World Bank Approves €80M Loan for Bosnia's Energy Transition

The World Bank has approved a major financial package—comprising a loan of approximately €80 million and a grant of nearly €3 million—to support Bosnia and Herzegovina’s transition from coal to renewable energy as part of its National Energy and Climate Plan. The funding will facilitate the environmentally responsible closure of underground mining operations in Zenica and repurposing of post-mining lands in Banovići, Zenica, and Kreka, with plans to install renewable energy systems at former mine sites. The initiative aims to enhance the country’s energy security, promote job opportunities, and strengthen local economies in regions historically dependent on coal. Social protection and skills development programs will be provided to support workers and communities affected by the transition, ensuring no one is left behind. Bosnia, which still relies on coal for about 60% of its electricity, faces significant economic and social challenges as it moves toward its target of 43.6% renewable energy by 2030. The World Bank emphasizes that this project is designed to be both environmentally sound and socially equitable, supporting Bosnia’s broader decarbonization goals.