Accelerating Green Growth through Electric Mobility in Europe and Central Asia

Project Summary:

This grant aims to accelerate the decarbonization of Bosnia and Herzegovina’s (BiH) transport sector by promoting E-mobility and reducing greenhouse gas (GHG) emissions and air pollution from road transport.

Strategically positioned between the world's two largest electric vehicle (EV) markets—the European Union and China—BiH has the potential to become a key player in the global EV and battery supply chains.  However, Sarajevo is currently one of the most polluted cities in Europe, with road transport accounting for 20-30% of emissions due to outdated vehicles and increasing private car use. The country faces significant challenges including limited EV adoption, which remains in the pilot phase due to financial constraints and small market size.

Additionally, the government’s limited capacity to develop comprehensive strategies has hindered efforts to address these gaps and scale up efforts regionally.

This KGGTF financing will be directly used to finance Component 3 of the BiH Air Quality Improvement Project (P176040), focusing on the transition to low-emission transport. The initiative will help decarbonize the transportation sector, contributing to the World Bank’s broader efforts to promote e-mobility across the ECA sub-regions, and opening up opportunities for innovative financing mechanisms.