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Climate crisis puts at stake nearly 3 million jobs in the Western Balkans

In this region, climate change manifests in tangible, everyday crises, threatening health, undermining jobs, deepening inequality

EUalive with WEF July 11, 2025 13:07

Climate change is no longer a distant threat but an immediate disruptor in the Western Balkans, threatening million jobs, deepening inequality, and straining the region’s fragile economies.

In an article titled ” Climate change is already rewriting the job market in the Western Balkans“, published by the World Economic Forum, Majlinda Bregu, Commissioner of the World Health Organization’s Pan-European Commission for Health and Sustainable Development,  highlights that nearly three million jobs in the region are at risk, either due to direct exposure to climate shocks or as a result of the transition to a green economy.

Bregu emphasises that urgent, inclusive, and well-planned action is critical for a just green transition. Without it, the region risks economic devastation and social instability.

In the Western Balkans, she writes, climate change manifests in tangible, everyday crises. Coal-fired power plants in Kosovo choke the air, contributing to chronic illness. Floods in Bosnia and Herzegovina displace workers and farmers, while Skopje’s geography traps pollution from burning waste, making it one of Europe’s most polluted capitals. Extreme weather events, from floods to heatwaves, are projected to reduce the region’s GDP by up to 16%, with devastating consequences for vulnerable communities.

The 2014 floods alone erased over 51,000 jobs, while recent 2024 floods in Bosnia displaced over 1,000 households and shuttered small businesses. In Montenegro, wildfires and erosion threaten the tourism-driven coastline. Albania’s agriculture sector, employing over one-third of its workforce, lost 15,000 hectares of crops in a single 2017 flood. Heatwaves in North Macedonia and Kosovo make rural and construction work increasingly perilous.

“Increasingly, climate change in the Balkans, as in the rest of Europe, isn’t abstract – it is an everyday disruptor, threatening health, undermining jobs, deepening inequality and straining the resilience of some of Europe’s most vulnerable economies“, Bregu writes.

The labour market at risk

Bregu points to statistics that the green transition, while necessary, poses significant risks to the labour market. Nearly 3 million jobs in the Western Balkans are either directly exposed to climate shocks or threatened by the shift to a low-carbon economy.

In Serbia and Bosnia and Herzegovina, over 29,000 coal-related jobs are at risk as 16 outdated brown-coal power plants face closure. Communities built around single industries, like Tuzla in Bosnia, one of Europe’s top polluters, face not just job losses but the erosion of their economic and social fabric.

Kosovo faces a particularly steep challenge, with up to 17% of its workforce needing to adapt to new job tasks due to the green transition. Without retraining, protections, and alternative pathways, these workers risk being left behind.

The cost of inaction

The Commissioner of the World Health Organization commented that the price of inaction is stark. The Western Balkans’ carbon intensity of GDP is several times higher than the EU average, driven by a heavy reliance on coal, which accounts for 70% of electricity production.

“When climate shocks strike and people feel abandoned, trust erodes; when transitions are rolled out without clear alternatives, frustration grows; and when only the well-connected reap the benefits of change, inequality deepens and hardens“,  Bregu states.

The region’s electricity and heating sector produced in 2020 emissions at more than three times the EU-27 average. Albania, with its hydropower reliance, is an exception, but transport remains its primary emissions driver.

Bregu emphasizes that the environmental challenges include air pollution, biodiversity loss, water resource degradation, and poorly enforced waste management. The region’s vulnerability is heightened by its dependence on climate-sensitive sectors like agriculture, forestry, and tourism, which employ a significant portion of the population compared to Western and Northern Europe.

A just green transition requires aligning policies with EU climate goals, particularly the 2050 climate neutrality target. Harmonizing national laws on climate, energy, and waste management, alongside implementing national energy and climate plans, is essential. According to the European Commission, key strategies include:

Carbon pricing: Introducing mechanisms like the Emissions Trading Scheme (ETS) to accelerate decarbonization in high-emission sectors.

Just transition plans: Developing strategies to support vulnerable communities, including retraining programs and social protections for workers in coal-dependent regions.

Phasing out coal subsidies: Redirecting funds to renewable energy and green infrastructure.

Investment in waste management: Enhancing recycling and urban waste infrastructure to support a circular economy.

The European Bank for Reconstruction and Development (EBRD) notes that Western Balkan economies lag behind 11 Central Eastern European EU countries in green market sustainability. The EU has mobilized €6.8 billion for 21 green flagship projects, but the financial, institutional, and social costs of the transition exceed the region’s capacity. Decommissioning a single brown coal power plant, such as Tuzla, costs between €2.5 million and €12 million, requiring significant external support.

Financing the future

A robust financing approach is critical. Collaboration with international financial institutions can provide dedicated funds and low-interest loans for small and medium enterprises (SMEs) adopting green practices. The EU’s Smart Specialisation Strategy offers a pathway for investment in alternative industries like green manufacturing and eco-tourism. Through its Entrepreneurial Discovery Process (EDP),  strategy fosters cross-sectoral collaboration, aligning economic growth with environmental stewardship.

Majlinda Bregu quotes Nobel Laureate Imre Kertész: “What remains of life when illusions are gone? Responsibility.” In her words, the illusion that climate change is someone else’s problem has shattered. The Western Balkans must act with fairness, foresight, and courage to ensure the green transition does not deepen inequality or erode trust.

By prioritising inclusive policies, retraining workers, and investing in sustainable industries, the region can build a resilient economy that leaves no one behind, Bregu concludes.

Edited by a.k.

Other sources used: European Commission report of December 2024 “Green transition in the Western Balkans requires stronger focus on sustainable innovation”

Caption: A firefighter battles a wildfire that broke out near the village of Asprochori in the region of Oropos, East Attica, Greece, 9 July 2025, leading to the evacuation of residents. EPA

Updated: July 11, 2025 - 13:07

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