Challenge for BiH Economy: CBAM Tax Collection Begins

(Patria) - The introduction of the EU's Carbon Border Adjustment Mechanism represents one of the most serious challenges for the BiH economy in the coming years. Exporters of electricity, iron, cement, and some other products will face additional obligations and costs starting January 1st. Experts point out that by not adopting the relevant regulations, BiH will lead its economy into significant problems.

BiH is facing the collection of CO2 taxes from January 1, 2026, completely unprepared, as key reforms at the state level have not been implemented. Exporters, particularly from the metal and processing industries, are entering the CBAM regime with higher costs and great uncertainty, which directly undermines the competitiveness of the BiH economy in the EU market.

"By not adopting the regulations, regulators, and the stock exchange, we have not enabled the formation of an ET system where we would pay for the purchase of these certificates here, and these funds would remain here, allowing us to try to invest and stimulate investments in renewable sources," said Ljubo Glamočić, Vice President of the Republika Srpska Chamber of Commerce, for BHRT.

"The long-term problem is that BiH has not established a CO2 stock exchange in accordance with EU rules, which, if not established, will ultimately lead to all other exports from BiH being burdened by this CO2 regulation," says Saša Trivić, Employers' Union of Republika Srpska.

One of the key consequences of introducing CO2 taxes will be an increase in production costs, which will be passed on to the final product prices where possible. This further intensifies the already existing inflationary pressures, rising energy prices, and the decline in citizens' purchasing power.

"We must say that there will be a significant impact on our export companies, because I fear that other price increases are expected in the coming period, as those who produce these goods, which are now burdened by the tax, will burden the final customers in BiH," warns Almir Bečarević, an energy expert.

Experts warn that failure to adapt to the rules will decimate a significant portion of BiH's economy.

"To mitigate the consequences of CBAM, it is expected that the authorities will urgently align energy and climate policies with the EU framework. This includes establishing a carbon pricing system that the EU would recognize as equivalent, which would allow domestic companies to avoid paying CBAM in the EU, and this revenue would remain within the country," stated the Foreign Trade Chamber of BiH.

Currently, exporters of six types of products along with electricity are affected, but the EU recently adopted an amendment to the directive that adds another 180 types of products to the list. There is no response from the relevant energy ministries of either entity. At the same time, the key law on the transmission, operator, and regulator of electricity has not passed the House of Peoples of BiH, BHT reports.