Electricity* traded between Western Balkan countries** and the EU will need to embed the cost of CO2 in its final price, potentially from as early as 2025.
In 2020, Montenegro received widespread praise for being the first Western Balkan country to introduce carbon pricing. Less than a year later, however, the scheme’s shortcomings were exposed. What can other Western Balkan countries learn from this experience?
The EU carbon border adjustment mechanism: How to make it work for decarbonisation in the Western Balkans
The European Parliament’s Environment Committee is currently considering the European Commission’s carbon border adjustment mechanism (CBAM) proposal. But while most of the debate focuses on free allowances, it is crucial to tighten the provisions on the power sector.