Introducing a CO₂ Pricing System in Serbia: Options Analysis
10, June 2025
The policy paper “Introducing a CO₂ Pricing System in Serbia: Options Analysis” was developed as part of the initiative “Serbia in the EU ETS,” implemented by the BFPE Foundation for a Responsible Society within the framework of the SDGs for All Platform. The initiative aims to support Serbia in its process of approaching the European carbon market and aligning with EU climate policies.
The analysis provides a comprehensive overview of options for introducing CO₂ pricing in Serbia in light of accelerated regulatory and climate changes. It highlights that the existing model—based on cheap domestic lignite and subsidized electricity—has become unsustainable, while the introduction of the CBAM mechanism is already creating significant costs for the domestic economy.
Without a timely national-level response, Serbia risks losing revenue from emissions, incentives for decarbonization, and access to European funds. In contrast, establishing a CO₂ pricing system—either through an ETS or a fixed tax—could open opportunities for modernizing the energy sector, strengthening industrial resilience, and ensuring a just transition.
The analysis shows that introducing an ETS is a more sustainable and flexible long-term solution, in line with the recommendations of the Energy Community. An ETS enables the trading of emission allowances and the integration of Serbia into the European carbon market, with potential for additional revenue and more efficient emission reductions.
Key recommendations from the analysis call for the gradual introduction of an ETS, starting with the energy and heavy industry sectors. At the same time, it is necessary to further strengthen capacities for monitoring, reporting, and verification of emissions (the MRVA system), which is already being implemented. Another crucial step is aligning Serbia’s legal framework with EU ETS regulations, which would enable future integration and exemption of domestic industries from CBAM fees.
It is recommended that revenues from emission allowances be directed toward the green transition—through investments in renewable energy, energy efficiency, and social programs to protect the most vulnerable citizens. Equally important is ensuring transparent and clear communication with the business sector and the wider public to secure support and understanding for this critical reform.
The introduction of an ETS represents an opportunity for Serbia to achieve its climate goals, improve energy security, and enhance the competitiveness of its domestic industry—while also making an important step forward in the process of European integration.
This news article was sourced from the website Foundation BFPE for a Responsible Society with proper attribution. All copyrights are retained by the original publisher.
Source: https://bfpe.org/analize-i-publikacije/uvodjenje-sistema-naplate-co%e2%82%82-u-srbiji-analiza-opcija/
