North Macedonia’s electricity producer ESM commits to internal carbon pricing

North Macedonia’s state-owned electricity producer Elektrani na Severna Makedonija (ESM) has expressed its intent to design and implement an internal mechanism to price carbon emissions of its plants and operators by the end of 2021 with the support of the Energy Community Secretariat. The carbon price will be incorporated in all investment decisions and its level based on the market price set under the EU Emission Trading Scheme.

Director Kopač said: "I sincerely commend ESM for being the first electricity company in the Energy Community Contracting Parties to commit itself to introduce internal carbon pricing. Voluntary bottom-up initiatives such as this one will allow us to actively accelerate the transition to a climate sustainable energy sector. By putting a price on carbon, ESM will be able to identify low carbon, low risk investment opportunities without having to wait for mandatory legislation to kick in.”

Chairman of the Board of Directors and CEO of ESM Vasko Kovačevski said: “De-risking our business against imminent carbon pricing legislation and gradually reducing our carbon footprint is an obligation that we have to our shareholders, customers and employees. I am proud that ESM will spearhead the introduction of internal carbon pricing in the Energy Community.”

Following the recommendations of the Secretariat's Study on Carbon Pricing Design, which emphasized the gradual introduction of carbon pricing as the most optimal approach for the power sector, the Secretariat has invited all electricity generators in the Energy Community Contracting Parties to design and implement internal carbon pricing with its support.