Advancing Kosovo’s Sustainable Finance Agenda: A Roadmap for EU Alignment
Identifying the first non-regrettable steps to align Kosovo's financial sector with the EU Taxonomy and CSRD
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Photo by Mrika Selimi on Unsplash
March 1, 2026
As part of the Stabilisation and Association Agreement between Kosovo and the EU, Kosovo committed to aligning its national legislation with the EU acquis — including Chapter 27 on Environment and Climate Change. While Kosovo had taken initial steps toward this goal, adopting a Climate Law (2024), a Climate Change Strategy, and an Energy Strategy, its institutional framework still faced significant challenges in transposing EU legislation, coordinating across ministries, and building the data and reporting systems needed to advance sustainable finance.
What
Commissioned under GIZ’s Kosovo4Green programme (co-financed by BMZ and the Swiss State Secretariat for Economic Affairs, SECO), Climate & Company supported the Ministry of Environment, Spatial Planning, and Infrastructure (MESPI) and other key stakeholders in identifying the first concrete steps toward implementing Kosovo’s sustainable finance agenda. The assignment focused on the EU Taxonomy Regulation and the Corporate Sustainability Reporting Directive (CSRD) as entry points, positioning Kosovo’s progress within the broader context of the Green Agenda for the Western Balkans and generating lessons that could be applied across the region.
How?
Climate & Company’s team of a Senior Sustainable Finance Expert and a Policy and Capacity Development Expert:
- Mapped the relevant EU sustainable finance frameworks, distinguishing the requirements facing EU member states from those facing candidate and enlargement countries such as Kosovo.
- Assessed Kosovo’s current progress and commitments under the Green Agenda for the Western Balkans, combining desk research with interviews with key national stakeholders to understand institutional readiness on taxonomy and disclosure.
- Identified the key gaps and challenges in transposing and beginning to implement the EU Taxonomy and CSRD, including inter-ministerial coordination, data systems, and private sector readiness.
- Developed a set of “non-regrettable” recommendations — priority actions Kosovo could take now regardless of how EU alignment timelines evolved.
- Presented and discussed the assessment and recommendations with GIZ and government representatives in an in-person workshop.
The assignment delivered two concise briefing papers for government and stakeholders on the key next steps for taxonomy and disclosure alignment, a facilitated workshop, and an internal research documentation package — equipping GIZ and Kosovo’s institutions with a clear, actionable roadmap for the country’s sustainable finance transition.
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