Investments in Climate Resilience Critical for Bosnia and Herzegovina’s Future

Bosnia and Herzegovina must invest $6.8 billion over the next decade to mitigate climate change risks, as outlined in the World Bank Group’s latest report. Flooding constitutes over 90% of climate-related damages, potentially shrinking the economy by 14% by 2050. The report emphasizes the importance of nature-based solutions and private sector engagement in transitioning to a low-carbon economy while underscoring the need for effective regulatory frameworks to facilitate sustained climate action.

Bosnia and Herzegovina faces significant risks from climate change, necessitating an investment of $6.8 billion over the next ten years to safeguard its populace and economy from climate-related shocks. The World Bank Group’s recent Country Climate and Development Report reveals that without these investments, the nation could see its economy contract by as much as 14% by 2050, primarily due to damages from flooding. With floods contributing to over 90% of these damages, the report advocates for the implementation of nature-based solutions, such as floodplain restoration and peatland preservation, to enhance resilience and promote economic development. Christopher Sheldon, the World Bank Country Manager for Bosnia and Herzegovina and Montenegro, emphasized the dual nature of the climate challenge, stating, “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.” Tyler Marquier, the IFC Regional Manager for the Western Balkans, further underscored that private sector investments in the green economy are crucial for the country’s sustainable future. Incorporating climate adaptation into national policy, particularly through flood prevention infrastructure and renewable energy investments, is essential. The report highlights that each euro invested in climate adaptation could yield returns of as much as ten euros, indicating substantial economic benefits. A just transition to a low-carbon economy is also vital; implementing strategies to phase out coal, promote renewable energy, and enhance energy efficiency will support vulnerable populations, minimizing the potential for energy poverty. Additionally, the private sector is expected to play an instrumental role, contributing nearly 90% of the investments required to achieve net-zero emissions by 2050 in alignment with EU objectives. As the World Bank Group collaborates with local authorities on initiatives to advance these goals, establishing robust institutional frameworks will be critical for sustained climate action in Bosnia and Herzegovina.

Climate change presents formidable challenges to countries worldwide, particularly for those like Bosnia and Herzegovina, where natural disasters, such as flooding, have a severe impact on both the environment and the economy. Without intervention, the economic detriment caused by climate-related events can be catastrophic, leading to significant GDP losses. The necessity for investment in climate resilience is accentuated by the forecasted economic decline, urging policymakers to consider sustainable solutions. The role of the private sector is increasingly recognized as vital in addressing climate issues, given its potential to fund adaptation and drive decarbonization efforts. Current international sustainable development frameworks call for integrated approaches to energy, adaptation, and social equity, emphasizing the importance of a well-coordinated transition to a low-carbon economy.

In conclusion, the findings of the World Bank Group’s report are a clarion call for Bosnia and Herzegovina to invest in climate resilience to mitigate the severe risks posed by climate change. The proposed financial commitment of $6.8 billion is essential for protecting the nation’s economy and population from the escalating threats of flooding and other climate-related disasters. By investing in sustainable infrastructure, fostering a just transition, and enabling private sector engagement, Bosnia and Herzegovina can pave the way for economic stability and a sustainable future.

Original Source: reliefweb.int