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CBAM and the Western Balkans: Assessing Impacts on Production and Exports of 35 Carbon-Intensive Goods
Abstract
The chapter examines the effects of the EU's application of the Carbon Border Adjustment Mechanism (CBAM) on the Western Balkan countries, whose economies rely significantly on exports of goods produсed with high levels of greenhouse gas emissions. The potential impact of CBAM on these countries is assessed across 35 product groups by comparing several indicators (absolute export volumes, the degree of dependence on the European market, significance for national exports, the existence of stable trade relationships, location and size of production facilities). The chapter also assesses national initiatives related to the implementation of the EU climate policy principles, in particular the establishment of carbon pricing instruments, which may be taken into account in the calculation of CBAM costs. In addition, indicative CBAM costs for ten carbon-intensive products from Serbia are estimated, taking into account embedded and direct emissions, exports to the EU, and projected CBAM certificate prices.
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