Serbia has introduced its first Green Budget as part of the 2025 national financial plan, allocating RSD118.5bn (€1bn) to 64 projects aimed at fostering environmental sustainability and mitigating climate change.

The initiative, included as an annex to the 2025 Draft Budget Law, prioritises infrastructure and environmental protection. It reflects Serbia’s growing efforts to modernise critical infrastructure in an environmentally responsible manner. 

While this is the first year that the Green Budget has been introduced, officials from the Ministry of Environmental Protection pointed to its potential to position Serbia as a leader in sustainable development across the Western Balkans.

More than half of the allocated funds, totalling RSD61.8bn (€528.4mn), will be directed toward six major railway and subway projects designed to reduce greenhouse gas emissions and modernise the country's transport network.

These projects include the Hungarian-Serbian railway, the railway connecting Zemun Polje in Belgrade to a planned national stadium and the Nis-Dimitrovgrad railway. Other notable investments focus on Belgrade's urban subway and railway system, sewerage infrastructure for managing municipal solid waste and comprehensive flood protection measures.

The Ministry of Finance said that the Green Budget introduces green labelling for the first time, aiming to ensure more effective resource allocation and encourage initiatives that align with Serbia’s environmental objectives. These include promoting energy efficiency, adopting renewable energy sources and improving waste and water management systems.

The National Assembly recently adopted the overarching Budget Law, which incorporates the Green Budget annex. Although comparisons with previous years are not possible due to the novelty of the initiative, experts view it as an important step towards integrating environmental concerns into national policy.