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Serbia wants carbon pricing to be implemented gradually and fairly

Serbian Minister of Mining and Energy Dubravka Đedović Handanović stated that the carbon tax under the European Union's (EU) carbon adjustment mechanism (CBAM) should be implemented gradually, progressively and fairly.

Serbia wants carbon pricing to be implemented gradually and fairly

Participating in the informal meeting of the Energy Community Council of Ministers in Athens, Handanović stated that the decarbonization process in the electricity sector is highlighted by the acceleration of integration with the EU market and the commissioning of CBAM.

“Serbia is the first country in the region to fulfill the conditions for integration into the EU market recognized by the European Commission,” the Minister stated, noting that Serbia is a pioneer in the region in implementing energy reforms and alignment with the EU acquis.

Handanović noted that the necessary regulatory steps have been completed in line with the Reform Agenda under the Western Balkans Growth Plan, and that the final regulation will be adopted by the government shortly.

Noting that the implementation of CBAM will be one of the most important challenges for Serbia in the coming period, Handanović stated that the options prepared by the European Commission have been examined in detail.

“We believe that the carbon tax should be implemented gradually and fairly with the support of European Union funds,” Handanović stated, adding that the revenues from the emission tax will be used for decarbonization, renewable energy investments, energy efficiency, just transition and economic support.

Emphasizing that the timeframe is critical, the Minister drew attention to the impact of carbon costs on the sector and consumers, noting that “if sufficient time is not allowed for the transition from coal to renewable energy, carbon costs could create more economic pressure than short-term emission reductions”.

Handanović recalled that EU countries have been preparing for more than two decades for compliance with carbon taxes, and expressed that Serbia is determined to maintain alignment with the EU in energy and climate legislation.

"Our reforms are based on the interests of our citizens and our economy. We will not make hasty decisions that put our energy stability at risk," Handanović stated.

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