EU4 Energy BA2021AAP The energy sector is of strategic importance for Bosnia and Herzegovina¿s (BiH) competitiveness and economic and social development. It affects production costs of industries and services and the purchasing power of households. To align the BiH energy sector with the EU acquis, BiH adopted a countrywide sector strategy, namely the Framework Energy Strategy until 2035 in August 2018. BiH also has developed various Action Plans for the usage of renewable energy sources and energy efficiency measures.To contribute to the provision of affordable, reliable, sustainable, and modern energy in BiH and contribute to the fulfilment of the obligations of BiH under Energy Community Treaty, Paris Agreement and other international agreements, one Action with two components is being proposed.Component 1 - implement energy efficiency projects/programmes in the public sector under existing and new innovative, scalable financing mechanisms.Component 2 - Promotional programmes for sustainable energy utilisation in local communities (not including small hydropower plants), which include the aspects of energy efficiency, renewable energy and reduction of greenhouse gas emissions (GHG) that are recognised as an important factor in the implementation of the strategic objectives of sustainable development of the energy sector in BiH.The Action is fully aligned with the national strategy and Action Plans, as well as with the 2021 Communication on EU enlargement policy2, the Economic and Investment Plan for the Western Balkans3, the Green Agenda for the Western Balkans and its 2021 implementing Action Plan4, the European Green Deal5, the 2019 Analytical report6, South East Europe 2020 Strategy7, the European Union Strategy for Danube Region (EUSDR)8, the European Union Strategy for the Adriatic and Ionian Region9 and the Sustainable Development Goals (SDGs).