The Sarajevo Canton authorities have prepared the first subsidies aimed at reducing air pollution from the business sector. So far, incentives for reducing air pollution have been approved only for households and public buildings.
Sarajevo has been struggling with air pollution for years. The arrival of colder days and the start of the heating season only worsens the situation.
Upon the proposal of the Ministry of Communal Economy, Infrastructure, Spatial Planning, Construction and Environmental Protection, the Government of the Sarajevo Canton adopted a new subsidy scheme for businesses and entrepreneurs.
It envisages the replacement of solid fuel stoves and boilers up to 500 kW in capacity, as well as the installation of equipment to reduce pollutant emissions.
Incentive fund totals EUR 500,000
The latest subsidies are intended for replacing heating systems in commercial and production premises, stoves used in bakeries, pizzerias, grill houses, and other production and service activities, as well as installing equipment to reduce emissions of polluting substances.
For the implementation of the program, the ministry has budgeted BAM 1 million (EUR 500,000) in grants in Sarajevo Canton’s budget for 2026.
Individual projects can be co-financed by up to 50%
Individual projects can be co-financed up to 50% of eligible costs, or up to a maximum of BAM 35,000 (EUR 17,900). The program is part of a wider plan implemented by the ministry to improve air quality in Sarajevo Canton.
Previously, support measures were implemented for replacing solid fuel boilers in households and public buildings, and are now being expanded to pollution sources in the business sector, the ministry noted.
Several hundred pollution sources registered in the business sector
Prime Minister of the Sarajevo Canton Nihad Uk stressed that addressing the air pollution problem must include all sources of harmful emissions, accompanied by concrete measures that will enable the business sector to make the necessary changes.
“By financing up to half the cost of purchasing new equipment, we are providing a direct incentive for companies to modernize their facilities, reduce costs, and become environmentally responsible partners in our joint fight against pollution,” Uk said.
First financial support for companies to reduce emissions
According to the Minister of Communal Economy, Infrastructure, Spatial Planning, Construction and Environmental Protection Mladen Pandurević, the support is designed to cover the diverse needs of firm owners.
“Through this program, for the first time we are introducing financial support for companies to reduce emissions from solid fuel stoves and boilers, thereby extending air quality protection measures to the business sector,” he pointed out.
Several hundred such pollution sources are registered in Sarajevo canton, and their facilities need to be technologically upgraded to bring emissions into line with limit values, Pandurević added.
The ministry will issue a public call
Detailed conditions, scoring criteria, and required application documentation for the public call will be issued in due time on the ministry’s official website.
In addition to reducing emissions of the harmful PM10 and PM2.5 particles, the implementation of this program will allow businesses to mitigate restrictive measures during winter pollution episodes defined by the plan on emergency measures, including temporary shutdowns of their operations.
Through the mandatory entry of all covered facilities into the register of combustion plants of the Sarajevo Canton, a more complete monitoring over stoves in the commercial sector is being established, the ministry added.