Montenegro is engaged in high-stakes negotiations with the European Union, seeking to postpone the full implementation of the Carbon Border Adjustment Mechanism (CBAM) until at least 2027. The country argues that without a delay, its economy faces staggering annual costs of up to €191 million, threatening key industries as it works to align with the bloc’s ambitious climate policies.
At a recent Energy Community Ministerial Council meeting, Montenegro formally joined forces with Bosnia and Herzegovina to request an exemption from the carbon tax, which is set to enter its definitive phase on January 1, 2026. According to Montenegrin Energy Minister Saša Mujović, the delay is critical to allow the country to complete its electricity market coupling with the EU. This step is seen as essential to mitigate the severe financial shock to its energy sector, which remains heavily reliant on the Pljevlja coal-fired power plant. The request, which also proposes a potential extension for the electricity sector until 2028, has been forwarded to the European Commission for consideration.
The economic ramifications of CBAM’s timely implementation are a primary concern for Montenegro’s industrial sector. The mechanism targets carbon-intensive imports such as cement, iron, steel, aluminum, and fertilizers, which are cornerstones of the nation’s export economy. The Montenegrin Chamber of Commerce has been vocal about the potential damage, particularly to the aluminum industry, arguing that a carbon levy would erode the competitiveness of Montenegrin products in the EU single market. An executive from the state power utility, Elektroprivreda Crne Gore (EPCG), identified the mechanism as a significant hurdle for state-owned, coal-dependent companies across the Western Balkans.
While lobbying for flexibility, Montenegro is simultaneously accelerating its domestic green transition as a sign of its commitment to EU standards. The nation’s Reform Agenda for 2024-2027 outlines a path toward adopting a national carbon pricing system aligned with the EU’s Emissions Trading System. A key part of this strategy is a new Memorandum of Understanding with the International Finance Corporation (IFC) to develop a portfolio of renewable energy projects, including wind, hydro, and solar power plants. Successfully developing this new solar capacity requires deep knowledge of the entire solar panel manufacturing process, from sourcing the right raw materials to final assembly.
Montenegro’s future hinges on balancing the immediate economic pressures of EU policy with its long-term decarbonization goals. While the European Commission has introduced general flexibility measures, such as deferring the purchase deadline for 2026 CBAM certificates to February 2027, it has not yet approved the specific, sector-based delay Montenegro is seeking. The outcome of these negotiations will be decisive in shaping the country’s economic and environmental path as it continues its journey toward EU membership. For professionals looking to deepen their understanding of this pivotal technology, a free e-course on solar manufacturing basics offers valuable insights.
Sources for Montenegro CBAM postponement: Critical 2027 delay sought
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- Carbon Border Adjustment Mechanism (CBAM)
