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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.

Unveiling its Clean Industrial Deal initiative, the European Commission vowed to raise as much as EUR 100 billion within ten years for its Industrial Decarbonization Bank scheme. It would also mobilize over EUR 100 billion in the short term to support domestic clean manufacturing. Proposed measures from one of the deal’s pillars, the Action Plan for Affordable Energy, could bring annual savings estimated at up to EUR 260 billion by 2040.

Following the European Green Deal, the NextGenerationEU investment package and the Green Deal Industrial Plan from the first mandate, European Commission President Ursula von der Leyen launched the first major legislative push since her reelection. The Clean Industrial Deal is aimed at providing the means for reindustrialization in parallel to faster decarbonization, supporting competitiveness and resilience and retaining talent.

The first batch of proposals involves the simplification of the Carbon Border Adjustment Mechanism (CBAM) and sustainability reporting rules including delays to relieve businesses.

Member states are responsible for electricity affordability action

Another pillar is the new Action Plan for Affordable Energy. It is a set of short-term measures to lower energy costs, complete the Energy Union, attract investments and be better prepared for potential energy crises. Outlining the proposal, the European Commission estimated potential annual savings for households and companies at up to EUR 260 billion by 2040.

However, for now the only tangible move is a call to member states to lower electricity taxes and network charges. At the same time, hundreds of billions of euros are required to strengthen and expand the grid.

The EU is preparing a EUR 500 million pilot program for financial guarantees for offtakers in PPAs

In line with an existing strategy, the plan should help ensure that retail electricity bills are not dictated by high and volatile gas prices thanks to a broader uptake of long-term contracts for clean power. On that note, a EUR 500 million pilot program is in the works for financial guarantees for offtakers in power purchase agreements (PPAs). The focus is on small and medium-sized enterprises and energy-intensive industry.

New rules would ensure that consumers can utilize the flexibility that demand response enables. In short, electricity needs to be used when it is cheaper, while consumption should be adjusted when power supply is weak.

In cooperation with the European Investment Bank, the commission will explore setting up a guarantee scheme to support financing models that alleviate initial costs for energy efficiency services.

Von der Leyen: We must turn the tide

In the short term, the Clean Industrial Deal will mobilize over EUR 100 billion to support clean manufacturing in the European Union, according to the announcement.

“We know all too well that production costs have increased, specifically for energy-intensive industries. The demand for clean products has dipped, and some investments have moved to other regions. So, we must turn the tide. And this is the central goal of the Clean Industrial Deal,” Von der Leyen stated.

Greenhouse gas emissions from the energy sector fell almost 10% last year while energy consumption grew by 1%, she noted. “We are on track to achieve our 55% emission reduction target for 2030. And this gives you the predictability you need to plan your investments,” said the chief of the EU’s executive arm.

More than 50% of steel, iron, zinc and platinum in the EU are made from scrap

Europe is home to 30% of all innovative companies in electrolyzer technologies, 20% for carbon capture and storage and 40% for wind and heat pump technology, she stressed. “This is where we can really beat global competition,” Von der Leyen added.

One of the segments of the Clean Industrial Deal is circularity. More than 50% of steel, iron, zinc and platinum in the EU are made from scrap, Von der Leyen pointed out. It covers more than 25% of European consumption, she asserted.

“But we need to go faster and further. For instance, China controls 80% of the global battery recycling capacity. And we still send huge volumes of precious waste back to China. Instead, end-of-life batteries could provide almost 15% of the lithium we need already in 2030. That is enough to produce two million batteries for electric vehicles,” Von der Leyen said.

The European Commission said it would soon present action plans for the automotive industry and steel and other metals. The chemicals and clean technology industries would follow.

Industrial Decarbonization Bank concept is based upon European Hydrogen Bank

The Clean Industrial Deal includes the Industrial Decarbonization Bank project. The idea is to operate it like the European Hydrogen Bank.

European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra said the new instrument could raise up to EUR 100 billion in the next ten years. Funding would come from the Innovation Fund, parts of the EU’s Emissions Trading System (EU ETS) and a revision of the InvestEU program.

“But then if you leverage that, if you put private sector money next to that you could easily add up to EUR 400 billion. With this plan, we are aiming to decrease industrial emissions by up to 30%,” Hoekstra asserted.

Adding sustainability, resilience, European preference to public procurement criteria

The European Commission’s Executive Vice President Stéphane Séjourné, in charge of prosperity and industrial strategy, warned there is not enough demand for materials such as clean steel and clean cement. The low carbon market needs stimulation on that side, he argued.

The plan is to reshape public procurement away from just the price criterion, the top official added. EU is adding sustainability, resilience and European preference, he recalled.

“Over the years we have created many new obligations. Sometimes in silos. Sometimes redundant. Sometimes, without taking into account the daily life of companies. This has blurred the objectives,” Séjourné acknowledged.

Among the 2030 goals highlighted in the presentation of the Clean Industrial Deal are increasing the economy-wide electrification rate to 32% from 21.3% and installing 100 GW of renewable electricity capacity every year. The EU is also aiming for the largest possible share of the global market for clean technologies. It valued it at USD 2 trillion in 2035.

Unveiling its Clean Industrial Deal initiative, the European Commission vowed to raise as much as EUR 100 billion within ten years for its Industrial Decarbonization Bank scheme. It would also mobilize over EUR 100 billion in the short term to support domestic clean manufacturing. Proposed measures from one of the deal’s pillars, the Action Plan for Affordable Energy, could bring annual savings estimated at up to EUR 260 billion by 2040.

Following the European Green Deal, the NextGenerationEU investment package and the Green Deal Industrial Plan from the first mandate, European Commission President Ursula von der Leyen launched the first major legislative push since her reelection. The Clean Industrial Deal is aimed at providing the means for reindustrialization in parallel to faster decarbonization, supporting competitiveness and resilience and retaining talent.

The first batch of proposals involves the simplification of the Carbon Border Adjustment Mechanism (CBAM) and sustainability reporting rules including delays to relieve businesses.

Member states are responsible for electricity affordability action

Another pillar is the new Action Plan for Affordable Energy. It is a set of short-term measures to lower energy costs, complete the Energy Union, attract investments and be better prepared for potential energy crises. Outlining the proposal, the European Commission estimated potential annual savings for households and companies at up to EUR 260 billion by 2040.

However, for now the only tangible move is a call to member states to lower electricity taxes and network charges. At the same time, hundreds of billions of euros are required to strengthen and expand the grid.

The EU is preparing a EUR 500 million pilot program for financial guarantees for offtakers in PPAs

In line with an existing strategy, the plan should help ensure that retail electricity bills are not dictated by high and volatile gas prices thanks to a broader uptake of long-term contracts for clean power. On that note, a EUR 500 million pilot program is in the works for financial guarantees for offtakers in power purchase agreements (PPAs). The focus is on small and medium-sized enterprises and energy-intensive industry.

New rules would ensure that consumers can utilize the flexibility that demand response enables. In short, electricity needs to be used when it is cheaper, while consumption should be adjusted when power supply is weak.

In cooperation with the European Investment Bank, the commission will explore setting up a guarantee scheme to support financing models that alleviate initial costs for energy efficiency services.

Von der Leyen: We must turn the tide

In the short term, the Clean Industrial Deal will mobilize over EUR 100 billion to support clean manufacturing in the European Union, according to the announcement.

“We know all too well that production costs have increased, specifically for energy-intensive industries. The demand for clean products has dipped, and some investments have moved to other regions. So, we must turn the tide. And this is the central goal of the Clean Industrial Deal,” Von der Leyen stated.

Greenhouse gas emissions from the energy sector fell almost 10% last year while energy consumption grew by 1%, she noted. “We are on track to achieve our 55% emission reduction target for 2030. And this gives you the predictability you need to plan your investments,” said the chief of the EU’s executive arm.

More than 50% of steel, iron, zinc and platinum in the EU are made from scrap

Europe is home to 30% of all innovative companies in electrolyzer technologies, 20% for carbon capture and storage and 40% for wind and heat pump technology, she stressed. “This is where we can really beat global competition,” Von der Leyen added.

One of the segments of the Clean Industrial Deal is circularity. More than 50% of steel, iron, zinc and platinum in the EU are made from scrap, Von der Leyen pointed out. It covers more than 25% of European consumption, she asserted.

“But we need to go faster and further. For instance, China controls 80% of the global battery recycling capacity. And we still send huge volumes of precious waste back to China. Instead, end-of-life batteries could provide almost 15% of the lithium we need already in 2030. That is enough to produce two million batteries for electric vehicles,” Von der Leyen said.

The European Commission said it would soon present action plans for the automotive industry and steel and other metals. The chemicals and clean technology industries would follow.

Industrial Decarbonization Bank concept is based upon European Hydrogen Bank

The Clean Industrial Deal includes the Industrial Decarbonization Bank project. The idea is to operate it like the European Hydrogen Bank.

European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra said the new instrument could raise up to EUR 100 billion in the next ten years. Funding would come from the Innovation Fund, parts of the EU’s Emissions Trading System (EU ETS) and a revision of the InvestEU program.

“But then if you leverage that, if you put private sector money next to that you could easily add up to EUR 400 billion. With this plan, we are aiming to decrease industrial emissions by up to 30%,” Hoekstra asserted.

Adding sustainability, resilience, European preference to public procurement criteria

The European Commission’s Executive Vice President Stéphane Séjourné, in charge of prosperity and industrial strategy, warned there is not enough demand for materials such as clean steel and clean cement. The low carbon market needs stimulation on that side, he argued.

The plan is to reshape public procurement away from just the price criterion, the top official added. EU is adding sustainability, resilience and European preference, he recalled.

“Over the years we have created many new obligations. Sometimes in silos. Sometimes redundant. Sometimes, without taking into account the daily life of companies. This has blurred the objectives,” Séjourné acknowledged.

Among the 2030 goals highlighted in the presentation of the Clean Industrial Deal are increasing the economy-wide electrification rate to 32% from 21.3% and installing 100 GW of renewable electricity capacity every year. The EU is also aiming for the largest possible share of the global market for clean technologies. It valued it at USD 2 trillion in 2035.

During 2024, a total of 64 boiler rooms burning fuel oil, heating oil, or coal were shut down in Serbia’s municipalities of Apatin, Odžaci, and Šid. As part of a public-private partnership project with Negawatt Solutions and B&S Immobilien, members of the EnergyNet group, boiler rooms using high-emission energy sources switched to a cleaner energy source – natural gas – greatly contributing to lower emissions, better air quality, and improved efficiency in the heating systems of public buildings in these municipalities.

The collaboration with the consortium of Negawatt Solutions and B&S Immobilien (members of the EnergyNet group) resulted in the implementation of a major project to improve energy efficiency and decarbonize heating systems at public buildings in the municipalities of Apatin, Odžaci, and Šid.

Over just 14 months, as many as 64 boiler rooms that were using fuel oil, heating oil, or coal were shut down, and new heating systems fueled by a much cleaner energy source – natural gas – were introduced at 29 elementary and high schools, 8 kindergartens, as well as other important public institutions, such as libraries, cultural centers, sports halls, and local community centers.

In just 14 months, 64 boiler rooms that used fuel oil, heating oil, and coal were shut down

Representatives of Negawatt Solutions and EnergyNet, the companies that implemented the project in partnership with the three municipalities, stated: “Thanks to the synergy we achieved by recognizing the importance of this project, obtaining more than 450 permits for connecting all these facilities to the gas distribution network and installing gas boilers was not an impossible mission. On the contrary, through our joint efforts, we accomplished it in just 14 months, sending 64 heating oil and coal boilers into history and making both society and the environment a better place.”

The project to boost energy efficiency and decarbonization was implemented through three separate public-private partnership projects with each of these municipalities. As the private partner in the projects, the Negawatt Solutions – Energy Net consortium undertook the financing, design, and construction of the infrastructure, including installing the gas generators and connecting the facilities to the gas network.

The private partner is responsible for implementing all agreed energy efficiency measures

Ankica Barbulov, co-founder and director of Negawatt Solutions, explains that in addition to financing and performing the works, the private partner also had the obligation to prepare all project and technical documentation, as well as to carry out all the procedures for obtaining the necessary permits and approvals, which numbered in the hundreds given the nature and scope of the project.

Barbulov stated: “That is one of the advantages of a public-private partnership. While the private partner assumes full responsibility for the implementation of all agreed energy efficiency measures, municipalities, as the public partner, can more easily focus on their other strategic goals.”

The private partner will be responsible for the long-term management of the project

After the first phase of the project’s implementation, the private partner will be responsible for the long-term management of the project. This includes handling fuel procurement, producing thermal energy, and supplying public buildings with thermal energy based on the public partner’s needs over the next 15 years, which is the duration of the contract. During this period, the private partner will also be fully responsible for the proper functioning of the gas generators and related equipment.

Vladimir Nikolić, co-founder and technical director at Negawatt Solutions, described the undertaking as “a project to improve energy efficiency and conserve energy, which has helped save as much as 20% of energy in each of these three municipalities. This is particularly significant in terms of conserving natural resources. However, what is perhaps even more important for the local community is its contribution to environmental protection and cleaner air.”

Local contribution to national goals

One of the key benefits of this project is its contribution to achieving both local and national climate goals. According to its Nationally Determined Contributions (NDCs) – targets for reducing harmful emissions submitted to the United Nations Framework Convention on Climate Change (UNFCCC) every five years – Serbia aims to reduce greenhouse gas emissions by 33.33% compared to the 1990 levels. Undoubtedly, the results of this project support the UN Sustainable Development Goals within the 2030 Agenda and serve as a good example to be followed.

The shutdown of heating oil boilers reduces emissions of CO2 and other harmful gases

Thanks to this project, CO2 emissions have been reduced by about 15% (116 tons per year) in public facilities in the municipality of Apatin, by about 36% (540 tons per year) in facilities in the municipality of Odžaci, and by about 13% (83 tons per year) in facilities in the municipality of Šid. In addition to cutting CO2 emissions, the shutdown of heating oil boilers has also led to reduced emissions of other harmful gases (NOx by 27% and SOx by 100%), as well as lower emissions of PM10 particles, by 85%, and PM2.5 particles, by 85%, in all three municipalities.

Negawatt Solutions supports efficient energy production for clients

Negawatt Solutions is an energy service company (ESCO) established in 2021, which aims to utilize its expertise and commitment to contribute to more efficient and sustainable energy generation and consumption for its clients. By applying innovative ESCO and PPP financing models, the company stands out as a leader in the development of energy efficiency projects. To date, Negawatt Solutions has helped numerous clients cut their energy costs, decarbonize operations, deploy renewable energy sources, and significantly reduce their environmental footprint, while offering a full range of consulting and engineering services.

EnergyNet provides the market with top-quality equipment

EnergyNet is a company with more than 30 years of experience, boasting a line of top-quality, energy-efficient equipment for heating, cooling, ventilation, electric charging, and energy storage. With reliable products and comprehensive solutions, the company offers tailor-made systems for heating, cooling, ventilation, and energy generation from renewable sources, catering to both homes and businesses. In addition to offering consulting and installation services, EnergyNet handles the commissioning of equipment and provides support through preventive maintenance and repairs, ensuring maximum efficiency and long-term customer satisfaction.

Benefits of public-private partnerships

A public-private partnership is an exceptional opportunity for municipalities to mobilize private capital for the development of public infrastructure and investments of public interest. In addition to private capital, this model brings valuable know-how and experience of private-sector employees, making them available to the public sector. While preventing additional public debt, this concept also addresses the shortage of sufficiently qualified professional staff by facilitating continuous education for the involved parties and the exchange of know-how.

This project confirms that good teamwork is key to success: public-private partnerships and companies like EnergyNet and Negawatt Solutions offer an innovative financing model, where the private partner finances the entire investment, which is then repaid over the contractual period from savings on the cost of the new energy source compared to the previous, more expensive one. This financing model is therefore not treated as public debt, making it a particularly attractive way of addressing financing challenges, with all debt to the private partner repaid from achieved savings.

During 2024, a total of 64 boiler rooms burning fuel oil, heating oil, or coal were shut down in Serbia’s municipalities of Apatin, Odžaci, and Šid. As part of a public-private partnership project with Negawatt Solutions and B&S Immobilien, members of the EnergyNet group, boiler rooms using high-emission energy sources switched to a cleaner energy source – natural gas – greatly contributing to lower emissions, better air quality, and improved efficiency in the heating systems of public buildings in these municipalities.

The collaboration with the consortium of Negawatt Solutions and B&S Immobilien (members of the EnergyNet group) resulted in the implementation of a major project to improve energy efficiency and decarbonize heating systems at public buildings in the municipalities of Apatin, Odžaci, and Šid.

Over just 14 months, as many as 64 boiler rooms that were using fuel oil, heating oil, or coal were shut down, and new heating systems fueled by a much cleaner energy source – natural gas – were introduced at 29 elementary and high schools, 8 kindergartens, as well as other important public institutions, such as libraries, cultural centers, sports halls, and local community centers.

In just 14 months, 64 boiler rooms that used fuel oil, heating oil, and coal were shut down

Representatives of Negawatt Solutions and EnergyNet, the companies that implemented the project in partnership with the three municipalities, stated: “Thanks to the synergy we achieved by recognizing the importance of this project, obtaining more than 450 permits for connecting all these facilities to the gas distribution network and installing gas boilers was not an impossible mission. On the contrary, through our joint efforts, we accomplished it in just 14 months, sending 64 heating oil and coal boilers into history and making both society and the environment a better place.”

The project to boost energy efficiency and decarbonization was implemented through three separate public-private partnership projects with each of these municipalities. As the private partner in the projects, the Negawatt Solutions – Energy Net consortium undertook the financing, design, and construction of the infrastructure, including installing the gas generators and connecting the facilities to the gas network.

The private partner is responsible for implementing all agreed energy efficiency measures

Ankica Barbulov, co-founder and director of Negawatt Solutions, explains that in addition to financing and performing the works, the private partner also had the obligation to prepare all project and technical documentation, as well as to carry out all the procedures for obtaining the necessary permits and approvals, which numbered in the hundreds given the nature and scope of the project.

Barbulov stated: “That is one of the advantages of a public-private partnership. While the private partner assumes full responsibility for the implementation of all agreed energy efficiency measures, municipalities, as the public partner, can more easily focus on their other strategic goals.”

The private partner will be responsible for the long-term management of the project

After the first phase of the project’s implementation, the private partner will be responsible for the long-term management of the project. This includes handling fuel procurement, producing thermal energy, and supplying public buildings with thermal energy based on the public partner’s needs over the next 15 years, which is the duration of the contract. During this period, the private partner will also be fully responsible for the proper functioning of the gas generators and related equipment.

Vladimir Nikolić, co-founder and technical director at Negawatt Solutions, described the undertaking as “a project to improve energy efficiency and conserve energy, which has helped save as much as 20% of energy in each of these three municipalities. This is particularly significant in terms of conserving natural resources. However, what is perhaps even more important for the local community is its contribution to environmental protection and cleaner air.”

Local contribution to national goals

One of the key benefits of this project is its contribution to achieving both local and national climate goals. According to its Nationally Determined Contributions (NDCs) – targets for reducing harmful emissions submitted to the United Nations Framework Convention on Climate Change (UNFCCC) every five years – Serbia aims to reduce greenhouse gas emissions by 33.33% compared to the 1990 levels. Undoubtedly, the results of this project support the UN Sustainable Development Goals within the 2030 Agenda and serve as a good example to be followed.

The shutdown of heating oil boilers reduces emissions of CO2 and other harmful gases

Thanks to this project, CO2 emissions have been reduced by about 15% (116 tons per year) in public facilities in the municipality of Apatin, by about 36% (540 tons per year) in facilities in the municipality of Odžaci, and by about 13% (83 tons per year) in facilities in the municipality of Šid. In addition to cutting CO2 emissions, the shutdown of heating oil boilers has also led to reduced emissions of other harmful gases (NOx by 27% and SOx by 100%), as well as lower emissions of PM10 particles, by 85%, and PM2.5 particles, by 85%, in all three municipalities.

Negawatt Solutions supports efficient energy production for clients

Negawatt Solutions is an energy service company (ESCO) established in 2021, which aims to utilize its expertise and commitment to contribute to more efficient and sustainable energy generation and consumption for its clients. By applying innovative ESCO and PPP financing models, the company stands out as a leader in the development of energy efficiency projects. To date, Negawatt Solutions has helped numerous clients cut their energy costs, decarbonize operations, deploy renewable energy sources, and significantly reduce their environmental footprint, while offering a full range of consulting and engineering services.

EnergyNet provides the market with top-quality equipment

EnergyNet is a company with more than 30 years of experience, boasting a line of top-quality, energy-efficient equipment for heating, cooling, ventilation, electric charging, and energy storage. With reliable products and comprehensive solutions, the company offers tailor-made systems for heating, cooling, ventilation, and energy generation from renewable sources, catering to both homes and businesses. In addition to offering consulting and installation services, EnergyNet handles the commissioning of equipment and provides support through preventive maintenance and repairs, ensuring maximum efficiency and long-term customer satisfaction.

Benefits of public-private partnerships

A public-private partnership is an exceptional opportunity for municipalities to mobilize private capital for the development of public infrastructure and investments of public interest. In addition to private capital, this model brings valuable know-how and experience of private-sector employees, making them available to the public sector. While preventing additional public debt, this concept also addresses the shortage of sufficiently qualified professional staff by facilitating continuous education for the involved parties and the exchange of know-how.

This project confirms that good teamwork is key to success: public-private partnerships and companies like EnergyNet and Negawatt Solutions offer an innovative financing model, where the private partner finances the entire investment, which is then repaid over the contractual period from savings on the cost of the new energy source compared to the previous, more expensive one. This financing model is therefore not treated as public debt, making it a particularly attractive way of addressing financing challenges, with all debt to the private partner repaid from achieved savings.