Green Economic Development

GED Project

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

Average energy consumption of public buildings in BiH is three times higher than the European Union (EU) average, categorizing them as completely energy inefficient buildings (in accordance to EU Eco-Management and Audit Scheme – EMAS). To meet this energy intensive consumption demand, a significant amount of funding 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.

BiH signed the Energy Charter Treaty, which, besides regulation of the energy market, brought the obligation of reporting on the basis of its regulations and directives.

Since 2009, UNDP is working on enhancing energy efficiency of public buildings in first place, to create positive example, and to contribute towards meeting the targets of mentioned directives.

Project goal

Creating favorable conditions for investments into energy efficiency measures while contributing to the market development and economic progress of Bosnia and Herzegovina.  
GED Project

The project Green Economic Development (GED) is creating favorable conditions for investments into energy efficiency measures while contributing to the market development and economic progress of the country. At the beginning of the Project, local authorities and relevant ministries lacked human and financial resources to cover these activities. Therefore, focus was made towards cantonal and entity governments, as a first step towards institutionalization of energy management and Energy Efficiency Action Plans in the public sector.

The outcomes are:

  • Public budget expenditure savings
  • Employment of domestic workforce
  • Reinvestment in local infrastructure and priorities
  • Environment protection
  • End-user indoor comfort
  • In the third phase of the Project, the aim was expanded to include the facilitation of small and medium enterprises (SMEs) as a drivers of the green economic transition.

Project components

I. Strengthen Institutional Capacities

  • Capacity building for Nearly Zero Energy Buildings
  • Provide technical assistance to the Environmental Funds
  • Develop and strengthen technical and economic capacities of municipalities, public facilities, public utilities and enterprises
  • Develop energy intensity mapping application and introduce monitoring & verification module within the Energy Management Information System (EMIS)

II. Institutionalization of Energy Management

  • Introduce EMIS in all public buildings
  • Implement EMIS in public lighting systems
  • Capacity building of end-users

III. Establish Financial Mechanisms and Legislative Framework

  • Assist Environmental Funds with the development of financial mechanisms with their own finance - Revolving Fund, soft loans and Energy Service Company (ESCO) Fund
  • Assist governments in creation of secondary legislation on energy-efficiency and energy management
    IV. Implement Infrastructure Measures  
  • Implement energy-efficiency retrofits, renewable energy measures, solar hot water and photovoltaic systems in public sector buildings, and energy efficiency in public lighting systems

V. Raise Public Awareness

  • Increase public awareness on energy efficiency and renewable energy  

VI. Install Renewable Energy Sources for Off-grid Households

  • Install hybrid photovoltaic and solar system solutions to remote areas without electricity

VII. Renewable energy sources and energy efficiency in SME's

  • Implementation of Green Finance Incentive Scheme, conduction of detailed energy audits and introduction of the Energy management System ISO 50001/EN 16001 in SMEs


The following results have been achieved through the Project in the period from 2013 until today:

  • In cooperation with the Environmental Fund of the Federation of BiH, institutionalization of energy management was introduced in eight (8) cantons, and the decision on mandatory entry of consumption data in the EMIS was adopted in six (6) cantons,
  • In cooperation with the Environmental Protection and Energy Efficiency Fund of Republika Srpska, institutionalization was carried out at the level of line ministries (with the Ministry of Education and Culture and the Ministry of Health and Social Welfare),
  • Over 2000 people were trained to use the EMIS system independently,
  • Since 2016, the Revolving Fund for energy efficiency projects of public buildings, SMEs and energy efficiency improvements in public lighting systems within the FBiH Environmental Protection Fund has been established, and internal acts for operationalization of the Revolving Fund in the Environmental Protection and Energy Efficiency Fund of RS have been prepared,
  • Increased public awareness on energy efficiency, reduction of greenhouse gas emissions and use of renewable energy sources,
  • More than 350 detailed energy audits of public buildings were conducted, in order to identify the most efficient measures to improve energy efficiency,
  • Modernization of the public lighting system in Maglaj, Živinice, Bihać, Donji Vakuf, Ljubuški, Široki Brijeg, Sarajevo, Pale and Banja Luka,
  • Over 67,000 persons attended educational events and workshops,
  • 30 returnee households who lived in rural parts of BiH for the past 30 years, without the possibility of connection to the electricity distribution network and electricity, gained access to electricity through the installation of photovoltaic solar systems,
  • Developed "Study on improvement of energy efficiency in 1,368 households in Sarajevo Canton used by people in social need", which recorded the current state and energy needs of public and private buildings in Sarajevo Canton used by people in social need, and to increase energy efficiency of buildings and reduction of emissions from individual fireplaces/boilers gave an overview of all energy efficiency measures as well as optimal packages of measures whose implementation would achieve the greatest benefits for reducing emissions in this Canton,
  • Developed "Strategy for restricting the use of coal and other solid fuels in the Sarajevo Canton in the period 2022 - 2032", in order to define a comprehensive and systematical solution for the problem of air quality in Sarajevo Canton, which significantly affects the quality of life of citizens, 
  • Pilot project to subsidize coal stoves and other solid fuels with certified furnaces and heat pumps in households in Sarajevo Canton, with aim to reduce air pollution, especially in settlements where its dominant sources are solid fuel fireplaces,
  • The Study of e-mobility and markets in BiH related to the installation and use of renewable energy sources (solar PV systems) for charging electric vehicles will enable the country to assess short-term to medium-term market potential and readiness to introduce electric vehicles in selected cities. design of associated charging infrastructure,
  • The Study on the use of new cost-optimal technologies in SMEs in BiH, which aims to provide a document that will provide sufficiently reliable information and input data needed to create long-term policies and financial mechanisms to provide financial support to SMEs in BiH and improve the energy efficiency of their business processes and activities.

In addition, infrastructure measures to improve energy efficiency in 262 public buildings and 13 public lighting systems will contribute to:

  • savings in public budgets of over 6.2 million BAM per year,
  • reducing energy consumption by an average of 59%,
  • creating over 2,500 green jobs,
  • reduction of CO2 emissions by about 16,200 tons per year,
  • improving working and living conditions for over 670,000 users, of which more than 270,000 are women.

Goals moving forward

  • Continuous improvement of energy efficiency in public buildings,
  • Further decrease in energy consumption in public sector,
  • Installation of clean energy heating systems and additional replacement of solid fuel furnaces and boilers with certified furnaces/boilers,
  • GHG emission reductions,
  • Implementation of EE/RES projects in SMEs,
  • Introduction of Green Finance Incentive schemes for the SME sector,
  • Introduction of Green Criteria in Public Procurement in BiH,
  • Installation of photovoltaic solar systems in areas without access to electricity,
  • Introduction of Energy Management ISO standards in SMEs,
  • Raising awareness and knowledge sharing campaigns.

For more information about GED project please visit &

Start date:
Estimated end date:
Focus Area:
Energy and Environment
Government of Sweden
Project value:
USD 52,9 million
Ministry of Foreign Trade and Economic Relations of BiH, Ministry of Physical Planning of FBiH, Ministry of Spatial Planning, Civil Engineering, and Ecology of RS, Environmental Fund of the FBiH, Environmental Protection and Energy Efficiency Fund of RS, cantonal ministries, municipalities/cities and other partners.