CBAM and Kosovo: Economic implications and potential exemption for electricity exports to EU
Our policy briefing, “CBAM and Kosovo: Economic implications and potential exemption for electricity exports to EU” examines the economic and regulatory impacts of the EU’s Carbon Border Adjustment Mechanism (CBAM) on Kosovo.

The study projects that by 2034, the total financial burden of CBAM on Kosovo’s economy could reach EUR 93 million. While the direct financial impact on Kosovo’s economy is relatively modest, the indirect implications, particularly for the electricity sector, are far more significant.
The study underscores the challenge of market coupling with the EU’s electricity market and explores the criteria for securing an exemption for Kosovo’s electricity sector from CBAM. Meeting these criteria is vital for Kosovo to reach its ambitions of advancing regional electricity market coupling with Albania, North Macedonia, Greece, and the broader EU successfully.
Our policy briefing provides valuable insights into how Kosovo can effectively navigate the challenges posed by CBAM and ensure its competitiveness in the evolving EU market.
Our full policy briefing can be accessed here.