Podgorica, May 11, 2021 – The transport sector is currently responsible for 20% of greenhouse gas emissions in Montenegro and offers great opportunities for a significant reduction in CO2 in transport. In order to reduce emissions in the transport sector, Montenegro needs to encourage the transition to zero- and low-emission modes of transport, increase the use of cleaner fuels, and energy efficiency in transport.

In line with EU targets for reducing harmful emissions, in an effort to avoid dependence on fossil fuels and negative environmental impacts – Montenegro plans to take a number of steps that are in line with this concept. On that occasion, a consultative meeting was held related to the process of preparation of the project proposal titled Enabling paradigm shift towards low-carbon transport in Montenegro, which is to be submitted to the Green Climate Fund (GCF).

The goal of the project in preparation is to reduce the share of road traffic in total national greenhouse gas emissions, which will be achieved by creating a sustainable, inclusive transport system while achieving a balanced representation of public and passenger motor vehicle transport and wider use of electric and hybrid vehicles.

The imperative for Montenegro is energy-efficient traffic with the smallest possible share of private, passenger vehicles in the total vehicle fleet of the country. Reform of this sector has begun but the additional impetus is needed to achieve the desired long-term effects.

The Minister of Capital Investments in the Government of Montenegro, Mladen Bojanić, said during the meeting that the ministry is interested in the UNDP's initiative and the project that is in preparation, and which would enable a comprehensive paradigm shift in the transport sector and passenger transport in Montenegro.

"This project is in line with Green Climate Fund's goal which refers to the reduction of greenhouse gas emissions. The project is aimed at changing the paradigm towards a sustainable and socially inclusive transport system, guiding the state towards a goal related to reducing the growing share of road transport in total national gas emissions. The plan is to achieve this goal through two components. The first component focuses on public transport and the improvement of services through a socially inclusive integrated system managed by competent public administration bodies and private service providers, through actions whose aim is to improve the quality of public transport and support changes in the cultural perception of public transport and sustainable mobility in general. The second component focuses on the vehicle fleet in the country, giving impetus to the transition to smart e-mobility through structural changes and action in the vehicle market. The structural changes will strengthen the Government and local self-governments – by means of enhancing institutional capacities, reforming the regulations that will guide the transition process, and implementing the national e-mobility strategy," Bojanić said.

Speaking about the recommendations of the Green Climate Fund, the United Nations Development Program (UNDP) Resident Representative Daniela Gašparikova pointed out that the key recommendation of that Fund was to increase the ambition of the proposed project in terms of achieving transformation in order to reduce GHG emissions in the transport sector.

"It is this level of ambition and evidence that confirms the country's strong desire to achieve goals that are set high – that will serve as a litmus test for obtaining a positive opinion, i.e., approval of the project. Therefore, I would like to share two important recommendations. Be ambitious and set high goals. At the same time, these goals must be based on rather specific priorities for the next 5–7 years, and it is necessary to provide a variety of sources of funding – from national and international funds to greater green investments by the private sector. In this sense, having in mind that Montenegro belongs to the category of higher middle-income countries, the GCF grant will be only one additional contribution. I would like to point out that no one can carry out these activities on their own. GCF is particularly interested in promoting green investments when it comes to the public sector, but also in creating an enabling environment that will provide incentives for private sector investments. Therefore, this project is expected to include contributions from both Government and private sector. UNDP is committed to encouraging this process, creating a platform for its implementation, and will support the development of Feasibility Study and research that should provide the necessary level of evidence and support this project, and maintain the level of confidence in yourselves and GCF that the level of ambition is achieved," Gašparikova concluded.

The project preparation activities are in line with the current efforts of the Government of Montenegro to harmonize its regulatory framework with the acquis in the fields of energy and transport. Public transport is a resource that must be further developed, so it is envisaged that the project will provide support to the development of the National e-Mobility Strategy and to the Eco-Fund so that it could fulfill its mandate related to the financial support of initiatives in the field of climate change and environmental protection, with focus on promoting sustainable transport solutions and e-mobility.