The Western Balkans could face severe economic challenges when the EU’s green tariffs take effect next year, impacting countries heavily reliant on coal for electricity production.
Electricity generated from coal is among the highest carbon footprint exports from the region and will fall under the EU’s Carbon Border Adjustment Mechanism (CBAM), imposing levies on imports with high carbon emissions.
Janez Kopač, former director of the Energy Community Secretariat, emphasized that the region’s economic and geographical ties to the EU are too strong to avoid these charges. With 60-95% of electricity production in the region dependent on coal, the financial repercussions could be significant.
While some experts see the green tariffs as an incentive for the Balkans to invest in renewable energy, others warn of major economic strain. Bosnia and Herzegovina, for instance, risks losing over €220 million annually from electricity exports to the EU.
The region lacks a dedicated transition fund like the EU’s €17.5 billion Just Transition Fund, leaving it with limited financial support for moving away from coal. Despite EU commitments of up to €9 billion for green and digital transitions, analysts argue this is insufficient to fund a fair energy transition.
Unless the Western Balkans take proactive steps toward decarbonization, the CBAM measures could slow rather than accelerate the shift to clean energy.
