The World Bank Group reports that Bosnia and Herzegovina needs $6.8 billion over the next decade to protect against climate change impacts, which could shrink its economy by 14% by 2050. Floods represent a major risk, necessitating investments in nature-based solutions and a transition to renewable energy. The report emphasizes the role of private sector investment and public-private partnerships to build resilience and ensure a sustainable future.
Bosnia and Herzegovina faces the critical challenge of climate change, demanding an investment of $6.8 billion over the next ten years to safeguard its populace, infrastructure, and economy, as revealed in the World Bank Group’s Country Climate and Development Report. The analysis indicates that by 2050, climate-related damages could potentially decrease the nation’s economy by as much as 14%, primarily driven by flooding, which constitutes over 90% of related damage. To combat this, the report advocates for nature-based solutions, including the restoration of floodplains and the preservation of peatlands, which are vital for enhancing resilience and promoting economic growth. Christopher Sheldon, the World Bank Country Manager for Bosnia and Herzegovina and Montenegro, states, “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”. The report cites recent severe flooding in Jablanica as a grim indication of the human toll due to climate disasters. Immediate action can help mitigate future risks and create avenues for sustainable growth. Investments in climate adaptation, especially in flood prevention infrastructure, can significantly shield the country’s economy from adverse effects. The report highlights that for every €1 spent on climate adaptation, there is a potential return of up to €10, showcasing the economic advantages of proactive measures. Furthermore, a transition to a low-carbon economy by 2050 is a pressing priority. The report suggests phasing out coal and lignite power while increasing reliance on renewable energy sources, such as solar and wind. To facilitate this transition, it emphasizes the essential role of government in preventing energy poverty and supporting low-income households. As the private sector is anticipated to contribute nearly 90% of the investments required for meeting net-zero emissions targets, public-private partnerships will play a pivotal role in financing green initiatives and infrastructure development. Nicolas Marquier, the IFC Regional Manager for the Western Balkans, asserts, “Private sector investments and jobs in the green economy are vital to position Bosnia and Herzegovina for a sustainable future”. In conclusion, in addition to reinforcing resilience and embracing cleaner energy sources, it is imperative to establish robust institutions and effective regulatory frameworks to ensure sustained climate action. Currently, the World Bank Group is collaborating with local entities on various projects aimed at supporting a just transition and improving air quality, alongside other initiatives.
The ongoing climate crisis poses significant risks to countries globally, with Bosnia and Herzegovina being particularly vulnerable to climate-related challenges such as flooding. The suitable investments are vital not only for environmental sustainability but also for protecting economic stability. The World Bank Group has recognized this urgency and has proposed a substantial financial commitment necessary for the country to adapt effectively to climate risks while pursuing a transition to a sustainable low-carbon economy. The collaborative efforts between public and private sectors will be essential for successful climate resilience and adaptation strategies.
In summary, Bosnia and Herzegovina must prioritize substantial investments in climate resilience to effectively shield its economy and populace from the escalating impacts of climate change. By adopting nature-based solutions and transitioning to renewable energy, the country can mitigate risks while advancing toward sustainable growth. The active involvement of the private sector and government support for affected communities will be essential in achieving these goals, ensuring a just and environmentally responsible future.
Original Source: reliefweb.int
