Kosarac: European Commission accepts BiH's key proposals on CBAM application to electricity sector

"We have officially been informed by the competent Directorate-General that the European Commission has accepted our proposals and incorporated them into the draft amendments to the CBAM Regulation, which have been submitted to the European Parliament and the Council of the European Union for the legislative procedure," Minister Kosarac said.

The proposed amendments would allow the actual electricity generation mix of the exporting country, including electricity produced from renewable energy sources, to be taken into account when calculating emissions from electricity, while at the same time simplifying the procedure for verifying actual emissions.

The amendments also provide for the recognition of electricity supplied under power purchase agreements, including contracts concluded through intermediaries, for the purpose of determining actual emissions.

It has also been proposed that these amendments apply retroactively from January 1, 2026, which would remove the difficulties faced by electricity exporters from Republika Srpska, the Federation of Bosnia and Herzegovina and the Brcko District.

Minister Košarac stressed that the competent institutions at all levels of government in Bosnia and Herzegovina had made every effort to alert the European Commission to the concerning impact of CBAM implementation on the country's electricity sector.

"The European Commission recognised the credibility of our request and proposed amendments to the CBAM Regulation that represent a significant step towards a fairer application of CBAM and preserving the competitiveness of electricity exporters from Republika Srpska, the Federation of Bosnia and Herzegovina and the Brcko District on the European Union market," Kosarac said.

At the same time, the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina has prepared a draft decision adopting a methodology for calculating the carbon dioxide emission factor of the country's electricity grid, creating the preconditions for the timely implementation of the new European rules.

"The European Commission's first amendment, together with the draft decision prepared by the Ministry, will significantly reduce the cost of electricity exports to the European Union market. According to our estimates, the savings could amount to as much as EUR 13 million annually. This will strengthen the competitiveness of the domestic electricity sector and protect export revenues," Kosarac said.

He emphasised that the objective of all these activities is to protect the interests of the domestic electricity sector and strengthen overall economic activity in BiH.

"The proposed amendments to the CBAM Regulation are currently undergoing the legislative procedure in the European Parliament and the Council of the European Union. The Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina will continue to actively cooperate with European institutions until their final adoption," the Ministry of Foreign Trade and Economic Relations said in a statement.