Serbia charts a path for domestic carbon pricing

In a forward-looking move, Serbia’s Assistant Minister Jovana Joksimović announced the government’s plan to roll out a comprehensive carbon pricing mechanism, tightly aligned with EU climate standards. Serbia has already completed MRV system implementation, a first among Energy Community countries—which enables reliable emissions monitoring.

The debate now centers on whether to proceed with a carbon tax, a fixed-price ETS, or a hybrid system. A notable advantage is that Serbia intends to apply its national emissions factor for electricity, a softer benchmark than the more stringent EU indirect factor, providing breathing room as renewable capacity comes online.

The proposal envisions an early rollout in 2027, with targets up to €40 per tonne of CO₂ by 2030, a move widely seen as a stepping stone toward deeper integration with the EU’s climate frameworks by mid-century.