The World Bank has approved a €79.9m loan and €2.89m grant to support Bosnia and Herzegovina’s National Energy and Climate Plan, which is designed to improve energy independence and drive growth.
The Just Transition in Select Coal Regions of Bosnia and Herzegovina Project will help to repurpose post-mining lands in Banovići, Zenica, and Kreka, and facilitate the closure of underground works in Zenica.
The project will also support the installation of renewable energy systems at Banovići and Kreka mines.
It will also provide social protection measures and skills development programmes to workers and communities seeking opportunities outside the coal sector.
“This new project is an opportunity to boost Bosnia and Herzegovina’s energy security while supporting communities, making sure no-one is left behind,” said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro.
Bosnia and Herzegovina is actively developing an energy strategy which aims to reduce greenhouse gas emissions as part of its goal to decarbonise its power sector by 2050.
Building on this commitment, the World Bank will help ensure mine closure is environmentally and socially responsible, supporting new job opportunities, and strengthening local economies in former coal regions.
The region has significant potential for hydrogen production, particularly green hydrogen generated from renewable energy sources like hydropower, solar, and wind.
The country’s abundant hydropower resources, along with increasing solar and wind capacity, creates opportunities for producing green hydrogen for export to European markets.
Bosnia has 11 industrial gas production facilities and its gas market today is worth $52m, according to gasworld Intelligence.
