Serbia is moving to formalize carbon pricing for heavy industry as of January 1, 2026, with the measure designed to support decarbonization and bring national practice closer to European Union expectations. The policy will apply not only to domestic operations in high-emitting sectors, but also to companies importing carbon-intensive raw materials. For operators across manufacturing and utilities, the change is likely to reshape cost structures, emissions accounting practices, and compliance planning.
Carbon tax framework for high-emitting sectors
Under the draft greenhouse gas emissions tax regime, Serbian companies operating in major polluting industries will be required to pay a carbon emissions tax starting January 1, 2026. The listed sectors include cement, iron, steel, aluminum, fertilizers, and electricity production. The scope also extends to importers of carbon-intensive raw materials, linking upstream supply chains to the new compliance obligations.
Draft legislation covering both the greenhouse gas emissions tax and an import tax on carbon-intensive products is currently open for public consultation until October 21. A first public meeting is scheduled for October 8 at the Serbian Chamber of Commerce, signaling an early stage of stakeholder engagement before implementation begins.
Tax rate set below EU CBAM levels
The national carbon emissions tax is set at €4 per ton of CO₂. That level is described as significantly lower than the European Union’s Carbon Border Adjustment Mechanism, which can reach up to €90 per ton. Serbian authorities indicate that paying the domestic tax may help companies avoid higher EU charges if European authorities recognize Serbia’s carbon certificates.
The Ministry of Finance frames the instrument as an incentive mechanism rather than a new burden. It also points to expected alignment with investment priorities such as renewable energy deployment, green construction, and broader decarbonization efforts.
Economic impact estimates and import protection
NALED estimates the carbon tax could cost Serbia’s economy around €100 million annually, with some portion potentially passed through to consumers. In parallel, an import tax on carbon-intensive products—described as a national CBAM—will be intended to protect domestic industries from third-country imports that may otherwise face different carbon-related costs.
This structure creates different pressures across subsectors: exporters can benefit from reduced exposure to EU CBAM dynamics, while non-exporting activities may face relatively higher internal costs. Cement production is highlighted by stakeholders as one area where additional cost burdens could be more pronounced.
Operational implications for electricity and cement producers
EPS, Serbia’s state electricity company, is expected to bear a significant share of the tax burden under the new scheme. At the same time, a proposed tax credit of up to 80% is intended to encourage decarbonization and support a shift toward renewable energy within power generation and related operations.
Cement producer Moravacem, part of the multinational CRH group, points to ongoing decarbonization measures that include reducing clinker content, using alternative fuels, and improving plant energy efficiency. The company says these steps align with Serbia’s national strategy and EU requirements aimed at lowering carbon footprints while maintaining competitiveness in international markets.
Broader compliance outlook across Southeast Europe
As Serbia develops its greenhouse gas emissions taxation and related import controls through public consultation, operators in cement, metals, fertilizers, aluminum processing, and electricity generation will need to prepare for tighter environmental accounting tied directly to CO₂ payments. The interaction between domestic certificates and potential EU recognition will be central for companies seeking to manage cross-border compliance risk under CBAM-related frameworks.
In practical terms, the policy introduces a new regulatory driver for operational environmental management: emissions monitoring inputs will likely become more consequential for budgeting and reporting systems starting in 2026. With an estimated national economic cost on the order of €100 million per year and sector-specific impacts already flagged by stakeholders, regulators and industry participants will be watching how certificate recognition rules develop alongside implementation details.