Proposed changes to the European Union’s Carbon Border Adjustment Mechanism could reduce the cost faced by Bosnia and Herzegovina’s electricity exporters by as much as €13 million annually, potentially improving the competitiveness of regional power sales into the EU.
The proposed approach would allow the actual electricity mix of an exporting country, including renewable generation, to play a greater role when emissions associated with imported electricity are calculated.
Electricity supplied through qualifying power-purchase agreements, including certain transactions involving intermediaries, could also receive actual-emissions treatment.
The changes could apply from Jan. 1, 2026.
Bosnia and Herzegovina is simultaneously preparing a methodology for calculating the carbon dioxide emission factor of its electricity grid.
That calculation will be particularly important because the country’s generation mix combines substantial coal-fired production with large hydroelectric output.
Using an undifferentiated or conservative emissions assumption can therefore make exported electricity appear significantly more carbon intensive than individual transactions may actually be.
A more granular framework could increase the value of renewable electricity and PPAs while encouraging generators and traders to improve metering, contractual traceability and guarantees-of-origin systems.
The implications stretch beyond Bosnia.
Serbia, Montenegro, North Macedonia and Albania are also developing electricity-origin and emissions-accounting systems as CBAM increasingly links physical electricity trading with carbon documentation.