The Serbian National Assembly recently passed the Greenhouse Gas Emissions Tax Law and the Carbon-Intensive Products Import Tax Law, which will take effect on January 1 next year. The aim is to reduce pollution, improve energy efficiency, and promote the introduction of renewable energy.

This is also Serbia's response to the European Cross-Border Carbon Adjustment Mechanism (CBAM) and similar mechanisms. Both taxes are €4 per ton of CO2 equivalent. However, several supporting legislations are still needed to ensure the effective implementation of the new regulations.

The first of the two taxes targets large industrial emitting companies in sectors such as cement, fertilizer, steel, aluminum, and electricity, which must hold emission permits.

However, due to technological limitations and a lack of precise taxation methods, the high-carbon products import tax law does not apply to electricity. This tax law only applies to companies importing five tons or more of specific products annually, such as cast iron or steel, cement, fertilizer, and aluminum.

Furthermore, entities implementing decarbonization projects are eligible to receive incentives from the national budget.