Bosnia and Herzegovina (BiH), like Montenegro, has requested a delay in the implementation of the Cross-Border Carbon Adjustment Mechanism (CBAM), which is set to take effect on January 1, 2026. This new CO2 tax will impose additional charges on imports of goods such as cement, iron, steel, aluminum, fertilizers, hydrogen and electricity from countries that do not tax CO2 emissions. The CBAM is expected to significantly affect companies from Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia that export these goods to the European Union.
An exemption for electricity exports may be granted if specific conditions are met, but regional countries are lagging in meeting these requirements. This could make electricity exports, an important revenue stream for countries like Bosnia and Herzegovina, prohibitively expensive for the EU market.
BiH’s Minister of Foreign Trade and Economic Relations, Stasa Kosarac, who chaired the Energy Community Ministerial Council meeting, highlighted the successful harmonization of BiH’s electricity law, ensuring compliance with the Third Energy Package through coordinated work among entity ministries. However, to qualify for the CBAM exemption on electricity, Energy Community contracting parties must integrate their organized electricity markets with the EU’s system.
The Energy Community has urged these countries to accelerate the adoption of renewable energy sources and promptly approve their inaugural project lists of interest. Additionally, contracting parties have agreed to propose a CO2 emissions taxation model by mid-next year to ensure alignment with EU regulations.
