The EU Energy Service Directive (ESD) 2006/32/EC provides the basis for ESCO energy efficiency projects in the public sector. In particular art. 9.1 (enabling legal framework for ESCO/EnPC activities in the public sector below primary legislative level) and art. 9.2 (formally approved energy service contracts and tender templates) give clear policy guidance. However their transposition often stops before secondary legislation. This creates a number of barriers and EBRD supports governments in the Western Balkans to clarify these.