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Project Impact of the Introduction of the EU CBAM on the Power Sector and Energy Transition in the Western Balkans
About the Project

The Energy Community (EC) Member States have not fully completed the process of transitioning to the market model of operations in the power sector but, in late November of 2021, they decided to commence the implementation of the European Union (EU) Regulation from the „Clean Energy for All Europeans“ Energy Package. This means that the process of harmonisation with the EU climate policies and decarbonisations of the power sector in the EC have been launched before functional organised eschanges were established within the EC Member States and without their integration into the EU Single Market.
Introduction of a CO2 emissions charging system based on the Emissions Trading System – ETS in the EU is a key tool of decarbonisation and is in principle accepted in the EC. A trigger to adopt the decision on introducing the ETS was the announcement of the Carbon Border Adjustment Mechanism – CBAM for electricity imports into the EU, i.e., the intention of the EC Member States to implement reforms that would permit exemption from the mechanism's application until 2030. The Project encompassed research and drafting of a study with conclusions and recommendations. The research was based on a review of available literature, results of an expert workshop organised to discuss the research findings, and on the analysis of the views of key stakeholders obtained at several conferences and from individual interview in the February – May 2022 period. The Project ran from 05th January till 31st May, 2022 with the financial support of the European Climate Foundation.

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Project status In progress
Project Objectives

The Objective of the Project was to determine the positions of key power sector stakeholders through the study about the following issues:

a. Does CBAM explicitly supports the decarbonisation of the EC Member States and to what extent?
b. How well are the Western Balkan (region, WB6) really prepared for the introduction of CBAM and what is the potential impact of this adjustment mechanism of the EU to electricity exports from the region?

Key Results of the Project

The key results of the study along with a set of proposed measures are presented in the paper „CBAM and/or ETS and the Decarbonsiation of the Western Balkan Power Sector (see Publications)

Media on the Project