North Macedonia faces significant climate challenges, including severe flooding and drought, necessitating an investment of $6.4 billion over the next decade to protect its citizens and infrastructure. According to a recent World Bank Group Country Climate and Development Report, the nation could incur economic damages of up to 4% of its GDP by 2050 due to climate impacts. Historical weather events have already resulted in $667 million in losses over the past 20 years, disproportionately affecting vulnerable sectors like agriculture.
The country’s high dependence on energy imports—about 40% of its electricity supply—and reliance on Russian gas makes it susceptible to energy price shocks. North Macedonia currently generates around 35% of its electricity from coal and 5% from oil, which undermines its energy resilience. While the government has committed to phasing out coal by 2030, recent suggestions to delay this deadline could jeopardize future energy security.
The World Bank emphasizes that transitioning away from fossil fuels is crucial for bolstering energy security and improving health outcomes through better air quality. To achieve net-zero emissions by 2050, North Macedonia must significantly ramp up investments, including developing 6.9 GW of renewable energy capacity and electrifying key sectors, particularly transportation. Mobilizing private capital will be essential for driving this green transition and fostering sustainable economic growth.
