WASHINGTON - Today, the governing board of the Climate Investment Funds, a pioneering multilateral climate fund delivering low-cost finance to over 70 developing countries, approved an $85 million investment plan presented by the Government of North Macedonia to transition away from coal and embrace clean energy.
With this approval, CIF delivers the first funding window as part of North Macedonia’s Just Energy Transition Investment Platform, launched at COP28. This platform includes a coal phase out in North Macedonia by 2030, in line with the country’s self-defined Nationally Determined Contributions under the Paris Agreement.
At full implementation, North Macedonia’s ACT investment plan will generate almost 1:7 co-financing by 2030, with over $591 million to be invested by the European Bank for Reconstruction and Development (EBRD), the World Bank Group, and the public and private sectors.
North Macedonia could save over 13 million tons of CO2 emissions by 2038 with this plan. CIF funding is expected to enable 400 MW of additional installed renewable energy capacity and 100MW of energy storage to ensure energy security. The country will invest in human capital, promoting skills development and access to alternative livelihoods to ensure a just transition with an estimated 3,000 direct beneficiaries.
Currently, the country is heavily reliant on energy imports and its two main coal-fired thermal power plants (Bitola and Oslomei). These plants are significant contributors to pollution, emitting around 2.7 million tonnes of CO2, over 113,000 tonnes of SO2, and more than 4,000 tonnes of dust annually. The ACT investment plan will support the Government in accelerating the retirement of 824 MW of existing coal power generation at the Bitola and Oslomei power plants and diverting over 4.5 MT of coal. Coal mine areas totaling 2,707 Ha will be reclaimed, restored, or reforested.
North Macedonia’s CIF funding is part of the $2.2bn Accelerating Coal Transition (ACT) investment program, a first-of-its-kind multilateral platform supporting a just transition away from coal and toward clean energy utilizing concessional finance in key middle-income countries.
Talat Xhaferi - Prime minister, Republic of North Macedonia
“The Climate Investment Fund's holistic support through the Accelerating Coal Transition Investment Program is a cornerstone for the Just Energy Transition Investment Platform. It is a starting point to accelerate a shift from coal- to renewable-based energy generation, deliver just transition for coal-reliant communities, and foster new economic activities driven by the green transition. The programme will help unlock investment at scale for Macedonian clean energy, infrastructure and human capital, with powerful demonstration effects for our economy.”
Kreshnik Bekteshi - Minister of Economy, Republic of North Macedonia
“The adoption of the Investment Plan for Accelerating Coal Transition signifies a bold step towards a cleaner, more sustainable future. This plan underscores our firm commitment to combat climate change and transition towards renewable energy sources. This demonstrates our commitment to environmental conservation and securing a prosperous future for everyone.”
Tariye Gbadegesin, CEO, Climate Investment Funds
“This pioneering plan marks a milestone for CIF’s Accelerating Coal Transition investment program. To deliver for climate, we need a rapid and just transition away from coal. With the Government of North Macedonia, EBRD, IFC and World Bank, we are leading the way, piloting a coal phase out in the Balkan region. CIF’s country-led, agile and inclusive business model was created for this: opening markets, incentivizing governments to make new investment decisions, and mobilizing private capital.”
Harry Boyd-Carpenter, Managing Director, Climate Strategy and Delivery, EBRD
“The support from the Climate Investment Funds is critical to address market barriers and unlock private sector financing, needed to deliver on North Macedonia’s ambitious climate targets. Successful implementation of the Investment Plan can provide an example of how a country platform that integrates planning, policy and investment can help to accelerate a just coal transition in the Western Balkans and beyond.”
Nicolas Marquier, Regional Manager for the Western Balkans, IFC
“North Macedonia's commitment to a green transition is commendable, marked by a complete phase-out of coal by 2030. This decisive step towards climate action not only promises cleaner air and healthier communities but also lays the groundwork for private sector-driven economic growth and environmental responsibility in the country.”
Massimiliano Paolucci, Country Manager for Kosovo and for North Macedonia, World Bank
“North Macedonia is making significant strides in modernizing its energy sector and transitioning to clean energy. At the World Bank, we are dedicated to assisting the country in implementing transformative initiatives that support sustainable growth, ultimately leading to the creation of more productive jobs, particularly in areas such as energy efficiency and renewable energy,"
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