EBRD And EU Expand SME Go Green Programme With €233 Million In New Financing For Western Balkans Businesses

The European Bank for Reconstruction and Development (EBRD) is expanding its SME Go Green Programme across the Western Balkans with additional support from the European Union through the Western Balkans Investment Framework (WBIF), following strong demand and positive results since the initiative was launched in 2023.

The expansion was confirmed during the EBRD’s 2026 Annual Meeting and Business Forum in Riga, where the European Commission and the EBRD agreed to continue and strengthen the programme. The new phase is expected to provide greater access to green financing for small and medium-sized enterprises (SMEs) across Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia.

Under the second phase of the programme, up to €233 million in EBRD credit lines will be made available through partner financial institutions across the region. The financing will be supported by up to €23.3 million in EU-funded investment incentives for eligible businesses, along with €5.6 million dedicated to technical assistance and capacity-building activities.

The programme is designed to help SMEs invest in technologies and solutions that improve energy efficiency, reduce environmental impact, strengthen climate resilience, and enhance overall competitiveness. Businesses will be able to access financing for projects that support more sustainable operations while reducing energy consumption and resource use.

Through the SME Go Green Programme, local banks and financial institutions provide loans backed by EBRD funding to eligible businesses. To make green investments more affordable, the European Union supports the programme through investment incentives that lower the overall cost of projects for participating SMEs.

In addition, technical assistance is provided to support project preparation, verification processes, awareness campaigns, and training for both financial institutions and business owners.A key focus of the programme is supporting sectors and businesses that can play a significant role in the region’s green transition.

Particular attention is being given to agribusiness value chains, renewable energy investments, and women-led enterprises. The initiative also helps SMEs align their operations with European Union standards, improving their ability to compete in domestic and international markets and opening up new growth opportunities.The expanded programme builds on strong momentum achieved during its first phase.

By mid-2025, the EBRD had already provided €110 million in financing to 15 partner financial institutions across the Western Balkans. These funds supported a wide range of green investments by SMEs, helping businesses modernise their operations, improve energy performance, and reduce their exposure to rising energy costs and climate-related challenges.

According to the EBRD, investments supported under the programme have already delivered meaningful energy savings and carbon emission reductions while strengthening the resilience and long-term sustainability of participating businesses.With the launch of this second phase, the EBRD and the European Union aim to meet growing demand for green finance across the Western Balkans and accelerate the region’s transition to a more sustainable economy.

By providing access to financing, investment incentives, and technical expertise, the programme is expected to help SMEs play a larger role in driving innovation, sustainability, and economic growth in the years ahead.