The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have joined forces to launch the SME Go Green programme, an initiative that aims to support small and medium-sized enterprises (SMEs) across the Western Balkans in adopting sustainable practices and green technologies. This programme is part of a broader regional effort to foster a green economic transition, with a focus on Bosnia and Herzegovina, where it was officially introduced at Europe House in Sarajevo on October 29.
In its initial phase, SME Go Green will direct €120 million in targeted financing to support green initiatives among SMEs throughout the Western Balkans, with ambitions to expand the financing to €400 million over the coming years. Designed to align with the Paris Agreement’s goals, the programme seeks to elevate SMEs’ access to green financing and investment incentives, promoting environmental sustainability and bolstering the region’s transition to a greener economy. Technical assistance will be offered to support SMEs in navigating new regulations and adapting to sustainable practices, thereby enhancing their capacity to compete in the global marketplace.
Aleksandra Vukosavljevic, EBRD Director for Financial Institutions in the Western Balkans and Eastern Europe, elaborated on the initiative’s objectives: “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. Our objective is to assist SMEs in aligning their products and services with the highest EU climate and environmental standards, thereby enhancing their competitiveness on a global scale.” This targeted approach will not only support SMEs in greening their operations but also position them to benefit from the growing demand for environmentally sustainable products and services.
As the principal donor, the EU is providing €25 million in grants through the Western Balkans Investment Framework (WBIF) to further green investments under the SME Go Green programme, with additional funding anticipated in future phases. According to Antonella di Sandri, Head of Operations Section for Economic Development, Natural Resources, and Infrastructure at the EU Delegation to Bosnia and Herzegovina, “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 the business environment, credit lines supported by the EU and EBRD should unlock the potential for sustainable SME finance in Bosnia and Herzegovina.”
The SME Go Green programme places particular emphasis on agriculture, focusing on strengthening climate resilience within the agribusiness value chains and promoting environmentally sustainable farming practices. One key objective is to address the vulnerabilities within the agriculture sector, helping farmers and agri-businesses build resilience to climate-related risks while also promoting efficient and sustainable use of resources. Moreover, the programme supports gender equity by ensuring that women-led SMEs receive fair access to climate finance, thereby facilitating equitable participation in the green economy. Specifically, 100 percent of the programme’s proceeds will fund green technology investments, with one-third directed at enhancing sustainability in agriculture and agribusiness, and one-quarter dedicated to supporting women-led enterprises.
In addition to driving sustainable development, SME Go Green also aims to strengthen the region’s financial sector, promoting inclusivity and resilience. By providing SMEs with the means to adopt international environmental standards and improve their production processes, the programme will increase competitiveness and trade opportunities for these enterprises. It is anticipated that this transformation will enable SMEs in the Western Balkans to access new markets and align more closely with the EU’s green economy agenda, thus paving the way for greater economic integration and sustainable growth.
The EBRD will work closely with local financial institutions to implement the SME Go Green programme, leveraging these partnerships to facilitate access to finance for SMEs and encourage widespread adoption of green practices. To date, the EBRD has made a substantial impact in Bosnia and Herzegovina, having invested over €3.2 billion through 239 projects, and this new programme represents a continuation of its commitment to fostering economic resilience and sustainability in the region.
 in Bosnia and Herzegovina transition to sustainable practices and green technologies. The initiative aims to boost green financing, foster climate resilience, and promote economic integration with the EU through grants, tailored support, and investments in green technology.){kind=link}