Energy transition and climate mitigation in Kosovo

Context

The Western Balkans, including Kosovo, are already feeling the effects of climate change. Droughts and floods are becoming more frequent and severe, and this trend is expected to continue. Scientists estimate that average temperatures in the region could rise by 1.7 to 4°C – and possibly more – by the end of the century, depending on how much the world reduces greenhouse gas pollution.

In Kosovo, energy is mainly produced by burning fossil fuels such as coal. This pollutes the air, harms the environment, affects people’s health, and slows down the country’s long-term development.

To respond to these challenges, Kosovo has made the energy sector a top priority in its plans for a greener and more inclusive future. The country’s Green Agenda and its Energy Strategy (2022–2031) focus on protecting nature, using resources more efficiently, and turning climate risks into opportunities for growth and innovation.

The Energy transition and climate mitigation in Kosovo project supports these efforts. It helps the country move towards a cleaner, more modern energy system by encouraging the use of renewable energy (RE) sources – such as solar and wind – and improving energy efficiency (EE) in homes and buildings. This means using less energy to perform the same tasks, which helps reduce pollution and saves money.

Objectives

The project focuses on two major issues: how energy is wasted and the very small amount of renewable energy currently in use. It supports Kosovo’s goal to increase RE production from less than 300 megawatts to 1,600 megawatts by 2031. If successful, this could cut over 650,000 tonnes of carbon emissions each year.

The project also helps improve the energy performance of buildings, aiming to reduce energy use in buildings by 25%. This could prevent another 500,000 tonnes of emissions each year – while making homes and workplaces more comfortable and energy-efficient.

The key results expected are:

• improved implementation of RE and EE measures through stronger institutional support;
• a strengthened regulatory framework for RE and EE;
• enhanced access to financing for small-scale RE and EE investments.

Beneficiaries

The project supports public institutions, businesses and households across Kosovo. Key partners include government ministries and agencies working on energy, the environment, trade and economic development. These include the Ministry of Economy, the Ministry of Environment, Spatial Planning and Infrastructure, the Kosovo Energy Efficiency Fund, the Ministry of Industry, Entrepreneurship and Trade, and the Kosovo Investment and Enterprise Support Agency.

Small businesses and families benefit directly through better access to RE and energy-saving solutions. At the same time, the entire population gains from cleaner air, lower energy costs and a more sustainable energy system.

Stakeholders

The project works closely with local partners to ensure its activities are rooted in the community. For example, some parts of the project are carried out by organisations such as the Balkans Green Foundation, which promotes sustainable development, the Metal Industry and Renewable Energy Cluster, and the Kosovo Investment and Enterprise Support Agency. Together with partners, the project runs a grant scheme that supports clean energy projects. These partnerships strengthen local involvement, encourage cooperation between the public and private sectors, and raise awareness about green growth.