Investments by Elektroprivreda Srbije in the revitalization of existing hydro power plants and the construction of new ones are the most effective response to the future impact of the EU Emissions Trading Scheme (ETS) and the Carbon Border Adjustment Mechanism (CBAM) – said Boriša Davidović, Head of the Energy and Economic Planning and System Services at EPS, at the Energy Summit in Trebinje.
At the panel "Decarbonization of Companies - Future Impact of ETS and CBAM on Exports and Business Profitability", he emphasized that, beyond investments, the logical step regarding CBAM is market coupling.
- Serbia has made significant strides in regulation, with the adoption of a new Energy Law, an Integrated National Energy and Climate Plan, and an Energy Strategy extending to 2040, with projections up to 2050. Despite this progress, it is evident that market coupling will not be completed before the implementation of CBAM begins. The third step involves either a regional approach or a national CO2 tax, which initially reduces payments towards CBAM, or a combination of these two approaches. In the long term, the best solution is investment in new production capacities, said Davidović.
He added that all power companies in the region are hoping for a derogation, a gradual postponement of the implementation of CBAM, and understanding from the EU, as the level of economic development does not allow us to fully comply.
- If we start with fees immediately, it reduces investments and would achieve a counter-effect, because investments in RES are needed to reduce fees – said Davidović.
