In Belgrade, the Western Balkans Green Growth Alliance was presented at a conference organized by the International Finance Corporation (IFC), a member of the World Bank, in collaboration with the Ministry of Finance of Austria and the Ministry of Finance of Hungary. The goal of the event was to encourage the green transition in the region by supporting the private sector in reducing carbon dioxide emissions and adopting sustainable practices. One of the key workshops at the conference was "Tourism, Trade, Real Estate, and Services: Developing Sustainable Supply Chains – Opportunities for the Western Balkans." The workshop was moderated by Evelyn Smith (IFC) in conversation with Aleksandra Njagulj, founder of Sustineri Partners, the organization behind the ESG Adria Summit. On this occasion, we discussed the opportunities that this topic holds for the economic development of the region.
"The countries of the Western Balkans must not lose focus and momentum in the green transition, despite changes in political attitudes toward ESG and the upcoming omnibus review of key EU sustainability regulations. Sustainability, and especially transition and physical risks related to climate change, are now an integral part of financial systems – from insurance to crediting to investments – and this will not disappear," emphasized Njagulj.
Njagulj points out that the economy and prosperity of the Western Balkans will continue to depend on the region's ability to adapt and achieve resilience in a changing world. "Tourism, trade, real estate, and services are key sectors that can drive the green transition, but we must act immediately to protect natural resources and ensure sustainable growth," she added.
Our interlocutor reminded us that adopting practices such as the circular economy and aligning with EU regulations, such as the Directive on Single-Use Plastics, can significantly contribute to environmentally friendly business practices. "Set clear thresholds that businesses can work with," she added, emphasizing the need to balance regulations to avoid unintended consequences.
"At the same time, the construction sector represents one of the most significant opportunities for sustainability in the region. Buildings consume almost 40% of global energy, while much of the building stock in the Western Balkans dates back to before modern energy efficiency standards," said Njagulj. As a positive example, she mentioned the renovation of the Sava Center in Belgrade, which received the BREEAM certification thanks to solutions like triple-glazed windows, solar panels, and green spaces. "Our businesses and infrastructure must adapt. We must create conditions where this is not an exception but the rule," she added.
Njagulj warned that cities in the region are increasingly feeling the consequences of climate change, such as heatwaves, floods, and air pollution. "Green spaces, such as urban parks, tree-lined streets, and vertical gardens, play a key role in mitigating the effects of urban heat islands, improving air quality, and enhancing biodiversity," she added, emphasizing the importance of projects like the restoration of the banks of the Sava and Danube rivers.
Speaking about logistics and infrastructure, Njagulj highlighted that the transition to electric vehicles and energy-efficient models can significantly reduce carbon dioxide emissions. She also pointed to the importance of green financial support, such as IFC investments in renewable energy and energy efficiency projects. "Sustainability is already integrated into conversations in the financial sector – it simply means good business," she added, stressing the connection between sustainability and economic benefits.
"Climate change is no longer a distant threat – it is here. The region needs $37 billion in investments in the next decade, with 85% coming from the private sector. Every investment brings a fourfold return through avoided losses and economic benefits," concluded Njagulj, adding that these data come from the recently published World Bank report on climate and development for the Western Balkans.
The conference featured speeches by Ines Rocha, Regional Director for Europe at IFC, Christian Ebner, Ambassador of Austria to Serbia, Andrijana Jovanović, State Secretary of the Ministry of Economy of Serbia, Naser Nuredini, former Minister of Environment of North Macedonia, Miroslav Gligorijević, Director of TITAN Serbia, Branimir Muidža, Director of Kakanj Cement Factory and HeidelbergCement Group, Dejana Backović, CFO of KappaStar Group, Tatjana Shterjova Dushkovska, General Secretary of the Western Balkans 6 Chamber Investment Forum, Edlira Muka, Director of Balfin Group, Clemens Stadler, Director of Investment Financing at the Development Bank of Austria, Adrian Stanculescu, Partner at Abris Capital, Vedrana Jelušić, Board Member and Director of Corporate Clients at PBZ (Intesa) Croatia, Marko Carević, Director of Ananas Group, Monika Mikac, Director of NAD Capital, Darko Vuković, Vice President of Finance at Elixir Group, Todorka Ristovska, Director of Liberty Steel, and Nicolas Marquier, Regional Manager for the Western Balkans at IFC.
"The fact that IFC is working on this and that we have actors from important companies with an impact on behaviour change, shows that we still have a chance. We must not miss it," concluded Njagulj.
The continuation of the discussion on the green transition is expected in April at the ESG Adria Summit, where leaders from the region and key representatives from the business and financial sectors will discuss these issues in Montenegro.
