Serbia and the European Union have signed a €325.2mn financing agreement to support environmental protection and energy development projects under a new operational programme for the 2024-27 period, the Ministry of European Integration said on August 6.

The agreement, signed in Belgrade, includes €240mn in EU grants provided through the Instrument for Pre-Accession Assistance (IPA), with the remainder co-financed by Serbia. The programme will be managed by Serbian institutions under an indirect management model, aligning with the EU’s cohesion and regional development frameworks.

“This agreement provides substantial financial support for strengthening environmental protection and advancing the energy sector,” said Mira Radenovic Bojic, Serbia’s national IPA coordinator and state secretary at the Ministry of European Integration.

The funds will be directed toward sustainable waste management, wastewater infrastructure improvements and energy efficiency upgrades in public buildings and households. Additional investment will go into the transition to renewable energy, modernisation of water and sewage systems and measures to reduce harmful air emissions.

“In addition to infrastructure, the programme supports strategic planning, harmonisation with EU standards, and capacity-building for national and local institutions,” Radenovic Bojic said. She added that technical documentation development and enhanced cooperation with civil society and the private sector would also be key pillars.

Andreas von Beckerath, head of the EU Delegation to Serbia, called the agreement “a clear demonstration of the EU’s long-term commitment to Serbia’s EU accession path.”

“Environmental protection and sustainable energy are at the heart of the European Green Deal and essential to improving citizens' quality of life,” von Beckerath said. “This programme, combined with the new Growth Plan for the Western Balkans, aims to speed up Serbia’s alignment with EU standards and deliver concrete benefits to the public and the environment.”

The Ministry of Mining and Energy will act as the governing body for the programme, with policy oversight shared by the Ministries of Environmental Protection and of Agriculture, Forestry and Water Management. Financial management will be handled by the Ministry of Finance’s EU programme department.

Implementation will begin in 2025 and is scheduled to run through 2032, with Serbia contributing 26.2% of the total funding.