Switching to green energy requires policies and programs that will ensure a just transition so that no one is left behind

Although the transition to green energy represents a significant opportunity to stimulate investments and modernize the economy of Bosnia and Herzegovina, it also represents a challenge for tens of thousands of people whose income directly or indirectly comes from the mining industry.

With that in mind, International Labour Organization (ILO) presented preliminary findings of its study on the impacts of decarbonisation on employment and the socio-economic situation in local communities in Bosnia and Herzegovina, where coal mines are the key economic generator.

Findings were presented at the round table that gathered representatives of government, social partners and international organizations in Sarajevo on April 4, 2023. During the round table, participants exchanged ideas on shaping of the energy transition in a just manner, maximizing economic and social gains, and effectively managing the social risks of economic, technological, and social transformation.

“It is important to understand the potential impact of the energy transition on employment in order to ensure that relevant policies and programs are evidence-based, reduce labour market disruptions, maximize employment and well-being, and ensure that no one is left behind“ says Lejla Tanović, ILO coordinator for Bosnia and Herzegovina.

Having in mind that the study particularly focused on the transition from coal mining and thermal power plants to greener production of energy, participants of the round table stressed the urgent need for a comprehensive, strategic, and coordinated approach to address the complex socioeconomic implications of this transition. Despite growing certainty that the era of brown energy is coming to an end, some of the participants noted that a comprehensive policy plan to mitigate the social shocks in municipalities highly dependent on the coal mining industry has not yet been articulated.

As a solution, several participants suggested the creation of an ambitious but necessary set of public policies that would offer a holistic approach to the social aspects of the energy transition. That approach should encompass effective retraining policies of the workforce, social welfare packages, and economic diversification activities in municipalities where coal mining is the primary industry that is also generating income for other industries.

Some of the participants also emphasized the importance of involving international organizations and donors in the promotion of a just approach to energy transition through the design of planned and effective measures for managing of the workforce employed in or economically dependent on the coal mining sector and technical support to local institutions and organizations. Participants invited ILO to continue with its engagement in the direction outlined by the study.

Discussion insights will enable further study improvements and inform future ILO and UN technical support to Bosnia and Herzegovina in this area.

The study "The Impact of Decarbonization on the Employment and the Socio-Economic Situation in Bosnia and Herzegovina" relies on the tools and methods developed by the ILO as part of its contribution to the United Nations Joint Program "Towards an Ecosystem for Financing the Sustainable Development Goals (SDGs) in Bosnia and Herzegovina". The joint program gathers six UN agencies (ILO, UNDP, UN Women, UNICEF, UNESCO and WHO) to build an ecosystem for financing sustainable development in Bosnia and Herzegovina within the framework of the Joint SDG Fund. The ecosystem is a network of different stakeholders that enables the creation of additional financing to promote and achieve SDGs.