Tekst sporazuma
Executed in three (3) originals, one (1) for the Lender and two (2) for the Borrower, in Belgrade, the Republic of Serbia, on July 4, 2025.
THE BORROWER
THE REPUBLIC OF SERBIA
________________________________
Represented by:
Name: Siniša Mali
Capacity: First Deputy Prime Minister and Minister of Finance
THE LENDER
AGENCE FRANCAISE DE DEVELOPPEMENT
________________________________
Represented by :
Name: Arnaud Dauphin
Capacity: Director of Western Balkans regional office
________________________________
Co-signatory, His Excellency Mr. Pierre Cochard, Ambassador of France SCHEDULE 1: PROGRAM DESCRIPTION
| Prior actions for DPL 1 and DPL2 | Results | |||
| Prior Actions under DPL 1 | Prior Actions for DPL 2 | Indicator Name | Baseline | Target |
| Pillar I - Program Development Objective A: Align fiscal management with the climate-change agenda | ||||
| Prior Action #1: The Borrower has introduced the legal obligation to publish in-year budget execution information (covering the first six and nine months of budget execution), with functional and administrative breakdowns as in the original budget, to increase transparency in budgetary expenditures, including on environment and climate related activities, as evidenced by amendments to the Budget System Law, duly published in the Borrower’s Official Gazette No. 138, on December 12, 2022. | Prior Action #1: The Borrower has increased transparency in budgetary process by: (i) introduction of tagging of “green” budget expenditures in order to make more transparent information on spending on environment and climate- related activities by enacting amendments to the Budget System Law, Article 35, related to budgetary instructions and Article 79 related to the content of the final account, as evidenced by amendments to the Budget System Law, published in the Official Gazette No. 94/2024, dated November 28, 2024, and (ii) adoption of the annual plan for expansion of the coverage of budget beneficiaries with gender responsive budget, as evidenced by the Plan for introduction of the gender responsive budget in 2025, adopted by the Ministry of Finance on March 29, 2024. | Results Indicator #1: a) In-year reports on central government’s budget execution published. b) Number of budgetary beneficiaries which include budget program indicators on gender expenditures. | a) No (2022) b) 45 (2022) | a) Yes, two in- year reports (2025) b) 60 (2025) |
| Prior Action #2: The Borrower, pursuant to the Methodology for Fiscal Risk Monitoring, developed fiscal risk | Prior Action #2: The Borrower has introduced analysis and estimates of the possible fiscal impact of disasters-related | Results Indicators #2: The borrower started publishing the | No (2022) | Yes (2025) |
| Prior actions for DPL 1 and DPL2 | Results | |||
| models to quantify fiscal risks over the medium-term, as included in the Fiscal Strategy, and introduced the obligation to produce in-year and annual fiscal risk reports, as evidenced by Government Decision 05 No. 40-9575/2021, duly published in the Borrower’s Official Gazette No. 99, dated October 22, 2021. | events as the mandatory section of the Fiscal Strategy in order to include that information when assessing the medium- term fiscal framework starting with the 2026 Fiscal Strategy, by amending the Budget System Law article 27 related to the content of the Fiscal Strategy, as evidenced by amendments to the Budget System Law, published in the Borrower’s Official Gazette No 94/2024, dated November 28, 2024. | assessments of fiscal risks related to natural disasters in the Fiscal Strategy. | ||
| Prior Action #3: The Borrower has introduced additional environmental and climate-related criteria to evaluate public investment projects, submitted by Budget Beneficiaries to the MoF for financing from the Government’s budget, and prioritize those public investment projects with positive impact on the environment and climate change, as evidenced by the amendments to the Decree on Management of Capital Projects, duly published in the Borrower’s Official Gazette No. 139, dated December 16, 2022. | Results Indicators #3: Share of environment and climate change related projects in total capital budget | n.a. (2021) | 15 percent (2025) |
| Prior actions for DPL 1 and DPL2 | Results | |||
| Pillar II – Program Development Objective B: Accelerate the clean energy transition | ||||
| Prior Action #4: The Borrower, pursuant to the Law on the Use of Renewable Energy Sources, has (i) enabled implementation of auctions for renewable energy capacity, as evidenced by (a) the Decree on market premium model agreement (Decree 05 No. 110-9353/2021-1), and (b) the Decree on market premiums and feed-in tariff (Decree 05 No. 110-9352/2021-1), both duly published in the Borrower’s Official Gazette No. 112/2021, dated November 26, 2021; and (ii) introduced a simplified registration procedure for prosumers, as evidenced by the Decree on the criteria, conditions, and manner of calculating mutual financial claims between self-consumers and suppliers (Decree 5 No. 110-7592/2021-2) duly published in the Borrower’s Official Gazette No. 83, dated August 27, 2021. | Prior Action #3 (i): The Borrower has updated the regulatory framework for the implementation of the second auctions for renewable energy capacities, based on the amended Law on the Use of Renewable Energy Sources, published in the Borrower’s Official Gazette No. 35/23, dated April 29, 2023, in order to increase renewable energy generation capacities, as evidenced by: 1) Decree on the Quota in the Market Premium System for Wind Farms, published in Borrower’s Official Gazette No. 90/2024, dated November 15, 2024; 2) Decree on the Quota in the Market Premium System for Solar Power Plant, published in Borrower’s Official Gazette No. 90/2024, dated November 15, 2024; 3) Decision on the Maximum Offered Price for Electricity for the Needs of Auctions in the Market Premium System, published in Borrower’s Official Gazette No. 90/2024, dated November 15, 2024; and 4) Amendments to the Decree on market premium and feed in tariff published in Borrower’s Official Gazette No. 90/2024, dated November 15, 2024. | Results Indicators #4: a) Renewable energy capacity enabled with policy support (b) MW of cumulative renewable energy capacity procured through auctions. | a) 0 (2021) b) 0 (2021) | a) 750 MW (2025) b) 750 MW |
| Prior actions for DPL 1 and DPL2 | Results | |||
| Prior Action #3 (ii): The Borrower has mandated the Ministry of Mining and Energy to formulate the hydrogen development and usage program in order to decrease GHG emissions in line with the EU Acquis, as evidenced by the amendments to the Energy Law, published in the Official Gazette of the RS No. 94/2024, dated November 28, 2024. | ||||
| Prior Action #5: The Borrower has revised the Rulebook on Internal Organization and Job Systematization (Rulebook No. 110-00-00085/2021-08, dated October 7, 2021) to enable the Energy Efficiency Administration to scale up programs for residential clean energy, as evidenced by the Government Decision 05 No. 110- 10364/2021, dated November 10, 2021. | Prior Action #4: The Borrower has: (a) enabled implementation of the energy audit methodology as evidenced by the Rulebook prescribing the content of the energy audit report according to the categories of the energy audit, published in Borrower’s Official Gazette No. 63/2023, dated July 28, 2023; (b) defined the legal framework for eco-design of various energy-related products in order to promote energy efficiency related activities, as evidenced by adopted Set of Rulebooks on the Product Eco-design published in Borrower’s Official Gazette. | Results Indicator #5: Financing mobilized per year for investment in residential energy efficiency by the programs of the MoME. | US$ 0 million (2020) | US$ 38 million (2025) |
| Prior Action #6: The Borrower, pursuant to the Energy Law and in order to promote transparent, and non- discriminatory access to the distribution | Prior Action #5 (i): The Borrower has approved the transformation of the legal form of the power company “Elektroprivreda Srbije” from a public | Results Indicator #6: a) The distribution system operator is fully | a) No (2021) | a) Yes (2025) |
| Prior actions for DPL 1 and DPL2 | Results | |||
| grid for renewable energy prosumers and electricity retail service providers, has separated the Borrower-owned distribution system operator (“EPS Distribucija Ltd. Belgrade”) from the Borrower-owned power company (“PE Elektroprivreda Srbije”), by establishing and licensing a separate, and independent Borrower-owned legal entity (“Elektrodistribucija Srbije Ltd. Belgrade”), as evidenced by the Consolidated text of the Decision on the Incorporation of the “Elektrodistribucija Srbije Ltd. Belgrade”, No. 2460800- 08.01-183456/1-22, dated April 28, 2022, notarized under certification No. UOP-T 12-2022, dated July 7, 2022. | enterprise into a joint-stock company, as evidenced by Government Decision 05 No.023-3090/2023, dated April 6, 2023, published in Borrower’s Official Gazette No. 27/2023, dated April 7, 2023. Prior Action #5 (ii): The Ministry of Environmental Protection issued first GHG emissions permits to the thermal power, cogeneration and heating plants of the ”Elektroprivreda Srbije” JSC, based on previously approved GHG emission monitoring plans, for the purpose of measurement and reporting of carbon emissions of “Elektroprivreda Srbije” JSC, pursuant to the provisions of the Law on Climate Change, as evidenced by the public list of issued permit, published by the MoEP. | unbundled from generation and supply activities. b) Percent of power plant output with approved carbon emissions monitoring system. | b) 0 (2021) | b) 95% (2025) |
| Prior Action #7 The Borrower: i) has expanded the benefits coverage for energy-vulnerable customers, as evidenced by the Decree on Energy Vulnerable Customers (Decree 05 No. 110-9890/2022-1), duly published in the Borrower’s Official Gazette No. 137/2022, dated December 9, 2022; and (ii) through its Council of the Energy Agency, has approved an increase of | Results Indicator #7: (a) Share of households receiving rebates to their energy bills under the protection program for Energy Vulnerable Customers. (b) Percent increase in | a) 2.7% (2021) b) 3.4% | a) 6.4% (2025) b) 15% (2025) |
| Prior actions for DPL 1 and DPL2 | Results | |||
| the electricity tariff for guaranteed supply to achieve sustainable tariff levels over the medium term, as evidenced by (a) Council of the Energy Agency of the Republic of Serbia Decision No. 487/2022-D-02/1, dated July 28, 2022, duly published in the Borrower’s Official Gazette No. 83/2022, dated July 28, 2022; and (b) Decision No. 791/2022-D- 02/1, dated November 28, 2022, duly published in the Borrower’s Official Gazette No. 131/2022, dated November 29, 2022. | the average electricity price for customers entitled to a guaranteed supply at regulated prices (households and small-scale customers). | (2021) | ||
| Pillar III – Program Development Objective C: Strengthen the legal framework for GHG mitigation and pollution management | ||||
| Prior Action #8: The Borrower has introduced a Monitoring Reporting and Verification system for industrial installations to align with the EU’s Emission Trading System, as evidenced by the adoption of (i) Decree on types of activities and greenhouse gases which require an emissions permit (Decree 05 No. 110-817/2022), duly published in the Borrower’s Official Gazette No. 13/2022, dated February 4, 2022; and (ii) Rulebook on verification and accreditation of verifiers of greenhouse gases emissions reports (Rulebook No. 110-00-00057/2021-04), duly published | Prior Action #6: The Borrower has created a legal and institutional environment to strengthen the economywide monitoring and reporting of GHG emissions, as evidenced by: 1) the Rulebook on the content of the GHG inventory, published in Borrower’s Official Gazette No. 55/2023 on July 7, 2023; 2) the Decree types of data, bodies and organizations that submit data, published in Borrower’s Official Gazette No. 43/2023, dated May 5, 2023; 3) the Rulebook on Monitoring and Reporting of GHG emissions that enabled the operationalization of a national MRV IT | Results Indicator #8: a) Percentage of GHG permits issued relative to the number of submitted applications from operators; b) Establishment of GHG permitting IT tool; c) Number of capacity building trainings for | a) 0% (2020) | a) 40% (2025) |
| Prior actions for DPL 1 and DPL2 | Results | |||
| in the Borrower’s Official Gazette No. 107/2021, dated November 12, 2021. | platform as well as the GHG permitting system (published in Borrower’s Official Gazette 118/2023, dated December 28, 2023); and 4) the adoption and publication of the first National Inventory of GHG emissions, as evidenced by the Government Decision 05 No. 353- 11715/2024-2, dated December 5, 2024. | operators of stationary installations and for competent authority. | b) No (2020) c) 0 (2020) | b) Yes (2025) c) 7 (2025) |
| Prior Action #9: The Borrower has aligned national policy and legislation with the EU Waste Framework Directive, as evidenced by the (i) adoption of the National Waste Management Program and Action Plan through Government Decision 05 No. 353-588/2022-1, duly published in the Borrower’s Official Gazette No. 12/2022, dated February 1, 2022, and (ii) submission to the Parliament of the Amendment to the Law on Waste Management, through Government notice 05 No. 011- 10810/2022-2, dated December 30, 2022. | Prior Action #7 (i): The Borrower has developed a strategic and legislative framework for sludge management in order to align with the EU sludge legislation, as evidenced by: 1) the National Sludge Management Program and Action Plan, published in the Borrower’s Official Gazette No. 84/2023, dated October 5, 2023, and 2) the Decree on Sewage Sludge Management, published in Borrower’s Official Gazette No. 103/2023, November 21, 2023. Prior Action #7 (ii): The Borrower has adopted legislation needed for environmentally sound management and increased reuse and recycling rates of the construction waste by adopting the Decree on management of construction and demolition waste, published in Borrower’s Official Gazette No. 93/2023, dated October 27, 2023, as corrected pursuant to the corrigendum published in | Results Indicator #9: a) Accessibility of the population to sanitary landfills in the Republic of Serbia; b) Number of unsanitary landfills under remediation; c) Multiple management/disposal options for sewage sludge created in Serbian strategic and legal framework. | a) 42% (2021) b) 0 (2020) c) No (2020) | a) 55% (2025) b) 4 (2025) c) Yes (2025) |
| Prior actions for DPL 1 and DPL2 | Results | |||
| Borrower’s Official Gazette No. 94/2023, dated October 30, 2023. | ||||
| Prior Action #10: The Borrower has aligned national policy and legislation with the EU National Emissions Ceiling Directive and the Air Quality Framework Directive, as evidenced by adoption of the Air Protection Program in the Republic of Serbia for the period from 2022 to 2030 with an Action Plan, including specific interventions to address emissions from medium combustion plants, duly published in the Borrower’s Official Gazette No. 140, dated December 22, 2022. | Prior Action #8: The borrower has enabled issuance of emission permits through the new online portal by adopting: 1) the Rulebook on the application for an integrated pollution prevention and control permit, as published in Borrower’s Official Gazette No. 4/2024, dated January 19, 2024; and 2) the Rulebook on the format and content of the application for integrated permit, published in Borrower’s Official Gazette No. 4/2024, dated January 19, 2024. | Results Indicator #10: a) Share of medium combustion plants (MCPs) with a thermal power from 1 to 50 MW out of the total number of MCPs registered in the National Register of Pollution Sources database. b) Number of integrated permits issued. | a) 0 (2020) b) 36 (2020) | a) 35% (2025) b) 55 (2025) |