Montenegro was unprepared for the implementation of the Carbon Cross-Border Adjustment Mechanism (CBAM), which began on January 1, according to representatives of the non-governmental organization (NGO) Eco-team.
They explained that CBAM is a legally defined EU mechanism that cannot be politically suspended or postponed, regardless of the fact that government representatives have recently been talking about negotiations with the European Commission (EC) and expectations of a more flexible approach.
“It is important that institutions stop sending reassuring messages and openly tell citizens and businesses what the real situation we are facing is and how much CBAM will cost Montenegro in the coming years,” said the Eco-team.
They recalled that Montenegro adopted the Climate Change Law at the end of last year, but that in practice an operational system of trading emission credits, with accompanying bylaws and verifiable rules for measuring and verifying emissions, which the EU could consider comparable to the EU ETS, has not yet been established.
“Exactly such a system represents one of the basic conditions for a reduction or exemption from CBAM. It should also be recalled that these conditions have been known for years, but that during that period they were not fulfilled in a timely manner,” said the Eco-team.
They added that the carbon price in Montenegro, at 24 euros per ton of carbon dioxide, is many times lower than in the EU, where it ranges between 70 and 80 euros per ton and is expected to increase by 2030.
This, as the Eco-team said, means that the difference in carbon prices will not be avoided, but will be charged through CBAM.
“In practice, the price of carbon dioxide emissions will certainly be paid, but the question is whether that money will be paid in Montenegro and through the Eco-Fund, used for energy and just transition and environmental protection projects, or will it flow into the EU budget through CBAM,” said the Eco-team.
They also stated that additional uncertainty is created by the fact that the amendments to the CBAM rules proposed by the EC have not yet been adopted.
“Even if adopted, they can only reduce costs, but not abolish CBAM. This particularly affects electricity producers, both from the Pljevlja Thermal Power Plant, whose production has a high carbon footprint, and producers from renewable sources, whose electricity is often not treated as green in the existing system,” said the Eco-team.
They stated that the only permanent solution involves establishing a functional carbon pricing system and its actual alignment with EU rules, which means gradually increasing the domestic price and bringing it closer to the EU ETS level by 2030 at the latest.
The Eco-team said that, according to available information, the integration of the electricity market with the EU through the so-called market coupling, which enables free electricity trade without additional charges, cannot be expected before 2028, which is why CBAM will remain a real and growing cost in the coming years.
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