Green Economic Development (GED)

What is the project about?

From an energy consumption perspective, Bosnia and Herzegovina is characterized as a country with very high inefficiency within the residential, non-residential/public, industry and service sector. At the same time; however, Bosnia and Herzegovina has one of the most significant energy conservation potentials in the region and could base its further mid-term economic development and generation of new employment on energy efficiency improvement measures in the residential and public sector.  

The country consumes about 20% of its GDP on energy, which is three times higher than in the EU countries and the US. According to the Report “Regular Review of Energy Efficiency Strategies in BiH” prepared under the obligations of the Energy Charter Treaty, gross total primary energy consumed per unit of GDP is 0.938 toe / USD 2000 , which is 2.5 times the average of 27 EU countries and higher than almost any other country in the SEE region.

Average energy consumption of public buildings in Bosnia and Herzegovina is three times higher than the EU average, categorizing them as completely energy inefficient buildings (in accordance to EU Eco-Management and Audit Scheme – EMAS). In order to meet this energy intensive consumption demand, a significant amount of budget funds must be allocated for energy expenditures of public buildings (educational, health, cultural, municipal and entity/state institutions etc.) representing a major proportion of the already inadequate public budget.

The main goals of the GREEN ECONOMIC DEVELOPMENT (GED) project are:

  • To reduce spending of public funds on energy and water consumption (by increasing energy efficiency and utilizing renewables) and
  • To enable favorable environment for investment into infrastructure energy efficiency measures while generating “green jobs”.

What we do?

The GREEN ECONOMIC DEVELOPMENT project aims to institutionalize the energy management activities within the public sector buildings in Bosnia and Herzegovina. Those activities contribute and are in line with EU directives (Energy Service Directive, EPBD directive), the Energy Community Treaty and BiH’s obligation to report on current energy consumption and energy savings in accordance with Energy Efficiency Action Plans. Currently local authorities and relevant ministries lack of human and financial resources to cover these activities.

Therefore, focus is made towards Cantonal Governments and Entity Government (in particular sectorial ministries), as a first step in a chain towards institutionalization of Energy management and Energy Efficiency Action Plans in the public sector.

Expected Results

  • Inventory of public building energy consumption and energy characteristics drafted.
  • Energy Management Information System (EMIS) institutionalized – serving as an instrument for selected administrations to conduct continuous adaptation and improvement of action plans and prioritization of energy efficiency interventions and projects
  • Energy consumption and energy efficiency improvement measures in public buildings are followed and collected based on a systematic approach in all public sector buildings within relevant cantonal and Ministries jurisdictions
  • Staff of selected public administrations trained in information collecting and providing adequate reports/analyses that contribute to implementation of action plans and BiH’s obligations to Energy Community Treaty and other EU directives
  • Promotion of energy management and energy efficiency
    •    Generated employment – green jobs
    •    Bosnia and Herzegovina is able to make informed policy and investment decisions, that reduce GHG emissions, reduce poverty, create new employment opportunities and jobs and move societies towards long term sustainability

What have we accomplished so far?

In period 2009-2012, UNDP has been one of the leading agencies promoting Energy Efficiency in Bosnia and Herzegovina, primarily acting within MDG-F Environment and Climate Change programme. Focus of our work was on piloting introduction of energy efficiency in the public sector across Bosnia and Herzegovina by implementation of replicable energy efficiency projects and introduction of EMIS into more than 550 public buildings.

Also, UNDP focused on CO2 emission reduction, preservation of limited natural resources, enabling budget savings, improving quality of life, and creation of new employment opportunities – “green jobs”, assist local administrations level for absorption of new funds, increase awareness and create understanding for energy efficiency and its resulting benefits.

During this period, total of 38 Energy Efficiency pilot projects (small to medium/high scale) were implemented across the country with following results:

  • Total of 664 man/months of employment achieved by implementation of EE/RES measures that created €350,000 worth in salaries.
  • More than 700,000 USD are saved annually thanks to decreased energy consumption costs.

Scale up of these MDF programme activities is continued through new GED project. GREEN ECONOMIC DEVELOPMENT project officially started in September 2013. As mentioned before, main goal is to create favorable environment for investment into energy efficiency infrastructure measures while generating “green jobs”. All this contributes to the market development and leads to an economic prosperity increase.

The project is being implemented through five components:

•    Strengthening the capacity of institutions - training, capacity building and the provision of technical assistance to funds, and the formation of the Association of Thermal Power Engineers.
•    Institutionalization of the energy management - introduction of the EMIS system in public buildings, education of end users, monitoring of the achieved savings and creation of a legal obligation on the monitoring of consumption in public buildings.
•    Establishment of a legislative framework - creation of bylaws and financial mechanisms with the Environmental Protection Funds in order to create a sustainable system of financing of projects in the field of energy efficiency.
•    Implementation of infrastructural measures - objectives of these measures are energy savings, employment of local labor, increase of comfort in public buildings, savings in the budgets, and the possibility of reinvestment of saved funds.
•    Raising public awareness about energy efficiency - a series of activities for the purpose of education of citizens about energy efficiency, energy-saving potentials and reduction of costs.

Goals achived in the first project year:

•    48 detailed energy audits conducted on public buildings all over Country;
•    14 infrastructure projects implemented in order to increase energy efficiency in public buildings;
•    EMIS System introduced in more than 1,000 buildings in BiH;
•    CO2 emissions reduced by a minimum of 850 tons per year;
•    About 250 man / months of local labor force created;
•    USC created the Decision on compulsory data input in EMIS.

SWEDEN’s project contribution

The Swedish government has recognized the value of the project, and since 2015, contributed financially in the following components of the project:

-    Conducting detailed energy audits;
-    Implementing infrastructure projects;
-    Public awareness raising.

Expected results of project till 2018:

-    Financial mechanisms which enable the investments in EE are established within Environmental Funds;
-    Over 140 detailed energy audits are conducted;
-    At least 85 projects of infrastructure measures to increase energy efficiency are implemented;
-    Introduction of Energy Management Information System (EMIS) in over 5,000 facilities in BiH;
-    Increased public awareness on energy management, energy efficiency and reducing CO2 emissions;
-    Reduced energy consumption of public buildings by 50% and reduced CO2 emissions by 4,500 t;
-    More employees - creating green jobs in the equivalent of 400,000 KM per year;
-    Sustainable system at all levels of government, which will lead to a reduction of greenhouse gas emissions, improving EE in public buildings and reinvestment of savings is established.