From 1 January 2026, Serbia introduced a national carbon dioxide (CO2) emissions tax of EUR 4 per tonne, with the aim of reducing pollution, encouraging energy efficiency and strengthening the competitiveness of domestic industry on the international market.
The new system is aligned with the European Union's Carbon Border Adjustment Mechanism (CBAM) and is implemented through two laws: the Law on the Tax on Greenhouse Gas Emissions and the Law on the Tax on Imports of Carbon-Intensive Products. Serbia thereby joins the countries with their own carbon-pricing mechanisms, with the aim of avoiding an additional burden on exports to the EU market.
However, although the legal framework has been established and implementation has already begun, the secondary legislation that would regulate the technical and operational aspects of the system in detail has not yet been fully adopted.
The tax will have the greatest impact on high-emission industries such as steel, cement, aluminium, nitrogen fertilisers and electricity production. Although it will create additional costs for businesses, the funds collected are expected to be directed towards the green transition and investments in emissions reduction.
The introduction of this measure forms part of broader alignment with European Union policies and the Green Agenda for the Western Balkans, whose objective is to achieve climate neutrality by improving energy efficiency and reducing pollution.
Our team continues to monitor the development and adoption of the remaining secondary legislation and will provide timely updates on all relevant changes and their practical implementation.