The European Union is committed to integrating the Western Balkans into its energy and climate frameworks as part of the enlargement process. Financial support is already in place to aid the region’s transition to sustainable energy systems. Combined, the Instrument for Pre-Accession III, the Reform and Growth Facility, and the EU Energy Support Package offer more than EUR 20 billion in grants and loans across sectors.
In the energy sector, new funding under the EU Growth Plan for the Western Balkans is expected to accelerate reforms tied to the Energy Community Treaty, which connects the EU’s neighbours to its energy market. These reforms are also aimed at supporting ongoing EU accession talks.
But progress is not only about aligning with treaty obligations. Meeting these commitments is a prerequisite for restructuring the electricity sector and attracting much-needed private investment. The electricity and heat sector alone will require investment of EUR 31–36 billion, according to the Energy Community Secretariat.
NECPs Offer a Path Forward
A key priority is implementing National Energy and Climate Plans (NECPs) and setting up systems to monitor greenhouse gas emissions. NECPs serve as a roadmap for aligning with EU energy and climate goals. The legal and political groundwork already exists through the Energy Community Treaty, the 2020 Green Agenda for the Western Balkans, and relevant EU regulations.
In 2021, the Energy Community recommended the development of NECPs, mirroring EU governance practices. Though non-binding, the recommendation outlines a structured process for submission and reporting. The Green Agenda, endorsed in 2020, further commits the region to preparing NECPs consistent with EU climate targets.
In 2022, the Energy Community adopted a Monitoring, Reporting, Verification and Accreditation (MRVA) package. This aligns the region with key parts of the EU Emissions Trading System and includes obligations under the EU’s Monitoring and Reporting, and Accreditation and Verification Regulations.
Lagging Implementation
Western Balkan countries were legally required to adopt relevant legislation by the end of 2023 and to begin implementation in 2024, with full operationalisation targeted for January 2026.
Encouragingly, all countries have submitted draft NECPs to the Energy Community Secretariat, outlining 2030 emission targets and related policy actions. However, MRV systems remain underdeveloped. According to the Energy Community’s 2024 report, most countries have yet to establish national emissions inventory systems or comply with MRVA rules.
The delay is partly due to limited political will, but also reflects systemic institutional challenges. National ministries often lack adequate staffing and expertise. A World Bank assessment found that most climate institutions in the region remain in the early stages of development.
A further hurdle is the shortage of accredited verifiers needed to confirm emissions reports. While accreditation agencies exist, few currently provide GHG verification services.
Funding and Digital Gaps
Financial constraints are another major obstacle. Many agencies lack stable funding for MRVA tasks such as inventory updates, digital platforms, and training. Donor-funded initiatives help bridge the gap, but dedicated EU funding is needed to ensure continuity.
Digitalisation is also lagging. Western Balkan countries rank low in the UN E-Government Development Index. Yet digital infrastructure is critical, as MRVA systems rely on online platforms for submitting and reviewing emissions data.
Political Momentum Needed
Some countries have begun developing MRVA systems. To accelerate progress, technical and institutional barriers need to be addressed, with support from the Energy Community Secretariat and European Commission.
But stronger political commitment from Western Balkan governments is also essential. This could be encouraged through incentives beyond EU membership prospects. Options include integrating the region into the EU carbon market or accelerating electricity market coupling—measures that could signal clear benefits for compliance.
Such steps could boost investor confidence and help lock the region into the EU framework, advancing gradual integration while driving essential reforms.