SARAJEVO, Jan. 28 (Xinhua) -- Sweden is allocating 7.2 million euros (8.7 million U.S. dollars) to help Bosnia and Herzegovina (BiH) improve the energy efficiency of its public and residential buildings, the Swedish Embassy in BiH capital Sarajevo said here on Thursday.

"The levels of air pollution in BiH must be reduced to save lives and the environment," said Johanna Stromquist, ambassador of Sweden to BiH, " Increased energy efficiency is key to fighting air pollution. It also brings positive economic and social benefits to citizens. That is why Sweden will continue to support BiH in scaling up energy efficiency."

According to the embassy, Sweden will finance two projects to be implemented by the United Nations Development Programme (UNDP) by 2024.

The first project will improve energy efficiency in public, industrial and residential buildings in 36 municipalities across BiH. The work includes retrofitting a minimum of 30 public buildings, six public lighting systems, and 12 solar/photovoltaic systems.

The second project will enable all levels of BiH government to analyze energy consumption, costs and savings data from the public sector buildings.

Steliana Nedera, the UNDP's Resident Representative in BiH said that "Governments must choose to invest in a green economy, powered by renewable energy rather than fossil fuels, to decelerate the devastating effects of climate change and to protect the environment."

On average, buildings in BiH are consuming over five times more energy than buildings in the European Union member countries located in similar climate conditions, while the citizens of BiH are exposed to an air pollution level that exceeds the World Health Organization (WHO) guidelines, the UNDP said.