economy
April 5, 2026
Carbon tax already affects Serbian economy: EPS among the most endangered, electricity exports to the EU increasingly difficult
Although it came into force just three months ago, the CBAM tax, introduced by the European Union (EU), is already affecting the domestic economy, especially companies exporting products with high carbon dioxide (CO₂) emissions.
TL;DR
- The EU's CBAM tax, effective since January 1st, is impacting Serbian companies exporting high-emission products.
- Importers in the EU formally pay the CBAM tax, but the cost is being passed on to Serbian producers.
- Sectors most affected include iron and steel, aluminum, fertilizers, cement, and electricity.
- Around 23% of Serbian companies exporting to the EU are affected by CBAM.
- The national power company, EPS, is a major concern, as its production relies heavily on lignite-based thermal power plants.
- Electricity exports from Serbia to the EU saw a significant drop in January and February, potentially linked to CBAM.
- While the tax doesn't halt exports, it acts as an economic barrier, reducing competitiveness.
- EPS could face a substantial decrease in export revenue due to rising CO₂ costs and a less competitive position in the EU market.