publicationDecember 4, 2024

Montenegro—Country Climate and Development Report

The Country Climate and Development Report (CCDR) for Montenegro highlights the country's opportunity to strengthen its resilience to climate change and foster sustainable economic growth through strategic investments and effective policies.

Background

Montenegro CCDR
Montenegro faces significant climate risks, including frequent floods, earthquakes, landslides, and intensifying droughts, wildfires, and heatwaves. Floods stand out as Montenegro’s most destructive natural hazard, affecting 10,000 people annually and causing an average of $90 million in damages each year. Earthquakes also pose a significant risk, impacting 9,000 people annually and resulting in average losses of $70 million. These challenges disrupt livelihoods, impact key economic sectors like agriculture and transport, and threaten economic stability. Without timely climate adaptation measures, these challenges are expected to intensify as the effects of climate change accelerate.

Download Full Report | Executive Summary (English) | (Montenegrin)

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.

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