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A Practical Guide for Local Governments: Supporting the Formation of Energy Communities

Photo-illustration: Unsplash (federico-beccari)
Photo: Courtesy of Marko Nedeljković

The concept of energy communities is becoming increasingly prominent in discussions about a just energy transition—one that aims to include all segments of society. However, for a large portion of Serbia’s population, such concepts remain unfamiliar or are perceived as abstract. To build trust and ensure broader acceptance, it is essential to bring this concept closer to citizens in a way that clearly demonstrates that they themselves can be active participants in the transition process.

Marko Nedeljković, Project Manager at the Energy Transition Platform, spoke to our magazine about what energy communities actually are, why they matter, and how they can be developed in Serbia. We also placed special focus on the new Guide for Local Governments, designed as a practical tool for cities and municipalities that wish to support the development of citizen-led energy initiatives.

Q: Could you explain the concept of energy communities, why they are important, and how they can contribute to a sustainable and just energy transition in Serbia?

A: When we talk about energy communities, it is important to view them first as a social phenomenon, and only then as a technical one. They represent a form of collective action in which citizens and other local stakeholders come together around a shared energy project—one that is close to them not only in a geographical sense, but also in a symbolic one. What truly distinguishes energy communities is the transformation of citizens’ roles, from passive consumers who merely pay energy bills to active participants who jointly plan, make decisions, and share the benefits of energy projects within their community.

In this sense, energy communities also contribute to the democratization and decentralization of energy. This is reflected in the opportunity for citizens to participate in energy-related decisions previously reserved for large actors and centralized, closed processes, as some of these capacities and responsibilities are transferred to the local level. This creates space for the benefits of renewable energy sources to no longer remain solely on the balance sheets of large companies, but to be distributed among citizens and retained within the local community.

Beyond the economic and environmental benefits—which are perhaps the most evident—energy communities generate substantial social value. They bring people together around a common goal, strengthen trust within the community, and foster a culture of cooperation. Through joint planning and project management, citizens develop new knowledge and skills, local institutions learn to communicate and plan more openly, and the private and civil sectors discover new models of partnership. In this way, energy communities become platforms for learning, innovation, and greater citizen participation in decision-making, which is a key prerequisite for ensuring that Serbia’s energy transition is socially just and sustainable in the long term.

IN FOCUS:

Q: How did the idea for this guide come about, and what is its core message? What challenges did you face while preparing the guide, and why did you decide to structure it in this way?

A: The idea for the guide emerged from the need for citizens at the local level to have allies in the energy transition. The first allies are neighbors and fellow citizens, while the second—equally important—are local self-government units, which have the competences and resources to initiate and support citizen energy projects, but often lack a clear understanding of where to start and what role they can assume.

As the Energy Transition Platform, we worked with citizens on concrete projects and listened closely to their expectations and needs. Three meetings were particularly important—in Vranje, Pirot, and the Medijana municipality of Niš—where we brought together the perspectives of citizens and local authorities and discussed how each bears a share of responsibility for a just transition at the local level. Based on these discussions, it became clear that local governments do not need yet another theoretical document, but rather a practical tool.

The main challenge was to reconcile the diverse needs of cities and municipalities and to translate European experiences into our domestic legal and institutional framework. That is why the guide is structured as a portfolio of 22 support models, grouped into seven thematic areas and four roles of local self-government units. The core message is that there is no single universal solution, but rather a set of roles and steps that each local authority can adapt to its own capacities and ambitions.

Q: The Guide defines four roles of local self-government units (LSGUs): policymaker, promoter and educator, facilitator and coordinator, and partner and financial supporter. Could you explain the specific benefits each of these roles brings, and in which situations or for which types of local authorities certain roles might be the most suitable?

A: Although the Guide defines four roles of local self-government units, the key point is not which role delivers the greatest benefits, but rather that a city or municipality understands which role it is assuming at any given moment—and that this is clear both to citizens and to partners. Local self-government units are the level of governance closest to citizens, which is precisely why it is important for them to be able to “switch hats” depending on the project phase and the community’s needs.

Larger cities with more developed administrative capacities can more easily combine all four roles simultaneously. Smaller municipalities often begin with the roles of promoter and facilitator, gradually introducing the roles of partner and financial supporter as their capacities grow. The most important thing is for each local authority to clearly distinguish these functions within its administration, to set equal conditions for all initiatives, and to remain consistent. When this is the case, each role can be fully realized, and in this way, local authorities are also best positioned to build their long-term capacities for future projects.

Interview by Katarina Vuinac

The interview was published in Energy portal Magazine RESPONSIBLE BUSINNES

Sponge Cities – The Future of Urban Life in a World of Extreme Change

Photo-illustration: Freepik (freepik) AI generation

How often throughout the year do you notice sudden weather changes in the city where you live—or in more urban places you visit—that clearly affect your mood? At times, it seems as though we don’t even know what we want: when it rains, we long for sunshine; when it’s hot, we dream of shade.

Yet, if we look more closely at weather patterns, it becomes clear that the problem lies not only in our desires. Climate change is bringing something we are struggling to adapt to—sudden and intense shifts in weather. Moderate transitions are becoming shorter and rarer: periods of extremely high temperatures and drought are quickly followed by heavy downpours, which sometimes cause floods, and at other times evaporate rapidly, leaving behind heavy, humid air.

Our emotional response to the weather has become a reflection of these changes—uncertain, changeable, and at times frustrating. And it is precisely here, between rain and sunshine, that the story begins of how cities can learn to become sponge-like.

Although my first association—half jokingly—was Bikini Bottom, the city where SpongeBob lives, this is in fact a very real concept that originates from China. It was first proposed in 2013 by Professor Kongjian Yu of Peking University. His idea was simple yet powerful: cities do not have to fight nature—they can cooperate with it. A sponge city, as he explained, absorbs and retains excess water from rainfall, storms, or floods within its green spaces—essentially functioning like a giant sponge.

Photo-illustration: Freepik (freepik) AI generation

Such urban environments include a high proportion of trees, parks, lakes, and green areas. However, nature alone is not enough, as many urban surfaces are covered by sidewalks, roads, and buildings. That is why green spaces are combined with smart infrastructural solutions: permeable pavements and streets that allow rainwater to pass through, green roofs that absorb water, and specially designed retention lakes—artificial or natural—that collect excess water during heavy rainfall.

Sponge cities are not designed solely to manage floods. They function like urban reservoirs: excess rainwater is absorbed, stored, and released when needed. In this way, collected water can be used for irrigation or other urban needs during dry periods, reducing pressure on municipal water systems and drinking water supplies.

The first cities to seriously implement this concept are located in China, where the risk of flooding is particularly high. According to data from 2018, as many as 98 percent of large and medium-sized cities in the country are affected by flooding. Shanghai is one of the pioneers in applying the sponge city concept, and the Chinese government has selected 30 pilot cities to test this ambitious program.

As the world continues to face increasingly extreme weather events, the Chinese example shows that sponge cities can become a key element of sustainable urban planning.

Katarina Vuinac

Germany Introduces a New Incentive Program for Electric Vehicles

Photo-illustration: Unsplash/Michael Fousert

The German federal government has presented a new incentive program for electric vehicles (EVs), which entered into force on January 1, 2026, with the aim of re-stimulating the transition to climate-friendly mobility while simultaneously supporting households with low and middle incomes.

The program follows the abolition of national subsidies for EV purchases at the end of 2024, which led to a decline in sales throughout 2024 and early 2025.

Germany has allocated around 3 billion euros for the implementation of the program, which is expected to support the purchase or leasing of approximately 800,000 vehicles by 2029. Although the program has formally begun, applications will be accepted starting in May 2026 via a dedicated online portal, and incentives will be applied retroactively to vehicles first registered from January 1, 2026.

Eligibility for subsidies applies to private households with a taxable annual income of up to 80,000 euros, with the threshold increased by 5,000 euros per child, up to a maximum of 90,000 euros for households with two children. The program covers both the purchase and leasing of new vehicles, provided that the vehicle remains registered in the beneficiary’s name for at least 36 months after first registration.

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The base subsidy for battery electric vehicles (BEVs) amounts to 3,000 euros, while households with lower incomes and children may receive support of up to 6,000 euros. The program also includes plug-in hybrids and vehicles with range extenders (EREVs), provided they meet prescribed CO₂ emission and electric-range criteria, with maximum subsidies of up to 4,500 euros.

The German government emphasizes that the new program is part of a broader climate and industrial policy, aimed at reducing the initial costs of switching to electric vehicles, encouraging citizen participation in the energy transition, and strengthening the domestic automotive industry. The program is complemented by existing tax measures, including the extension of tax incentives for electric vehicles until 2035, as well as more favorable depreciation conditions for electric vehicle fleets in the corporate sector.

While the automotive industry has welcomed the return of incentives as an important signal for market stabilization and demand growth, some environmental organizations have expressed concerns about the inclusion of plug-in hybrids, pointing to their limited contribution to emission reductions under real-world driving conditions.

With this new, socially inclusive incentive model, Germany expects a renewed increase in the adoption of electric vehicles from 2026 onward. The relevant authorities have announced continuous monitoring of the program’s effects and consumer behavior, in order to adjust the policy as needed in the coming years.

Milena Maglovski

Key 2026 Leads The Global Energy Transition.

Photo: KEY-The Energy Transition Expo

The leading event in Europe, Africa and the Mediterranean basin on energy transition is held in Italy. From 4 to 6 March, KEY – The Energy Transition Expo, the event organized by Italian Exhibition Group (IEG), will take place at Rimini Fiera, bringing together the global energy community, encouraging meetings and discussions between key players in the sector and dialogue with institutions, with the aim of creating a system and accelerating the path towards decarbonization objectives.

At KEY, companies and professionals can discover the latest innovations and technologies on the market to rationalise consumption, control energy costs and reduce the impact of their activities.

Revamped Configuration

For the 2026 edition, KEY has revamped its layout, strengthening its cross-cutting vision across multiple sectors involved in the energy transition, which makes it unique in the European exhibition landscape.

With seven themed areas dedicated to solar, wind, hydrogen, energy storage, energy efficiency, e-mobility and Sustainable City, the event will occupy almost all of the exhibition centre’s halls for the first time.

Big news: an entire pavilion in the solar energy area will be reserved for EPC Contractors (Engineering, Procurement & Construction) and finance, highlighting their increasingly strategic role in the construction of large renewable energy and utility-scale storage plants.

Among the vertical focuses, HYPE – Hydrogen Power Expo on hydrogen, organised by IEG together with Hannover Fairs International GmbH (HFI), the Italian subsidiary of Deutsche Messe AG, and Su.port – Sustainable Ports for Energy Transition within the wind power pavilions, have been confirmed.

The energy efficiency area has also been enhanced and revamped, as it is considered a cornerstone for enabling the transition in both the industrial and residential sectors.

Photo: KEY – The Energy Transition Expo

An International Event

KEY 2026 strengthens its international profile by continuing to focus on the African continent, particularly North Africa and sub-Saharan Africa, without forgetting Turkey and Europe, and in particular key markets such as Germany, Spain, the UK, Poland, Serbia and, in general, the Balkan area. This vocation is also reflected in the rich programme of events and conferences, which this year will focus on the theme of finance in support of the energy transition and new innovative tools for controlling energy costs.

Innovation And Green Skills

As every year, KEY will give space to innovation by hosting innovative green start-ups and SMEs selected through a call for proposals within the Innovation District, an open innovation programme designed to connect young entrepreneurs with companies and investors. In addition, the Lorenzo Cagnoni Innovation Award will recognise seven KEY exhibitors who will present their most innovative projects, one for each product category at the event. Also at the Innovation District, the Green Jobs & Skills initiative will promote the matching of job supply and demand.

Energy portal

ABB Celebrates 50 Years of Variable Speed Drives – Technology, people, and vision shaping the energy future

Foto: ABB

This year, ABB marks the 50th anniversary of the introduction of its first low-voltage variable speed drive (VSD), an invention that fundamentally changed the way industry uses electrical energy. Although it remains largely unnoticed by the general public, this device lies at the very foundation of modern industry—across water and wastewater management, food production, transportation, data centers, and renewable energy facilities. It helps systems operate more reliably and efficiently, with a significantly reduced environmental footprint.

Back in the mid-1970s, Finnish engineer Martti Harmoinen developed a concept that would become an industry standard: enabling an induction motor to operate more efficiently, precisely, and reliably through electronic speed control. The first model, SAMI A, was installed in 1975 at a sawmill and at the Loviisa nuclear power plant in Finland, marking the beginning of a technological revolution. Over the following decades, ABB continuously refined this technology—from advances in power electronics and the introduction of IGBT transistors to process digitalization, automated testing, and the development of software functionalities that today form the backbone of modern variable-speed drives.

Today, variable speed drives are complex digital systems that integrate hardware, software, telemetry, and advanced analytics, enabling remote diagnostics, motor performance optimization, and predictive maintenance. Engineers who worked on their development several decades ago recall a time when tests were recorded manually, measurements were performed with analog instruments, and simulations were virtually nonexistent. Today’s generation of engineers operates in a completely different environment—modern processors, digital algorithms, and cloud services have transformed the drive into a key enabler of industrial energy efficiency.

Part of this story has also been shaped in Serbia. Jovan Miladinović, Service Sales Manager at ABB Belgrade, recalls his early career: “I joined ABB in 2002, and that was my first encounter with variable speed drives, as I did not have the opportunity to learn about them at university—unlike today’s generation of students, who are introduced to this type of equipment already during their studies. In my case, it was more challenging, as I had to relearn and adopt something entirely new.”

Jovan Miladinović / Foto: ABB

At the time he joined ABB, the ACS600 generation of drives was in use, and already the following year, the new ACS800 drives were introduced, quickly finding their place in large-scale projects within Elektroprivreda Srbije (EPS), particularly in Kolubara and Kostolac.

“One of the most significant projects at that time was the BTO system project in Kostolac, which we implemented together with Goša FOM. It was an extremely important project for us and paved the way for the later establishment of a service team here in Belgrade,” he explains.

At that time, variable-speed control represented a radical change for mining machinery: reliability was increased, equipment wear was reduced, and more efficient process control was enabled. Miladinović highlights two individuals who had a decisive influence on the development of the Serbian market: Miko Heikkilä, who enabled training programs and factory visits in Helsinki, and Pekka Tiitinen, who encouraged the establishment of a local service organization in Serbia. “Thanks to him, we received support for training our personnel and equipping the service center, which was of great importance for our customers,” Jovan says.

IN FOCUS:

A new generation of professionals also offers its perspective on the development of the technology. Stefan Pavlović, Application Sales Engineer, belongs to a generation that encountered ABB drives already during university studies. “My first encounter with variable speed drives was in my third year, when I started attending courses in Electric Drives. Already at university, I had hands-on experience with ABB drives through laboratory exercises, as well as the opportunity to attend lectures where variable speed drives were thoroughly covered.”

His message clearly reflects the evolution of the technology: “A variable speed drive is no longer just a device used to control motor speed. Drive technology has advanced significantly, especially in software. Today, a drive can automate an entire machine without the use of a PLC, or a service center on another continent can resolve an issue remotely.”

He also points to the environmental aspect: “It is estimated that less than a quarter of electric motors are paired with drives, which means there is enormous potential for energy savings through the wider application of this technology.”

Stefan concludes that the common thread throughout all 50 years has remained the same: continuous innovation, with ABB as its driving force.

Stefan Pavlovic / Foto: ABB

The environmental impact of variable speed drives today is greater than ever. Electric motors account for around 70 percent of industrial electricity consumption, so any improvement in their control results in significant energy savings and directly contributes to reducing CO₂ emissions. ABB’s analyses of more than 2,000 industrial motors show that switching to variable speed control delivers an average energy saving of 31 percent. At one of the world’s most renowned scientific institutions, CERN, an analysis of 800 motors identified a potential 17.4 percent reduction in energy consumption. These results confirm that variable-speed drives are not only a more efficient way to control motors—they are also among the most widespread and practical decarbonization technologies worldwide.

Today, as industries worldwide transition toward more sustainable business models, ABB continues to combine tradition and innovation, technology and people, local experience and global expertise. Variable speed drives are not merely equipment—they represent a technological legacy, an energy strategy, and a human story that has lasted for half a century. In line with ABB’s vision, the anniversary of variable-speed drives is best captured by the slogan Engineered to Outrun, as it is precisely the combination of reliable technology and human expertise that continues to push boundaries, exceed expectations, and enable the industry to be more efficient and sustainable than ever before.

ABB d.o.o. Beograd

stefan.pavlovic@rs.abb.com

www.abb.rs

50 years of LV drives | ABB

The story was published in Energy portal Magazine RESPONSIBLE BUSINNES

MT-KOMEX 2025: A Year of Technological Breakthroughs and Regional Expansion

Photo: Djordje Stojiljkovic

Numerous completed projects, technological breakthroughs, a substantial shift toward battery energy storage systems and tracker technologies, and expansion into regional markets marked 2025 as a turning point in the development of MT-KOMEX. Deputy Director Nikola Grubor speaks about the company’s achievements, key innovations, plans for 2026, and future trends in the solar industry.

Q: MT-KOMEX is certainly behind another successful year. Can we say that 2025 was the most successful year so far?

Photo: MT-KOMEX

A: Without a doubt, this has been our most successful year to date—a year in which we delivered some of the most technologically complex solar projects, introduced new solutions, expanded our regional presence, and further confirmed our leading position in EPC services, prefabricated substations, and advanced solar technologies.

I would say that 2025 marks the year in which MT-KOMEX entered a new phase of development—from a strong domestic EPC partner to a company that is actively building and shaping the region’s energy transition.

Q: Which project or achievement would you highlight as the company’s most significant contribution to Serbia’s energy transition during 2025?

A: Throughout 2025, we implemented several projects that directly contribute to reducing CO₂ emissions and increasing the energy independence of the business sector. I would particularly highlight large-scale commercial solar power plants in the industrial sector, which today represent one of the key pillars of energy efficiency for domestic manufacturers.

Our prefabricated substations—such as the Huawei Jupiter 3000 model—also deliver significant added value, enabling faster grid connection and greater reliability of renewable energy facilities. These solutions substantially shorten project timelines and reduce the infrastructure burden for investors. The EPC approach MT-KOMEX has applied from the very beginning remains one of the key reasons investors recognize our company as a partner that delivers comprehensive, safe, and long-term, sustainable solutions.

IN FOCUS:

Q: When it comes to innovation, MT-KOMEX has traditionally been at the forefront of applying advanced solar technologies. What new solutions did the company introduce or implement in 2025?

A: Investing in innovation is a continuous process for us. This year, particular attention was drawn to the development and deployment of advanced inverters and optimizers, as well as the large-scale implementation of battery energy storage systems (BESS), which we introduced across all new projects. The integration of SCADA systems and remote monitoring platforms has become standard practice. At the same time, further improvements in prefabricated substations have further optimized the construction and grid connection process for solar power plants.

One of the most significant breakthroughs in 2025 was the start of construction of large-scale solar power plants equipped with single-axis tracker systems. We expect that by the end of next year, 50 MWp of such facilities will be completed and commissioned in Vojvodina.

Tracker systems deliver a range of benefits:

  • an increase in energy production of 15–25 percent compared to fixed-tilt structures,
  • more uniform power generation throughout the day,
  • better utilization of solar irradiation in flat terrain,
  • a lower LCOE over the entire lifecycle of the power plant.

For our clients, this means a faster return on investment, as well as higher energy output during periods of peak demand, when electricity prices on the market are at their highest.

Q: What are the key plans, projects, or investments that MT-KOMEX is planning for 2026?

A: In 2026, MT-KOMEX plans further growth through the construction of an even larger number of commercial solar power plants, the expansion of its BESS solutions portfolio, the strengthening of EPC and engineering teams, new investments in prefabricated solutions and energy infrastructure, as well as continued expansion into regional markets.

The coming year will be marked by intensive construction activity, new partnerships, and an even stronger position for the company in the energy sector of Southeast Europe. The solar industry is entering an accelerated phase of development in 2026. Commercial power plants, hybrid systems, battery capacities, and digitalization are becoming the norm. For MT-KOMEX, this represents both an opportunity and a responsibility—to continue introducing state-of-the-art solutions, to develop the market, and to build an energy future based on stability, efficiency, and sustainability.

Photo: MT-KOMEX

One of the key indicators of the company’s development is the fact that during 2025, we procured 100 MW of premium equipment, including:

  • Huawei prefabricated substations,
  • Huawei 300 kW inverters,
  • AIKO solar panels—currently among the best on the market in terms of efficiency and degradation rates,
  • complete mounting structures for solar power plants.

All of this equipment has been delivered, installed, and commissioned, or is currently under construction, enabling us to achieve the highest utilization rate of procured equipment in the company’s history.

Q: MT-KOMEX operates successfully across the region, particularly following the establishment of MT-KOMEX BH in 2023 in Banja Luka. What are the company’s further plans regarding expansion and strengthening its regional presence?

A: MT-KOMEX BH, established in 2023 in Banja Luka, proved in 2025 to be a strategic move that entirely delivered on expectations. Our team in Bosnia and Herzegovina is expanding. We are taking on large-scale solar projects in the Republic of Srpska and are actively analyzing entry into the Croatian and Montenegrin markets. The prefabricated energy solutions we develop position us as a trusted partner at the regional level as well.

Q: How do you see the outlook for the solar industry in Serbia over the coming year, and which key changes or market trends do you expect?

A: Electricity prices on the power exchange, along with the volatility that characterizes European markets, clearly indicate that projects incorporating tracker systems and BESS solutions will be of decisive importance in the coming years. Serbia is expected to adopt regulatory frameworks that will enable the ancillary services market and define the role of flexibility aggregators, which means that battery systems will become a key component of the energy mix for industrial consumers.

As our market becomes increasingly integrated with the European market, we also expect the emergence of negative electricity prices—a trend already commonplace in EU countries. These periods will be ideal for charging battery systems, while discharging will be most profitable during times of high demand.

For our clients, this delivers a dual value proposition: supply stability and additional revenue through market-based mechanisms.

Interview by Milena Maglovski

The interview was published in Energy portal Magazine RESPONSIBLE BUSINNES

Talks on the acquisition of NIS under way, agreement expected by the end of the week

Foto: NIS

Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, said that talks are currently under way between the Russian shareholders of Naftna industrija Srbije (NIS), Hungary’s MOL, and other potential buyers, adding that a binding agreement on the purchase of NIS shares could be signed by the end of the week.

Following a meeting with Hungary’s Minister of Foreign Affairs and Trade, the minister stated that once agreement is reached on the key elements of the transaction, a request will be submitted to the US administration to extend NIS’s operating licence. She noted that Hungary has so far supported Serbia in these requests, with the aim of ensuring the company’s continued operations after January 23 and the successful completion of the ownership restructuring process, according to a statement published on the website of the Government of Serbia.

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Đedović Handanović also said that increasing Serbia’s ownership stake in NIS by around five percentage points is being considered, stressing that there is no intention to shut down the Pančevo oil refinery. She added that during nearly 100 days without crude oil supplies via the Adriatic Oil Pipeline, security of supply had been maintained, and that the Pančevo refinery is expected to continue operating now that deliveries via JANAF have resumed.

The meeting also addressed accelerating the drafting of an intergovernmental agreement between Serbia and Hungary, as well as joint energy projects, including the construction of the Serbia–Hungary oil pipeline, with works expected to begin in mid-year.

Hungarian Foreign Minister Péter Szijjártó confirmed that negotiations between Gazprom Neft and MOL are under way and expressed strong support from the Hungarian government for a potential entry of MOL into NIS’s ownership structure, saying this would contribute to greater regional energy security.

Energy portal

New York on the brink of a law on fully electric buildings?

Photo-illustration: Unsplash (Anthony Delanoix)

It has long been known that buildings are among the largest polluters—not only globally, but also in the state of New York. According to currently available data, buildings are responsible for nearly 40 percent of total greenhouse gas emissions in New York, making them one of the key sources of pollution in the state. Most of these emissions come from the combustion of fossil fuels for space heating and domestic hot water, particularly in older residential and commercial buildings. That is precisely why I have been following with special interest the latest moves by this U.S. state, which has decided to make a serious shift toward a cleaner future.

This is one of the most ambitious climate strategies in the United States: the transition to fully electric new buildings, without the use of fossil fuels such as natural gas or propane.

This idea does not simply imply a different way of heating or cooking. It represents a complete transformation of how we build and use buildings—from installing electric heat pumps and water heaters to induction cooktops and electric ovens. In other words, energy from the socket is meant to replace energy from the pipeline.

All-Electric Buildings Act: the moment the idea became law

A real turning point came in 2023, when the New York State Legislature adopted the so-called All-Electric Buildings Act as part of the state budget. This regulation is the first of its kind in the United States and requires that no systems burning fossil fuels be installed in new buildings, as explained on the website Electrification in New York: Get the Facts.

Photo-illustration: Freepik (wirestock)

According to the law, starting December 31, 2025, all new buildings up to seven stories must be “all-electric,” without gas stoves, boilers, or heaters. For larger residential and commercial buildings, the rule would take effect on January 1, 2029. Exceptions are предусмотрed, primarily for hospitals, laboratories, industrial facilities, and emergency systems.

With this move, New York State aims not only to reduce emissions, but also to send a clear message that the energy transition in the building sector is possible and feasible, even in large and densely populated areas.

Preparations, resistance, and court battles

However, almost immediately after the law was adopted, it became clear that the path to its implementation would not be simple. Construction associations and representatives of the gas industry initiated legal challenges, arguing that a ban on fossil fuels in new buildings could conflict with federal laws and pose risks of higher construction costs and increased strain on the electricity grid.

In July 2025, a federal court in northern New York ruled that the state has the right to enforce this law, rejecting industry arguments that it should be overturned, as reported by the Earthjustice portal. For many, this moment seemed like final confirmation that the law would move forward.

Still, the battle did not end there. Due to additional appeals and political pressure, as well as concerns expressed by some contractors and a number of Democratic lawmakers, the state agreed to temporarily delay the start of the law’s implementation while awaiting a decision from the appellate court.

A divided public and open questions

This turn of events triggered strong reactions on both sides.

Supporters of the law argue that it is a crucial step toward reducing air pollution, improving public health, and delivering long-term savings for households. Opponents, on the other hand, warn that introducing such rules too early could increase construction costs and further burden the electricity grid, which may not yet be ready for such a surge in demand.

Tensions are clearly visible in the public debate: while some speak of a historic climate breakthrough, others warn of what they call irresponsible speed and additional costs.

Observing all these developments, it is clear to me that the law on fully electric buildings in New York is not just a local story. It is a test case for the entire energy transition in the building sector, closely watched by other U.S. states as well as countries around the world.

Regardless of temporary delays and legal obstacles, the fact remains that the idea has already entered the legislative framework and the public discourse. If New York succeeds in implementing this model in practice, it could send a powerful signal that fully electric buildings are not merely a climate vision, but a realistic future.

Milena Maglovski

Local Communities as the First Line of Defense for Nature and Climate

Photo: WWF

WWF Adria is one of the leading nature conservation organizations in the Western Balkans, dedicated to biodiversity protection, sustainable natural resource management, and strengthening community resilience to the impacts of climate change. Through science-based work, advocacy, and strong partnerships, WWF Adria addresses the most serious environmental challenges of our time—shaping public policies, strengthening civil society capacities, and developing innovative solutions that protect both people and nature.

One of the flagship initiatives in this field is the “Safe Nature and Climate” project, designed to address the growing threats to ecosystems, biodiversity, and local communities posed by climate change and unsustainable practices. The project focuses on strengthening institutional and local foundations for action in the areas of environmental protection and climate change across the region, with financial support from the European Union.

Supporting local environmental organizations lies at the very core of effective action on the ground. These organizations best understand the specific environmental and social contexts of their communities and therefore play a crucial role in driving change. Through targeted funding, knowledge exchange, and partnership programs, WWF Adria strengthens their participation in public policy development, monitoring of natural resources, and the implementation of solutions tailored to local needs.

Over the past four years, a total of 41 projects have been implemented, with overall investments in civil society amounting to €500,000. The results encompass a wide range of innovative and impactful activities—from the development of new regulatory frameworks, participatory monitoring, and local nature conservation and climate action initiatives, to educational programs, large-scale awareness-raising campaigns, and initiatives that have led to concrete legal changes at the local level.

Local initiatives from Paraćin, Užice, Novi Pazar, Pirot, Kragujevac, Kraljevo, and many other cities now benefit from renewed support for their activities, strengthening community resilience and fostering coexistence between people and nature.

IN FOCUS:

Through the “Safe Nature and Climate” project, WWF Adria has built a strong bridge between local initiatives and the broader regional and European policy framework. The results and experiences achieved so far were also presented at the third Environmental Policy Forum “Local Solutions for (Inter)national Policies,” held in November this year.

The Forum brought together representatives of civil society, policymakers, climate and nature conservation experts, and numerous representatives of international institutions and organizations. The central focus was clear—strengthening local capacities and identifying sustainable, inclusive solutions that connect local initiatives with national and regional environmental protection and climate resilience policies.

Hari Osting, Acting Director of the Conservation Program at WWF Adria, highlighted the importance of local organizations as key drivers of change, whose work directly contributes to improving policies, enhancing natural resource management, and strengthening community resilience to the impacts of climate change.

The first panel, “Locally Led Biodiversity Conservation,” emphasized the irreplaceable role of local actors in nature protection and sustainable resource management. Initiatives were presented that aligned local policies with EU directives, developed models of sustainable forest management, used drones and modern technologies to monitor environmental conditions, and established networks of organizations managing freshwater protected areas and ecological corridors. Participants also pointed to challenges, such as the inertia of certain local authorities, which often hinder the implementation of changes in the interests of nature and citizens.

The panel “Raising Public Awareness and Engaging Local Communities” focused on communication, education, and citizen involvement. Campaigns reaching more than two million people were presented, along with the development of mobile applications for reporting environmental issues and educational programs targeting young people, women, minority groups, and other vulnerable populations. It was concluded that informed and empowered communities are the key to longterm change and to building a culture of care for nature.

Within the third panel, “Local Climate Action,” the focus was on concrete local responses to climate challenges—from developing local environmental protection plans and participatory models for managing climate risks to specific actions such as preventing the construction of small hydropower plants in sensitive areas. Models of sustainable agriculture and rural development aligned with the EU Rural Pact were also presented, along with studies on microplastics and initiatives linking climate change to human rights issues.

– Local organizations are the backbone of change—they understand community needs, identify risks on the ground, and develop solutions that are at the same time innovative, comprehensive, and inclusive, Osting emphasized, expressing his hope that the Forum will continue to serve for many years as a central meeting point for civil society organizations across Serbia.

Prepared by: Milena Maglovski

The story was published in Energy portal Magazine RESPONSIBLE BUSINNES

EPCG Takes Over Study on the Construction of Gas-Fired Power Plants in Montenegro

Photo-illustration: Pixabay

The Electric Power Company of Montenegro (EPCG) has officially taken over a feasibility study on the construction of gas-fired power plants in Montenegro, which has shown that electricity generation from liquefied petroleum gas is technically feasible and economically viable. As reported by Vijesti, the study analyzed the construction of facilities with capacities ranging from 50 to 400 megawatts at several potential locations—Bar, Podgorica, Pljevlja, and Nikšić.

EPCG told Vijesti that the further development of the project will primarily depend on securing a stable and long-term gas supply, as well as on decisions to be made in cooperation with the Government of Montenegro and the Ministry of Energy.

The feasibility study was prepared by the consulting firm SS&A Power Consultancy, and the estimated value of investments ranges between €233 million and €362 million, depending on the plant capacity and the gas supply model.

Following an open public tender and in accordance with the Tender Documentation dated December 30, 2021, SS&A Power Consultancy was selected by the Public Enterprise Electric Power Company of Montenegro (EPCG) to prepare a study on the development of technical solutions for the energy transition, as well as a preliminary feasibility study for gas-fired power plants combined with renewable energy sources.

At the end of December 2023, SS&A Power Consultancy announced that it would develop the study with the aim of putting EPCG on the path toward modernization of Montenegro’s power infrastructure, reducing CO₂ emissions, and achieving goals in line with EU standards and regulations on the decarbonization of electricity generation. In addition, the company stated that it would prepare a strategy for the operation of gas-fired thermal power plants, their integration with renewable energy sources, and define future solutions for carbon capture and storage (CCS).

“By preparing the study and selecting potential locations for gas-fired power plants with a projected total capacity of 400 MW, EPCG is working to find cleaner solutions, alongside planned strengthening of renewable energy capacities. The study is the first step and a necessary foundation for the realization of this plan,” said Milutin Đukanović, Chairman of the EPCG Board of Directors.

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JERA and the Government of Montenegro Sign Agreement on LNG Terminal and Gas Power Plant

As a reminder, the Government of Montenegro and the Japanese company JERA signed a memorandum at the Gastech 2025 fair in September 2025, envisaging the exploration of opportunities for the development of a liquefied natural gas (LNG) terminal and a related gas-fired power facility in the country.

In line with the Memorandum, JERA and the Government will conduct a comprehensive feasibility study covering the technical, commercial, and financial aspects of the LNG terminal and gas-fired power plant, as well as laying the groundwork for potential future agreements on project implementation.

Montenegro’s Minister of Energy and Mining, Admir Šahmanović, emphasized that cooperation with JERA, as a renowned global player, provides Montenegro with access to knowledge and advanced technologies necessary for the further development of the energy sector.

JERA’s Chief Global Strategist, Steve Winn, stated that the company is ready to support Montenegro in achieving its strategic goals through its experience in delivering complex international energy projects.

Energy Portal

16th IRENA Assembly: 40 Innovations for More Resilient and Equitable Energy Systems

Photo-illustration: Freepik (pvproductions )

The Sixteenth Assembly of the International Renewable Energy Agency (IRENA) was held in Abu Dhabi, marking the first major international energy gathering of 2026. The Assembly took place under the theme Mobilising Humanity: Renewable Energy for Shared Prosperity, with the aim of establishing a common agenda and key priorities for international cooperation, focused on shaping a better energy future around which the global community could unite throughout 2026.

According to IRENA, the Assembly brought together more than 1,000 ministers and senior officials from around 170 Member States, as well as company executives, investors, representatives of international organisations and youth leaders.

Special attention was given to topics related to the regional energy transition, including power grids, energy planning, digital innovation and artificial intelligence. Discussions also addressed how renewable energy can contribute to improving agri-food systems and advancing green industrialisation.

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During the Ministerial Dialogue on the role of artificial intelligence, the report  Innovation landscape for sustainable development powered by renewables was presented. The report shows that transformation occurs when technological innovations are combined with innovations in policy, regulation, market design, system operations and business models.

The report highlights 40 innovations, ranging from artificial intelligence and digital applications to solutions for grid modernisation through smarter planning and off-grid solutions. These innovations aim to enhance the resilience of energy systems, expand access to electricity, increase efficiency and enable sustainable local development.

To ensure that the 40 identified innovations are practical and readily accessible to policy makers, they are organised into four strategic toolkits, enabling context-specific solutions: grid modernisation, decentralised solutions, inclusive local development and expanded energy access.

The full report is available here.

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How the RS Fund Is Building the Green Transition: Plans, Results, and Challenges

Foto-ilustracija: Pixabay (jplenio)

The Environmental Protection Fund of the Republic of Srpska plays an important role in financing and promoting projects that contribute to nature protection and the improvement of environmental standards. Through various funding programs, the Fund supports local communities, businesses, and public institutions in implementing measures that foster sustainable development and a higher quality of life. To discuss the projects currently being implemented by the Fund, its plans to support local communities and the private sector in the coming year, as well as other plans for 2026, we spoke with Denis Stevanović, Director of the Fund.

Q: How would you assess the Fund’s work to date in improving energy efficiency and environmental protection in the Republic of Srpska?

Photo: courtesy of Denis Stevanović

A: I believe that the work of the Environmental Protection and Energy Efficiency Fund of the Republic of Srpska in the previous period has been truly successful, as we have implemented a wide range of projects across the Republic of Srpska. The Fund has co-financed projects primarily for public utility companies in the field of environmental protection, focusing on strengthening their capacities. At the same time, local governments have been our constant partners, and we have co-financed numerous projects at the municipal level.

On the other hand, a certain level of support was also provided to the business sector and private individuals. In cooperation with UNDP and the EBRD, we have rehabilitated facilities and implemented energy-efficiency measures across a large number of buildings in the Republic of Srpska—primarily schools, kindergartens, and public healthcare facilities. Overall, I believe that the Fund has proven itself to be a significant institution of the Government of the Republic of Srpska, that it has justified its role, and that the results of our work are clearly measurable.

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Q: What are the key projects the Fund has implemented in the recent period?

A: In addition to supporting public utility companies, local governments, private individuals, and the business sector, in the recent period, we have established a system for the management of packaging waste. As a result, we no longer face packaging waste issues across the territory of the Republic of Srpska. This was achieved, of course, through the co-financing of projects—again primarily involving public utility companies— and through the introduction of so-called operators into the system, which I would highlight as a particularly significant achievement.

Q: Do you plan to introduce new support programs for municipalities, public institutions, or the private sector?

A: As regards the coming year, the Fund will continue its regular activities. We will co-finance projects in the fields of environmental protection and energy efficiency through our public calls, as well as through decisions of the Director and decisions of the Government of the Republic of Srpska. One new initiative I can announce is that next year, we plan to address the situation on the ground regarding end-of-life vehicle tires. This is one of the specific waste categories, and we plan to launch a public call for an operator that will collect and properly manage all tires currently present across the Republic of Srpska, which is highly important for environmental protection.

In addition, we will maintain a permanent public call in the areas of environmental protection and energy efficiency aimed at sole proprietors, associations, local governments, and others, as well as a major call for environmental protection projects co-financed with public utility companies and local authorities—such as the procurement of municipal equipment, improvements in drinking water supply capacities, and similar activities. One such public call has recently been completed, and we expect the results and the allocation of funds shortly. We also have an ongoing call targeting micro, small, and medium-sized enterprises for energy efficiency measures. These are some of the calls we will most likely continue to implement next year as well.

Q: When can citizens expect subsidies for solar power plants and energy-efficient renovation of homes?

A: In 2023 and 2024, we launched public calls under the so-called European Union Energy Support Package for the Western Balkans, as a form of assistance to households during the energy crisis caused by the war in Ukraine. At that time, private individuals were able to apply for grants of up to BAM 5,000 if they implemented certain energy efficiency measures in their houses or apartments. These measures included façade thermal insulation, heating system improvements, the installation of solar panels on residential buildings, roof and ceiling renovation, and similar works.

We did not launch such a call in 2025, as the European Commission program had ended, and the Fund did not have the capacity to support citizens at that scale using its own resources. However, we are striving to identify solutions for next year, as this public call proved to be very attractive and of great interest. We want to support citizens and ensure that everyone can benefit from our work. One possible approach could be through revolving financing schemes with banks or similar mechanisms, since it is not realistic for the Fund to co-finance all households wishing to insulate façades, replace windows, or carry out other home improvements solely from its own funds.

Interview by Jasna Dragojević

The interview was published in Energy portal Magazine RESPONSIBLE BUSINNES

What’s New in the ESG Landscape of the European Union

Photo-illustration: Unsplash (artem beliaikin)

In recent months, several decisions have been published that are reshaping the European approach to sustainability across various sectors, while some previously adopted measures will begin to apply in the new year. It appears that the European Union is simultaneously accelerating investments in new technologies, introducing controls on environmental marketing claims, adjusting regulatory frameworks to the economy, and continuing discussions on long-term climate objectives.

Unproven Carbon-Neutral Flights Under Scrutiny

The European Consumer Organization (BEUC) has been challenging airline claims that flights can be sustainable. Following a 2023 complaint submitted to the European Commission and the Consumer Protection Cooperation Network (CPC), BEUC documented that messaging around carbon-neutral flights and the possibility of offsetting emissions through contributions for tree planting or alternative fuel development is, in effect, misleading to consumers.

In cooperation with its 23 national member consumer organizations, BEUC presented evidence that such claims violate EU rules on unfair commercial practices, as offsets do not actually eliminate emissions and sustainable aviation fuels account for only a symbolic share of overall fuel consumption. Their reports showed that greenwashing remained widespread, prompting an investigation and months-long dialogue with airlines.

The most recent outcome of this dialogue was published in a European Commission statement on 6 November 2025. According to the announcement, 21 European airlines have agreed to revise how they use environmental claims in their marketing.

Agreed Changes for Airlines As outlined in the Commission’s communication, airlines must make clear that the CO2 emissions of a given flight cannot be neutralized, directly reduced, or compensated simply through passengers’ financial contributions to, for example, climate projects. This does not dispute the potential positive effects of such projects, but rather the notion that a single flight can thereby become emission-free or climate neutral, as emissions still occur.

Airlines will thus need to avoid vague green expressions—such as “eco-friendly travel”—or any wording that suggests a flight is significantly less harmful to the climate without adequate explanation and proof.

The use of the term sustainable aviation fuels (SAF) will be allowed, but must be accompanied by proper clarification and evidence. When referring to future goals, such as achieving net-zero emissions, airlines will be expected to specify timeframes and, for example, the scope of emissions targeted.

Furthermore, all CO2 calculations presented to passengers must be displayed clearly and transparently, ensuring that travelers understand what stands behind the figures shown for their flights. Ultimately, the burden of proof shifts to the companies, which must substantiate their environmental claims before presenting them publicly.

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Combating Misleading Green Claims

Another measure relevant to consumers is Directive (EU) 2024/825, published in 2024 and set to become mandatory across all EU Member States in September 2026. Through this directive, the European Union amends two existing regulations—Directive 2005/29/EC on unfair commercial practices and Directive 2011/83/EU on consumer rights—to ensure that consumers can make truly sustainable and well-informed decisions.

Directive (EU) 2024/825 introduces additional rules to counter misleading green claims and marketing practices that mislead consumers into making incorrect choices. Practices such as intentionally shortening a product’s lifespan to encourage more frequent purchases, using vague or inaccurate environmental assertions (greenwashing), providing false information about corporate social responsibility, or relying on unverified and unreliable sustainability labels are largely not accidental.

Advertising benefits that sound positive but are irrelevant to the product itself—and therefore capable of misleading consumers—will be prohibited. The examples cited in the directive clearly illustrate this: stating that a particular brand of bottled water is gluten-free, or that paper sheets contain no plastic, may be technically accurate, but such messages offer no real value to consumers. Instead, they create a false impression of distinction, even though the characteristics in question are common to all products of that type.

Strict rules are also being set for sustainability labels. Only labels issued by publicly available, credible certification schemes or by a public authority will be allowed. Each eco-label must have clear criteria, transparency, and independent verification of compliance to eliminate arbitrary, self-created eco-tags.

One common and particularly misleading practice addressed by the directive is presenting an entire product or company as environmentally responsible when, in reality, only a small portion of it is sustainable. The directive provides explicit examples: a product advertised as made from recycled materials when only the packaging is recycled, or a retailer that implies exclusive use of renewable energy while some of its facilities still operate on fossil fuels. Such practices will be considered deceptive in pursuit of a broader goal: preventing unsubstantiated green marketing.

Regulatory Easing

Contrary to the common perception that the European Union continuously introduces new regulatory obligations, the Omnibus I package represents a phase of correction and adjustment to current economic conditions. Over the past years, companies, investors, and the public have warned that the scope of specific ESG regulations creates high costs and difficulties, particularly for small and medium-sized enterprises. In response, the European Parliament endorsed several proposals to adjust the scope of certain rules to ease the regulatory burden on smaller economic actors.

In legislative terms, the essence of Omnibus I is to consolidate, within a single legislative package, amendments to the CSRD (Corporate Sustainability Reporting Directive), adjustments to the CSDDD (Corporate Sustainability Due Diligence Directive), and technical modifications to the CBAM (Carbon Border Adjustment Mechanism).

A particularly important part of the package concerns CBAM. One of the key updates is the introduction of a new exemption threshold of 50 tons per year for goods subject to CBAM. This means that companies importing less than this amount will be fully exempt from reporting obligations and from purchasing CBAM certificates. According to estimates by the European Commission, this amendment will relieve as many as 182,000 importers—primarily small and medium-sized enterprises and individual businesses—while still covering more than 99 percent of the emissions that CBAM is intended to regulate.

Prepared by: Milica Vučković

The story was published in Energy portal Magazine RESPONSIBLE BUSINNES

 

NIS Agrees on Crude Oil Imports via JANAF, Restart of Pančevo Refinery Expected Soon

Foto-ilustracija: Unsplash (Waldemar Brandt)

Naftna industrija Srbije (NIS) has agreed on the import of the first quantities of crude oil via the Adriatic Pipeline (JANAF), creating the conditions for the restart of production at the Pančevo Oil Refinery.

According to the company’s statement, the first quantities of crude oil are expected to be delivered during the coming week, while NIS is simultaneously planning the import of additional volumes. In line with the delivery dynamics, the company will begin start-up activities at the Pančevo refinery, which precede the full restart of production facilities.

Operations at the Pančevo Oil Refinery were suspended in early December last year due to a lack of crude oil for processing, caused by sanctions imposed on NIS by the United States Department of the Treasury.

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However, the situation has been partially resolved after the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury issued a special license to NIS on December 31, 2025, allowing the company to resume operational activities until January 23 of this year.

The license covers the restart of refining operations, the import of crude oil, as well as the execution of transactions necessary to ensure secure market supply and the technical maintenance of facilities.

Energy portal

Paper Magic: When Creativity Brings Old Books to Life

Photo: Courtesy of Irena Popović

It all began on a holiday evening, among old books that were waiting for their final journey to the recycling container. In those yellowed pages, Irena Popović found an idea — not in the text, but in the material itself. Wanting to decorate her home differently, she began experimenting with paper, shaping it and searching for forms that had existed only in her imagination.

She could not have imagined that a few simple decorations would bring so much delight to her family and friends, nor that this moment would mark the beginning of something greater. Today, Paper Magic stands behind hundreds of customers, a community that supports her work, and a mission that brings together art, sustainability, and humanity.

The real turning point came when her older son returned from his studies in England and saw what his mother was creating.

“He suggested that we open a Paper Magic page so that I could present my handmade creations to a wider audience,” she says. The support of those closest to her proved crucial — a hobby grew into a brand, and the brand into a community.

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Art and Recycling Combined

At the heart of this brand lies a clear environmental message: old books should not end up as waste.

“People often have old, damaged, or unwanted books they no longer use, and we give them new life by turning them into decorative objects,” Irena explains.

Most of the materials come from donations — from friends, neighbors, and even complete strangers who want their books to continue living on. The rest are found at markets and flea markets, where copies that are no longer suitable for reading are often discovered, yet are perfect for artistic transformation.

Although Irena does not use industrially recycled paper, her creations represent recycling in its noblest sense: they prevent waste, encourage creativity, and create added value.

Irena’s decorations most often find their way to women who appreciate handicrafts, personalized gifts, and items that tell a story. This is precisely why customers frequently return.

“Many emphasize their delight with the attention to detail, the quality of craftsmanship, and the fact that each piece has its own story. A large number of customers return to purchase new products, which speaks to the trust we are building. In addition, word-of-mouth recommendations are very common, which for us is the best sign that the emotion and effort we invest reach those for whom the decorations are intended,” says Irena, adding that her greatest reward is messages of gratitude and photos of the decorations in their new homes.

Prepared by: Milena Maglovski

The story was published in Energy portal Magazine RESPONSIBLE BUSINNES

Air Pollution Claims Nearly 7 Million Lives Worldwide Each Year

Photo-illustration: Unsplash (Chris LeBoutillier)

Air pollution represents the single greatest environmental risk to human health and is linked to nearly 7 million premature deaths every year, according to data from the World Health Organization (WHO).

WHO estimates show that as many as 89 percent of these deaths occur in low- and middle-income countries, primarily in Southeast Asia and the Western Pacific—regions considered among the most polluted in the world. The most affected countries include Bangladesh, India, Pakistan, Vietnam, Indonesia, Nepal, and Mongolia.

Particularly alarming is the fact that half of all deaths in 2020 were associated with indoor air pollution—most often caused by cooking and heating with coal, wood, and biomass. Women and children were the most vulnerable, including more than 237,000 children under the age of five.

The most dangerous pollutants are fine particulate matter (PM2.5), which, due to their small size, can penetrate deep into the lungs and bloodstream, increasing the risk of heart disease, lung cancer, asthma, and chronic obstructive pulmonary disease (COPD).

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History shows how devastating the consequences can be. During the Great London Smog of 1952, pollution caused by coal burning led to more than 12,000 premature deaths in just a few days. Research also indicates that poor air quality threatened human health even in ancient times—lungs of ancient Egyptian mummies showed signs of damage caused by airborne particles, according to IQAir.

Today, the main sources of air pollution include emissions from transport, power plants, industry, agricultural residue burning, and wildfires. In households, inefficient heating and cooking systems pose additional risks. Studies show that in India alone, the number of deaths increases by around 1.5 million each year due to long-term exposure to polluted air.

Experts warn that the pattern is clear: strong measures save lives. Transitioning to clean transport, energy-efficient stoves, better indoor ventilation, and renewable energy sources could significantly reduce premature deaths and extend the life expectancy of millions of people—but only if action is taken in time.

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