Green Transition and Financial Stability: Case Study of the Republic of Serbia

The concept of the green transition is becoming more and more significantin the context of international initiatives to protect the environment and promotesustainable economic growth. The Republic of Serbia has to cope with the potentialand difficulties presented by this shift, particularly with regard to financialstability. The green transition refers to the adoption of policies that supportsustainable production and consumption as well as the switch from conventional,fossil fuel-based energy sources to renewable ones. Existing financial institutionsand markets may be under pressure as a result of this change, which could havea major impact on the nation’s economic structure. On the other hand, financialstability is an essential component of every economic system since it guaranteesthe continuation of economic activity and safeguards against a variety of risks.The paper’s objectives are to examine the relationships between financial stabilityand the green transition, pinpoint current obstacles and possibilities, and offerpolicy suggestions that would promote sustainable economic growth in line withinternational sustainability norms. The paper will advance knowledge of hownational policies can influence the Republic of Serbia’s economy going forward inline with contemporary sustainability standards by analyzing the green transition’simplementation and its effects on financial stability.