BAKU, Azerbaijan, June 10. The European Bank
for Reconstruction and Development (EBRD) is firmly committed to
balancing economic growth with environmental sustainability in the
Western Balkans, said Matteo Colangeli, the EBRD’s Regional
Director for the region, in an exclusive interview with Trend.
“Balancing economic development with environmental
sustainability is at the core of our work,” Colangeli noted. “We
are committed to supporting the transition to low-carbon, resilient
economies, ensuring that our projects contribute to long-term
sustainability”.
The EBRD has focused on embedding sustainable practices across
key sectors, particularly transportation and waste management. “We
support our clients in designing projects that strengthen
infrastructure resilience to climate change, improve environmental
standards, and minimize emissions through the adoption of
energy-efficient systems,” the regional director explained.
One of the bank’s priorities is shifting regional connectivity
from road to rail – “one of the most environmentally friendly modes
of land-based transportation”. In Serbia alone, the EBRD has
invested over one billion euros in the rail sector. “Our flagship
project is the Belgrade–Niš high-speed rail link, where we plan to
invest 550 million euros over the coming years,” he added. The
project is expected to significantly enhance connectivity and
reduce carbon emissions.
In the waste management sector, the EBRD is supporting
modernization efforts aimed at improving efficiency and
sustainability. “A prime example is our financing of the Vinča
waste-to-energy public-private partnership, which will supply 10%
of Belgrade’s heating needs and 5% of its electricity demand,”
Colangeli said. The bank is also involved in developing waste
management centres across 47 municipalities in Serbia to boost
recycling, eliminate illegal dumpsites, and align practices with EU
environmental standards.
Beyond financing, the EBRD provides technical assistance to
public authorities and utilities, supporting project preparation,
promoting sustainable practices, and enhancing implementation
capacity. “These combined efforts ensure that our projects
contribute to economic growth while fully considering environmental
and social impacts in line with best international practice,” he
said.
Boosting renewable energy capacity
To date, the EBRD has committed over 1.35 billion euros in
support of more than 1 GW of renewable energy generation across the
region. Alongside this, the bank is working with governments to
create a favorable policy environment that can attract further
private investment.
“In Serbia and Albania, we are providing policy support through
competitive and transparent renewable energy auctions,” Colangeli
explained. “These auctions are aimed at mobilizing private sector
investments for decarbonization, allocating support to nearly 1.6
GW of solar and wind capacities, driving major private sector
investment, and accelerating the deployment of renewables”.
Beyond electricity, the EBRD is targeting the decarbonization of
district heating systems – an area Colangeli described as “an
important priority that we are pursuing across the region”. One
flagship project is in Novi Sad, Serbia, where a 105 million euro
investment is funding an innovative solar-thermal project.
“This project will deploy large-scale seasonal storage, heat
pumps, and power-to-heat technology, cutting fossil fuel use and
improving air quality,” he said, noting the project’s dual focus on
innovation and environmental impact.
Energy efficiency is another pillar of the EBRD’s approach,
particularly in buildings. The bank is investing in both public and
residential building upgrades to reduce demand and enhance energy
performance.
“We are also preparing a project that targets multi-apartment
buildings, maximizing impact and supporting the shift to
consumption-based billing,” Colangeli added.
Connecting the region and the EU
Furthermore, Colangeli emphasized the bank’s commitment to
transport infrastructure development. “The EBRD is committed to
promoting connectivity within the Western Balkans as well as
between the Western Balkans and the European Union as a key factor
for economic growth and improvement of citizens’ lives in the
region,” he said.
The bank, in close collaboration with the EU and the European
Investment Bank (EIB), is financing a wide range of transport
infrastructure projects, particularly those aligned with the EU’s
Trans-European Transport Network (TEN-T) corridors. “The Bank, in
cooperation with its partner institutions such as the EU and the
EIB, has been supporting the Western Balkans countries to develop
their transport infrastructure with focus on the core corridors
which are extensions of TEN-T networks in the Western Balkans,”
Colangeli explained.
Among the major ongoing and planned projects are:
-
The Nis-Merdare highway in Serbia, part of Route 7;
-
Multiple sections of the Corridor Vc Highway in Bosnia
and Herzegovina, linking the Adriatic Port of Ploče with Central
Europe via Sarajevo; -
Rehabilitation of rail and road segments on Corridor
VIII in North Macedonia, improving access to the Bulgarian
border; -
Upgrades to Route 10 rail in Kosovo, enhancing links
with both North Macedonia and Serbia; -
In Albania, the rehabilitation of rail links between
Tirana, Durres, and Tirana International Airport, as well as
between Vore and the Montenegrin border; -
Preparations for the Durres–Rrogozhine rail section on
Corridor VIII in Albania;
-
In Montenegro, the construction of the Matesevo–Andrijevica
section of the Bar-Boljare Highway and the rehabilitation
of the Golubovci–Bar rail line, connecting the Port of Bar
with the Serbian border.
“All our investments are in line with the Paris Agreement
objectives and are developed following high environmental, social
and procurement standards,” Colangeli noted.
Beyond infrastructure development, the EBRD also offers
technical assistance for project implementation, governance
improvements, and inclusive practices. “It is important to mention
that, in addition to supporting the development of physical
infrastructure, through these projects, the Bank supports its
clients with technical cooperation for project implementation and
capacity building, enhancement of corporate governance, and
promotion of inclusive practices,” he said.
Colangeli also highlighted the bank’s collaboration with
regional governments to improve the efficiency of infrastructure
operations and encourage private sector involvement: “We work
closely with governments in the region to foster sector reforms to
improve efficiency of infrastructure operations and facilitate
greater private sector participation”.
Startups in focus: building a regional innovation
ecosystem
EBRD is also strengthening its support for early-stage
businesses across the Western Balkans as part of a broader effort
to foster innovation and competitiveness in the region. “Building
on our strong franchise on fostering SMEs’ competitiveness, the
Bank has more recently extended its focus to early-stage
businesses, investing in several venture capital funds and
mobilising know-how to develop innovation ecosystems through the
Star Venture Program,” Colangeli said.
Launched in the Western Balkans in 2019, the Star Venture
Program has so far selected over 60 high-potential startups from
the region. These companies receive tailored support through a
scaling programme that includes strategic and investment planning,
fundraising assistance, market research, business development,
branding, sales, and participation in international business
matching events.
“These start-ups are directly supported through the scaling
programme in different areas… in order to improve their business
performance and investment readiness to access finance and to be
present on the global markets,” Colangeli explained.
Beyond direct support to startups, the EBRD is also working to
strengthen the broader innovation ecosystem in the Western Balkans.
The Bank has partnered with 24 accelerators, science and technology
parks, financial institutions, and corporates across the region to
help enhance their capacity to support early-stage companies and
foster innovation.
“To strengthen the regional ecosystem, the EBRD has established
cooperation with 24 accelerators, Science and Technology Parks,
partner financial institutions and corporates, helping them improve
their capacity to better serve start-ups and become more
innovative,” said Colangeli.
He expressed gratitude to the programme’s donors for their
backing: “We are thankful to the donors supporting this program –
the EU and Luxembourg – for recognizing a growing business need in
the region and providing essential support to high-potential
enterprises that are at the early stage of their lifecycle”.
Looking ahead, Colangeli emphasized that the Star Venture
Program will continue focusing on ecosystem development, working
closely with venture capital firms and corporates interested in
supporting innovation. The initiative also aims to align more
closely with other EBRD investment platforms and identify startups
with the greatest potential.
“To date, Star Venture has directly supported over 350
early-stage companies in 26 markets, spanning the Southern and
Eastern Mediterranean, the Western Balkans, Central Asia, Eastern
Europe, the Caucasus, and Türkiye,” Colangeli noted.
According to him, portfolio startups have already raised more
than $550 million in capital and successfully expanded their
presence to global markets, including the United States, the UAE,
the EU, the UK, and beyond.
MSME support for broader economic
integration
Further speaking, the bank’s rep for the region pointed out that
the EBRD is playing a pivotal role in strengthening economic
governance and boosting competitiveness across the Western
Balkans.
“Economic governance and competitiveness are critical areas
where the EBRD leverages public sector investments to drive sector
and corporate governance reforms,” Colangeli said. He emphasized
that the bank’s efforts include regulatory reforms and direct
collaboration with public sector partners across multiple countries
in the region.
These initiatives are closely aligned with the European Union’s
Growth Plan for the Western Balkans, aiming to support the region’s
alignment with EU rules, standards, policies, and practices as part
of the broader goal of future EU membership. “We embed policy
dialogue within our investments to ensure that the impact of
projects goes beyond financing and investments to also contribute
to structural reforms,” Colangeli explained.
A key example of this approach is the SOEs Management Assistance
Reform and Transformation Programme, which integrates policy
dialogue into public sector investment projects. This program
advances commercialization efforts and tackles structural
constraints within state-owned enterprises.
In addition to working with the public sector, the EBRD also
focuses heavily on supporting micro, small, and medium-sized
enterprises (MSMEs) by improving their access to finance and
business advisory services. “Supporting MSMEs through access to
finance and business advice is another key aspect of our work,”
said Colangeli. “We foster innovation and competitiveness, helping
MSMEs grow and facilitating their integration into the Common
Regional and EU markets”.
The bank’s advisory services have reached nearly 4,000 private
sector representatives throughout the Western Balkans,
significantly enhancing project implementation capacity across the
region.
With these combined efforts, the EBRD aims to create a more
competitive, well-governed economic environment that prepares
Western Balkan countries for deeper integration with the European
Union.
