World Bank: Bosnia must invest $6.8 billion to combat climate change impacts

Bosnia and Herzegovina faces risks of flooding, wildfires, and severe air pollution. A World Bank report released on Wednesday said that the country needs to invest 6,8 billion dollars over the next 10 years to offset the effects of climate change.

The report stated that climate-related damages, including floods, could shrink Bosnia’s economy by as much as 14% by the year 2050. It also stressed the importance of nature-based solutions, such as the restoration of floodplains and the preservation and protection peatlands, to increase resilience and boost economic growth.

Christopher Sheldon said that climate change was not only an environmental issue, but also a threat to the economic stability of Bosnia and Herzegovina, as well as its public health and social wellbeing.

Floods hit parts of the country last month. They killed 27 people and destroyed houses, farms, transport infrastructure and companies' exports. In 2014, floods affected 1 million people and resulted in damage equal to 15% of the GDP.

The bank stated that timely investments in climate adaptation infrastructure, especially in flood prevention, can protect the Balkan countries' economy.

The COP29 summit, held in Azerbaijan this year, is focusing on funding developing countries to adapt to climate change. It is also focusing on transitioning to cleaner energy.

The World Bank report also highlighted the importance of a "green transition" by 2050. This includes phasing-out coal and lignite, expanding renewable sources like solar and wind, and improving energy efficiency in various sectors.

The report stated that BiH (Bosnia and Herzegovina), needs to invest $6.8 billion for adaptation, mainly in the next decade. This will yield high returns on economic and social fronts. The report said that the private sector will fund the majority of decarbonization efforts in the areas of transport, buildings, and power.

Bosnia generates about 60% of its power from coal-fired plants, and the remainder mainly through hydro. The country has set an ambitious target to reach a 43.6% renewable energy share in its electricity production by 2030. However, the transition is slow.

The report stated that the country should create strong institutional and regulatory frameworks in order to ensure effective climate action. Reporting by Daria Sucic, Editing by William Maclean

(source: Reuters)