Across the Western Balkan region,countries exhibit relatively high levels of energyintensity, a high energy savings potential among energyend-users, and heavy dependence on imported hydrocarbons.Energy markets would benefit from enhanced demand-sideefforts and integrated energy efficiency measures across allsectors. Since most energy infrastructure was built duringthe 1960s and 1970s, inadequately maintained since the1990s, and reaching the end of its useful lifespan, now is acrucial time to consider the way forward in the energysector. The signing of the Energy Community Treaty in 2003marked the beginning of systematic energy sectorliberalization among Western Balkan countries, allowing themto deal with widespread energy sector problems thatincluded, on the demand side, low energy tariffs, lack ofpayment discipline and, hence, little incentive for energyusers to invest in energy efficiency measures. Building eachcomponent of the strong enabling environment required forincreased Energy Efficiency (EE) across the Western Balkancountries will need cooperation among decision makers atmultiple government levels, and capital investment bystakeholders to support projects that use energy morerationally. Investors are attracted to opportunities where astrong national government role and clear regulatorystructures help dismantle barriers, establish clearconditions and standards, provide technical information, andfacilitate funding for EE technologies. This study examinesthe status of the enabling environment for demand-side EEacross the .Western Balkans, evaluates developments in eachcountry, and offers recommendations on the way forward.