The World Bank has approved financial support for Bosnia and Herzegovina to enhance energy security and job creation. On May 1st, the Board of Executive Directors sanctioned a EUR 79.90 million loan alongside a EUR 2.89 million grant. This funding aims to assist the country's National Energy and Climate Plan by improving energy independence, creating new jobs, and boosting local economies in areas previously reliant on coal.
The initiative, titled the Just Transition in Select Coal Regions of Bosnia and Herzegovina Project, will focus on repurposing post-mining lands in Banovići, Zenica, and Kreka. It will also facilitate the closure of underground mining operations in Zenica. Additionally, renewable energy systems will be installed at Banovići and Kreka mines. The project includes social protection measures and skills development programs for workers transitioning from the coal sector.
Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro, stated: “This new project is an opportunity to boost Bosnia and Herzegovina’s energy security while supporting communities, making sure no one is left behind.”
Bosnia and Herzegovina is working on a National Energy and Climate Plan aimed at reducing greenhouse gas emissions as part of its objective to decarbonize its power sector by 2050. The World Bank's involvement seeks to ensure that mine closures are conducted responsibly both environmentally and socially while fostering new employment opportunities in former coal regions.