Implementation of CBAM could worsen the state of BiH's economy

CBAM is a new EU carbon regulation set to take effect in January 2026, aimed at supporting the European Union’s fight against climate change. Under this mechanism, importers will be required to pay a carbon adjustment fee equivalent to what would have been paid if the products were manufactured under EU environmental standards.

The most affected industries in Bosnia and Herzegovina are expected to be electricity production, aluminium, steel, and cement, along with associated sectors.

However, the European Union states that the impact of CBAM can be mitigated or avoided if BiH undertakes concrete policy measures. CBAM could also serve as a driver of innovation and enhanced competitiveness.

To respond effectively, Bosnia and Herzegovina needs to adopt cleaner technologies that reduce production costs in the long term, gain access to climate financing for green modernisation, and boost competitiveness on the EU market.

Importers nearing the emission threshold will be monitored through the EU Commission’s customs data oversight system, which will inform national supervisory bodies that may, where applicable, notify importers of their CBAM compliance obligations.

Raising the threshold for small importers could mean some companies will avoid CBAM obligations, but there remains a crucial need for transparent emissions tracking and alignment with EU regulations, according to EU sources.