Lignite in Bosnia and Herzegovina complicates its energy transition

Coal-fired facilities around Kakanj emit well above EU limits and Bosnia and Herzegovina now faces Energy Community infringement proceedings while a desulphurisation plant is planned for late 2027.

Everything in Kakanj revolves around lignite and many local jobs depend on coal. The area sits on large lignite reserves and production is expected to rise to about 800,000 tonnes in 2026. Several power plant units date from the 1970s, exceed agreed operating hours and lack modern pollution controls, according to reporting and experts. Bosnia and Herzegovina has committed to climate neutrality by 2050 but faces criticism and legal scrutiny from EU bodies and the Energy Community. Key facts: - Kakanj sits above large lignite reserves and production is set to increase to around 800,000 tonnes in 2026. - Outdated coal-fired units emit high levels of sulphur dioxide and particulate matter; regional reports and international agencies link elevated pollution to thousands of premature deaths annually. - The Energy Community has opened infringement proceedings and the EU's Carbon Border Adjustment Mechanism (in force from 1 January 2026) creates reporting and cost implications for high-carbon exports. - Planned responses include a desulphurisation plant scheduled to start at the end of 2027 and phased decommissioning dates announced for some power blocks (for example, Block 5 in 2027, Block 6 in 2035, and Block 7 projected to run until the mid‑2040s to 2050). Summary: The situation combines longstanding economic dependence on coal, visible public-health concerns and mounting legal and trade pressures from European institutions. Undetermined at this time is how political decision‑making and reform steps will be implemented to reconcile employment, infrastructure timelines and compliance with EU energy and emissions rules.