The Secretariat launches new Energy Community CBAM-Readiness Tracker

Electricity
21 October 2024

The Energy Community Secretariat has released a new edition of its CBAM-Readiness Tracker providing an update on the progress in energy and climate action in Contracting Parties.

The CBAM-Readiness Tracker provides insights into climate progress , helping policymakers and businesses navigate the path toward a potential exemption for electricity exports to the EU,” said Artur Lorkowski, the Director of the Energy Community Secretariat in Vienna.

The report covers advancements in electricity market integration, renewable energy, energy efficiency, and emission reduction efforts aligned with 2030 targets and the 2050 climate neutrality objective, as well as in carbon pricing developments.

With the transitional phase of CBAM now in effect, the focus is shifting to the next phase starting on 1 January 2026, when EU importers will begin paying for the carbon emissions embedded in imported goods, electricity included.

The Regulation (EU) 2023/956 states that CBAM cannot be enforced on electricity markets in third countries that are integrated with the EU's internal energy market via market coupling. This means there is a time-limited exemption available for electricity imports from the Contracting Parties once they complete market coupling and meet certain additional criteria. This exemption is important for maintaining the achivements in energy market integration under the Energy Community Treaty .

Key findings from the CBAM Tracker confirm, however, that the Contracting Parties’ delays in market coupling are reducing the likelihood of securing a time-limited exemption from CBAM for electricity exports by 31 December 2025, increasing the risk of financial adjustments starting 1 January 2026 by charging a carbon price – similar to theEU Emissions Trading System (EU ETS) – to all electricity imports from Contracting Parties to the EU.

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