Energy security in the Western Balkans is at risk due to depleting lignite mines, aging power plants, and risks to natural gas supply. Even if all the available generation capacity works as designed and gas, electricity, oil, and coal imports are entirely secure; the energy system still fails to deliver the required volume of useful energy both now and within the existing planning vision. In addition, one ton of carbon dioxide emitted from Balkan power plants produces only half a megawatt hour of electricity. The same ton emitted from an average European power system produces roughly two-megawatt hours and more than three times economic value. Clean, affordable, and competitive energy is critical to sustain economic growth in the region. 

ABOUT THE PROJECT
The project aims to contribute to improved energy security and decarbonization of electricity production in the Western Balkans by actively advocating for its accession into the EU Emissions Trading System (EUETS) and providing a viable investment framework to make it a real possibility. 

LOCAL IMPACT
Access to EUETS creates the opportunity to finance massive reforestation in Albania, Kosovo, North Macedonia, Bosnia and Herzegovina and Montenegro improving water conservation over territory and make hydro power more effective while scaling countries capacity to mitigate CO2 emissions. Western Balkans integration into EUETS with allocation of allowances for coal phase out is going to provide an investment framework of 10-15 billion Euros for a period of 8 years proportionally to forestation and actual CO2 emissions reduction. Pollution from Lignite power plants have cross border impact. Eliminating coal power plants helps each country in the region to reduce health costs and loss of forests due to acid rains and SO2 pollution. 

REGIONAL IMPACT
Integration of the Western Balkan countries into EUETS provides both the resources and the oversight by the EU that would make coal phase out and energy transition much easier and in compliance with the EU’s standards and regulations. Thus, accession into EUETS would also contribute to strengthening the rule of law, as well as sustainable development – the most important pillar of open society. Integration in the EUETS would also convince the citizens of the region that their European perspective remains a reality.

PROGRESS TO DATE
The opportunity has been presented to the EU Commission and WB governments. Governments in the region have agreed to conduct a coordinated effort in demanding integration of the region in EUETS. Technical documents that prove the feasibility of the solution are being developed.