Kragujevac, the fourth-largest city in Serbia, will make a big leap in its transition away from coal, thanks to an €18 million loan provided by the European Bank for Reconstruction and Development (EBRD) for the decarbonisation of the district heating system. The EBRD loan will finance the decommissioning of coal boilers in the city’s district heating system, the installation of new natural gas boilers and the management of an open ash-disposal site. The financing will be complemented by technical support to the district heating company to help further decarbonise the heat supply and introduce renewable energy sources.

In coordination with the European Union, the EBRD will also support Serbia in the preparation of a national energy and climate plan. The plan will define goals for reducing emissions, increasing energy efficiency and boosting the share of renewable energy sources by 2030. The EBRD, owned by 69 countries, as well as the European Union and the European Investment Bank, is a leading institutional investor in Serbia. The Bank has invested more than €6.6 billion across 286 projects in the country to date and is focusing on support for private-sector development, the improvement of public utility services and the overall transition to a green economy.