The Energy and Climate Technical Working Group discusses carbon pricing and CBAM readiness of the Contracting Parties

6 April 2023

The Energy Community Secretariat held its first Energy and Climate Technical Working Group meeting on April 3 and 4 to discuss the development of a carbon pricing system in the region. The meeting was attended by representatives from the European Commission, the Contracting Parties, and various organizations involved in supporting the Contracting Parties.

Discussions at the meeting centered around the Decarbonisation Road Map of Energy Community, with a focus on the proposed text of the EU Regulation on Carbon Border Adjustment Mechanism (CBAM) linked to the establishment of carbon pricing. Participants highlighted the importance of collaboration at the regional level to avoid market distortions caused by uncoordinated national policies. They stressed the need for a functioning MRVA (Monitoring, Reporting, Verification, and Accreditation) system as a backbone of the carbon pricing, as well as the importance of coordination among governments.

Presentations were delivered by representatives from organizations such as the Ministry of Environmental Protection and Natural Resources of Ukraine, the Ministry of Ecology, Spatial Planning and Urbanism of Montenegro, the World Bank, GIZ, CAN Europe, and EU4Green. The extensive dialogue on CBAM implications and the EU accession aspirations of the Contracting Parties emphasized the need for any future solution to be as closely aligned with the EU Emissions Trading System (ETS) as possible.

The group also discussed possible exemptions from CBAM for the electricity industry and how they could be linked to the progress in building an integrated functioning electricity market via market coupling. They stressed the necessity for enhanced engagement of all key stakeholders, ensuring that proper resources and capacities are in place.

The Secretariat expressed readiness to assist in the process, and the group will continue to meet regularly to discuss carbon pricing/ETS architecture and CBAM requirements.

In Scope:

  • Ukraine Ukraine
  • Albania Albania
  • Bosnia and Herzegovina Bosnia and Herzegovina
  • North Macedonia North Macedonia
  • Kosovo Kosovo
  • Moldova Moldova
  • Montenegro Montenegro
  • Serbia Serbia
  • Georgia Georgia
  • European Union European Union