The European Bank for Reconstruction and Development (EBRD), in collaboration with Crnogorska komercijalna banka (CKB), is supporting the green transition in Montenegro by providing favorable financial resources for implementing ecological and energy-efficient measures in businesses and homes.
As announced, the EBRD will provide a financial package of up to EUR 12 million to CKB, which includes grants from the European Union (EU) and the Government of Japan, for further lending to Montenegrin companies and households to improve energy efficiency and reduce carbon dioxide (CO2) emissions.
The signing of this financial agreement was attended by Matteo Patrone, EBRD Vice President for Banking, Yngve Engstroem, Head of Cooperation at the EU Delegation in Montenegro, and Tamás Kamarási, Chairman of the CKB Supervisory Board.
Patrone expressed pride in continuing to support Montenegro’s transition to green energy by financing energy efficiency improvements in the housing sector and small and medium-sized enterprises (SMEs). He said, “These investments will help families improve the comfort of their homes and reduce energy bills, while enabling Montenegrin companies to increase their competitiveness by meeting environmental standards.”
Engstroem noted that investments in the green economy are a win-win for all involved – less pollution, lower costs, and better quality of life and business environments. “This is a smart way to use EU grants,” he added.
Kamarási highlighted that CKB, as the largest bank in Montenegro, is proud to play a key role in supporting the country’s most important projects. “Our green agenda is a vital part of our business strategy. We believe that integrating ecological sustainability into our business and services is essential for long-term success. By supporting green initiatives and projects, we not only contribute to Montenegro’s environmental goals but also promote innovation, competitiveness, and economic growth across every sector we serve. As our slogan says, ‘We are here’ to support Montenegro’s progress while building a sustainable future for the next generations,” Kamarási said.
Up to EUR 7 million from the financial package will be allocated to SMEs for green investments, including energy efficiency, resource efficiency, and renewable energy projects. These investments will help local businesses align their operations with European Union (EU) standards, improving their competitiveness in both domestic and EU markets.
The funds are available through the EU’s “SME Go Green” program, which was launched last year in Montenegro and the rest of the Western Balkans. These loans will be complemented by EU-funded grants.
“After the successful completion of investment projects, SMEs will be eligible for a 10% refund of the total loan amount, while investments in renewable energy and the agro-industry value chain will be eligible for a higher reimbursement rate of 15%,” the statement clarifies.
Homeowners and residential communities will also have access to green financing as a result of this initiative. Up to EUR 5 million from the EBRD fund will be allocated to support investments by homeowners in highly efficient green technologies, such as thermal insulation, energy-efficient heating and windows, heat pumps, and solar panels.
“In addition to these loans, homeowners and residential communities will receive grants in the form of a refund of up to 20% of the loan value after the successful installation of energy-efficient technologies. These funds will also support the construction of new green residential buildings in the public sector,” the statement adds.
The financial resources are provided through the EBRD’s Green Economy Financing Facility (GEFF), which has helped more than 20,000 households in the Western Balkans improve the energy efficiency of their homes. GEFF activities in the Western Balkans are co-financed by the EU through the Western Balkans Investment Framework (WBIF), the governments of Austria, Denmark, and Japan, as well as Austria and Switzerland through the High Impact Climate Action Partnership.
