Bosnia and Herzegovina will face an increase in electricity prices starting in 2026 as part of its commitment to aligning with European green energy regulations. The exact rate of the increase has yet to be determined, but it is tied to the introduction of a carbon dioxide (CO2) emissions tax.

Goran Racic, President of the Banja Luka Regional Chamber of Commerce, explained that BiH must harmonize its energy production with European laws by January 1, 2026. This includes paying a CO2 emissions tax, which ranges from €60 to €100 per ton. If the tax isn’t paid domestically, exporters will have to cover it upon entry into the EU.

“We are working to secure funding to avoid overburdening businesses with the CO2 tax all at once,” Racic said during a press conference at the “Climate Transition and Changes in the Global Economic Model” conference.

When asked if the cost would be passed on to consumers, Racic noted that while electricity prices are regulated, energy companies may still transfer some of the new costs to end users. “Starting January 1, 2026, a portion of the cost will inevitably be borne by consumers,” he said.

Bojan Vipotnik, RS Minister of Construction, Ecology, and Urban Planning, emphasized that a difficult period lies ahead as the EU implements cross-border carbon regulations. He expressed hope for cooperation with the energy and industrial sectors to ensure competitiveness in the market.