The Commission wants to limit the impact of the CBAM on electricity trade in Europe

The European Commission wants to relax the carbon border adjustment mechanism so that it does not hinder electricity trade between the European Union and neighbouring countries (Serbia, Bosnia and Herzegovina, North Macedonia, Kosovo, Albania, Montenegro, Moldova and Ukraine). The CBAM, which is due to come into force on 1 January 2026, aims to limit imports of carbon-intensive products, including electricity, by requiring importers to purchase emission allowances. Market players fear that the mechanism will unduly hamper electricity trade between the EU and its neighbours. The Commission has announced that it is working on certain adjustments to the mechanism to avoid too great an impact on electricity trade.