North Macedonia: tapping multilateral climate finance to kickstart an economy-wide just transition
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North Macedonia case study
In March 2024, Climate Investment Funds (CIF) approved a US$85 million investment plan to support and accelerate coal phase-out in the West Balkans nation of North Macedonia. The plan, under CIF’s Accelerated Coal Transition Investment Program (ACT IP), is designed to trigger almost US$600 million in funding from the European Bank for Reconstruction and Development (EBRD), the World Bank and other public and private investors. This in turn will mobilise a total of €3 billion (US$3.4 billion) into the country’s wider Just Energy Transition Investment Platform (JETIP) by 2030.
This case study explores the just transition elements of the ACT IP in the context of its wider investments in clean energy in North Macedonia.
Summary
- The North Macedonia ACT programme has helped inform CIF’s wider coal transition work, including by emphasising the need to frontload just transition funding and increase flexibility offered to host countries.
- The three-pronged Accelerating Coal Transition Investment Program has an economy-wide scope, funding coal plant decommissioning, clean energy rollout and inclusive economic development in affected regions.
- The programme has sought broad stakeholder engagement and political continuity, involving ministries, civil society and multilateral banks to ensure strong governance and public ownership of the transition process.
- The programme has a strong private sector component and will support the country’s Just Energy Transition Investment Platform. That will help the local utility decarbonise, build out renewables capacity and develop alternative economic opportunities for coal-dominated regions.
