SARAJEVO, November 20, 2024 ¡ª Bosnia and Herzegovina needs to invest $6.8 billion over the next decade to protect its people, property and economy from the damaging and escalating impacts of climate change, according to the World Bank Group¡¯s Country Climate and Development Report for Bosnia and Herzegovina, released today.
The report highlights that by 2050, climate-related damages could shrink Bosnia and Herzegovina¡¯s economy by up to 14%. With floods accounting for over 90% of climate-related damages, the report underscores the necessity of nature-based solutions, such as floodplain restoration and peatland preservation, to strengthen resilience and drive economic growth.
¡°Climate change is not just an environmental challenge; it is a direct threat to Bosnia and Herzegovina¡¯s economic stability, public health, and social well-being,¡± said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. ¡°Recent devastating floods across the country, particularly in the town of Jablanica, serve as a stark reminder of the human cost of climate disasters, affecting lives, livelihoods, and entire communities. By taking decisive action now, Bosnia and Herzegovina can mitigate future risks and unlock opportunities for sustainable growth."
Timely investments in climate adaptation, particularly in flood prevention infrastructure, can significantly protect the country¡¯s economy. Proactive measures can reduce the potential GDP losses from climate change, while also creating jobs, enhancing skills, and boosting trade opportunities. Each €1 spent on climate adaptation is projected to yield returns of up to €10, demonstrating the strong economic benefits of such initiatives.
The report also emphasizes the importance of a just transition to a low-carbon economy by 2050. This includes phasing out coal and lignite power, expanding renewable energy sources such as solar and wind, and improving energy efficiency across various sectors. To ensure a just transition, the report highlights the need for government measures to prevent energy poverty and support low-income households.
To achieve net-zero emissions by 2050, in line with European Union objectives, the private sector is expected to account for nearly 90% of the investment in decarbonization, particularly in the transport, buildings, and power sectors.
"Private sector investments and jobs in the green economy are vital to position Bosnia and Herzegovina for a sustainable future," said Nicolas Marquier, IFC Regional Manager for the Western Balkans. "Public-private partnerships to develop infrastructure and green financing will be key to unlocking the investments needed to decarbonize the economy and build resilience against climate challenges."
In addition to focusing on enhancing resilience and transitioning to cleaner energy, the report recommends building strong institutions and regulatory frameworks to ensure effective and sustained climate action.
In Bosnia and Herzegovina, the World Bank Group is already working with authorities on projects to support a just transition, and improving air quality, among other initiatives.
