EU’s carbon tax to hit BiH economy: exports to face up to 20 percent price increase

Director of the Economy Department of the Foreign Trade Chamber of BiH, Ognjenka Lalović, stated that the impact of CBAM on the prices of BiH products exported to the EU could reach up to 20 percent, depending on the product.

She reminded that starting from January 1, 2026, the mandatory submission of reports and CO2 emission calculations will begin. However, there are still many uncertainties in the directive itself, and certain amendments are expected in the next thirty days.

Lalovic stressed that institutions in BiH need to take steps to support the private sector, which is simultaneously working on “greening” its business models in order to enhance competitiveness.

The CEO of Lukavac Cement, Stjepan Kumric, highlighted that their estimates show product prices will rise by two to six percent, which they cannot avoid in the short term, but they can work on reducing their carbon footprint.

He added that developing alternative fuel and raw material production in BiH would represent an opportunity to introduce new technologies, spark a new industrial revolution, and create jobs, ultimately benefiting society as a whole.

At the conference, it was noted that the Regulation requires emissions reporting for the cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen industries, with an expansion to additional sectors expected.