Serbian power utility Elektroprivreda Srbije expects a reduction in revenue due to the introduction of the European Union’s carbon border tax, according to Dušan Živković, the company‘s CEO. He estimated the financial impact at EUR 150 million.
From January 1 of this year, EU importers of aluminum, cement, electricity, iron, steel, hydrogen, and fertilizers from non-EU countries are required to pay a CO2 tax under the Carbon Border Adjustment Mechanism (CBAM), increasing the price of these goods in the EU market.
Speaking for RTS, Dušan Živković, EPS’s CEO, warned of the consequences of CBAM, arguind that it further burdens the operations of power companies in the region. He also noted that the 25 million tonnes of carbon dioxide that EPS emits this year would cost it around EUR 100 million.
Of note, the Serbian Law on Greenhouse Gas Emissions Tax and Law on Carbon-Intensive Product Imports Tax, both at EUR 4 per ton of CO2 equivalent, came into effect on January 1.
Živković: The implementation of CBAM will affect the company’s operations
According to Živković, the implementation of CBAM will affect the company’s operations. The inability to export electricity to the EU translates to around EUR 150 million in lost revenue for EPS, Živković said.
However, he added, investments are not threatened and EPS is continuing to invest in the mining and energy sectors.
CBAM has caused serious disruptions to the electricity markets in the Western Balkans
Investments will not be jeopardised despite the CBAM tax, in his view. The funds have been secured and the projects are being implemented according to the planned schedule, even though the tax isn’t favourable for EPS, Živković added.
CBAM has caused serious disruptions to the electricity market in the Western Balkans.
