The entities of Bosnia and Herzegovina have agreed on the text of a new law that will regulate the country’s electricity market. Along with legislation concerning the electricity regulator and transmission system, the new law lays the groundwork for establishing a Bosnian power exchange, which will be based in Mostar.
This development marks a major step forward for Bosnia and Herzegovina in aligning with EU electricity market rules — a key requirement for exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM), often referred to as the carbon tax.
The agreement was finalized at a meeting in Vienna with Artur Lorkovski, Director of the Energy Community Secretariat. The talks were attended by Vedran Lakić, Federal Minister of Energy, Mines, and Industry; Petar Đokić, Minister of Energy and Mines of Republika Srpska; and Staša Košarac, Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina.
Minister Lakić welcomed the agreement, stating, “We have every reason to be pleased, particularly given the current circumstances in our country. This is a significant step toward exempting Bosnia and Herzegovina from the EU carbon tax. It will protect our exporters across BiH and allow us to use revenue from the tax for domestic projects, rather than sending funds to the EU.”
He also noted that the Federation of BiH succeeded in securing all of its proposed conditions, ensuring a harmonized and sustainable framework for the electricity sector. “After exhaustive and challenging negotiations, we have ensured that Bosnia and Herzegovina is no longer the only country without a dedicated electricity law and exchange,” Lakić said.
Following a final review, the proposed law will be placed on the agenda of the Council of Ministers of Bosnia and Herzegovina for formal adoption.
