The Minister of Mining and Energy of Serbia, Dubravka Đedović, said today that for the potential introduction of a regional system for trading carbon emissions, additional comparative analyzes are necessary, as well as appropriate financial support before choosing a mechanism that would be applicable in the countries of the region.
Đedović, at the informal ministerial meeting of the Energy Community in Albania, conveyed Serbia’s position that a comprehensive, detailed and comparative analysis is needed for the application of the regional emissions trading system or some other mechanism, primarily when it comes to electricity production, before discussing on specific obligations and deadlines for the implementation of activities.
Regardless of the carbon pricing model, significant assistance from the EU and a special just transition mechanism that will mobilize additional funds in addition to the existing support funds are needed, she said, according to the Ministry’s announcement.
Bearing in mind the level of GDP per capita and the share of coal in the production of electricity in Serbia and the region, taking a position on the calculation of carbon emission prices, as part of the process of decarbonization of the energy sector, is not possible without ensuring appropriate financial support, where the EU’s support is key, she said.
The co”tracting parties of the Energy Community, including Serbia, are at the beginning of the process of a just energy transition, but already now we need to predict future costs, and thus the appropriate sources of funds for the decarbonization process, as is the case in the EU, where the Mechanism for a just transition is provided by 100 billion euros to support member countries, Đedović explained.
She added that she sees the formation of the Western Balkan regional fund for a just transition, which would be supported by the EU, as one of the possible solutions.
According to Đedović, the EU representatives welcomed the measures that Serbia has adopted in recent months with the aim of accelerating the development of the energy sector, including the initiated reforms of public companies, the adoption of the Law on Amendments to the Law on the Use of RES, the announcement of the first auctions for the allocation of market premiums for new 450 MW from RES, as well as the development of a three-year auction plan for RES.
On the sidelines of the ministerial meeting, Đedović spoke with the Minister of Infrastructure and Energy of Albania, Belinda Baluka, about the cooperation between the two countries in the field of energy, where the main topics were the measures taken by the countries to increase security of supply and cooperation within broader regional initiatives.
