Bosnia-Herzegovina to ‘Scale-up Investment in Low-Carbon Buildings’ with new US$17.3 million Green Climate Fund grant
US$122 million UNDP-supported project will reduce greenhouse gas emissions by 2 million tons, create 5,000 jobs over 8 years
October 4 2017, Bosnia-Herzegovina (BiH) – A climate project that will offset over 2 million tons of greenhouse gas emissions and create more than 5,000 new jobs in Bosnia-Herzegovina through “Scaled-Up Investment in Low Carbon Buildings” was approved by the Green Climate Fund (GCF) in its 18th Board Meeting early this month in Egypt.
The eight-year US$122 million project supported by the United Nations Development Programme (UNDP) will be implemented by the Ministry of Spatial Planning, Civil Engineering and Ecology of Republika Srpska, Federal Ministry of Physical Planning, Environmental Fund of Federation of BiH and Environmental Protection and Energy Efficiency Fund of Republika Srpska.
The project benefits from a US$17.3 million grant from the Green Climate Fund, and US$105.2 million in co-financing from a range of sources, such as the entity Environmental Funds, entity and municipal budgets, and international organizations. Due to a long period of neglect and under-investment, public buildings in Bosnia and Herzegovina are in urgent need of modernized upgrades.
“This new project will contribute significantly to the Government of Bosnia-Herzegovina’s Nationally Determined Contributions under the Paris Agreement. With this significant investment, we are putting our people first, protecting our planet, and creating a more climate-resilient vision for our economy,” said Srebrenka Golic Minister of Spatial Planning, Civil Engineering and Ecology of Republika Srpska and the National Designated Authority for BiH. “With GCF funds and UNDP support, this project will also provide better places to work, learn and grow for nearly 150,000 people, and create a strong vision for low-emissions, climate-resilient development.”
The project seeks to leverage private-sector finance to support low-carbon public buildings, including schools, hospitals, cultural centers and government offices, in Bosnia-Herzegovina by creating a favourable market for private energy service companies to carry out projects in the public sector.
The proposed retrofits to public buildings will include improved insulation and windows, as well as a switch in heating and cooling systems to renewable resources. Currently, an estimated 70 percent of Bosnia-Herzegovina’s public buildings rely heavily on fossil fuels and district heating systems, which are also predominantly coal-based. According to the UNDP, average energy use in public buildings can be reduced cost-efficiently by about 60 percent.
“Deployment of Bosnia-Herzegovina’s vast renewable energy resources – such as biomass, biogas, solar and other sources – combined with investments in energy efficiency – have the potential to play an instrumental role in reducing greenhouse gas emissions and energy use in public buildings,” said Sezin Sinanoglu Resident Representative of UNDP in BiH. “The energy savings potential of upgrading public buildings in Bosnia-Herzegovina is estimated at around 700 Gigawatts per year.”
The Project supports the Government’s 2015 Reform Agenda by sustaining the climate-resilient economic development and catalyzing private-sector engagement.
“On the ground, this will mean supporting improved local climate-resilient policies, economies and governance,” said Golic.
The project will support municipalities across the country to implement Sustainable Energy and Climate Action Plans.
“This robust system of energy management is essential for unlocking and sustaining investment in building retrofits and achieving our goals of reducing emissions to provide better opportunities for generations to come,” said Golic.
The Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change. It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts.