Publication: Western Balkans 6 Country Climate and Development Report
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Published
2024-07-16
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2024-07-16
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This Regional Western Balkans Countries Climate and Development Report (CCDR) stands out in several ways. In a region that often lacks cohesive regional alliances, this report emphasizes how the challenges faced across countries are often common and interconnected, and, importantly, that climate action requires coordination on multiple fronts. Simultaneously, it illustrates the differences across countries, places, and people that require targeted strategies and interventions. This report demonstrates how shocks and stressors re intensifying and how investments in adaptation could bring significant benefits in the form of avoided losses, accelerated economic potential, and amplified social and economic spillovers. Given the region’s high emission and energy intensity and the limitations of its current fossil fuel-based development model, the report articulates a path to greener and more resilient growth, a path that is more consistent with the aspiration of accession to the EU. The report finds that the net zero transition can be undertaken without compromising the economic potential of the Western Balkans and that it could lead to higher growth than under the Reference Scenario (RS) with appropriate structural reforms.
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“World Bank Group. 2024. Western Balkans 6 Country Climate and Development Report. CCDR Series. © World Bank Group. http://hdl.handle.net/10986/41881 License: CC BY-NC-ND 3.0 IGO.”
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After increasing to levels not seen in several decades, inflation rates in the WB6 fell significantly during 2023. Growth projections for the medium term have increased slightly, reflecting cautious optimism that, having weathered a flurry of shocks over recent years, the Western Balkans is beginning to see a return to trend economic performance. However, while the WB6 region is expected to return on its pre-pandemic trend in 2024, this is insufficient to enable meaningful convergence with European Union (EU) income levels over the medium term. The spotlight in this edition of the Western Balkans Regular Economic Report focuses on the role of cities as engines of growth and leading actor in the green transition. This spotlight recommends action on three main fronts to make cities in the Western Balkans greener. First, it is crucial to reduce urban sprawl and make cities more compact. 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In the medium term, the Western Balkans continues to have a positive outlook, but reforms are needed to rebuild buffers, accelerate the green transition, and to address key structural challenges. The ongoing energy crisis has highlighted the need to accelerate the green transition across Europe, including in the Western Balkans. A key starting point in this regard is to accelerate the move toward carbon pricing and to increase the use of environmental fiscal measures that incentivize households and firms to shift toward lower carbon intensity with respect to economic activity.
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