The European Union, accounting for nearly 60 percent of Serbia’s total exports last year, stands as the country’s largest trading partner. With the introduction of the Carbon Border Adjustment Mechanism (CBAM) starting January 1, 2026, taxes will be levied on carbon dioxide emissions associated with products entering European markets, affecting six key industries, according to NALED.
These industries include cement, iron and steel, electricity, aluminum, fertilizers, and hydrogen, with ramifications extending across Serbia’s entire economy. NALED, in its recent bulletin titled “EU Tax on Carbon Dioxide Emissions: Threat or Opportunity for Serbia’s Economy?”, underscores the need to prepare for this new cross-border carbon pricing mechanism. The alliance aims to define strategies to safeguard production capacities, enhance national institutional frameworks, and integrate CBAM into Serbian legislation.
NALED emphasizes collaborative regulatory reform involving industry stakeholders to devise optimal solutions that mitigate CO2 emissions and safeguard the domestic market, aligning with European standards.
Large corporate entities like the Holcim Group, including Lafarge Serbia, are mandated to report total CO2 emissions to EU regulators, influencing financial markets’ assessments of emission reduction efforts.
Dimitrije Knjeginjić, Director of Lafarge Serbia, highlights CBAM’s inevitability for listed companies, influencing investment decisions amid CO2 regulations. He stresses the necessity for Serbia’s government regulatory bodies to swiftly adopt supportive measures, ensuring the resilience of Serbia’s economy beyond 2026.
Knjeginjić points out a disparity: while the EU advances mechanisms to reduce CO2 emissions and safeguard its markets, Serbia allows unchecked imports of high-emission products, contradicting EU strategies for greenhouse gas reduction. He advocates for uniform regulations applying CBAM principles to all importers, preventing market disruptions in sectors like steel, cement, and fertilizers.
In conclusion, Serbia faces a critical juncture with CBAM implementation, requiring strategic alignment with EU standards to navigate economic and environmental challenges effectively.
