News Global Market CBAM 838 19 December 2024
The introduction of this mechanism will complicate the export of electricity to the European Union
Bosnia and Herzegovina (BiH) and Montenegro have asked the Energy Community Ministerial Council to postpone the implementation of the cross-border carbon adjustment mechanism (CBAM), scheduled for January 1, 2026. The introduction of this tax will complicate the export of electricity to the European Union, as the countries of the region have not yet fulfilled all the necessary requirements for obtaining exemptions.
The CBAM will affect companies in Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Kosovo and Serbia. In the absence of exemptions, exporters from these countries will have to pay additional fees when trading with the EU.
The Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina, Stasa Košarac, said that the country has prepared a harmonized law on electricity to implement the EU’s Third Energy Package. He noted that the country is making progress thanks to the cooperation between the energy ministries of Republika Srpska and the Federation of BiH.
Montenegro, for its part, is also calling for the CBAM to be postponed until the completion of its electricity market integration with the EU, which is expected in the fourth quarter of 2026. Minister of Energy Sasha Mujovic emphasized that the country continues to implement measures within the EU energy package. According to him, postponing the CBAM would allow Montenegro to avoid financial losses of €350 million per year and ensure the profitable operation of the Pleva coal-fired power plant.
However, Artur Lorkowski, Director of the Energy Community Secretariat, noted that the CBAM is not part of the Community legislation, so the European Commission must respond to the requests of BiH and Montenegro.
Earlier, the European Commission indicated that it would explore options to help European industries affected by the CBAM, in particular the steel sector. This will be done as part of the review of the mechanism to be held next year.
