The World Bank Group’s report states that Bosnia and Herzegovina requires $6.8 billion investment over the next decade to protect against climate-related damages, primarily from flooding. By 2050, climate change may reduce the nation’s economy by 14%. Adoption of nature-based solutions, transitioning to renewable energy, and building strong institutions are essential to mitigate risks and promote economic growth.
Bosnia and Herzegovina must invest $6.8 billion over the next decade to safeguard its population, infrastructure, and economy from the adverse and escalating repercussions of climate change, as detailed in the World Bank Group’s recently published Country Climate and Development Report. The report warns that climate-related damages could reduce the country’s economy by as much as 14% by 2050, primarily due to floods, which are responsible for over 90% of such damages. To effectively tackle these issues, the adoption of nature-based solutions like floodplain restoration and peatland preservation is essential for enhancing resilience and fostering economic development. Christopher Sheldon, the World Bank Country Manager for Bosnia and Herzegovina and Montenegro, stated, “Climate change is not just an environmental challenge; it is a direct threat to Bosnia and Herzegovina’s economic stability, public health, and social well-being. Recent devastating floods across the country, particularly in the town of Jablanica, serve as a stark reminder of the human cost of climate disasters, affecting lives, livelihoods, and entire communities. By taking decisive action now, Bosnia and Herzegovina can mitigate future risks and unlock opportunities for sustainable growth.” The report emphasizes that timely investments in climate adaptation, especially in flood prevention infrastructure, can significantly shield the national economy. With each Euro invested in climate adaptation expected to return up to €10, these initiatives promise substantial economic benefits while creating jobs and enhancing trade prospects. Additionally, the transition to a zero-carbon economy by 2050 is deemed vital, necessitating the phase-out of coal and lignite power and a shift towards renewable energy sources, coupled with improved energy efficiency. Nicolas Marquier, the IFC Regional Manager for the Western Balkans, remarked, “Private sector investments and jobs in the green economy are vital to position Bosnia and Herzegovina for a sustainable future. Public-private partnerships to develop infrastructure and green financing will be key to unlocking the investments needed to decarbonize the economy and build resilience against climate challenges.” The report also outlines the importance of establishing robust institutions and regulatory frameworks to ensure the effectiveness of climate action in Bosnia and Herzegovina. The World Bank Group is collaborating with local authorities on various projects aimed at supporting this just transition and enhancing air quality, among other initiatives.
The Western Balkans region, particularly Bosnia and Herzegovina, faces significant challenges related to climate change impacts, including flooding and economic vulnerabilities. This necessitates urgent action and substantial investment to mitigate risks to people and property while enhancing economic resilience. The insights provided in the World Bank Group’s report highlight the crucial relationship between climate adaptation measures and long-term economic stability. Attention to both environmental and social dimensions is critical in promoting a sustainable development path for the country, emphasizing the role of both public policy and private sector investment in this transition towards a low-carbon economy.
The findings of the World Bank Group’s report underscore an urgent need for Bosnia and Herzegovina to make substantial investments in climate resilience and transition towards a low-carbon economy. By committing to such investments, the nation can significantly reduce potential economic losses associated with climate change while unlocking new opportunities for sustainable growth. Furthermore, collaboration between public and private sectors is vital for mobilizing the necessary funding and developing effective strategies to ensure a sustainable future for the country.
Original Source: reliefweb.int
