The recent Country Climate and Development Report (CCDR) for Bosnia and Herzegovina (BiH) outlines the country's pressing climate risks, including frequent floods, wildfires, and severe air pollution. The report proposes a series of recommendations aimed at addressing these challenges through improved disaster risk management, stricter environmental regulations, and investments in sustainable infrastructure and renewable energy.
The CCDR highlights that BiH is particularly vulnerable to natural hazards such as floods, wildfires, and heat waves. These events have significant economic and social impacts. For instance, the 2014 floods affected one million people and caused damages amounting to 15% of the nation's GDP. Without adaptation measures, climate-related damages could reduce GDP by up to 14% by 2050.
To mitigate these risks effectively, BiH requires $6.8 billion in adaptation investments over the next decade. This investment is expected to yield high economic and social returns.
Achieving net-zero emissions by 2050 is another major focus of the report. This goal necessitates substantial changes in the energy sector, including replacing lignite coal generation with solar PV and wind power, improving energy efficiency, and transitioning to cleaner energy sources across transport, heating, and industry sectors. The transition will require $5.8 billion in investments by 2050 but is projected to have minimal impact on GDP.
The private sector is anticipated to play a significant role in funding decarbonization efforts, especially within transport, buildings, and power sectors. To facilitate this transition towards ambitious climate goals, BiH needs to expand its green debt market by developing a sustainable finance framework aligned with EU standards. Accessing international climate funds like the Green Climate Fund will also be crucial for supporting various projects.
Addressing social impacts during this transition is essential for ensuring fairness. Potential household cost increases need targeted government support to protect low-income households from worsening energy poverty.
The CCDR provides several key recommendations for short-term actions through 2030 to establish a robust foundation for future climate efforts. These include boosting resilience and adaptation strategies; advancing decarbonization initiatives; establishing supportive macroeconomic policies; improving institutional frameworks; and enhancing regulatory measures for effective climate action.