At the 2015 Paris Climate Conference of the Parties of UNFCCC a legally binding and universal agreement on climate was adopted. The Paris agreement covers the period from 2020 onward and presents an action plan to limit global warming “well below” 2°C and to pursue efforts to limit it to 1.5°C. Montenegro’s contribution to the international effort to avoid dangerous climate change is expressed in the Intended Nationally Determined Contribution (INDC) of Montenegro – at minimum a 30% emission reduction by 2030 compared to the 1990 base year. In line with its INDC, the priority investment plan has been prepared, accompanied by socio-economic analysis that includes the environmental, social, and economic impact assessment of selected investments. The conducted analysis confirmed the research questions. Firstly, by selecting priority investments in the period 2017-2030, Montenegro achieves the set target of reducing the GHG emissions given in Montenegro’s INDC (33.5%). Secondly, total net effects of selected investments in Montenegro for achieving INDC are positive for the wider community, as confirmed by the performance indicators of the selected projects obtained through the CBA (NSV, IRR, and B/C). Finally, priority investments are fully in line with the national development framework, sector priorities, and the EU accession process.
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