The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) will secure up to €400mn in financing for the Western Balkans over the next five years to support the region’s green and sustainable transition, the EBRD said in a statement.

“In its initial phase, the programme will provide €120mn of targeted SME financing in the Western Balkans region, scaling up to €400mn over the next few years,” the EBRD said in a statement on October 31.

The SME Go Green programme aims to secure access to finance for small and medium-sized enterprises to speed up their sustainable growth.

“The SME Go Green programme aims to facilitate the adoption of sustainable practices by local SMEs while equipping them with the necessary tools to excel in their particular areas,” Aleksandra Vukosavljevic, EBRD director for financial institutions, Western Balkans and Eastern Europe, said in the statement.

The EU will support green investments with €25mn in grants through the Western Balkans Investment Framework (WBIF).

“The SME Go Green Programme aims to help SMEs in the Western Balkans leverage green and digital transformation for enhanced economic integration with the EU. Coupled with the reforms in business environment, credit lines supported by the EU and EBRD should unlock the potential for sustainable SME finance in Bosnia and Herzegovina”, said Antonella di Sandri, head of the operations section for economic development, natural resources and infrastructures within the EU Delegation to Bosnia.