The Climate Investment Funds (CIF), a leading multilateral climate fund supporting over 70 developing countries, approved on March 20 an $85mn investment plan proposed by the government of North Macedonia, a significant step towards transitioning away from coal and embracing clean energy solutions.

The approval of this investment plan is the first funding under North Macedonia's Just Energy Transition Investment Platform, introduced at COP28. At full implementation, North Macedonia's investment plan is expected to attract nearly $591mn in co-financing by 2030 from partners such as the European Bank for Reconstruction and Development (EBRD), the World Bank Group, and both public and private sectors.

The project aligns with the country's self-determined Nationally Determined Contributions (NDCs) under the Paris Agreement, including a pledge to eliminate coal usage by 2030.

By 2038, North Macedonia anticipates saving over 13mn tonnes of CO2 emissions through this initiative. The CIF funding will enable the addition of 400 MW of renewable energy capacity and 100 MW of energy storage, enhancing energy security.

Moreover, the investment will prioritise human capital development, offering skills training and alternative livelihood opportunities to approximately 3,000 individuals, ensuring a fair and equitable transition.

Currently, North Macedonia heavily relies on energy imports and operates two major coal-fired thermal power plants, REK Bitola and Oslomej, which significantly contribute to pollution. These plants collectively emit over 2.7mn tonnes of CO2, more than 113,000 tonnes of SO2, and over 4,000 tonnes of dust annually.

The approved investment plan aims to accelerate the retirement of 824 MW of coal power generation at these plants, redirecting over 4.5mn tonnes of coal. Additionally, it includes efforts to reclaim, restore, or reforest approximately 2,707 hectares of land affected by coal mining.

“The programme will help unlock investment at scale for Macedonian clean energy, infrastructure and human capital, with powerful demonstration effects for our economy,” North Macedonia’s interim PM Talat Xhaferi said.

North Macedonia's CIF funding is part of the $2.2bn Accelerating Coal Transition (ACT) investment programme.