Institutions at the state level of Bosnia and Herzegovina and one of its two political entities, the Federation of Bosnia and Herzegovina (FBiH), will take joint steps to introduce an emissions trading system (ETS) by the end of this year, said FBiH Prime Minister Nermin Nikšić.
According to Nikšić, the EU’s carbon border tax, which comes into effect on 1 January 2026, is a serious challenge requiring a swift and determined response at state level in order to protect thousands of jobs and prevent a dramatic fall in industrial exports from Bosnia and Herzegovina, reports the state news agency FENA.
Nikšić announced joint activities between entity and state institutions to establish an ETS by the end of 2025.
CBAM also applies to BiH and the region
With the full implementation of the Carbon Border Adjustment Mechanism (CBAM) at the start of next year, importers in the EU will pay a levy on cement, iron, steel, aluminium, fertilisers, hydrogen and electricity from countries that do not have a CO2 emissions charging system. This measure also applies to Bosnia and Herzegovina, as well as to other Western Balkan countries.
Nikšić stressed that in order to maintain exports to the EU, BiH must urgently establish a regulatory framework recognised by the EU. He reminded that BiH is the only country in the region without a power exchange, and said it is time for all levels of government to act jointly and responsibly.
FBiH Minister of Energy, Mining and Industry, Vedran Lakić, expressed confidence that the best way for BiH to protect its economy and retain revenue from carbon taxes is precisely through the introduction of its own emissions trading system. Otherwise, he warned, tens of millions of euros will end up in the EU budget.
According to him, that revenue could be used to modernise production capacities, reduce emissions and accelerate the green transition. Lakić also pointed out that the ministry is preparing financial support through the FBiH Development Bank for companies that decide to install solar panels, which would enable them to produce electricity for their own needs and thus avoid being covered by CBAM.
Bosnia and Herzegovina and Montenegro have requested a postponement of CBAM’s application, as has the European Network of Transmission System Operators for Electricity (ENTSO-E), but the EU has confirmed that the mechanism will come into force as planned.
The Energy Community Secretariat emphasised that no contracting party, including Western Balkan countries, will be able to obtain an exemption for electricity before the levy starts being collected.
As 1 January 2026 approaches rapidly, the impact of CBAM will soon become quite clear. In Serbia, the National Alliance for Local Economic Development (NALED) recently warned that the carbon tax could endanger jobs and operations in a sector employing about 7% of the workforce and contributing 11% to GDP.
In Bosnia and Herzegovina, an official analysis shows that CBAM could cost the economy between 369 million and 1.62 billion euros by 2030.
(EUpravo zato/Fena)
