Ministry of Energy, Mining, and Industry of the Federation of BiH and UNDP in BiH signed a Financial Agreement for joint work on the implementation of the "Green Transition" programme

The Minister of Energy, Mining, and Industry of the Federation of Bosnia and Herzegovina, Vedran Lakić, and the Resident Representative a.i. of the United Nations Development Programme (UNDP) in Bosnia and Herzegovina, Sylvain Merlen, signed today the Financial Agreement for the implementation of the strategic programme "Green Transition".

This agreement marks an important initial step in the implementation of this five-year initiative led by the authorities in Bosnia and Herzegovina with the support of UNDP. The goal is to establish a systemic approach and strengthen cooperation for the implementation of the green transition in Bosnia and Herzegovina, aligned with the EU Green Agenda for the Western Balkans.

The programme encompasses long-term vision of a just transition to an economy and society with net-zero greenhouse gas emissions by 2050, includes a series of interrelated interventions and projects to strategically address this challenge, through four key areas, including decarbonization and resilience to climate change, circular economy, reducing air pollution, and preserving the environment and biological diversity.

Minister Lakić stated: "Decarbonization and energy transition are strategic priorities of the Ministry and of the Government of the Federation of Bosnia and Herzegovina, including the reform and innovation of existing normative frameworks and the development of a long-term Energy Strategy for the period 2024-2035. This process, despite its complexities, requires significant investments to speed up the green and just transition throughout the country.”    

He added that the Ministry is focused to ensure the transition to renewable energy sources offers equal opportunities for everyone, enabling the vulnerable groups of the population and local communities that will be most affected by the transition to receive necessary support.

The Ministry of Energy, Mining and Industry of the Federation of Bosnia and Herzegovina and the Government of the Federation of Bosnia and Herzegovina have recognized the importance of the urgent adoption of strategic documents that will support the green transition of the BiH Federation, aware that there is no time to waste, and UNDP's experience in implementing development projects in Bosnia and Herzegovina is extremely important for this process.

UNDP’s Resident Representative a.i. Sylvain Merlen, added: "The 'Green Transition' programme represents a strategic framework that includes policies, regulations, investments, innovations, and multi-sector cooperation. Our goal is to accelerate the green transition in Bosnia and Herzegovina, with a systemic approach, partnerships and knowledge. This is key to stabilizing climate conditions, reducing air pollution, and preserving the environment and biodiversity. At the same time, turning climate and environmental challenges into opportunities will make the transition just and inclusive for all."

The value of the financial agreement is 3,600,001.00 KM, with equal contributions from the Ministry and UNDP. The funds are aimed for the development of sector strategies and documents in the Federation of Bosnia and Herzegovina, capacity building, and awareness raising. The agreement also introduces a scheme to support the business transformation of at least 100 companies in BiH (with priority to those led by women) in the metal, wood, textile, and construction industry, and plastic production, applying circular practices and preparing them for green financial support. In addition, these companies will receive tailored technical support to prepare for compliance with EU requirements for the introduction of the Carbon Border Adjustment Mechanism (CBAM), which will also be introduced for Bosnia and Herzegovina.

After signing the Agreement, the Ministry will appoint representatives for the implementation of these activities. The implementation of the program will last from December 2023 to May 2028, with the oversight by the Government of the Federation of Bosnia and Herzegovina.