North Macedonia launches investment platform for just energy transition at COP28
2030 goals: coal phase-out, 1.7 GW of renewable energy, grid strengthening and just transition
The EBRD is one of the founding international partners, leading in coordination
North Macedonia today launched a Just Energy Transition Investment Platform to guide its large-scale projects for a just, low-carbon transition of the electricity sector. The platform represents an important milestone for this historically coal-dependent country and highlights its ambition to transform its energy sector and economy towards a low-carbon, low-cost and secure paradigm.
The EBRD supported the government in the development of the platform and will lead coordination with international partners.
The launch event at COP28the Dubai climate summit, was joined by the European Commission, Climate Investment FundTHE world Bank, International Finance Corporation, European Investment Bank, Kreditanstalt für Wiederaufbau, Council of Europe Development Bank as well as Cassa Depositi and Prestitiwho confirmed their support for North Macedonia’s ambition and the realization of the Platform, alongside donor and philanthropic organizations.
During the event, the Minister of Economy of North Macedonia, Kreshnik Bekteshi, defined the objectives of the platform, an investment and policy development vehicle bringing together government, international finance and the private sector. It will target the complete elimination of coal-fired power, the deployment of 1.7 gigawatts of renewable energy by 2030, investments in the grid and storage for energy security, and just transition measures to support communities affected by this transition.
This will reinforce North Macedonia’s existing commitment, as set out in its Nationally determined contributionto reduce its net greenhouse gas emissions by 82 percent by 2030 compared to 1990 levels. Given that the electricity sector looms large in the country’s emissions profile, coal historically representing more than 40% of production, the energy transition is essential to achieve this objective.
The transition to a green economy will bring net economic benefits, helping North Macedonia enter green value chains and increasing the competitiveness of its economy. However, regions that rely on coal could be affected unevenly. To address this, the platform will support regional economic diversification and human capital development in line with its objectives. Roadmap for a just transitionsupported by the European Union and the EBRD.
Achieving the country’s vision will require substantial investments in the country, estimated at around €3 billion by 2030. These investments are expected to be mobilized primarily through the private sector by removing market barriers, particularly for the deployment of renewable energies via competitive auctions.
The platform will build on a successful collaboration with the Climate Investment Fund, which plans to provide up to $85 million in grants and concessional financing to coal-affected regions, subject to approval by its committee of the trust fund of the investment plan for the accelerated transition to coal. FEBRUARY.
“At the heart of this collaboration is support for a just transition, with an emphasis on commitment to a transition that is not only economically viable, but also socially just and inclusive, and integrating mechanisms for address potential social and economic disparities resulting from the transition. Assisting workers and communities impacted by the coal phase-out, providing them with access to new, high-quality green jobs, and providing localized solutions is one of our top priorities during this process,” said Minister Bekteshi, who launched the program alongside the EBRD. President Odile Renaud Basso.
“We are very proud to partner with North Macedonia in this innovative country-led platform, which combines government commitment, international support and private financing to accelerate a just energy transition,” said the EBRD President, Renaud-Basso.
“We believe this is a model for strengthening climate finance, in North Macedonia, the Western Balkans and beyond, and we look forward to working closely with the government to support the achievement of these high ambitions. »
The EBRD, a leader in climate finance whose modus operandi consists of working systemically with countries to create an attractive investment climate for the private sector, is making its long experience available to North Macedonia to support the creation of partnerships with IFIs and donors in this area. platform.
In doing so, the EBRD intends to leverage the experience of its Just Transition Initiative and its support for the energy pillar of Egypt’s Nexus for Food, Water and Energy (NWFE), launched last year at COP27 in Egypt and which is already making significant investments. with 1.8 gigawatts of wind and solar capacity signed last year.