Enhancing public and private sectors capacities to understand climate change impacts in the water sector, and design, finance and implement gender-sensitive and inclusive adaptation responses

Montenegro is increasingly exposed to the impacts of climate change, the vast majority of which are water related. Changes in temperature and precipitation patterns are already disrupting hydrological cycles, leading to more frequent and severe droughts, water shortages, and seasonal stress on agriculture, energy systems, and public water supply. These impacts directly affect not only the water sector but also other key economic sectors such as tourism, hydropower, and agribusiness — putting long-term development at risk. 

Yet, despite water being the primary vector through which climate change manifests in Montenegro, the sector remains largely absent from national climate policy frameworks. Existing climate change strategies are heavily mitigation-focused, with minimal attention to water-related adaptation needs. On the other hand, water sector policies and plans rarely incorporate climate risk considerations, resulting in fragmented planning and limited institutional readiness for climate-resilient water management. 

This disconnect is further compounded by a critical lack of financing for adaptation — both domestic and international. Access to global climate finance mechanisms remains limited, and there is no dedicated platform or coordinated effort to develop water-related climate investment pipelines. While Montenegro’s National Adaptation Plan identifies water as a priority sector, it currently includes limited, mainly short-termed adaptation actions. 

Institutions such as the Ministry of Agriculture Forestry and Water Management, Directorate for Water Management, Water Administration and the Water Council are engaged in water governance but face technical and financial barriers that limit their ability to assess climate risk, plan adaptive responses, and prepare viable funding proposals. Without targeted capacity building and cross-sectoral coordination, Montenegro risks falling behind in securing the support needed to protect its water resources and economy from escalating climate impacts. 

The Green Climate Fund (GCF), a financing mechanism of the 2015 Paris Agreement and the world’s largest fund dedicated to financing climate change mitigation and adaptation projects, presents a unique opportunity for Montenegro to address it water and climate resilience needs.