Background
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Key Findings
- Montenegro¡¯s climate challenges require significant investments to mitigate risks and adapt to changing conditions. The report states that climate-related disasters could reduce Montenegro¡¯s GDP by 7.9% in 2050. Adapting to climate change would require $5.7 billion over the next decade or so, bringing significant benefits, including prevented damages, accelerated economic growth, and enhanced social and environmental outcomes.
- Investments in urban adaptation, nature-based solutions, and human capital development are essential for resilience. Urban initiatives, such as green infrastructure and water management systems, along with nature-based approaches like floodplain restoration, are cost-effective and benefit ecosystems and communities.
- To achieve net zero emissions by 2050, Montenegro must transition from coal to renewable energy sources, like wind and solar, supported by hydroelectric power. Enhancing energy efficiency in buildings and industries and electrifying heating and transportation are key. The additional investment needed to reach net zero, estimated at approximately $235 million by 2050, would have a minimal macroeconomic impact, with over 70% financed by the private sector through green bonds, public-private partnerships, and carbon pricing.
- Montenegro¡¯s green transition needs to support coal-dependent communities by creating alternative jobs, providing targeted support, and preventing energy poverty. A sustainable growth strategy that integrates climate adaptation and mitigation will strengthen public sector capacity, enhance human capital, and boost global competitiveness.