Scaling-up Investment in Low-Carbon Public Buildings in Bosnia and Herzegovina 

Due to extended neglect and inadequate investment during and after the war in Bosnia and Herzegovina (1992-1995), the public infrastructure, and buildings in particular, in Bosnia and Herzegovina (BiH) is now in a dire state and in urgent need of upgrade and modernisation. More than 70% of public buildings in BiH were designed and built more than 30 years ago without much regard for their energy efficiency, not to mention their carbon footprint. In addition to energy efficiency, significant potential for reduction of GHG emissions lies in fuel switch measures: over 80% of public sector buildings are currently using fossil fuels (coal, light fuel oil and natural gas) or district heating systems which are predominantly coal-based. Deployment of BiH’s vast renewable energy resources combined with investments in energy efficiency, therefore have the potential to play an instrumental role in reducing GHG emissions. In the Federation of Bosnia and Herzegovina the project is implemented in cooperation with UNDP, Federal Ministry of Physical Planning and the Environmental Fund of the Federation of Bosnia and Herzegovina.

The project operates a total of US$ 17.346 million of GCF grant resources to overcome identified barriers to investment in low-carbon retrofits of public buildings and to leverage an additional US$ 105.22 million of co-financing from a range of sources, such as the Environmental Funds, entity and municipal budgets and international organizations (UNDP, GEF, the World Bank, SIDA), by addressing country and sector-specific investment risks, as follows:

• Outcome 1: Provide technical assistance to public and private sector stakeholders at the municipal, cantonal, entity and state level in BiH in order to address non-financial barriers and develop favourable policies, regulations and capacities for implementation of the National Framework for Low-Carbon Investment in Public Buildings.

• Outcome 2: Support the implementation of the National Framework for Low-Carbon Investment in Public Buildings, including investment support necessary to improve risk/benefit profiles and make potential low-emission construction projects financially viable.

The project goal is to support the efforts of Bosnia and Herzegovina to address climate change challenges, reduce CO2 emissions and adapt to climate change in accordance with the recommendations of the Nationally Determined Contribution (NDC) and the Climate Change Adaptation Strategy of Bosnia and Herzegovina. By developing and implementing the National Framework for Low-Carbon Investment in Public Buildings, the GCF funded project will result in a four- to five-fold increase in the level of investment in low-carbon public buildings, which will enable BiH to meet its stated objective and reduce GHG emissions from the public buildings sector.

Expected results:

• Low-carbon retrofits in 430 public buildings will result in zero carbon emissions;
• Improved conditions in retrofitted buildings benefit 150,000 users, of which 80,000 women;
• Creation of over 5,630 new full-time jobs;
• More than 2,500 persons trained in sustainable energy management;
• Direct reduction in greenhouse gas emissions of 2.02 million tCO2e;
• The accepted financing model for public buildings will be changed by transitioning to a non-grant-based model and diversification of financing sources and instruments.