Policy options for Albania, Bosnia & Herzegovina and Serbia to navigate CBAM
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The EU’s Carbon Border Adjustment Mechanism (CBAM) came into effect at the beginning of 2026, designed to reduce carbon leakage by incentivising producers outside the bloc to decarbonise, so contributing to a reduction in global emissions in line with the Paris Agreement.
Carbon-intensive goods covered by CBAM include electricity, cement, fertilisers, aluminium, iron and steel, and hydrogen. EU-based importers pay a carbon price when a good is imported into the EU. The lower a product’s carbon intensity, the lower the carbon price. for exporters to avoid CBAM costs, they will need to reduce the carbon intensity of their goods.
While all countries exporting to the EU are subject to CBAM, it is particularly relevant to candidate countries for EU accession, who are to align their domestic legislation with the EU’s acquis communautaire before joining the bloc.
In a set of three policy briefs, we analyse how important sectors are exposed to CBAM costs in three countries - Albania, Bosnia & Herzegovina and Serbia - and present policy options to reduce exposure via cost-effective decarbonisation. Via in-country partner organisations, these are translated into national languages and distributed to policymakers, civil society, business groups and other interested parties.
Albania
Bosnia & Herzegovina
Serbia
The three policy briefs are complemented by five sectoral deep dives, on electricity, iron and steel, cement, chemicals and aluminium, which can be accessed here.
