It’s time for Bosnia and Herzegovina to invest in the fight against climate change

Timely investments in climate adaptation, particularly in flood prevention infrastructure, can significantly protect the country’s economy and improve the health of its people.

Bosnia and Herzegovina needs to invest 6.8 billion US dollars 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, published this week. 

The report highlights that by 2050, climate-related damages could shrink Bosnia and Herzegovina’s economy by up to 14 per cent.  

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With floods accounting for over 90 per cent 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,” says 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.” 

Some of Europe’s highest pollution levels

Bosnia and Herzegovina has among the highest levels of fine particulate matter (PM2. 5) pollution in Europe, to which the burning of solid fuel for home heating and the transport sector contribute about 50 per cent and 20 per cent respectively. 

A 2022 report from Human Rights Watch revealed that the country’s reliance on coal and wood for heat and coal for electricity generation makes cities in Bosnia and Herzegovina some of the world’s most polluted during the winter months. The country has the fifth-highest mortality rate from air pollution. 

During winter months, levels of fine particulate matter, nitrous dioxide, sulfur dioxide and other deadly pollutants regularly exceed what the World Health Organisation says is safe for human health.  

Every year, an estimated 3,300 people in the country die prematurely from exposure to air pollution. Thousands more live with increased respiratory and cardiovascular conditions. Older people and children are particularly at risk. 

The country’s complex governance system presents difficulties in tackling air pollution with no national environment body and a slew of standards and regulations, with little coordination between the various tiers of government.  

Each of the country’s two entities – the Bosnian-Croat Federation and the Republika Srpska – has its own separate legal frameworks, organisational structures, and air quality networks, making it more difficult to coordinate approaches to air quality management. 

Another report, Comply or Close, published earlier this year by Bankwatch, the largest network of grassroots, environmental and human rights groups in Central and Eastern Europe, meanwhile revealed that six years since pollution control rules came into force under the Energy Community Treaty, sulphur dioxide emissions from coal plants included in the National Emissions Reduction Plans (NERPs) of Bosnia and Herzegovina, Kosovo, North Macedonia and Serbia were still collectively 5.7 times as high as allowed in 2023.

A just transition

Nevertheless, according to the World Bank’s report, 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 euro spent on climate adaptation is projected to yield returns of up to 10 euros, demonstrating the strong economic benefits of such initiatives. 

The World Bank report also emphasises 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 per cent of the investment in decarbonisation, 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,” says Nicolas Marquier, International Finance Corporation (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 decarbonise 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.

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