Bosnia and Herzegovina must invest $6.8 billion over the next decade to shield against climate impacts, particularly floods. By 2050, climate damages could cut national GDP by 14%. Nature-based solutions like floodplain restoration are crucial. Transitioning to a low-carbon economy is essential, with private sector investment projected to drive nearly 90% of decarbonization efforts.
The recently released Country Climate and Development Report from the World Bank Group emphasizes the urgent need for Bosnia and Herzegovina to invest approximately $6.8 billion over the next decade to mitigate the adverse effects of climate change. By 2050, it is projected that climate-related damages could reduce the nation’s economy by as much as 14%, with floods constituting over 90% of these damages. The report advocates for nature-based solutions such as floodplain restoration and peatland preservation to enhance resilience and foster economic growth. Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro, remarked, “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.” He highlights the devastating floods that recently impacted Jablanica, underscoring the urgent need for decisive action to mitigate future risks. Investing in climate adaptation, especially in flood prevention infrastructure, can drastically safeguard the country’s economy while yielding impressive returns on investment. The report also stresses the importance of transitioning to a low-carbon economy by 2050, focusing on phasing out coal and lignite power while promoting renewable energy and energy efficiency. The private sector is predicted to contribute nearly 90% of the necessary investments for decarbonization, particularly in transportation, buildings, and energy sectors. In this context, Nicolas Marquier, IFC Regional Manager for the Western Balkans, stated, “Private sector investments and jobs in the green economy are vital to position Bosnia and Herzegovina for a sustainable future.” In addition to enhancing resilience and moving towards cleaner energy sources, the report calls for solid institutional frameworks to support sustained climate action. The World Bank is actively collaborating with local authorities on diverse projects aimed at facilitating a just transition and improving air quality throughout the country.
The Country Climate and Development Report serves as a crucial framework for Bosnia and Herzegovina to address pressing climate challenges. The World Bank has recognized the significant vulnerability of the country to climate-related disruptions, predominantly from flooding, which poses a substantial threat to its economic stability. The report outlines a focused investment plan that includes nature-based solutions and a pathway towards a low-carbon economy, reflecting the broader trends seen across Europe to combat climate change. The critical role of the private sector in this transition cannot be overlooked, as it will likely be the major source of funding necessary for decarbonization initiatives.
In summary, the World Bank Group’s report presents a comprehensive analysis of the climate-related challenges facing Bosnia and Herzegovina and outlines necessary investments and strategies to build resilience against these threats. The staggering potential economic losses due to climate change stress the importance of immediate and strategic action involving both public and private stakeholders. Transitioning towards a sustainable, low-carbon economy represents not just a necessity for environmental protection but also an opportunity for economic advancement and job creation.
Original Source: reliefweb.int
