From January 1, 2026, carbon costs tied to imported products will move from the policy agenda to day-to-day trade compliance for companies supplying the European Union. Under the EU Carbon Border Adjustment Mechanism, importers are set to pay a carbon tax of up to €70 per ton of product and submit annual reports covering carbon emissions associated with suppliers’ production. For Serbian exporters, the shift is less about direct payment and more about whether upstream emission data can be provided reliably to EU customers.
CBAM’s core design: aligning import and EU carbon costs
The mechanism is intended to apply carbon pricing logic to goods entering the EU market, so that imported products face carbon costs comparable to those borne by producers inside the bloc. By targeting embedded emissions in imported cement, steel, aluminium, fertilisers, electricity and hydrogen-related supply chains, CBAM aims to reduce incentives for “carbon leakage” where production could move to jurisdictions with weaker climate constraints.
In practice, the compliance burden is split across roles in the value chain. EU importers are responsible for paying the carbon charge and meeting reporting obligations, while non-EU suppliers are expected to provide emission information that allows those obligations to be fulfilled.
Who is affected in Serbia: scale and sector coverage
According to the Serbian Chamber of Commerce, around 500 Serbian companies—primarily in manufacturing—will be affected by the regulation. The estimate points to a relatively broad industrial footprint rather than a narrow set of exporters, reflecting how CBAM coverage maps onto heavy industry and energy-intensive production.
Current CBAM coverage identifies about 20% of Serbian exporters producing goods linked to CBAM-listed sectors. Those sectors include iron and steel, aluminium, fertilisers, cement, electricity and hydrogen—industries where emissions measurement and documentation are central to demonstrating product-level carbon performance.
Reporting first, payments later: the 2023–2025 transition
CBAM has been implemented in phases. The transitional period runs from October 2023 through December 2025, during which importers are required to report emissions but do not pay the carbon tax and do not undergo verification under the full end-state requirements.
This sequencing matters for exporters preparing for 2026 because it shapes what information EU buyers will request and how quickly supplier data must be assembled into a format usable for annual submissions. While the transition focuses on reporting readiness rather than charges, it still establishes expectations for traceable emissions data across supply chains.
January 1, 2026: payments at up to €70 per ton and full verification
Full implementation begins on January 1, 2026. From that date, importers face both payment obligations—at a level described as up to €70 per ton of product—and verification-linked compliance requirements alongside annual reporting.
Although Serbian firms are not described as paying the tax directly, their role as suppliers becomes critical because emission data is needed for EU importers to calculate and substantiate the carbon charge. The cost allocation can therefore extend beyond formal importer responsibilities if contractual arrangements or downstream pricing pass through part of CBAM-related expenses.
Where revenues go: a European green fund objective
The mechanism channels funds collected from CBAM payments into a European green fund intended to support climate-related priorities within Europe. This revenue destination reinforces CBAM’s policy rationale: using trade-linked carbon charges to support decarbonisation pathways rather than treating border measures as purely fiscal tools.
For industrial operators across covered sectors, including cement and steel producers subject to EU ETS-linked competitiveness dynamics, CBAM adds another layer of compliance that interacts with existing emissions trading realities inside the EU market.
Broader policy context: Paris alignment and long-term decarbonisation pressure
CBAM is positioned within wider climate governance aligned with the 2015 Paris Agreement framework. The stated aim is consistent with limiting global temperature rise to 1.5–2 degrees Celsius and supporting Europe’s pathway toward climate neutrality by 2050.
For companies operating under or adjacent to EU ETS exposure—whether as EU producers facing established carbon pricing or as non-EU suppliers feeding EU demand—CBAM increases the importance of emissions accounting discipline. In practical terms, it pushes exporters toward earlier engagement on data quality and documentation processes so that annual reporting can be completed when payments begin in 2026.
Fact-based overview: Starting January 1, 2026, EU importers must pay a carbon tax of up to €70 per ton of product under CBAM and submit annual emissions reports tied to suppliers’ production; Serbia’s Chamber of Commerce estimates around 500 Serbian companies (about 20% of identified exporters producing CBAM-listed goods) could be affected across cement, steel/iron, aluminium, fertilisers, electricity and hydrogen supply chains. The mechanism has been in a reporting-only transition from October 2023 through December 2025 without payments or verification under full requirements.