Bosnia and Herzegovina
Country profile
Bosnia and Herzegovina is a mountainous and hilly country in the western Balkans, with major rivers like the Neretva and Sava, and a small Adriatic coastline. It has a largely continental climate, with environmental issues such as air and water pollution, waste management, and deforestation. The country is rich in natural resources, including coal, iron ore, and copper, and has significant hydropower potential, although its energy sector remains underdeveloped.
Opportunities
Bosnia and Herzegovina has vast opportunities for carbon projects in hydropower expansion, given its numerous rivers and untapped potential in renewable energy. Sustainable forest management and reforestation efforts can help absorb carbon emissions, particularly in rural and deforested areas. The country’s transition from coal to renewable energy, combined with energy efficiency projects, could make a significant impact on reducing carbon emissions.
The energy mix is characterized by reliance on both fossil fuels and renewables, with coal accounting for about 52% of the total energy supply. In 2022, hydropower contributed approximately 29% of total electricity production, while wind and solar made up only about 6%. Bosnia and Herzegovina is actively pursuing carbon reduction and renewable energy initiatives to align with EU standards, with the potential to generate up to 2000 MW of wind energy annually in regions like Livno, Tomislavgrad, Mostar, and Trebinje.
Challenges
Bosnia and Herzegovina faces substantial challenges due to its heavy reliance on coal, outdated infrastructure, and weak environmental regulations. Political fragmentation and a complex governance structure slow down efforts to implement national-scale carbon projects. Moreover, financial constraints and limited investment in renewable energy further hinder progress, while land mines and degraded rural areas complicate reforestation efforts.
However, transitioning from a highly fossil fuels-dependent economy to a low-carbon economy presents many risks, and this potential remains underutilized due to various regulatory and financial challenges, which is why the support provided by Japan in Bosnia and Herzegovina aimed to ensure a just green transition.
Bosnia and Herzegovina’s economy is highly dependent on fossil fuels, generating greenhouse gas emissions five times higher than the EU average in relation to its gross domestic product. A high percentage of Bosnia and Herzegovina’s greenhouse gas emissions come from the energy sector and carbon-intensive industries.
Key figures
predicted budget loss due to coal-based power plants over the next 30 years if no action is taken
reduction in greenhouse gas (GHG) by 2030 compared to 1990 levels using domestic resources (unconditional target)
reduction in greenhouse gas (GHG) by 2030 compared to 1990 levels attaining international support (conditional target)
Key focus areas
In Bosnia and Herzegovina, the focus should be on transitioning from coal to renewable energy, particularly hydropower and solar, given its abundant water resources and favorable climate. Reforestation and sustainable forest management can play a significant role in carbon sequestration, while improving energy efficiency in urban areas is essential to cut emissions. Governance reforms and international partnerships will be key to scaling these projects.
- Renewable energy expansion (solar, wind, and hydropower)
- Energy efficiency improvements
- Adaptation strategies for climate resilience
Notable Initiatives
- The UNDP’s Low-Carbon Public Buildings Project in Bosnia and Herzegovina retrofits schools, hospitals, and government offices to enhance energy efficiency and reduce emissions. Improvements include insulation, energy-efficient windows, modern HVAC systems, and solar panels, supporting climate goals and lowering energy costs.
- The country is also working with IRENA to integrate more renewable energy into its national mix, leveraging its biomass, solar, and wind resources.
- Furthermore, Bosnia and Herzegovina is exploring carbon pricing and an Emission Trading System to mitigate the impact of EU carbon taxes and support renewable energy transition.
