Balkans

Serbia’s national electricity company (EPS) – despite its long-standing relationship with the EBRD, and despite Serbia‘s obligation to align its legislation to the EU’s environmental, competition, human rights and climate policies – does not plan to reduce greenhouse gas emissions, to change the structure of its electricity mix in favour of renewables, or to respect human rights.

Disbursing public money via private-sector controlled financial intermediaries (FIs) is a means to an end: reaching a larger set of smaller beneficiaries. It has its strong rationale, in particular when it comes to renewable energy projects that, in contrast to traditional energy projects, tend to be smaller in size and dispersed over larger areas. Nevertheless, these financial means must not contravene the ends that multilaterals such as the EBRD have in their mandate or the standards prescribed by their policies.

This briefing analyses ten coal-fired power plant projects across the Western Balkans and finds that, once the cost of carbon emissions allowances are factored in, they could become a serious liability for both the companies involved and the public.