BELGRADE, SERBIA – Leaders from across the Western Balkans are calling for “limited but targeted refinements” to the European Union’s Carbon Border Adjustment Mechanism (CBAM) to protect their regional electricity markets.
The Request for Flexibility Energy ministries from Montenegro, Serbia, Bosnia and Herzegovina, Kosovo, and North Macedonia have formally requested that the European Commission allow for an early exemption from the tax if certain climate commitments are verified. Under current rules, the definitive regime of CBAM—which applies a carbon price to goods imported into the EU—began on January 1, 2026.
Key Concerns for the Region
- Market Uncertainty: Regional officials report a decline in interest from EU-based partners to purchase electricity from the Balkans due to the added costs of CBAM.
- Renewable Energy Hurdles: Stakeholders argue that the current carbon pricing rules may inadvertently stall new investments in green energy, as even renewable exports currently face surcharges unless strict criteria are met.
- Integration Goals: The region is seeking a collaborative approach where the European Commission and candidate countries jointly determine carbon prices and deadlines to ensure a smooth integration into the EU electricity market.
While the Western Balkans have made significant progress in adopting EU energy rules, no country in the region had fully met the exemption requirements by the start of 2026.