Tuesday, 20th May 2025

BiH Government Launches Subsidy Program for Electric Vehicles

The Government of the Federation of Bosnia and Herzegovina has approved two spending programs, proposed by the Ministry of Energy, Mining, and Industry, to subsidize the purchase of electric vehicles

These programs, with a combined budget of 1,000,000 BAM, aim to encourage the adoption of electric cars as part of a broader effort to improve air quality and environmental standards.

Each program allocates 500,000 BAM: one for private companies and entrepreneurs, and the other for individuals. The subsidies provide 10,000 BAM for the purchase of fully electric vehicles and 7,000 BAM for hybrid electric “plug-in” vehicles. Companies and entrepreneurs can receive funds for up to two vehicles, while individuals are eligible for one vehicle.

These subsidies are part of a strategic initiative to reduce the environmental impact of the transport sector, as outlined in the FBiH Development Strategy 2021-2027. By promoting the use of electric and hybrid cars, the government aims to decrease air pollution and greenhouse gas emissions from road traffic.

The grant funds will be distributed in accordance with the adopted programs and public calls. Eligible vehicles must be newly registered in FBiH between January 1 and November 30, 2024, and must be either fully electric or hybrid “plug-in” vehicles with specific CO2 emission criteria. This initiative aligns with Bosnia and Herzegovina’s commitments under the Paris Agreement and the Sofia Declaration on the Green Plan for the Western Balkans, highlighting the importance of decarbonizing the transport sector.

The implementation of these programs will be overseen by the federal ministries of energy, mining and industry, and finance, ensuring adherence to the government’s environmental goals.

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