A green recovery in North Macedonia

Abstract

North Macedonia has already established a significant legislative foundation for the low-carbon transition, is well advanced in the process of submitting its National Energy and Climate Plan, and submitted an ambitious enhanced Nationally Determined Contribution to the Paris Climate Agreement. Within the Western Balkan region, North Macedonia has the lowest coal subsidies; it has, however, recently stepped up production of coal and coal-fired electricity. This chapter considers how North Macedonia can follow through on its climate- and environment-related legislation and strategic documents, which has historically been a challenge. To strengthen investment in renewable energies, North Macedonia needs to increase the use of market-based support mechanisms, eliminate remaining coal subsidies and increase excise taxes on fuels. Likewise, relevant administrative procedures should be streamlined, the electricity system should be updated for more flexibility and potential investors should be better informed about investment procedures. Similarly, the support system for energy efficiency in buildings needs to be strengthened and fully operationalised.