The study aimed to determine the current state of the decarbonization process in Bosnia and Herzegovina, in terms of initiated activities, legal regulations, opportunities for economic development, various models for implementing energy efficiency measures and the possibilities of financing. It is necessary to actively use funds from the Green Deal of the European Union and attract foreign investors. Parallel action and mobilisation of free funds from different segments of the economy is necessary as follows: • Government: electric power industry system, adoption of the legislative framework, implementation of energy efficiency projects • Industrial sector: energy efficiency, investing in renewable energy sources • Public Energy companies - application of the ESCO model • Population: investing in renewable energy sources through the prosumer concept and participation in energy communities It is necessary to form energy companies, as well as value chains and clusters, which are capable of investing in large RES projects, but also in energy efficiency. In the regulatory aspect, it is necessary to develop support instruments: subsidies, credit guarantees, crowdfunding instruments, and rely on the domestic and international capital market - green bonds. In addition to this, it is recommended to introduce an auction system as a way to ensure energy at the lowest price.