Decarbonisation policy and ETS ("Emissions Trading System") adoption

The implementation of the Steps under this Component will lead to the mitigation of climate change and environmental protection.

The most significant activity in the coming period is the completion of BiH NECP (Integrated Energy and Climate Plan of BiH for the period until 2030).

Steps

1.5.1.1. Roadmap for just transition in coal regions adopted (timeline, progress indicators and envisaged funding sources) together with the establishment of the just transition governance process. The goal of the document is to provide inputs for just transition of coal regions in the RS and the FBiH.

1.5.1.2. 5% of active workers/miners/workforce in coal regions reskilled and 10% working in new sectors (progress in implementation of just transition). The just transition of the workforce is a very important element, as the coal sector is no longer financially, economically or environmentally sustainable.

Climate legislation and a ETS ("Emissions Trading System") in place are key tools for climate change adaptation and mitigation. The system will aim to create a financial incentive for companies to reduce their emissions by placing a price on carbon.

Steps

1.5.2.1. Adopt climate legislation aligned with EU Climate Law including commitments to climate neutrality. New legislation will establish a framework for achieving climate neutrality in BiH and a net domestic reduction in greenhouse-gas emissions by at least 55% (compared to 1990 levels - baseline) by 2030.

1.5.2.2. Full implementation of Monitoring, Reporting, Verification and Accreditation (MRVA) package adopted in the Energy Community. The focus will be on the establishment of a broad list of indicators for monitoring the implementation of the NECP (Integrated Energy and Climate Plan) in BiH.