Summary
As of January 2026, the European Union’s (EU) Carbon Border Adjustment Mechanism
Read more Read less(CBAM) is no longer a future policy instrument, but an operational reality transforming climate-related trade regulations. This paper estimates the CBAM implications in case of
Bosnia and Herzegovina (BiH), a non-EU country that borders the EU and currently the only net electricity exporter in the Western Balkans, with electricity generation still dominantly based on coal. Quantifying the economic impact in a scenario analysis, it was shown that
CBAM could add between €43 and €165 to each MWh of electricity exported from BiH to the
EU, making it economically uncompetitive on the European market. This paper proposes a replicable approach of phased CBAM implementation towards a full Emission Trading System compliance by 2030, introducing an aggregate National Energy and Climate Plan based net emission rate. The model contributes to the discussion on carbon costs and investment risks, providing valorized insights that can help both EU and non-EU countries respond to the challenges of operating under relevant carbon regulations, adhering to the adopted climate goals.
Additional informations
| Publication type | Session Materials |
|---|---|
| Reference | C1_11743_2026 |
| Publication year | |
| Publisher | CIGRE |
| Country | Bosnia and Herzegovina |
| Study committees | |
| File size | 687 KB |
| Price for non member | 30 € |
| Price for member | 30 € |
Authors
MERZIĆ Ajla - CIGRE Bosnia and Herzegovina; KAZAGIĆ Anes - JP Elektroprivreda BiH; BAJRAMOVIĆ Zijad - University of Sarajevo - Faculty of Electrical Engineering
Keywords
Carbon Border Adjustment Mechanism (CBAM), carbon cap, cost estimation, decarbonization, Emission Trading System (ETS)
