Montenegro’s transport sector is a significant source of GHG emissions, estimated at 563,000 tCO2e in 2015 and forecasted to grow to 993,000 tCO2e (30% of the national GHG emissions) by 2030. Building on the recently-approved National Transport Strategy, the project aims at creating an enabling environment and facilitating investment in low- carbon passenger transport that will reduce at least 30,000 tCO2e over the project duration, 77,000 t CO2e of direct emissions (in the 10-year lifetime of project assets) and 468,000 tCO2e of indirect emissions (over a 20-year period if the effort is sustained after project termination). It will do so by increasing the use of the public transport system, and supporting public and private investment in electric vehicles, as well as and mainstreaming climate change considerations in transport sector policies.