EBRD and EU expand green finance programme for SMEs across the Western Balkans

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their support for small and medium-sized enterprises (SMEs) in the Western Balkans through the next phase of the SME Go Green Programme, reinforcing efforts to accelerate the region`s green transition.

The initiative, which was launched in 2023, has generated strong demand among businesses seeking financing for environmentally sustainable investments. Building on its early success, the European Commission and the EBRD confirmed at the EBRD`s 2026 Annual Meeting and Business Forum in Riga that they will continue implementing and scaling up the programme with additional funding from the Western Balkans Investment Framework (WBIF).

The expanded programme will help SMEs in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia gain greater access to green financing. During its second phase, the initiative is expected to provide up to EUR 233 million in EBRD credit lines through local partner financial institutions. These funds will be complemented by up to EUR 23,3 million in investment incentives for eligible businesses and EUR 5,6 million in technical assistance.

The financing package is designed to support investments in technologies and solutions that reduce environmental impacts, improve energy and resource efficiency, strengthen resilience to climate-related risks and enhance business competitiveness. By lowering the cost of green investments, the programme aims to encourage wider adoption of sustainable practices among SMEs throughout the region.

Under the programme’s structure, local financial institutions on-lend EBRD funds to eligible businesses. EU-backed investment incentives help reduce the financial burden of implementing green projects, while technical assistance supports project preparation, verification processes, awareness campaigns and capacity-building activities for both lenders and borrowers.

Photo: EBRD