European Union
Renewables are facing challenges in demonstrating CBAM compliance – the Energy Community Secretariat’s second quarterly CBAM impact report
In the second quarter of 2026, increased electricity imports from EU Member States to Contracting Parties resulted in a partial recovery in price correlation, in price convergence and in overall cross-border trade.
In parallel, the surge of commercial flows on some corridors (for instance from Serbia into Hungary) suggests that new destination markets, such as Ukraine, might be emerging for electricity from the Western Balkans.
While Contracting Parties turned into net importers of EU-sourced electricity, individual electricity exports to the EU that run counter to this broader trend appear to be exceptional. These may reflect factors beyond immediate market economics, such as expectations regarding amendments of the CBAM Regulation currently under negotiations in Brussels.
As the implementation of CBAM progresses, an increasing number of renewable producers and project developers in Contracting Parties are starting to face practical difficulties in meeting the requirements for the use of actual emission values. This is creating regulatory uncertainty and additional compliance costs to their operations and projects.
The Secretariat will continue to closely monitor market trends under CBAM and assess their implications in upcoming quarterly reports.
The Carbon Border Adjustment Mechanism is the European Union’s regulation aiming to establish a level playing field for EU-based producers and importers of CBAM goods, including electricity. CBAM is not part of the Energy Community legislation.