CBAM, Carbon Pricing, and Electricity Market Reform at the Centre of Bosnia and Herzegovina’s EU Path 

Decarbonisation and EU market integration hinge on legislative action 

As the region’s largest net electricity exporter, Bosnia and Herzegovina is well placed to both benefit from and contribute to Europe’s commitment to decarbonisation. With nearly half of its power already renewable, the country holds a strong starting point for the clean energy transition. Swift parliamentary action on carbon pricing and market reform can transform this advantage into long-term competitiveness, ensuring Bosnia and Herzegovina strengthens its role as a regional energy leader while advancing toward EU energy market integration. To encourage this momentum, on 22 September the Energy Community Secretariat addressed the Parliamentary Assembly of Bosnia and Herzegovina, outlining the country’s progress on critical priorities for a decarbonised, integrated energy future. 

CBAM readiness & Carbon Pricing  

With the EU’s Carbon Border Adjustment Mechanism (CBAM) entering its definitive stage in January 2026, Bosnia and Herzegovina faces new challenges as a net exporter of electricity to the EU. Without coupling with the EU electricity market and gradually introducing domestic carbon pricing aligned with ETS standards, exports will be subject to CBAM charges — risking disruption of cross-border trade and slowing market integration. The Secretariat stressed the importance of a credible carbon pricing system to avoid distortions, ensure a level playing field with EU producers, and provide long-term certainty for green investment. 

Electricity market reform and accelerated EU integration 

In parallel, the Secretariat highlighted the new draft Law on Regulator, Transmission and Electricity Market as a cornerstone reform. Its adoption would modernise Bosnia and Herzegovina’s power sector and pave the way for coupling with the EU’s electricity market, even before EU accession. 

“Credible carbon pricing and progress market integration go hand in hand: together they mean bringing the country closer to its decarbonisation goals, a more competitive, stable energy market, and a stronger role for Bosnia and Herzegovina in Europe's Clean energy future,” said Adam Cwetsch, Head of the Energy Community Secretariat's Green Deal Unit.