Macedonia presented the investment platform for a just energy transition in Dubai

North Macedonia today presented and announced the investment platform for a just energy transition with the aim of a successful transition to a low-carbon economy and a just transition of the energy sector, announced the EBRD. The platform, the statement added in full, represents a milestone for the historically coal-dependent country and highlights its ambition to transform its energy sector and economy into a low-carbon, lower-cost, and secure electricity supply. energy.

The EBRD supports the government in the development of the platform and will lead the coordination with international partners.

At the beginning of the event, representatives of the European Commission, the Climate Investment Fund, the World Bank, the International Finance Corporation, the European Investment Bank, KfW, the Development Bank of the Council of Europe, as well as Cassa Depositi e Prestiti – the Italian Development Bank, who confirmed its support for the ambitious goals of North Macedonia, implementation of the platform, as well as several donor and philanthropic organizations.

At COP28, the climate summit in Dubai, the Minister of Economy of North Macedonia, Kreshnik Bekteshi, presented the objectives of the Investment Platform for a Just Energy Transition, as a tool for attracting investments and developing policies that brings together the government, international finance and the private sector. The goal will be to replace coal as an energy source, install 1,7 gigawatts of renewable energy by 2030, invest in the grid and storage to ensure security of electricity supply, and fair transition measures to support communities affected by this transition.

This will reinforce North Macedonia's existing commitment, as set out in its National Contributions to Climate Change, to reduce net greenhouse gas emissions by 82 percent by 2030 compared to 1990 levels. As the energy sector contributes significantly to the country's emissions, where coal has historically accounted for over 40 percent of production, the energy transition is key to achieving this goal.

The transition to a green economy will result in net economic benefits, supporting North Macedonia to enter green value chains and increase the competitiveness of its economy. However, coal-dependent regions may be unevenly affected. To address this, the platform will support regional economic diversification and human capital development in line with the just transition roadmap supported by the European Union and the EBRD.

Achieving these goals will require significant investments in the country, estimated at around 3 billion euros by 2030. They are expected to be mobilized primarily through the private sector by unlocking market barriers, especially for the deployment of renewable energy sources through competitive auctions.

The platform will be based on a successful collaboration with the Climate Investment Fund, which is expected to provide up to USD 85 million in grants and concessional finance to coal-affected regions, subject to approval by the Fund's Committee based on the prepared investment plan for accelerated transition of coal, which North Macedonia should deliver by February 2024.

"Central to this collaboration is support for a just transition, emphasizing a commitment to a transition that is not only economically viable, but also socially just and inclusive, and incorporating mechanisms to address potential social and economic disparities arising from the transition." Helping workers and communities affected by coal substitution, giving them access to new high-quality green jobs and providing localized solutions are one of our main priorities during this process," said Minister Bekteşi, who launched the program side by side with the President. of EBRD Odile Renault-Basso.

We are very proud to be North Macedonia's partner in this innovative country-led platform that brings together government commitments, international support and private finance to accelerate a just energy transition, said EBRD President Renaud-Basso.

"We believe this is a model for how the finance needed for climate solutions can be accessed in North Macedonia, the Western Balkans and beyond, and we look forward to working closely with the government to support the delivery of these high ambitions."

The EBRD, a leader in the financing of climate-related projects, whose approach is systemic and works together with countries to create an investment climate attractive to the private sector, makes its long experience available to North Macedonia to lead, organize and integrate all international financial institutions and donor partnerships for this platform.

In doing so, the EBRD intends to use its experience from the Just Transition Initiative and its support for the energy pillar of the Egyptian Food, Water and Energy (NWFE) Nexus, which was launched last year at COP27 in Egypt and is already delivering significant investment with 1,8 .XNUMX gigawatts of wind and solar capacity signed in the past year

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