Serbia has called for a phased introduction of the EU’s Cross-Border Carbon Adjustment Mechanism (CBAM) to avoid economic shocks, Energy Minister Dubravka Jedovic Handanovic stated on July 18. She emphasized the EU raised carbon tax rates over 20 years, while Serbia cannot jump from zero to €70 per ton of emissions overnight.

Set to fully launch in 2026, CBAM imposes duties on carbon-intensive imports like steel and cement to curb global emissions and prevent "carbon leakage." Serbia’s chamber estimates it may affect 500 local firms.

Handanovic added that Serbia is ready to integrate into the EU electricity market, with a compliance review taking about 18 months. Serbia seeks to balance climate goals and economic stability via EU cooperation.