energy savings cannot be traded. Trading takes place outside the SMiV, through private transactions for the purchase and/or transfer of savings. Once the transaction is completed, the details are submitted to the National Coordination Body for registration in the SMiV. The transfer of savings to the new holder is finalized at the moment of registration in the SMiV.

The system then adjusts the savings balance for both the transferring and receiving parties accordingly. Each energy savings holder can monitor their verified savings through their profile in the SMiV.

The free market for energy savings

Under current regulations, energy savings can be bought and sold in a free market, with prices being privately negotiated between the involved parties. While these agreements are submitted to the SMiV for record-keeping, their financial details are typically redacted to ensure confidentiality while maintaining regulatory compliance.

Unlocking the potential of energy savings trading

As regulations evolve and awareness increases, the SMiV platform is expected to incorporate additional features that will facilitate the direct exchange of energy savings between various players, thereby expanding and enhancing the market. For those looking to capitalize on this opportunity, staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream.

Author: Ana Slovenec, Senior Associate at Bardek, Lisac, Mušec, Skoko and partners in cooperation with CMS Reich-Rohrwig Hainz

Croatia’s energy savings trading system, governed by the Energy Efficiency Act and supported by the SMiV platform, provides a structured approach to tracking, verifying, and monetizing energy efficiency measures. The system enables participants to trade energy savings through a mechanism of so-called white certificates, while defining clear roles for obligated and voluntary actors. Staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream, as recent updates include an increase in national energy savings targets, advancements in verification methodologies, and evolving opportunities in the Croatian energy savings market.

How to generate income from trading energy savings in Croatia?

In an era where energy efficiency has become an increasingly important priority, monetizing energy savings offers a unique opportunity to turn environmental efforts into financial gains. Thanks to energy efficiency certificates, legally recognized in Croatia as “energy savings” and commonly as “white certificates” individuals and organizations can now participate in a system that tracks, verifies, and potentially capitalizes these savings.

At the heart of this process lies the System for Monitoring, Measurement, and Verification of Energy Savings (SMiV), a centralized web platform designed to systematically track energy savings resulting from energy efficiency measures and ensuring that they are accurately recorded and transferred. SMiV allows participants to verify their savings acquired on the market. It is open for participation to market participants that are, by operation of law, obliged to achieve energy savings (“obliged parties” or “OPs”), those required to register data in the SMiV, but also to all other market participants that have no such obligations but wish to earn gains on energy savings they have voluntarily achieved.  This system, regulated by the Energy Efficiency Act and the Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings is managed by the Croatian Ministry of Economy through its Directorate for Energy, Service for Energy Efficiency and New Technologies acting as the National Coordination Body.

Mandatory cumulative energy savings target in final energy consumption

For the period spanning from the beginning of 2021 to the end of 2030, the Energy Efficiency Act set the target for mandatory cumulative energy savings in final energy consumption at 2,993.7 kton. This target is designed to contribute to achieving the national energy efficiency objectives outlined in the Integrated National Energy and Climate Plan of Croatia for 2021–2030. The target is aimed to be achieved, among other, by mandatory energy savings imposed on obliged parties. Obliged parties can either achieve energy savings by their own energy savings measures, or by buying energy savings from other parties, either other obliged parties, or more frequently, from parties that voluntarily achieved and now wish to sell them.

In line with Directive (EU) 2023/1791, Croatia has recently recalculated its cumulative energy savings target and submitted the updated figure to the European Commission as part of the draft revised National Energy and Climate Plan. The total cumulative savings target for the 2021–2030 period has been increased by 44%, from 2,993.7 kton to 4,313.6 kton. To align with this update, amendments to the Energy Efficiency Act are currently in progress.

Who participates in the SMiV system by default and who can participate by choice?

Mandatory participants of the SMiV system are obliged parties and reporting parties. These entities will be penalised should they fail to submit data on achieved energy savings to the system.

Obliged parties are energy suppliers and all their associated entities that are energy suppliers, provided that in the year preceding the last year, they supplied more than 50 GWh of energy to final customers or to distribution stations selling energy to final customers. These parties must compensate the Environmental Protection and Energy Efficiency Fund for any unmet portion of their energy savings obligation, whether achieved directly or acquired from other participants.

Reporting parties are public sector bodies, energy service providers, subsidy providers, and transmission and distribution system operators. Both entities are required to enter the data in the SMiV as soon as the energy efficiency improvement measure has been implemented, and no later than 15 February of the current year for all measures implemented in the previous year, or always upon the request of the National Coordination Body. Additionally, they must appoint at least one person responsible for data entry and notify the National Coordination Body of this appointment.

Participants other than the obliged parties and reporting parties participate in the SMiV platform by choice. These participants independently financed and implemented energy efficiency improvement measures or acquired energy savings from another party without having statutory obligation to achieve savings and now wish to sell them or transfer them to obliged parties and/or reporting parties.

How are energy savings demonstrated and what can be considered an energy efficiency improvement measure?

The methodology for assessing the expected impacts of individual energy efficiency measures follows a bottom-up (BU) approach to evaluating energy savings. This approach uses mathematical formulas to calculate unit energy savings (UFES), which are expressed per unit relevant to the specific energy efficiency measure being considered. Total energy savings in final consumption (FES) are calculated by multiplying the UFES value by the relevant influencing factor for the period under review and summing the results of all individual projects within a given measure.

The calculation of UFES is based on the difference in specific energy consumption “before” and “after” implementing the energy efficiency improvement measure. When determining how much savings from implemented measures contribute to achieving national energy savings targets, the measure’s lifespan is critical. The lifespan represents the number of years during which the calculated annual energy savings remain valid and can be counted toward the national target.

Energy savings are demonstrated by the Energy Savings Study, which is prepared and signed by authorized professionals in the field of architecture, construction, mechanical engineering, electrical engineering, or those qualified to conduct energy audits and certify energy efficiency for buildings or large enterprises. Authorized professionals must be from the field relevant to the specific energy efficiency improvement measure for which the study is being prepared. By signing the Energy Savings Study, they guarantee the accuracy of the energy savings calculations and the validity of the submitted supporting evidence.

Any energy efficiency improvement measure is acceptable as long as the methodology for calculating savings and the outline of the new annual and cumulative energy savings can be provided in the Energy Savings Study. The Regulation on the System for Monitoring, Measuring, and Verification of Energy Savings provides prescribed formulas for calculating energy savings from specific measures. These measures include informational measures (such as educational campaigns on energy efficiency, renewable energy, and energy-efficient appliances), organizational measures (such as implementing smart metering systems for monitoring electricity, heating, gas, and water consumption), measures in centralized heating systems, transportation, industry, and measures in residential and non-residential buildings. Examples of the latter include installing photovoltaic solar modules, solar thermal systems for hot water heating, heat pumps, and automated systems for regulating heating, lighting, and electricity consumption in buildings, etc.

The Energy Savings Study is submitted electronically to the SMiV, where it is verified by the National Coordination Body to ensure transparency and accountability. Following the verification, the National Coordination Body confirms that the energy savings have been achieved and are attributed to the energy savings holder.

Trading energy savings: current opportunities and limitations

Although the SMiV currently serves as a repository for verified energy savings, it has not yet been designed to operate as a functional energy savings exchange platform. However, this does not mean that energy savings cannot be traded. Trading takes place outside the SMiV, through private transactions for the purchase and/or transfer of savings. Once the transaction is completed, the details are submitted to the National Coordination Body for registration in the SMiV. The transfer of savings to the new holder is finalized at the moment of registration in the SMiV.

The system then adjusts the savings balance for both the transferring and receiving parties accordingly. Each energy savings holder can monitor their verified savings through their profile in the SMiV.

The free market for energy savings

Under current regulations, energy savings can be bought and sold in a free market, with prices being privately negotiated between the involved parties. While these agreements are submitted to the SMiV for record-keeping, their financial details are typically redacted to ensure confidentiality while maintaining regulatory compliance.

Unlocking the potential of energy savings trading

As regulations evolve and awareness increases, the SMiV platform is expected to incorporate additional features that will facilitate the direct exchange of energy savings between various players, thereby expanding and enhancing the market. For those looking to capitalize on this opportunity, staying informed about the system’s requirements and processes is the first step toward turning energy efficiency into a revenue stream.

By Bettina Päri, EUSEWYoung Energy Ambassador highlights the importance of citizen engagement in the energy transition, focusing on the European Youth Energy Forum’s bottom-up.

Active citizen participation in the energy transition receives attention in the sustainable energy sector. However, when it comes to broader public awareness, the topic gets notably less limelight, and citizen participation in bottom-up projects is still considerably low. What is the reason for that and how do we address this problem?

To achieve the 100 Net-Zero-Cities target by 2030, applying bottom-up initiatives is necessary for a full-scale change. Solely implementing top-down initiatives might leave people feeling dismissed, whereas bottom-up projects offer a direct channel for people to engage, hence motivating them to initiate changes. This is important, not only in the context of cities. By implementing these, the energy transition can be done with the citizens, not to the citizens. One such bottom-up initiative I have had the chance to be involved in is the European Youth Energy Forum.

The outcomes of the European Youth Energy Forum

This October, 50 young professionals and students were selected to gather at the European Youth Energy Forum (EYEF). The Forum is organised by the European Youth Energy Network and brings together young people and other energy stakeholders to discuss the energy transition. For two months, six teams met online every week to work on six policy proposals centred around the role of cities in the energy transition. According to the participants, the most critical issues to tackle were energy poverty, community engagement and interdisciplinary collaboration, residential energy optimisation, electric mobility, financing mechanisms in the energy sector, and energy-efficient urban planning. The event itself is an example of a bottom-up initiative involving the public.

As a concrete example, during the work on the community engagement and interdisciplinary collaboration proposal, a programme was suggested, in which a position for a community energy ambassador would be created. This person would help citizens make sustainable decisions on an individual level by acting as an informative body inside the community.

Young ambassadors would help bridge the information gap between citizens and technical energy topics

Therefore, these ambassadors would help bridge the information gap between citizens and technical energy topics. This initiative specifically shows how people outside the green energy sector could participate in the transition, given also that the ambassador is chosen from within the community itself. Apart from this initiative on Community Energy Ambassadors, other proposals were focusing on: green commuting, more opportunities for residential participation, University-Powered Energy Communities, the impact potential of small cities and on sustainable urban actions. Take a closer look at all of the proposals.

As a result of this event, a position paper came to daylight. Gathering the six proposals, it was published with the title: Sustainable Cities of the Future. This report presents concrete, bottom-up solutions that can be implemented in various contexts. All six proposals were presented at this year’s Conference of Parties in Baku.

The outcomes of the Youth Energy Forum underline that to achieve net-zero cities, and to ensure a successful energy transition, we need the citizens on board. The aforementioned report is one example of how to do this in practice, but there are numerous other success-stories, as is highlighted below. By taking initiative on the grassroot level, and by involving all citizens, we take yet another step towards creating a more sustainable future for all.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See ec.europa.eu/eusew for open calls.

By Bettina Päri, EUSEWYoung Energy Ambassador highlights the importance of citizen engagement in the energy transition, focusing on the European Youth Energy Forum’s bottom-up.

Active citizen participation in the energy transition receives attention in the sustainable energy sector. However, when it comes to broader public awareness, the topic gets notably less limelight, and citizen participation in bottom-up projects is still considerably low. What is the reason for that and how do we address this problem?

To achieve the 100 Net-Zero-Cities target by 2030, applying bottom-up initiatives is necessary for a full-scale change. Solely implementing top-down initiatives might leave people feeling dismissed, whereas bottom-up projects offer a direct channel for people to engage, hence motivating them to initiate changes. This is important, not only in the context of cities. By implementing these, the energy transition can be done with the citizens, not to the citizens. One such bottom-up initiative I have had the chance to be involved in is the European Youth Energy Forum.

The outcomes of the European Youth Energy Forum

This October, 50 young professionals and students were selected to gather at the European Youth Energy Forum (EYEF). The Forum is organised by the European Youth Energy Network and brings together young people and other energy stakeholders to discuss the energy transition. For two months, six teams met online every week to work on six policy proposals centred around the role of cities in the energy transition. According to the participants, the most critical issues to tackle were energy poverty, community engagement and interdisciplinary collaboration, residential energy optimisation, electric mobility, financing mechanisms in the energy sector, and energy-efficient urban planning. The event itself is an example of a bottom-up initiative involving the public.

As a concrete example, during the work on the community engagement and interdisciplinary collaboration proposal, a programme was suggested, in which a position for a community energy ambassador would be created. This person would help citizens make sustainable decisions on an individual level by acting as an informative body inside the community.

Young ambassadors would help bridge the information gap between citizens and technical energy topics

Therefore, these ambassadors would help bridge the information gap between citizens and technical energy topics. This initiative specifically shows how people outside the green energy sector could participate in the transition, given also that the ambassador is chosen from within the community itself. Apart from this initiative on Community Energy Ambassadors, other proposals were focusing on: green commuting, more opportunities for residential participation, University-Powered Energy Communities, the impact potential of small cities and on sustainable urban actions. Take a closer look at all of the proposals.

As a result of this event, a position paper came to daylight. Gathering the six proposals, it was published with the title: Sustainable Cities of the Future. This report presents concrete, bottom-up solutions that can be implemented in various contexts. All six proposals were presented at this year’s Conference of Parties in Baku.

The outcomes of the Youth Energy Forum underline that to achieve net-zero cities, and to ensure a successful energy transition, we need the citizens on board. The aforementioned report is one example of how to do this in practice, but there are numerous other success-stories, as is highlighted below. By taking initiative on the grassroot level, and by involving all citizens, we take yet another step towards creating a more sustainable future for all.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See ec.europa.eu/eusew for open calls.

The International Finance Corporation is spearheading the establishment of the Western Balkans Green Growth Alliance. It aims to build knowledge and capacity for decarbonization and sustainability in manufacturing and industrial production, tourism, and agricuture and related services. The other goal is providing access to financial instruments that enable circular business models and sustainable practices, especially to steel and cement and other hard-to-abate sectors.

At the launch event for the Western Balkans Green Growth Alliance in Belgrade, the International Finance Corporation (IFC) gathered perspective partners and beneficiaries of the future program’s offerings. Top managers from cement, steel and other industries that are hard to decarbonize revealed they are working on introducing alternative raw materials and fuels and projects for solar power for self-consumption.

Representatives of producers, commercial lenders and international financial institutions agree that policy adjustment is one of the necessary elements to facilitate the energy transition in the region. In addition, they expressed the belief that the green transition in Europe and the Western Balkans would continue along the current trajectory despite indications that it would be revised.

Rocha: IFC to enable tailored, transaction-based advisory services

The initiative envisages setting up a community interested in driving sustainability, said Regional Director for Europe in IFC Ines Rocha. “By embracing solutions like sustainable energy, innovative processes, material efficiencies, circular business models, the Western Balkans can unlock significant potential, strengthen international competitiveness and build a sustainable future. Not just for the businesses, but also for the communities,” she pointed out in her opening remarks.

The event was organized to identify specific requirements that would be met with suitable support measures. They would accelerate decarbonization and the alignment with the European Union’s regulations, while leading to growth opportunities.

“We hope to open the door for companies to tap into financial instruments that enable circular business models and sustainable practices,” the International Finance Corporation’s European chief said at the conference in Serbia’s capital city

One goal is to build knowledge and capacity in three target sectors, Rocha explained. The key aspect is manufacturing including hard-to-abate industries. The other two are tourism, and agribusiness and services. The idea is for the alliance to equip companies with tools, guidance and resources, she underscored.

The second objective is to provide access to financing. “We believe that through tailored and transaction-based advisory services, we can work directly with businesses to address their challenges, but also the ambitions,” Rocha said.

Many industries that are hard to abate, particularly steel and cement, face significant reinvestment needs and a long lifespan for productive assets, often ranging from 20 to 30 years, she asserted. “In the IFC we hope to open the door for companies to tap into financial instruments that enable circular business models and sustainable practices,” the official stressed.

Reducing CO2 emissions bolsters potential for exports to EU

Ambassador of Austria in Serbia Christian Ebner said sustainability and the effects of climate change are more relevant than ever. He added his country registered its warmest year in 2024 since measurements began 257 years ago.

“Climate change is one of the greatest systemic threats to the economy and business profitability worldwide, and the more vulnerable parts of our societies, of course, suffer the most from the effects of climate change,” in the envoy’s words. He noted that the green transition is challenging for businesses and governments, especially in a globalized economy.

The green transition is challenging for businesses and governments, especially in a globalized economy, Ambassador Ebner told the participants at the event

According to a survey, two thirds of international companies view the Balkans as a promising region for green investment, Ebner said. Reducing carbon dioxide emissions brings huge potential for increasing exports to the EU, he added in a speech at the start of the event organized by IFC.

“Austria is strongly convinced that in order to reach our common targets under the Paris Agreement, it is a fundamental prerequisite to create the right investment climate. First, by ensuring a regulatory environment which is conducive for profitable green investments. Second, by fostering the right expertise of financial institutions and businesses to prepare them to finance and implement projects which at the same time increase competitiveness and profitability. And third, by offering opportunities to ensure that the transition to low-carbon economy is managed in a sustainable manner and taking into account vulnerable parts of our society,” Ebner stated.

Construction waste is resource for low-carbon building materials

Lacking a policy and regulatory reform to drive decarbonization, so far there have only been isolated efforts by companies that belong to international groups, as they have internal CO2 targets, said General Manager of Titan Serbia Miroslav Gligorijević. The firm’s plant in Kosjerić in the country’s west is part of Titan Cement Group.

One opportunity completely missing in Serbia is the utilization of construction waste, now only beginning, Gligorijević stressed. In cooperation with authorities and stakeholders, it could enable the production of low-carbon materials in the sector, he said. As another major obstacle, the executive pointed to the ban on importing fuel produced from waste, arguing that domestic sources aren’t sufficient.

Even without regulatory obligations, sustainability makes economic sense

The Development Bank of Austria (OeEB) is eager to participate in the Western Balkans Green Growth Alliance. “Even if some sustainability investments are not required on a regulatory side, companies realize more and more that it also makes economic sense. And therefore this is something companies more and more strive to do,” its Managing Director and Head of Investment Finance Clemens Stadler said at the conference.

Businesses need to be patient as results will come in the medium and long term and development banks are there to support them, he underscored. Stadler said OeEB is trying to be active only if commercial banks cannot alone provide the structural elements of financing for a company.

The International Finance Corporation is spearheading the establishment of the Western Balkans Green Growth Alliance. It aims to build knowledge and capacity for decarbonization and sustainability in manufacturing and industrial production, tourism, and agricuture and related services. The other goal is providing access to financial instruments that enable circular business models and sustainable practices, especially to steel and cement and other hard-to-abate sectors.

At the launch event for the Western Balkans Green Growth Alliance in Belgrade, the International Finance Corporation (IFC) gathered perspective partners and beneficiaries of the future program’s offerings. Top managers from cement, steel and other industries that are hard to decarbonize revealed they are working on introducing alternative raw materials and fuels and projects for solar power for self-consumption.

Representatives of producers, commercial lenders and international financial institutions agree that policy adjustment is one of the necessary elements to facilitate the energy transition in the region. In addition, they expressed the belief that the green transition in Europe and the Western Balkans would continue along the current trajectory despite indications that it would be revised.

Rocha: IFC to enable tailored, transaction-based advisory services

The initiative envisages setting up a community interested in driving sustainability, said Regional Director for Europe in IFC Ines Rocha. “By embracing solutions like sustainable energy, innovative processes, material efficiencies, circular business models, the Western Balkans can unlock significant potential, strengthen international competitiveness and build a sustainable future. Not just for the businesses, but also for the communities,” she pointed out in her opening remarks.

The event was organized to identify specific requirements that would be met with suitable support measures. They would accelerate decarbonization and the alignment with the European Union’s regulations, while leading to growth opportunities.

“We hope to open the door for companies to tap into financial instruments that enable circular business models and sustainable practices,” the International Finance Corporation’s European chief said at the conference in Serbia’s capital city

One goal is to build knowledge and capacity in three target sectors, Rocha explained. The key aspect is manufacturing including hard-to-abate industries. The other two are tourism, and agribusiness and services. The idea is for the alliance to equip companies with tools, guidance and resources, she underscored.

The second objective is to provide access to financing. “We believe that through tailored and transaction-based advisory services, we can work directly with businesses to address their challenges, but also the ambitions,” Rocha said.

Many industries that are hard to abate, particularly steel and cement, face significant reinvestment needs and a long lifespan for productive assets, often ranging from 20 to 30 years, she asserted. “In the IFC we hope to open the door for companies to tap into financial instruments that enable circular business models and sustainable practices,” the official stressed.

Reducing CO2 emissions bolsters potential for exports to EU

Ambassador of Austria in Serbia Christian Ebner said sustainability and the effects of climate change are more relevant than ever. He added his country registered its warmest year in 2024 since measurements began 257 years ago.

“Climate change is one of the greatest systemic threats to the economy and business profitability worldwide, and the more vulnerable parts of our societies, of course, suffer the most from the effects of climate change,” in the envoy’s words. He noted that the green transition is challenging for businesses and governments, especially in a globalized economy.

The green transition is challenging for businesses and governments, especially in a globalized economy, Ambassador Ebner told the participants at the event

According to a survey, two thirds of international companies view the Balkans as a promising region for green investment, Ebner said. Reducing carbon dioxide emissions brings huge potential for increasing exports to the EU, he added in a speech at the start of the event organized by IFC.

“Austria is strongly convinced that in order to reach our common targets under the Paris Agreement, it is a fundamental prerequisite to create the right investment climate. First, by ensuring a regulatory environment which is conducive for profitable green investments. Second, by fostering the right expertise of financial institutions and businesses to prepare them to finance and implement projects which at the same time increase competitiveness and profitability. And third, by offering opportunities to ensure that the transition to low-carbon economy is managed in a sustainable manner and taking into account vulnerable parts of our society,” Ebner stated.

Construction waste is resource for low-carbon building materials

Lacking a policy and regulatory reform to drive decarbonization, so far there have only been isolated efforts by companies that belong to international groups, as they have internal CO2 targets, said General Manager of Titan Serbia Miroslav Gligorijević. The firm’s plant in Kosjerić in the country’s west is part of Titan Cement Group.

One opportunity completely missing in Serbia is the utilization of construction waste, now only beginning, Gligorijević stressed. In cooperation with authorities and stakeholders, it could enable the production of low-carbon materials in the sector, he said. As another major obstacle, the executive pointed to the ban on importing fuel produced from waste, arguing that domestic sources aren’t sufficient.

Even without regulatory obligations, sustainability makes economic sense

The Development Bank of Austria (OeEB) is eager to participate in the Western Balkans Green Growth Alliance. “Even if some sustainability investments are not required on a regulatory side, companies realize more and more that it also makes economic sense. And therefore this is something companies more and more strive to do,” its Managing Director and Head of Investment Finance Clemens Stadler said at the conference.

Businesses need to be patient as results will come in the medium and long term and development banks are there to support them, he underscored. Stadler said OeEB is trying to be active only if commercial banks cannot alone provide the structural elements of financing for a company.

District heating utility Termokos is seeking a contractor to build a 30 MW solar thermal facility outside Prishtina in Kosovo*. The estimated time for completion is 30 months plus a six-month commissioning phase.

After several years of preparation, Kosovo* is moving ahead with the largest solar thermal project for district heating in the Western Balkans. The operator, Termokos, is owned by the Municipality of Prishtina, the capital city. They secured most of the funds for Solar4Kosovo 2 – Solar District Heating through the European Union’s Western Balkans Investment Framework (WBIF), Germany’s KfW Development Bank and the European Bank for Reconstruction and Development.

The entire project is estimated at EUR 81.7 million, of which Termokos is providing EUR 4.4 million. EBRD approved a loan of up to EUR 23.2 million more than two years ago while KfW lended EUR 31.6 million. The remaining EUR 22.5 million is a grant via WBIF.

Termokos is receiving applications until the end of this month from potential contractors, for the first lot. It envisages the construction of a 30 MW solar thermal plant near the village of Shkabaj (Orlović). The facility in Obiliq (Obilić) municipality is for the district heating system in Prishtina.

The prequalification call comprises a seasonal water pit thermal energy storage, a solar thermal collector field, a heating plant with an absorption heat pump driven by combined heat and power (CHP), pumps and a supervisory control and data acquisition (SCADA) system.

Heat pump takes over when temperature in water pit is lower than in network return

The solar thermal collector field would feed thermal energy into the pit during the non-heating period. With the beginning of the heating season, the solar heat is then fed into the network if the temperature in the pit is higher than the return temperature in the network. When the temperature in storage falls below the threshold, the heat pump takes over.

The project is carried out in accordance with the conditions of contract for plant and design build – FIDIC Yellow Book of the International Federation of Consulting Engineers. The estimated time for completion is 30 months plus a six-month commissioning phase.

The other part of the Solar4Kosovo 2 – Solar District Heating project is for a network extension with 20 MW more heat from a coal-fired power plant

Pre-qualification documents can be requested from the tender agent via email at s4k_lot1@ic-group.org.

It is the only solar thermal project for district heating in the Balkans and the second-largest in Europe, according to the local authority in Prishtina. It will benefit 32,000 citizens in the neighborhoods of Tophane, Prishtina e Vjetër, Lakrishte, Kalabria and Mahalla e Muhaxherëve, the announcement reads.

The solar collectors will span 6.3 hectares in total while the storage pit will hold 380,000 cubic meters of water, the municipality added.

Project includes 20 MW extension of system with heat from coal plant

The other part of Solar4Kosovo 2 – Solar District Heating is for a 20 MW network extension, with supply from the existing CHP or cogeneration facility at the coal-fired Kosovo B power plant. It is in Obiliq as well. No increase in coal consumption is expected, the documentation reads. A further 20 MW network extension would be considered at a later stage.

Separately, Solar4Kosovo – Photovoltaic Plant is a project for a solar power system on a former coal ash dump near Prishtina. It would have a grid connection of up to 100 MW, translated to 120 MW in peak capacity.

In 2023, government-owned power utility Kosovo Energy Corp. (KEK) generated over 327 GWh for heating purposes within the cogeneration project with Termokos

Five other solar thermal projects are currently in the pipeline in the region. All the locations are actually in Serbia: Belgrade, Bor, Niš, Novi Sad and Pančevo, where the only operational solar thermal system is located.

District heating utility Termokos is seeking a contractor to build a 30 MW solar thermal facility outside Prishtina in Kosovo*. The estimated time for completion is 30 months plus a six-month commissioning phase.

After several years of preparation, Kosovo* is moving ahead with the largest solar thermal project for district heating in the Western Balkans. The operator, Termokos, is owned by the Municipality of Prishtina, the capital city. They secured most of the funds for Solar4Kosovo 2 – Solar District Heating through the European Union’s Western Balkans Investment Framework (WBIF), Germany’s KfW Development Bank and the European Bank for Reconstruction and Development.

The entire project is estimated at EUR 81.7 million, of which Termokos is providing EUR 4.4 million. EBRD approved a loan of up to EUR 23.2 million more than two years ago while KfW lended EUR 31.6 million. The remaining EUR 22.5 million is a grant via WBIF.

Termokos is receiving applications until the end of this month from potential contractors, for the first lot. It envisages the construction of a 30 MW solar thermal plant near the village of Shkabaj (Orlović). The facility in Obiliq (Obilić) municipality is for the district heating system in Prishtina.

The prequalification call comprises a seasonal water pit thermal energy storage, a solar thermal collector field, a heating plant with an absorption heat pump driven by combined heat and power (CHP), pumps and a supervisory control and data acquisition (SCADA) system.

Heat pump takes over when temperature in water pit is lower than in network return

The solar thermal collector field would feed thermal energy into the pit during the non-heating period. With the beginning of the heating season, the solar heat is then fed into the network if the temperature in the pit is higher than the return temperature in the network. When the temperature in storage falls below the threshold, the heat pump takes over.

The project is carried out in accordance with the conditions of contract for plant and design build – FIDIC Yellow Book of the International Federation of Consulting Engineers. The estimated time for completion is 30 months plus a six-month commissioning phase.

The other part of the Solar4Kosovo 2 – Solar District Heating project is for a network extension with 20 MW more heat from a coal-fired power plant

Pre-qualification documents can be requested from the tender agent via email at s4k_lot1@ic-group.org.

It is the only solar thermal project for district heating in the Balkans and the second-largest in Europe, according to the local authority in Prishtina. It will benefit 32,000 citizens in the neighborhoods of Tophane, Prishtina e Vjetër, Lakrishte, Kalabria and Mahalla e Muhaxherëve, the announcement reads.

The solar collectors will span 6.3 hectares in total while the storage pit will hold 380,000 cubic meters of water, the municipality added.

Project includes 20 MW extension of system with heat from coal plant

The other part of Solar4Kosovo 2 – Solar District Heating is for a 20 MW network extension, with supply from the existing CHP or cogeneration facility at the coal-fired Kosovo B power plant. It is in Obiliq as well. No increase in coal consumption is expected, the documentation reads. A further 20 MW network extension would be considered at a later stage.

Separately, Solar4Kosovo – Photovoltaic Plant is a project for a solar power system on a former coal ash dump near Prishtina. It would have a grid connection of up to 100 MW, translated to 120 MW in peak capacity.

In 2023, government-owned power utility Kosovo Energy Corp. (KEK) generated over 327 GWh for heating purposes within the cogeneration project with Termokos

Five other solar thermal projects are currently in the pipeline in the region. All the locations are actually in Serbia: Belgrade, Bor, Niš, Novi Sad and Pančevo, where the only operational solar thermal system is located.

The Green for Growth Fund (GGF) has established a partnership with Lovćen banka in Montenegro by signing a loan agreement of EUR 3 million.

A new loan facility will enable Lovćen banka to expand its green lending portfolio, providing dedicated financing to businesses investing in sustainable practices and smaller-scale renewable energy projects, GGF said. The partnership marks the engagement of the fund’s new investee, boosting the region’s resilience and energy independence, the announcement reads.

GGF added that the signing of a loan agreement of EUR 3 million is highlighting its commitment to fostering new relationships. Additionally, it said, the strategic deal expands its investee partnerships within its mandate region, further solidifying its presence and impact in promoting sustainable development.

“We are pleased to welcome Lovćen banka as a new partner. This investment aligns perfectly with our goals on climate action and sustainable development. By supporting businesses in their efforts to adopt greener practices and renewable energy solutions, we are making meaningful strides towards a more sustainable future,” Chairperson of the Board of GGF Simon Gupta stated.

Lovćen banka joining GGF’s mission

President of the Board of Directors of Lovćen banka Miloš Miketić said the lender is joining the fund’s mission. “By stipulating the cooperation with GGF, Lovćen banka will enhance the efforts in supporting sustainable development of businesses in Montenegro helping them to continue with developing green solutions and improving the renewable energy projects,” he asserted.

The Green for Growth Fund promotes energy efficiency and renewable energy in Southeast Europe, the Caucasus, the Middle East, and North Africa. By providing refinancing to local financial institutions, the fund helps businesses and households access sustainable energy solutions, fostering energy efficiency and reducing carbon emissions.

GGF was initiated as a public-private partnership by the European Investment Bank and Germany’s KfW Development Bank, with financial support from the European Union, the German Federal Ministry for Economic Cooperation and Development (BMZ) and international investors.

Finance in Motion’s funds are all classified as article 9 of EU’s SFDR

Finance in Motion, based in Germany, serves as GGF’s advisor. It structures, manages, and advises almost EUR 4 billion across nine funds They are all classified as article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR), which stipulates comprehensive requirements for funds with a sustainable investment objective.

The said private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building, GGF said. Founded in Germany, with local expertise from Latin America to Central and Eastern Europe, the fund has been investing in emerging markets for over 15 years.

Lovćen banka said it focuses on improving small and medium businesses in Montenegro with tailor-made solutions to support their development, adding that it is establishing long-term relationships and is quick in decision making,

The Green for Growth Fund (GGF) has established a partnership with Lovćen banka in Montenegro by signing a loan agreement of EUR 3 million.

A new loan facility will enable Lovćen banka to expand its green lending portfolio, providing dedicated financing to businesses investing in sustainable practices and smaller-scale renewable energy projects, GGF said. The partnership marks the engagement of the fund’s new investee, boosting the region’s resilience and energy independence, the announcement reads.

GGF added that the signing of a loan agreement of EUR 3 million is highlighting its commitment to fostering new relationships. Additionally, it said, the strategic deal expands its investee partnerships within its mandate region, further solidifying its presence and impact in promoting sustainable development.

“We are pleased to welcome Lovćen banka as a new partner. This investment aligns perfectly with our goals on climate action and sustainable development. By supporting businesses in their efforts to adopt greener practices and renewable energy solutions, we are making meaningful strides towards a more sustainable future,” Chairperson of the Board of GGF Simon Gupta stated.

Lovćen banka joining GGF’s mission

President of the Board of Directors of Lovćen banka Miloš Miketić said the lender is joining the fund’s mission. “By stipulating the cooperation with GGF, Lovćen banka will enhance the efforts in supporting sustainable development of businesses in Montenegro helping them to continue with developing green solutions and improving the renewable energy projects,” he asserted.

The Green for Growth Fund promotes energy efficiency and renewable energy in Southeast Europe, the Caucasus, the Middle East, and North Africa. By providing refinancing to local financial institutions, the fund helps businesses and households access sustainable energy solutions, fostering energy efficiency and reducing carbon emissions.

GGF was initiated as a public-private partnership by the European Investment Bank and Germany’s KfW Development Bank, with financial support from the European Union, the German Federal Ministry for Economic Cooperation and Development (BMZ) and international investors.

Finance in Motion’s funds are all classified as article 9 of EU’s SFDR

Finance in Motion, based in Germany, serves as GGF’s advisor. It structures, manages, and advises almost EUR 4 billion across nine funds They are all classified as article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR), which stipulates comprehensive requirements for funds with a sustainable investment objective.

The said private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building, GGF said. Founded in Germany, with local expertise from Latin America to Central and Eastern Europe, the fund has been investing in emerging markets for over 15 years.

Lovćen banka said it focuses on improving small and medium businesses in Montenegro with tailor-made solutions to support their development, adding that it is establishing long-term relationships and is quick in decision making,

From March 5 to 7, Rimini Expo Centre will host the third edition of KEY – The Energy Transition Expo, an event dedicated to the energy transition. Powered by the Italian Exhibition Group (IEG), it will bring together experts, companies, and institutions from Europe, Africa, and the Mediterranean to discuss key topics and innovations in the renewable energy sector.

Spanning over 90,000 square meters in 20 halls in Rimini, Italy, this year’s KEY – The Energy Transition Expo will break its record number of exhibitors, according to the organizers. Last year there were 837 from 25 countries, covering a total exhibition area of 78,500 square meters. The gathering included 123 expert sessions. The fair was visited by 53,157 people.

Over a thousand exhibitors will showcase the latest technologies and solutions in renewable energy and energy efficiency.

The exhibition space will be divided into seven sectors: solar energy, wind energy, energy storage, hydrogen energy, energy efficiency, electric mobility, and sustainable cities.

In addition to the exhibition sections, special thematic areas will be organized. One of them, named Su.port – Sustainable Ports for Energy Transition, will be dedicated to the electrification of port docks and the development of offshore wind energy.

In addition to the exhibition, visitors will have the opportunity to participate in numerous events

In addition to the exhibition, visitors will be able to participate in numerous panels, discussions, workshops, and other interactive events covering a wide range of topics related to the energy transition.

Artificial intelligence in the energy sector, smart cities, electric mobility, and hydrogen as the fuel of the future will be some of the topics discussed at the panels.

A new feature at this year’s fair is the Green Jobs and Skills initiative, aimed at connecting companies and young talent in the green economy sector.

Additionally, for the first time, the KEY initiative for scientific paper submissions will be organized, enabling researchers, academics, and experts to present their scientific achievements in the field of renewable energy and energy efficiency.

This year, as in previous ones, the Chamber of Commerce of Serbia – Center for Circular Economy, in collaboration with the Italian Exhibition Group, will organize a visit of a Serbian business delegation to the KEY Expo. The delegation will consist of around 40 representatives from 30 companies.

From March 5 to 7, Rimini Expo Centre will host the third edition of KEY – The Energy Transition Expo, an event dedicated to the energy transition. Powered by the Italian Exhibition Group (IEG), it will bring together experts, companies, and institutions from Europe, Africa, and the Mediterranean to discuss key topics and innovations in the renewable energy sector.

Spanning over 90,000 square meters in 20 halls in Rimini, Italy, this year’s KEY – The Energy Transition Expo will break its record number of exhibitors, according to the organizers. Last year there were 837 from 25 countries, covering a total exhibition area of 78,500 square meters. The gathering included 123 expert sessions. The fair was visited by 53,157 people.

Over a thousand exhibitors will showcase the latest technologies and solutions in renewable energy and energy efficiency.

The exhibition space will be divided into seven sectors: solar energy, wind energy, energy storage, hydrogen energy, energy efficiency, electric mobility, and sustainable cities.

In addition to the exhibition sections, special thematic areas will be organized. One of them, named Su.port – Sustainable Ports for Energy Transition, will be dedicated to the electrification of port docks and the development of offshore wind energy.

In addition to the exhibition, visitors will have the opportunity to participate in numerous events

In addition to the exhibition, visitors will be able to participate in numerous panels, discussions, workshops, and other interactive events covering a wide range of topics related to the energy transition.

Artificial intelligence in the energy sector, smart cities, electric mobility, and hydrogen as the fuel of the future will be some of the topics discussed at the panels.

A new feature at this year’s fair is the Green Jobs and Skills initiative, aimed at connecting companies and young talent in the green economy sector.

Additionally, for the first time, the KEY initiative for scientific paper submissions will be organized, enabling researchers, academics, and experts to present their scientific achievements in the field of renewable energy and energy efficiency.

This year, as in previous ones, the Chamber of Commerce of Serbia – Center for Circular Economy, in collaboration with the Italian Exhibition Group, will organize a visit of a Serbian business delegation to the KEY Expo. The delegation will consist of around 40 representatives from 30 companies.