The introduction of the European Union’s carbon border levy is already impacting Serbian exporters, with energy-intensive industries reporting a sharp decline in shipments to EU markets. Companies from sectors with high energy consumption have seen nearly a 30% drop in exports to the EU since the start of the year, reflecting the early effects of the Carbon Border Adjustment Mechanism (CBAM), which imposes additional costs on imports produced with higher carbon emissions.
Electricity exports have also been affected. Serbia’s state power utility EPS reported that no electricity has been delivered to the European Union since 1 January 2026. EPS representatives confirmed that the new carbon pricing rules have significantly reduced the competitiveness of Serbian electricity in the European market. The CBAM-related charge effectively adds about 78 euros/MWh to the cost of electricity exported to the EU, substantially increasing prices compared to EU-produced electricity under different regulatory conditions.
