Climate finance falls well short of needs in the Western Balkans, Eastern Europe and the Caucasus
According to the SEI Aid Atlas Platform (data period available 2010-2019), all donors worldwide have disbursed only about $1.3 billion in climate finance (mitigation and adaptation finance combined) to GCF member states in the Western Balkans, Eastern Europe and the Caucasus. Since the start of its operations, the GCF has committed approximately $400 million in total to the countries of the Western Balkans (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia), Eastern Europe (Moldova) and the Caucasus (Armenia, Azerbaijan and Georgia), and around $10 billion to the global scale. Most of the projects included in a $400 million funding commitment are multi-country initiatives focused on mitigation, with a significant loan component. Additionally, the GCF has committed more than $24 million in grants to the region through its Readiness and Readiness Support program.
However, more can be done to support low-carbon development trajectories in the Western Balkans, Eastern Europe and the Caucasus. It will be crucial for multilateral, bilateral and private sector partners to further mobilize climate to support countries in their climate mitigation and adaptation actions. The EU has already expressed its determination to support the Western Balkan countries stating that it will provide $9.5 billion in grants, potentially attracting $21 billion in additional investment through 2030. However, this EU commitment will not be enough. This will require the participation of other notable actors such as the World Bank, the European Bank for Reconstruction and Development and in particular the global leader in climate finance GCF, mandated to support developing countries towards low-emission and resilient development to the climate.