Serbia has approved two new climate-related taxes: a Greenhouse Gas Emissions Tax and a Carbon-Intensive Product Imports Tax, each set at EUR 4 per tonne of CO₂ equivalent, entering into force on 1 January. The measures are designed to mirror and respond to the EU’s Carbon Border Adjustment Mechanism (CBAM), which begins charging importers of electricity, cement, steel, aluminum, hydrogen and fertilizers on the same date.
Both Serbian taxes cover CO₂, N₂O and PFCs, and aim to curb pollution, boost energy efficiency, scale up renewables and safeguard domestic industry against competitive distortions. However, several bylaws are still needed before the framework becomes fully operational.
The emissions tax will apply mainly to large and medium-sized industrial plants about 50 companies holding licenses for 92 facilities—representing over 57% of Serbia’s emissions. Producers of electricity can receive tax credits up to 20%, capped at 80% of their total liability, for investments in decarbonization.
The import tax excludes electricity for now due to methodological constraints and applies only to firms bringing in five tonnes or more of covered products annually. Importers may use tax credits if carbon costs were already paid in the country of origin. Serbia currently imports around 3.5 million tonnes of carbon-intensive goods per year.
While the EU plans to expand CBAM to additional sectors and gradually align it with EU ETS prices by 2034, Serbian experts warn that the mechanism could complicate future power-market integration and deter renewable-energy investments. Revenue from the new taxes may be directed toward green projects, though Serbia has yet to establish a dedicated decarbonization fund.
Read more news here.