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Sarajevo Times > Blog > BUSINESS > From 2026, a Carbon Tax will be paid in Bosnia and Herzegovina
BUSINESS

From 2026, a Carbon Tax will be paid in Bosnia and Herzegovina

Published: July 9, 2023
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By signing the Sofia Declaration, Bosnia and Herzegovina committed itself to energy transformation in accordance with the rules of the Energy Community. There are many tasks, less and less time until 2026, when the introduction of a cross-border carbon tax for carbon dioxide consumption will begin, and there are no detailed assessments of the impact on Bosnia and Herzegovina. an economy significantly dependent on fossil fuels.

In order to retain customers on the foreign market, the company from Kladno, which produces wooden furniture and ecological briquettes and pellets from the remaining raw materials, reduces the use of fossil fuels and electricity – due to greater savings and less pollution.

“We are improving heating, we are changing certain calolifers and pipelines in such a way that we use less energy,” explains Jasminka Hadžiabdić, executive director of the Ramex company.

The goals of the business strategy are aimed at increasing energy efficiency by using energy from renewable sources by more than 60 percent. The modernization of the plant should also contribute to this.

“If you have a newer machine that has smaller engines and higher productivity, it will therefore work more units and consume kilowatts, and it is this carbon dioxide that is tied to the kilowatt hour,” adds Hadžiabdić.

The use of renewable energy sources is a priority in order to preserve competitiveness, as well as the health of employees.

“We introduced LED bulbs and significantly reduced electricity consumption. Also, after replacing forklifts with diesel fuel, we use electric forklifts in closed rooms,” says production manager Šefkija Ćavkunović.

Energy production entirely from renewable sources for the needs of Bosnia and Herzegovina. economy is not realistic at the moment, but it is inevitable in the long run.

“Currently, we produce 80 percent of electricity from fossil fuels, about twenty percent from renewables – a little bit from wind and the rest is water,” points out Senad Salkić, executive director for capital investments of JP Elektroprivreda BiH.

“Last year, the average share of coal in electricity for Bosnia and Herzegovina was 64 percent, that much electricity was from thermal power plants,” says Janez Kopač, consultant and former director of the Secretariat of the Energy Community.

Bosnia and Herzegovina exports more than 72 percent of goods to the EU. That’s why the payment of the carbon tax at the price of 100 euros per ton of carbon dioxide will mostly affect the companies whose market is primary.

“At that moment, you won’t be quite as competitive because you have added that price difference to the tax and they can find other markets that are already doing much more with green energy sources,” warns Vjekoslav Vuković, vice president of the Foreign Trade Chamber of Bosnia and Herzegovina.

“We have inquiries from customers about what we have done and whether we should provide them with certificates on the origin of energy as well as a certificate on the amount of CO2 emissions,” says Denis Bešić, head of development at the company GS tvornica machina Travnik.

Another scenario, more acceptable, would be the payment of taxes in Bosnia and Herzegovina, which would enable investment in renewable energy sources.

“If we do it at 3-5-7 BiH companies, or 77, it doesn’t matter, and all the others will suffer some financial damage – then it’s not that moment,” adds Vuković.

We committed ourselves to the energy transformation by signing the Sofia Declaration on the Green Plan for the Western Balkans, and we don’t even have approximate estimates of the impact on the economy. That’s why exporters prepare independently for that process, because waiting for the authorities to take the necessary steps can be disastrous for their survival in the market, which, in addition to quality, also conditions them to environmental standards.

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