Assessment of Sustainable Finance in Western Balkans: Prospects for Sustainable Finance Taxonomy

29 November 2024 | REPORT

The goal of the report "Assessment of Sustainable Finance in Western Balkans: Prospects for Sustainable Finance Taxonomy" is to evaluate the sustainable finance landscape in WB and offer recommendations for a regional finance taxonomy aligned with EU standards. Through interviews with financial institutions and reviews of regulatory frameworks, the project identified key challenges like fragmented market practices, lack of regulatory clarity, and limited financial sector reach. While sustainable finance products are available, barriers such as high costs, lack of expertise, and limited demand persist.

To overcome these challenges, the report recommends capacity building, stronger policy advocacy, and enhanced regional collaboration. Proposed strategic actions include creating a Regional Coordination Body (RCB) to synchronize efforts across WB, aligning investments with sustainability goals, and prioritizing sectors with high environmental impact, like energy and transport. Additionally, it calls for public consultations, a detailed action plan, and continuous monitoring to ensure effective taxonomy implementation and alignment with EU and global standards.

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