Montenegro continues to take major steps to reduce GHG emissions as government approves cap and trade system for major emitters

 

Following the adoption of the Law on Protection from the Negative Impacts of Climate Change in December 2019, Montenegro continues to lead the way in the Energy Community in the establishment of a complete system required to reduce greenhouse gas (GHG) emissions, protect the ozone layer and adapt to climate change. A new regulation on activities emitting GHG for which a GHG emission permit has been issued, adopted by the Government on 6 February and having entered into force on 21 February, brings Montenegro even closer to the EU acquis in the area of climate change. Its adoption was also one of the prerequisites for opening Chapter 27 of EU accession talks (on environment and climate change).

The regulation introduces a regulatory framework to limit GHG emissions from industrial and energy plants in the country. In addition, it specifies the operators participating in the emission trading and also determines the total amount and minimum price (€ 24 / tCO2) of the emission credits to be auctioned, the formation of a stabilization reserve, the method of recording the allocated emission credits, their transfer and use, as well as the purpose of the funds raised from the emission credits auction. The funds shall be transferred into the Environmental Protection Fund and used for environmental protection measures, renewables support and financing of innovations.