The Serbian government announced that it has adopted two interrelated laws on climate taxation, which will enter into force on January 1, 2026, setting a carbon price for major industrial sources of emissions and a border levy on carbon-intensive imported goods. Together, these laws create a unified framework aimed at reducing greenhouse gas (GHG) emissions, stimulating industrial decarbonization, and aligning Serbia more closely with the emerging EU carbon pricing policy.
The domestic emissions tax is aimed at the main industrial sectors
The first law introduces a tax on greenhouse gas (GHG) emissions for operators who have emission permits in accordance with Serbia's environmental regulation regime. This measure applies to producers of fertilizers, cement, primary iron and steel, aluminum and electricity, requiring companies to pay a fee based on confirmed annual emissions of carbon dioxide, nitrous oxide and perfluorocarbons.
The tax is calculated after deducting the reference level of emissions, representing emissions that are considered unavoidable when operating using the best available technologies. The rate is set at 4 euros per ton of CO₂ equivalent, converted into Serbian dinars at the official exchange rate at the end of the tax period.
Taxpayers must submit an annual declaration by May 31, confirmed by verified emission data. Electricity producers whose income is primarily related to electricity generation can qualify for a 20 percent tax credit on related decarbonization investments, limited to 80 percent of their total tax liability. The law also provides opportunities for additional government incentives to support renewable energy, low-carbon technologies, energy efficiency improvements, and equitable transition initiatives.
The carbon tax at the border reflects the volume of EU CBAM products
The second law establishes a carbon tax on imported carbon-intensive products, which accurately reflects the list of EU CBAM products. It covers a wide range of iron and steel, cement, fertilizers, and aluminum products, with the exception of importers whose annual volumes are less than five tons of the covered goods.
The tax base is calculated based on embedded emissions associated with production
