Serbian cement producers are operating under two trade conditions in 2026, one linked to domestic import restrictions and the other to the European Union’s Carbon Border Adjustment Mechanism (CBAM). The CBAM framework increases the importance of verified emissions performance for exports to the EU. Domestic measures are intended to protect the local market.
Tariff quota extensions for cement and selected steel
Serbia has extended tariff quotas covering Portland cement and selected steel products until the end of 2026. Under the original allocation, approximately 250,350 tonnes were assigned to cement. Imports above the quota may face an additional 50% duty, in addition to standard customs treatment.
CBAM requirements for cement linked to clinker
The EU’s CBAM presents a separate compliance challenge for cement exporters. Cement is treated as a complex CBAM product because clinker, a key input in cement production, is itself a CBAM precursor. As a result, both direct and indirect emissions can be relevant for reported embedded emissions.
Reported embedded emissions can be influenced by fuel consumption, process emissions, electricity use and clinker content. This means that product-level emissions reporting depends on multiple operational parameters. For Serbian producers exporting to the EU, competitiveness is increasingly tied to demonstrating emissions intensity below applicable default values.
Operational changes and documentation within CBAM boundaries
Investments in alternative fuels, energy efficiency, lower clinker ratios and renewable electricity may reduce operating costs and corporate emissions. Their value for EU trade also depends on whether resulting emissions data can be documented within the prescribed CBAM production boundary. Documentation requirements therefore affect how operational changes translate into export compliance.
The Commission’s latest guidance places additional emphasis on precursor data used in reporting. When clinker is sourced from another installation, using actual emissions values requires a verification report that the cement verifier can rely on. If supporting evidence is not sufficient, producers may need to use default values.
Implications for financing alongside domestic market protection
The distinction between domestic measures and EU export costs also affects financing decisions. Lenders assessing Serbian cement producers need to evaluate domestic market protection separately from exposure to EU export-related costs under CBAM. Import quotas may support margins in Serbia while CBAM can affect export returns.
This separation influences how investors assess the commercial value of investments aimed at lower-carbon production. The industry’s competitiveness is therefore shaped by two different factors: protection against imports in the domestic market and verifiable carbon performance when selling into the European Union.