The Western Balkans consists of six upper-middle-income economies: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. These economies have shown significant growth over the past two decades, with a doubling of their economic output from 2000 to 2022 and achieving a corresponding increase in per capita income.
A recent World Bank report suggests that in order to reduce the climate impact of continued growth, the six economies of the Western Balkans need to collectively invest at least $37 billion over the next decade to effectively protect people and property from the damaging and escalating impacts of climate change. The reports delve into how the public sector–including decentralized governance and local-level interventions–can help strengthen climate action.
Strengthen Decentralized Climate Action and Local Governance
Climate risks and challenges are highly localized in nature: the risks of wildfires and land slides is considerably greater in some communities than others. Similarly, air pollution and methane emissions vary in a localized manner.
Although the World Bank report does not necessarily emphasize decentralization as a specific strategy in support of climate resilience, the report notes that local governments are well-positioned to take tailored actions that address specific climate challenges in their municipalities. In the Western Balkans, local governments manage essential services, such as water, waste, and energy, which are directly impacted by climate change. However, these municipalities often face significant capacity gaps that hinder effective climate action. The report stresses the need for stronger governance frameworks to enable governance institutions at all levels to manage climate financing effectively and transparently. This includes ensuring that local authorities have access to funding mechanisms such as green bonds and that they are held accountable for the proper use of these resources. Municipalities should also strengthen their technical capacity to engage in climate-smart urban planning, ensuring that decisions are informed by the latest data on climate risks and adaptation options.
Improve Waste and Water Management
Managing waste and water effectively is one of the critical services local governments provide. Poor waste management—especially the widespread open burning of waste—contributes significantly to methane emissions, which are potent drivers of climate change. Local governments need to modernize waste collection and disposal systems to reduce methane emissions and prevent the environmental and health hazards caused by landfill fires. Water management is equally important, as the region faces both flooding and water scarcity. Local authorities should invest in modernized irrigation systems, real-time water monitoring, and flood defense systemsto ensure reliable water supply and protect communities from flood risks. Additionally, upgrading water infrastructure is crucial to ensuring the sustainability of the water supply and reducing the impacts of droughts and floods, which are becoming more frequent due to climate change. To address these challenges, municipalities require better access to financial and technical resources. Innovative funding mechanisms, such as green bonds and public-private partnerships, can support investments in climate-smart infrastructure and services.
Urban Development: Remodeling Cities for Climate Adaptation
Urban areas across the Western Balkans face growing climate risks, including flooding, extreme heat, and pollution. Despite population declines in the region, cities are expanding spatially, making them more vulnerable to climate hazards. Unplanned urban sprawl exacerbates risks by putting more people and assets in harm’s way while aging infrastructure compounds the problem. Local governments can take the lead in transforming cities into climate-resilient urban centers. This can be achieved through green urban planning, which includes integrating green spaces such as parks, green roofs, and urban forests into city designs. These natural solutions help reduce urban heat island effects, absorb excess stormwater, and improve air quality. Cities should also prioritize investments in resilient infrastructure, particularly in flood defenses and sustainable transport. Upgrading public transport systems to reduce reliance on private cars can cut greenhouse gas (GHG) emissions and improve air quality while modernizing drainage systems will better protect against flash floods, which are expected to become more frequent and intense. For instance, the CCDR mentions initiatives like Serbia’s “Green Livable Resilient Cities” program, which aims to support low-carbon and climate-resilient urban development.
Support Vulnerable Communities
Climate change disproportionately affects vulnerable communities, including low-income households, rural populations, and ethnic minorities. Local governments must prioritize the protection of these groups by implementing targeted adaptation measures. This can include investing in social protection programs, improving access to healthcare, and ensuring that disaster preparedness plans address the needs of vulnerable populations. The report also highlights the importance of public participation in climate action. Local governments should engage citizens in the decision-making process through public consultations, awareness campaigns, and participatory budgeting for climate projects. This will ensure that the voices of vulnerable groups are heard and that climate policies are designed to be inclusive and equitable.
Prioritize Climate-Smart Agriculture and Rural Development
One way to address these vulnerabilities is by promoting climate-smart agriculture in rural regions. Local governments can play a crucial role by providing farmers with access to resources and training on sustainable practices, such as using drought-resistant crops, improving soil health, and implementing modern irrigation systems. These measures not only help farmers adapt to climate change but also contribute to food security in the region.
Disaster Risk Management
Local governments must also take the lead in disaster risk management by improving early warning systems and disaster preparedness. Regional early warning systems, which provide real-time data on climate hazards, can help municipalities respond quickly and effectively to disasters. By investing in such systems, local governments can reduce the loss of life and property caused by extreme weather events.
Cross-Border Cooperation: A Regional Approach to Shared Risks
Many climate hazards, such as floods and wildfires, do not respect national borders. As a result, local governments must collaborate with their counterparts across borders to manage shared risks. The report highlights examples such as the Drina River Basin project, where Bosnia and Herzegovina, Montenegro, and Serbia cooperate on water management to reduce flood risks. Cross-border cooperation is essential for establishing early warning systems and joint disaster response strategies. Local governments can also collaborate on regional infrastructure projects, such as transport networks and energy grids, to enhance resilience and reduce emissions.
Leveraging Global Datasets for Local Action
To improve the effectiveness of local climate action, municipalities can benefit from advanced data and analysis tools. The report discusses the use of global datasets, such as the Global Human Settlement Layer, which provides detailed data on local vulnerabilities to climate hazards. By integrating such data into local planning processes, municipalities can better identify high-risk areas and prioritize investments in climate adaptation. For example, Box 3-1 in the report introduces a global dataset that allows for disaggregated analysis of climate risks across different regions within the Western Balkans. This data helps policymakers understand how specific areas are impacted by climate hazards and where adaptation efforts should be concentrated. For instance, data on flood risks, drought vulnerability, and socioeconomic factors can be used to target interventions more precisely, ensuring that climate resilience measures are both effective and equitable. By integrating global datasets with local knowledge, governments in the Western Balkans can develop more nuanced climate strategies that address the specific needs of different regions and populations. This approach ensures that adaptation efforts are data-driven and responsive to the most pressing climate risks in each area.
Conclusion: The Way Forward for Local Governments
Local governments in the Western Balkans are at the forefront of the region’s response to climate change. By implementing the recommendations, such as strengthening governance, improving urban resilience, modernizing waste and water management, fostering cross-border cooperation, and protecting vulnerable communities, local authorities can play a pivotal role in building climate resilience. Investing in climate-smart solutions today will not only protect the environment but also create new economic opportunities, improve public health, and enhance the quality of life for residents across the region. With the right policies and support, local governments in the Western Balkans can lead the way toward a greener, more resilient future.
Read the full report (Open Access):
World Bank Group.2024. Western Balkans Regional Country Climate and Development Report (CCDR). Washington, DC: World Bank Group.
