| Project Detail |
The development objective of the Sustainability and Resilience Development Policy Operation Program is to support energy and financial sector climate transition, strengthen the sustainability of public finances, and safeguard financial sector stability. The EUR93.8 million stand-alone Sustainability and Resilience Development Policy Operation (DPO) supports North Macedonia’s efforts in energy and financial sector climate transition, strengthening the sustainability of its public finances, and safeguarding financial sector stability. Following the start of the accession negotiations process with the European Union (EU), and the screening process in July 2022, the government embarked on an ambitious reform program to safeguard macroeconomic stability, strengthen human capital for inclusive development, improve the competitiveness of domestic companies and their integration in the global value chains, and foster green transition. The DPO supports selected, high priority reforms to safeguard fiscal sustainability and financial sector stability as well as boost climate mitigation and adaptation actions that form part of a larger reform agenda of the government. This operation has been closely coordinated with international partners (including the IMF, European Commission, and other bilateral partners) to ensure that policy support and technical assistance are complementary, and to mobilize parallel financing from OPEC Fund. The DPO objectives are aligned with the upcoming World Bank Group (WBG) Country Partnership Framework (CPF) FY24-FY282 as well as with the WBG’s Evolution Roadmap approach. The operation is private capital enabling (PCE) under the Maximizing Finance for Development-Enabling (MFD-E) framework, as it supports the legislative and regulatory changes to unlock private investment in renewables. In addition to the Paris Agreement, North Macedonia’s green transition agenda, outlined in the National Energy and Climate Plan, is increasingly aligned with the European Green Deal.
The development objective of the operation would be to strengthen fiscal and social sustainability, safeguard financial sector stability, and boost climate resilience in North Macedonia. |
