Bosnia's Coal Addiction Jeopardizes EU Future

Bosnia and Herzegovina is grappling with a significant energy transition challenge, primarily due to its deep-rooted reliance on coal. The town of Kakanj, central to the country's lignite production, faces severe air pollution, with health experts linking it to a concerning rise in cancer cases. Local industries, including the Kakanj coal mine, which has reserves for another 40-50 years, are economically vital but environmentally damaging.

Despite committing to climate neutrality by 2050 and being part of the Energy Community, Bosnia and Herzegovina is not adhering to EU energy market rules. Outdated power plant units, lacking modern filters, emit sulfur dioxide far exceeding permitted levels. This non-compliance has prompted infringement proceedings from the European Energy Community.

The country's path toward the European Union is further complicated by the upcoming Carbon Border Adjustment Mechanism (CBAM), which will impose taxes on high-carbon exports to the EU. Bosnia and Herzegovina's delayed implementation of an EU-compatible Emissions Trading Scheme and a lack of legislative progress by the State Parliament are significant hurdles.

While the EU offers substantial financial support, including over €335 million in grants and loans for green transition projects, progress is hindered by political complexities and differing interests between the country's entities. The closure of older mines, like the Zenica pit, highlights the human cost of this transition, with workers facing uncertain futures.