The average energy consumption in residential buildings in Bosnia and Herzegovina is over five times more than the specific annual energy consumption in residential buildings in EU countries located in similar climate conditions. Residential housing sector in Bosnia and Herzegovina is also recognized as the sector with the largest potential for cost-effective energy savings. More than 98% of residential buildings were constructed in the period up to 2010, before any energy efficiency regulations for buildings have been put in place. Therefore, almost all residential buildings were built without consideration of their energy performance, let alone carbon footprint. They have poor thermal insulation and old heating and lightning systems. Also, due to investments, the residential housing stock in Bosnia and Herzegovina is now in a poor state and urgently needs repair.  

Besides energy saving potential, by enhancing their energy performance, residential buildings also have significant potential for reduction of GHG emissions, through implementation of fuel-switch measures. An increase in energy efficiency of residential sector will thus bring health benefits and improvement of quality of life of overall population. This transformational change in energy sector can only happen if the capacity and skills of the relevant institutions and professionals are strengthened in parallel with establishment of the system that enables financing for energy efficiency infrastructure projects while generating green jobs and reducing CO2 emissions.  

The Project aims to achieve result in a real and visible paradigm shift in the residential building sector of Bosnia and Herzegovina towards low-carbon sustainable development, as specifically recommended in the Nationally Determined Contribution (NDC), the National Communication to the UNFCCC and the National Climate Change Strategy of Bosnia and Herzegovina.