Serbia

The food system

Modernisation, climate resilience and sustainability remain key challenges for the Serbian food system

A heavy reliance on rain-fed agriculture makes food production in Serbia highly susceptible to weather variability, necessitating greater investment in climate adaptation measures such as hail suppression, protective netting, greenhouses and efficient irrigation and drainage systems. Furthermore, promoting the use of climate-resilient plant varieties and animal breeds is crucial. Currently, there is a lack of capacity to fully meet EU requirements related to climate-smart agriculture and disaster risk reduction.

Serbia needs to prioritise support for the sustainable intensification of food production and the adoption of greener farm practices. Eco-schemes, which provide payments to farmers for implementing climate-sensitive practices aligned with the European Green Deal, should be a main component of this strategy. A new law on climate change provides a framework for planning and implementing climate adaptation measures, while the 2023 climate change adaptation programme emphasises the critical link between climate, soil and water.

In 2023, subsidies in agriculture and rural development were increased, with a 58% rise in payments compared with 2022. Direct payments accounted for the largest share (78%), followed by payments for rural development measures (14%). Within rural development, most funds (81%) were allocated to enhancing competitiveness, primarily through investments in farm infrastructure. However, only about 10% of rural development funds were dedicated to environmental protection and improvement. Disruptive subsidies are present, and enable agricultural producers to purchase Euro standard diesel at petrol stations. Further prioritisation of agri-environmental measures, such as organic farming, the protection of genetic resources and sustainable land management practices is needed.

Reducing food loss and food waste is another critical area for improvement. Serbia has initiated measures to address this issue along the food chain, aiming to align with the UN sustainable development goal of halving per capita food waste by 2030. Creating a supportive legal framework is essential, with clear regulations on food donation, the responsibilities of donors and intermediaries, and provisions for animal feed donation. Organisations like Food Bank Belgrade and various civic initiatives are already playing a vital role in food donation and poverty reduction.

To facilitate these changes, Serbia's agricultural advisory services play a crucial role in farmer education and the implementation of appropriate measures. Since 2013, the numbers of advisory services and their users have steadily increased. Capacity building and improved data availability are essential for promoting sustainable practices and informed decision-making.

Ensuring clear and accurate food labelling is also crucial for informing consumer choices. Serbia is in the process of amending relevant national-level regulations to align with Regulation (EU) No 1169/2011 on the provision of food information to consumers.

The energy system

Growing consumption, fossil fuel dependence, and limited research and development hamper the energy transition despite policy reforms

In the last two decades, energy consumption in Serbia has been constantly growing, and the biggest consumers are households, with a 35% share, and traffic, at 28%. Although Serbia's total import dependence is not particularly high compared with most EU Member states, it is particularly pronounced in the oil, oil derivatives and natural gas sectors. An energy management system has been introduced, while energy and energy-efficiency labelling and eco-design products and services are being improved. There are also initiatives that include funding the energy renovation of buildings⁽ⁱ⁾. However, it should be borne in mind that most companies in the energy sector are service-oriented. Key priorities in energy research in Serbia are energy efficiency, renewable energy sources, the development of smart-city initiatives and energy-efficient mobility, and energy storage. Currently, there is limited research and development activity in the energy sector in Serbia, with a small number of producers using low-carbon technologies. Total expenditure for scientific research and research and development activities in 2022 amounted to 0.97% of gross domestic product, and , though in some areas of expenditure, Serbia exceeds the EU average. The promotion of research and innovation will continue to be a priority, particularly through support for innovative technologies. Annual costs are expected to double in 2030 compared with 2020. Reducing energy costs will make energy more affordable for all consumers. Policies and measures will therefore consider the purchasing power of consumers and the needs of vulnerable groups, as well as any local characteristics, . From 2021, the national legal framework in the field of energy and climate change was intensively reformed. A new incentive framework was established, and the consumer/producer, or prosumer, concept was introduced, which allows customers to . Reducing energy poverty is also a goal, given the gradual deterioration in this area due to the energy crisis. A national target has been set to reduce energy poverty .

The mobility system

Further modernisation efforts and policy changes are needed despite improvements in public transport use

People in Serbia use public transport in their everyday lives, but without noticeable increase or change in the last couple of years. Car-sharing platforms are popular for intercity rides, but not within cities, where taxis and public transport are more frequently used. Electric cars currently make up around 1% of Serbia's fleet, which is far below the EU average. The latest changes in Serbia's Law on Traffic Safety have recognised light electric vehicles, or e-scooters, and . E-scooters must have a permanent label issued by the Road Traffic Safety Agency, which confirms that the vehicle . The Serbian government also initiated a programme in 2020 to subsidise the purchase of environmentally friendly vehicles. In 2022 and 2023, the government allocated substantial funds for the programme, leading to a significant increase in the number of eco-friendly vehicles purchased. While hybrid vehicles remained popular, electric vehicles gained traction, particularly in 2023. For 2024, the government decided to further incentivise the adoption of electric vehicles by discontinuing subsidies for hybrid vehicles. The Ministry of Environmental Protection has coordinated this process since 2023, when Serbia implemented Directive 1999/94/EC, which obliges dealers in new passenger cars to provide potential buyers with useful information . Apart from the fuel consumption label, which has to be presented on every new car, the Road Traffic Safety Agency also publishes a guide that lists all new cars sold in Serbia with their CO₂ and energy efficiency information, as well as a list of the most efficient vehicles. Serbia also plans to implement Regulation (EU) 2019/631 on setting CO₂ emission performance standards .