Albania
Country profile
Albania is a coastal country with a varied landscape of mountains, river valleys, and a long Adriatic and Ionian coastline. It has a Mediterranean climate and faces environmental challenges like deforestation, water pollution, and urbanization-related waste management issues. Albania is rich in oil, natural gas, and chromium, with hydroelectric power supplying much of its energy. The country is increasingly exploring solar energy as a renewable alternative. WIth aspirations to join the European Union, and despite economic challenges, the country is making strides in modernization and alignment with EU climate policies.
Opportunities
Albania faces challenges in expanding its renewable energy sector beyond hydropower due to limited financial and technical resources. Poor infrastructure, lack of regulatory enforcement, and illegal logging hinder reforestation efforts, while rapid urbanization and poor waste management complicate large-scale carbon reduction projects.
Despite these challenges, Albania has opportunities to expand into other renewables, particularly solar energy. Reforestation, sustainable agriculture, and improved waste management can further enhance carbon reductions and environmental sustainability.
The country is focusing on expanding solar and wind energy alongside its hydropower capacity to meet climate targets. It also invests in afforestation and reforestation to boost carbon sequestration.
Challenges
Albania faces challenges related to limited financial resources and technical expertise, which may hinder the full realization of its climate goals. However, the country is working with international partners and organizations to overcome these barriers.
Albania relies predominantly on hydropower for its energy needs, distinguishing it from other Western Balkan states where coal remains the primary energy source. The country has undergone significant reforms in its justice system as part of its EU accession process, but overall progress has been slow, impacting its ability to fully commit to the green transition.
Key figures
of its power generation capacity is derived from hydropower
reduction below the business-as-usual (BAU) scenario by 2030
of CO2e from 2021 to 2030, based on the 20.9% reduction
Key focus areas
Albania’s key focus areas should include diversifying its renewable energy mix by expanding into solar energy, which complements its already significant hydropower capacity. Reforestation and sustainable land management are crucial for carbon sequestration, especially in rural and degraded areas. Improving waste management and promoting energy efficiency, particularly in urban areas, are also critical to reducing emissions and enhancing the country’s carbon project potential.
- Renewable energy expansion (solar, wind, and hydropower)
- Energy efficiency improvements
- Forestry projects for carbon sequestration
- Adaptation strategies for climate resilience
Notable Initiatives
- The Urban Research Institute (URI) plays a significant role in advancing carbon projects in Albania, focusing on environmental conservation and sustainable development.
