Author: PPD Team Date: 07/05/2025
On May 1, 2025, the World Bank’s Board of Executive Directors approved a €79.90 million loan and €2.89 million grant to support Bosnia and Herzegovina’s National Energy and Climate Plan. This funding aims to enhance energy security, promote economic transition, and create job opportunities in regions shifting away from coal.
The Just Transition in Select Coal Regions of Bosnia and Herzegovina Project will focus on repurposing post-mining lands in Banovići, Zenica, and Kreka, facilitating the closure of underground coal mines in Zenica, and supporting the installation of renewable energy systems at Banovići and Kreka mines. Social protection measures and skills development programs will be implemented for workers and communities impacted by the shift from coal.
Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro, emphasized that the project would improve energy security while supporting vulnerable communities and ensuring a just transition.
The project is aligned with Bosnia and Herzegovina’s efforts to decarbonize its power sector by 2050 and reduce greenhouse gas emissions, marking a significant step in diversifying its energy mix to include more renewable sources like wind, solar, and hydropower. The country currently relies on coal-fired thermal plants and large-scale hydropower for its electricity generation.