Skopje, 20 March 2024 (MIA) - The Climate Investment Fund (CIF) has approved on Wednesday North Macedonia's investment plan for an accelerated energy transition from coal to clean energy, totalling €85 million.

The approval of these funds from the CIF, as noted by the Ministry of Economy, marks the initial funding for the implementation of North Macedonia's Just Energy Transition Investment Platform. This platform, valued at €3 billion, was launched at the COP28 climate talks in Dubai at the end of last year.

Ministry of Economy presented the Accelerated Coal Transition Investment Plan in North Macedonia to representatives of the Climate Investment Funds Committee, the EBRD, the World Bank, the IFC, and the Development Bank during today's Government session.

“The Government, in cooperation with the EBRD, IFC, and the World Bank, formulated the Investment Plan, which identified potential investment areas and provided support for the accelerated closure and conversion of coal power plants and mines, as well as the expansion of clean energy alternatives. With this Investment Plan, we demonstrate our firm commitment to leading the nation through the transition to cleaner energy and reduced carbon emissions. North Macedonia has set ambitious goal in the National Contributions to Climate Change with a net reduction in greenhouse gas emissions of 82% by 2030 compared to 1990 levels,” State Secretary in the Ministry of Economy, Razmena Cekikj Durovikj, said during today's presentation of the Investment Plan in the Government.

"This commitment," she added, "underscores our dedication to the principles of the Paris Agreement and signifies a significant step towards a sustainable and environmentally conscious future.”

“The energy sector, a significant contributor to our country's emissions, is leading the transformation and requires substantial investments, estimated at around €3 billion, and precise planning to ensure energy security. This should be achieved through complete coal phase-out by 2030, a goal that aligns with the recommendation of the Coal Transition Alliance for OECD member countries to transition from coal to clean energy. In this context, North Macedonia has established partnerships with multilateral development banks and donor partners, with technical support from the European Bank for Reconstruction and Development,” Cekikj Durovikj said.

During the preparation process of the Investment Plan, the country, she pointed out, launched the Just Energy Transition Investment Platform at the COP28.

“The investment platform encompasses energy transition, including the deployment of renewable energy sources and strengthening the grid, as well as support for just transition measures. The platform aligns with the key strategic documents adopted by the Government, including the nationally determined contributions and the Energy Development Strategy until 2040, particularly regarding the phased decommissioning of coal power plant capacities by 2030,” Cekikj Durovikj noted.

This platform, as she noted, will be built upon our successful partnership with Climate Investment Fund and will serve as a comprehensive tool for investments, policy development, and technical assistance. This will facilitate the rapid and fair transition of our country towards low-carbon energy sources in line with our climate and development goals.

“Central to this cooperation is the support for a just transition, emphasizing the commitment to a transition that is not only economically viable but also socially just and inclusive, incorporating mechanisms to address potential social and economic disparities arising from the transition,” Cekikj Durovikj said.

She said that support is envisioned for the workers and communities affected by coal phase-out, both directly and indirectly throughout the supply chain, involving over 5,000 people. This enables them access to new high-quality green jobs and ensures localized solutions, which are among our main priorities throughout this process.

“Our success in this process will serve as proof and inspiration that we can undertake ambitious climate action, simultaneously enhancing our energy security, creating jobs, and capitalizing on new investment opportunities, with support from developed economies. The effective execution of the Accelerated Coal Transition Investment Plan could serve as a model example of a coordinated approach to accelerate just transition from coal in the Western Balkans and beyond,” she added.

The CIF funding to North Macedonia is part of $2.2 billion Accelerated Coal Transition Investment Plan, marking the first multilateral platform of its kind to support the shift from fossil fuels to clean energy through concessional financing.

By ditching 824 megawatts of coal-fired power at the Bitola and Oslomej power plants, the country will save more than 13 million tons of carbon dioxide emissions by 2038.

Coal mines totalling 2,707 hectares will also be reclaimed and restored.

The CIF funding will also help enable 400 megawatts of renewable energy and 100 megawatts of energy storage.
With this funding, the country will invest in human capital, promoting skill development and providing access to alternative means of livelihood to ensure a fair transition for thousands of beneficiaries.

Photo: Ministry of Economy