Western Balkans seek an earlier exemption for electricity from CBAM.

Montenegro, Serbia, Bosnia and Herzegovina, Kosovo, and North Macedonia are requesting changes to the European Union’s CBAM Regulation. Admir Šahmanović, Montenegro’s Minister of Energy and Mining, communicated with the relevant European Parliament committee, highlighting that uncertainty in the Western Balkan electricity markets has diminished the EU's interest in sourcing electricity, including from renewable resources.

Collaborating with the Energy Community Secretariat, the energy ministries from these countries have proposed "limited but targeted refinements" to Regulation (EU) 2023/956, which pertains to the Carbon Border Adjustment Mechanism (CBAM). Minister Šahmanović reached out to the European Parliament’s Committee on Industry, Research and Energy (ITRE) for their backing.

During interinstitutional negotiations focused on electricity within the CBAM framework, the Energy Community contracting parties suggested modifications to the European Commission's proposals made in December.

Šahmanović voiced concerns that specific goals, especially those regarding market coupling, may not be achievable under the existing CBAM Regulation provisions.

The definitive phase of CBAM began on January 1, imposing a surcharge on all electricity exported to the EU from the region, regardless of the source.

Šahmanović stated that the commission would recognize that the region's countries have met their commitments and reached a pivotal moment towards EU electricity market integration.

He explained that this has resulted in uncertainty within their electricity markets, resulting in diminished interest from EU partners in purchasing electricity from their producers, including renewable energy sources. This trend has been particularly noticeable during times of high clean energy production, largely due to increased hydropower generation from seasonal rainfall.

He informed EU lawmakers that the Western Balkans have made notable progress in aligning with EU electricity regulations, an essential step for market coupling. The commission's validation will confirm that they have fulfilled their obligations and reached a critical juncture in integrating with the EU electricity markets, he emphasized.

Šahmanović noted that while the region fully supports the EU’s energy and climate goals, the stringent conditions and tight timelines of the CBAM could jeopardize efforts toward successful electricity market coupling.

The initiative aims to address the unique characteristics of the Western Balkans' energy systems within the legislation. Documents obtained by Balkan Green Energy News indicate proposals including the potential for an early exemption of electricity from CBAM following successful verification, with the possibility of extending this exemption beyond the current 2030 deadline.

The Western Balkans have requested that the European Commission collaborate with candidate countries to set deadlines and carbon pricing. Proposed adjustments would allow power purchase agreements (PPAs) and guarantees of origin (GOs) as proof of electricity origin.

Next week, Šahmanović, along with his regional counterparts and Energy Community Secretariat Director Artur Lorkowski, will participate in the Belgrade Energy Forum 2026 in Serbia’s capital, an annual event organized for the fourth consecutive year by Balkan Green Energy News.