INITIATIVE SENT TO EUROPEAN COMMISSION REQUESTING EXEMPTION FROM CBAM UNTIL 2030

SARAJEVO, JULY 18 /SRNA/ - The Ministry of Foreign Trade and Economic Relations in the Council of Ministers, in cooperation with the relevant ministries of Republika Srpska and the Federation of BiH /FBiH/, has submitted a joint initiative to the European Commission requesting an exemption from the application of the Carbon Border Adjustment Mechanism /CBAM/ until 2030, Minister Staša Košarac confirmed to SRNA.

Košarac explained that the introduction of CBAM-related fees would impose a significant financial burden on companies in both Srpska and FBiH, particularly those in industries that rely on coal as their primary energy source. "The initiative, jointly signed by the energy ministries of Srpska and FBiH, the Ministry of Spatial Planning, Construction and Ecology of Srpska, and the FBiH Ministry of Environment and Tourism, was submitted to the EU Delegation in BiH," Košarac said. He emphasized that the introduction of this levy would also have far-reaching consequences for the competitiveness of domestic industries on the international market. "Recognizing all the challenges, especially for the economic sector, we decided - in full coordination and with full respect for constitutional competencies - to submit a joint initiative to the European Commission, requesting an exemption from the application of CBAM until 2030," Košarac stated. He underscored that the authorities remain committed to transitioning toward cleaner energy sources and reducing greenhouse gas emissions, in line with international obligations, including the Energy Community Treaty, the Paris Agreement, and the Sofia Declaration on the Green Agenda for the Western Balkans. "In this process, our economies are facing numerous challenges, and a rapid adjustment to strict climate measures such as CBAM would further complicate the socioeconomic situation," Košarac explained. Košarac expressed hope that the EU will demonstrate understanding and respond positively to the initiative, thereby enabling the achievement of energy and climate goals in a manner that is sustainable for the domestic economy and society.