The World Bank Board of Executive Directors today approved a loan in the amount of EUR 31 million to support Montenegro in its efforts to decarbonize the energy sector and accelerate the transition to a low-carbon economy.
As announced by the World Bank, the objective of the Montenegro Energy Sector Decarbonization Project is to improve energy efficiency of public buildings, with a focus on the Montenegro National University and several administrative buildings. Also, the objective is to enable the integration of additional renewable energy capacity into the power distribution grid in Montenegro while enhancing the reliability of the grid and its resilience to climate change.
“This project plays an important role in supporting Montenegro’s energy transition agenda and efforts toward a modern, sustainable energy sector,” said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. “The project will also create better and more comfortable conditions for University students and academic staff.”, said Sheldon.
The project is expected to bring significant energy savings, a reduction in greenhouse gas emissions and a more resilient energy infrastructure. It will support Montenegro’s commitment to decarbonize its energy sector and achieve carbon neutrality by 2050, in line with the European Union’s objectives.
The approval of the Energy Sector Decarbonization Project coincides with the release of the World Bank Group’s Country Climate and Development Report for Montenegro.
This report provides a comprehensive roadmap for sustainable development and climate resilience, emphasizing the importance of expanding renewable energy sources such as wind and solar alongside Montenegro’s existing hydroelectric capacity.
It also highlights the key need to invest in energy efficiency and other key measures as part of a broader decarbonization strategy.