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See all EU institutions and bodiesThe Bosnia and Herzegovina country profile provides a concise overview of key trends across three dimensions: environment and climate; socio-economic change; and system change (energy, mobility and food) in the country. It highlights the main developments and challenges in these areas, including measures to support progress towards sustainability in Bosnia and Herzegovina. An assessment for each of the three dimensions was prepared by national experts from the European Environment Information and Observation Network (Eionet) in Bosnia and Herzegovina, based on 20 established indicators from the EEA or Eurostat.
Bosnia and Herzegovina is a candidate country for EU membership. In March 2024, the European Council opened accession negotiations with Bosnia and Herzegovina. At this point, the country faces many challenges, but also opportunities, in relation to transforming the environment.
In Bosnia and Herzegovina, environmental protection is primarily within the jurisdiction of the political entities (Republika Srpska and the Federation of Bosnia and Herzegovina), while the obligations at the state level are carried out in accordance with the Law on Ministries and Other Administrative Bodies of Bosnia and Herzegovina.
Progress has been made with the adoption of the environmental strategies and action plans of the Brčko District of Bosnia and Herzegovina, Republika Srpska and the Federation of Bosnia and Herzegovina in 2023. The overall strategy for Bosnia and Herzegovina is currently in the adoption process. The fifth national report for the United Nations Framework Convention on Climate Change (UNFCCC) is currently in preparation, and so is the first biennial transparency report. The final draft of the integrated national energy and climate plan (NECP) for Bosnia and Herzegovina for the period up to 2030 was submitted to the Energy Community in 2024. As a party to the United Nations Convention on Biological Diversity, Bosnia and Herzegovina submitted the sixth national report under the convention in 2019 and delivered the ecosystem assessment and its summary for policymakers under the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services conceptual framework in 2024. The assessment report for the United Nations Convention to Combat Desertification was submitted in 2023.
There is still a need to enhance the legal framework and strengthen administrative capacity, monitoring systems and interinstitutional coordination in line with the accession obligations and the Sofia Declaration on the Green Agenda for the Western Balkans.
Key trends and assessments
Summary assessment
One of Bosnia and Herzegovina’s main challenges is comprehensively improving and protecting the environment while minimising anthropogenic impacts, in line with EU best practices. There is a need to focus on emission reduction and a multidisciplinary and integrated approach to air quality issues, and also on improving waste and water management solutions, mitigating impacts and adapting to climate change.
It is particularly important to create the conditions for the energy transition and the development of circular economy models and green enterprises. There is great potential for improving the use of natural resources and the protection of existing biological diversity. There is also a need to improve land use and the use of natural resources in agriculture, forestry and fisheries in order to improve quality and avoid the degradation associated with over-exploitation.
Appropriate environmental management is a crucial factor in the implementation of the previously discussed practices. In this context, future actions should focus on the application of the principles of good environmental management; improvement of the accountability, transparency and effectiveness of the implementation of the related frameworks; public participation; and the integration of gender, social equity and poverty issues into policies.
Among the country’s population, concern about key environmental issues such as climate change and pollution has increased, and green behaviour has followed a similar trend. With Bosnia and Herzegovina gaining EU candidate status, the Member States’ leadership and progress – or lack thereof – in relation to equitably implementing the green transition will further shape people’s attitudes towards the environment in Bosnia and Herzegovina in terms of what is possible, desirable and necessary.
Promoting sustainable lifestyles
Bosnia and Herzegovina has a Gini coefficient of 0.33, indicating moderate income inequality within the Western Balkans. Approximately 16.9% of the population lives below the poverty line, with energy poverty affecting an estimated 30–40% of households. This disparity underscores the need for policies that not only address economic inequities, but also promote sustainable lifestyles. The importance of addressing energy poverty is recognised in the Integrated National Energy and Climate Plan (NECP), with plans for the preparation of an energy poverty strategy. Possible interim measures to address energy poverty could be income-based policies, energy efficiency programmes and education initiatives. Recently adopted environmental strategies recognise the importance of environmental education and awareness raising and the need to target campaigns towards specific groups of people.
Greening the economy
The business community in Bosnia and Herzegovina plays a pivotal role in the transition towards a greener economy. Leading companies in industries such as metals and wood are starting to adopt energy efficiency measures and explore circular economy opportunities, in anticipation of increased consumer demand for sustainable products. However, the lack of investment incentives and regulatory support has hindered the eco-innovation potential in these sectors. To address these challenges, governments at various levels are supporting small and medium-sized enterprises (SMEs) in implementing energy efficiency measures. In 2023, the EU energy support package allocated grants to energy efficiency improvements in SMEs. Initiatives have been introduced to assist SMEs in understanding ‘green certificates’ and the certification process.
Ensuring social equity in the transition
Most of the current environmental protection expenditure relates to waste management (50.6%) and air protection (29.5%). Environmental tax revenue’s share of the GDP was 3.7% in 2021, with the largest share being from energy taxes (81.6%). Since environmental policies can have a disproportionate impact on low-income households, but also improve the state of social justice, it is essential to assess the distributional impacts of environmental policies and develop accompanying measures that lead to a fairer distribution of costs, through socioeconomic assessments and inclusive stakeholder consultations when developing policies.

The food system
Agricultural and food products account for 6% of Bosnia and Herzegovina’s total exports to foreign markets, while on the import side the share is higher, at around 16%. Bosnia and Herzegovina does not have a clear competitive advantage, except in the dairy, fruit and vegetable subsectors. The structure of the sectors is weak: more than 50% of suppliers are subsistence and semi-subsistence farms (operating on less than 2 ha). Short food supply chains have not been developed, so added value is limited, especially in the areas of organic and traditional food production. Encouragingly, there has been a recent positive trend regarding participation in the protected geographical indication and protected designations of origin schemes.
Strategic documents for the development of agriculture and rural areas adopted in Republika Srpska, the Federation of Bosnia and Herzegovina and the Brčko District of Bosnia and Herzegovina for 2021–2027, through their priority objectives, recognise the importance of an increased security of food supply, sustainable use of resources with the application of modern and ecological practices, and the revitalisation of rural areas, among others. International development projects in this area, with domestic institutions as partners, are focused on modernising the agri-food sector and expanding access to and use of digital tools in agri-food systems and rural territories.
Concerning consumption, food and non-alcoholic beverages account for the largest share (29.5%) of average monthly household consumption expenditure, followed by housing and energy (24.1%). Most households worry about food waste and throw away very little, but lots of food waste is generated in the hospitality industry: 2 000–3 000 t each year in the Canton of Sarajevo for a population of around 400 000. Non-governmental initiatives to collect surplus food from restaurants and leftovers from large events and redistribute the food to people in need are few in number but still valuable (see for example), and there are also some new government initiatives on the prevention and reduction of food waste. In 2023, Bosnia and Herzegovina’s Law on Value Added Tax was changed so that no such tax has to be paid on donated food (to prevent the destruction of food, protect the environment and help people in need). There are also valuable non-governmental organisation initiatives supporting the idea that ‘all people can access and enjoy food that is good for them, good for those who produce it, and good for planet Earth’, through the preservation of indigenous varieties of cereals, peas and vegetable crops and the introduction of earth markets and other initiatives.
The population is aware that, as a sector, agriculture, the food industry and food distributors significantly pollute the environment; understands the urgency of making climate-friendly food choices; and understands the positive impact of small changes in daily life. This could be a good basis for change. However, a lack of trust, social capital and knowledge decreases people’s capacity to engage in the collective actions necessary to combat climate change and adopt a climate-friendly lifestyle that would drive the modernisation of the agri-food sector.

The energy system
Bosnia and Herzegovina’s energy sector is a key economic pillar. The country has various domestic energy sources and is largely energy independent (coal accounts for over 65% of total primary energy consumption). Recently, due to its significant potential, Bosnia and Herzegovina has attracted a lot of interest from investors in renewable energy, especially in solar and wind power plants. The sources of raw materials for the production of energy from biomass are also very favourable. The country has significant hydropower potential as well, but only uses 35% of what is available. Recently, small hydropower plants have received special regulatory attention due to their negative environmental impact: the 2022 Law on Renewable Energy Sources of Republika Srpska abolishes incentives for small hydropower plants with a capacity of more than 150 kW, and the 2023 Law on Electricity of the Federation of Bosnia and Herzegovina prohibits the construction of small hydropower plants with an installed capacity of less than 10 MW.
For Bosnia and Herzegovina, it is crucial to manage market integration with neighbouring countries, diversify supply routes and develop partnerships with domestic suppliers. Bosnia and Herzegovina has prepared the final draft of the Integrated Energy and Climate Plan (NECP) for the period up to 2030, with plans to gradually decommission thermal power units in the amount of 410 MW. For other thermal power plants / units, a reduction in the production of electricity is expected, with a parallel increase in renewable energy source (RES) capacities. In order to offset the reduced production of electricity from thermal power plants by 2030 and ensure the security and reliability of supply, given the lack of time and resources to build new RES plants, the NECP expresses its commitment to using coal as a transition fuel in the energy sector.
The requirements of the EU and the international obligations of Bosnia and Herzegovina in the energy sector are largely covered by the provisions of the Energy Community Treaty. Bosnia and Herzegovina has committed itself, to reduce CO2 emissions by 41.2% by 2030 (including in land use, land use change and forestry LULUCF) compared with 1990. The target RES share in gross final energy consumption is 43.6% by 2030. The commitment to introduce the emissions trading system (ETS) in Bosnia and Herzegovina by 2026 was also expressed in the NECP. A series of activities have been launched to meet the prerequisites for the establishment of the ETS in Bosnia and Herzegovina. The funds collected from the ETS would remain in Bosnia and Herzegovina and be used for energy system decarbonisation measures and a just transition in coal-rich regions.
Replacing coal is crucial for reducing greenhouse gas (GHG) emissions, but it brings both opportunities and challenges. The main challenge will be implementing effective strategies to avoid raising unemployment and poverty in coal-rich regions. There are also increasing momentum and resources available to enable transformations and ensure that these transformations are socially and economically fair. The final draft of the roadmap for a just transition in the coal-rich regions of Republika Srpska and the Federation of Bosnia and Herzegovina has been prepared, and there are plans for the preparation of the energy poverty strategy of Bosnia and Herzegovina.

The mobility system
The road and rail are common modes of transport in Bosnia and Herzegovina. The modal share of rail accounts for approximately 19% of freight land transport (tonne/km) and 7% of passenger land transport (passenger-km). Passenger traffic at the four international airports in Bosnia and Herzegovina is increasing. Sarajevo International Airport actively participates in the airport carbon accreditation programme. Transport emissions are a major source of air pollution in many cities due to the age of the vehicle fleet (the average age in 2023 was 17 years) and the dominance of diesel fuel. As the Connecta study outlines, under the ‘do nothing’ scenario, emissions are due to double by 2050.
The volume of traffic in Bosnia and Herzegovina is increasing, and greenhouse gas (GHG) emissions from the transport sector are on a long-term upward trend, with transport accounting for 83% of oil consumption in Bosnia and Herzegovina. To limit the problem of the mass import of used vehicles (more than 80% of vehicles are imported, mostly from the EU), the import of vehicles that do not meet the Euro 5 emission standard has been banned in Bosnia and Herzegovina since June 2019. The main challenges in the transport sector are reducing the average age of vehicles and improving public transport. Bosnia and Herzegovina’s 2016–2030 transport strategy recognises minimising environmental impact as a strategic goal in the political entities and the Brčko District of Bosnia and Herzegovina.
The 2022–2032 environmental strategies in the entities and the Brčko District of Bosnia and Herzegovina recognise the importance of reducing emissions of pollutants, promoting non-motorised transport in urban areas, identifying funding sources to increase the share of public transport (electrified and low-emission transport) and aiming to increase the share of renewable energy sources (RES) in transport (30% by 2030, up from 1% in 2018). Although there is a positive trend in the import of electric cars, their share out of the total number of electric vehicles in Bosnia and Herzegovina is very small. As an incentive, Bosnia and Herzegovina approved the reduction of customs duties on the import of new electric and hybrid cars for 2023 and 2024. The Government of the Federation of Bosnia and Herzegovina subsidised the purchase of electric cars for private companies and individuals (EUR 5 000 for electric vehicles and EUR 3 500 for plug-in hybrid vehicles).
Bosnia and Herzegovina’s largest cities have introduced a system of public bicycles, e-bikes and scooters, as well as e-cars. It is encouraging that there are a few e-vehicle products developed and manufactured in the country. Bosnia and Herzegovina endorsed the Declaration for Green Mobility of South East European Parties and Observing Participants. The strategy for sustainable and smart mobility in the Western Balkans likewise sets common regional objectives, with the ultimate aim of making transport greener, sustainable and healthier for citizens. Efforts are also needed to enhance multimodal transportation and establish digital corridors along the supply chain. Most cities still need to work towards the implementation of sustainable urban mobility plans.