Second Serbia Green Transition Programmatic Development Policy Loan

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The development objective of Second Serbia Green Transition Programmatic Development Policy Loan (DPL) Project is to support Serbia’s efforts to align fiscal management with climate change goals; accelerate the clean energy transition; and strengthen the legal framework for GHG mitigation and pollution management. The government of Serbia’s policy and legislative agenda shows increasing awareness of the necessity to pursue a more environmentally and climate-friendly agenda, which is at the same time growth enhancing. This DPL supports the aspirations of the Serbian government on the energy and climate fronts, as defined in the government’s Reform Agenda. The DPL is conducive to achieving the overarching goal of the Serbia Country Partnership Framework (FY22-26) on fostering growth that is sustainable across generations and is coordinated with other World Bank engagements. The operation is aligned with the Maximizing Finance for Development-enabling (MFD-e) approach, and private investment generated through the operation is counted towards Private Capital Enabling (PCE). This operation is aligned with the goals of the Paris Agreement. First, the DPL reform program is consistent with the country’s climate commitments. The objective of the programmatic series is to support the Government of Serbia’s efforts to: 1) align fiscal management with the climate-change goals, 2) accelerate the clean energy transition, and 3) strengthen the legal framework for GHG mitigation and pollution management.