Scientific Review Article
Authors: Ornella Jadreškić (ORCID: 0009-0005-3960-7509), Dr Bojana Olgić Draženović (ORCID: 0000-0002-5175-7439), Dr Stella Suljić Nikolaj (ORCID: 0000-0002-0435-4047)
doi: 10.5937/bankarstvo2502062J
Keywords: green transition; green bonds; Green Agenda for the Western Balkans; carbon footprint
JEL: G1, Z0, Q0, Q5
SCINDEX
Abstract: The green transition is a long-term process that requires transforming the outdated fossil fuel-based economic model into a circular economy model. This paper analyzes the readiness of Western Balkan countries to implement green transition, in the context of obligations arising from the European Green Deal
and the Green Agenda. The aim is to determine the capacities and challenges related to the regulatory framework, institutional infrastructure, energy mix, and the availability of sustainable financial instruments. A comparative analysis of secondary data has been applied, and the results indicate a high dependence on
coal (over 70% in Serbia), limited use of renewable sources (less than 5% in most countries), and underutilization of EU financial mechanisms. Institutional capacities are uneven, and ESG standards are only in the early stages of implementation. The conclusion is that green transition is a strategic challenge, but also an opportunity for the modernization of regional economies, highlighting the need for a stronger regulatory framework, more transparent governance, and better utilization of available investment funds.