CO2 taxation in the EU will be a challenge for the energy sector in BiH

CO2 taxation in the EU will be a challenge for the energy sector in BiH

SARAJEVO, December 17 (FENA) – The introduction of carbon dioxide taxation mechanisms (CBAM) in the EU will be a great challenge for energy policies and the electricity sector in BiH, but also for the role of energy in the economy and society.

This was pointed out today in Sarajevo at the presentation of the analysis of the Center for Sustainable Energy Transition – ReSET.

ReSET President Mirza Kušljugić reminded that by signing the Sofia Declaration in November 2020, Bosnia and Herzegovina, among other things, committed itself to work on introducing carbon dioxide taxation mechanisms and harmonizing with the European emissions trading system in order to support decarbonization in the Western Balkans. (EU Emission Trading System – EU ETS).

It was stated that it is possible that BiH could be exempted from the CBAM mechanism, but that in the long run, it would be almost disastrous for citizens and the economy, and for some entities in the electricity sector.

In order to avoid such a scenario, it was emphasized that it is necessary for the competent authorities and other participants to urgently start activities to create all conditions and fulfill all obligations necessary for BiH to be on the list of countries exempted from CBAM by 2030.

ReSET believes that it is necessary to urgently and without further delay turn to the decarbonization of the energy sector, which primarily means determining the exact date when the production of electricity from coal would end.

In this way, conditions will be created for the development of realistic, effective and efficient decarbonization programs and measures, for economic restructuring of the region and local communities that depend on coal, and conditions for the beginning of a fair transition.

Furthermore, it is necessary to accelerate the development of new capacities for the production of electricity from renewable energy sources, primarily from solar power and wind energy.