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Bosnia and Croatia Advance Southern Gas Interconnection to Strengthen Regional Energy Security

Bosnia and Herzegovina and Croatia have formalized an intergovernmental agreement to advance the construction of the Southern Gas Interconnection, a strategic infrastructure project aimed at strengthening energy security and ensuring a more stable gas supply for Bosnia and Herzegovina.

The planned interconnection will provide Bosnia and Herzegovina with an alternative supply route via Croatia, reducing its current dependence on Russian natural gas delivered through Turkey, Bulgaria, and Serbia. By enabling access to new sources, the project is expected to significantly enhance supply resilience.

The agreement was signed in Dubrovnik during the Three Seas Initiative summit by Borjana Krišto, Chairwoman of the Council of Ministers of Bosnia and Herzegovina, and Croatian Prime Minister Andrej Plenković.

The pipeline network will span multiple routes, including Split–Zagvozd in Croatia, extending into Bosnia and Herzegovina through Posušje, and continuing across key locations such as Tomislavgrad, Kupres, Bugojno, and Travnik. Additional शाखing routes will connect areas including Mostar, Livno, Jajce, Tuzla, and Čapljina, creating a comprehensive distribution network.

According to the Council of Ministers of Bosnia and Herzegovina, the project will diversify both supply routes and energy sources, contributing to greater energy independence. The pipeline is expected to be supplied with gas from the liquefied natural gas (LNG) terminal on the Croatian island of Krk.

The signing ceremony was attended by US Energy Secretary Chris Wright and Vedran Lakić, Minister of Energy, Mining and Industry of the Federation of Bosnia and Herzegovina. US-based AAFS Infrastructure and Energy has been designated to manage the pipeline within Bosnia and Herzegovina.

Although the project has been under consideration for years, tangible progress accelerated recently. In January, authorities in Bosnia and Herzegovina indicated that AAFS Infrastructure and Energy would receive a 30-year concession. Subsequently, in late February, twelve countries from Central and Eastern Europe and the Balkans, including Bosnia and Herzegovina, reached an agreement with the United States to strengthen cooperation on LNG supply.

The Federation of Bosnia and Herzegovina, the entity through which the pipeline will pass, recently adopted a special legal framework (lex specialis) designating the US firm as the project investor. This decision has drawn criticism from the European Union, which warned of potential consequences.

Borjana Krišto emphasized that Bosnia and Herzegovina occupies a strategic position at the crossroads of energy flows in Southeast Europe. She noted that, beyond being a consumer, the country has the potential to play an active role in developing a more secure and resilient regional energy system. She also highlighted the importance of transatlantic cooperation in accelerating investment and improving market integration.

Prime Minister Andrej Plenković underscored that the agreement reinforces Croatia’s role as a regional energy hub, particularly by enabling the transport of gas from the Krk LNG terminal to Bosnia and Herzegovina. He also pointed to the broader significance of the Three Seas Initiative, which brings together 13 EU member states from Central and Eastern Europe to enhance connectivity between the Baltic, Black, and Adriatic seas, with a focus on infrastructure, transport, and energy integration.

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Albania’s Hydropower Surge Strengthens Its Position in Regional and EU Energy Markets

The first three months of 2026 marked a substantial increase in electricity generation in Albania, driven primarily by a sharp rise in hydropower output. Production from hydropower plants was 70% higher in January–March 2026 compared to the same period a year earlier.

According to data published in the report of the Energy Community on the Carbon Border Adjustment Mechanism (CBAM), Albania gained a clear advantage over other regional countries in exporting electricity generated from renewable sources.

Specifically, the first quarterly report on CBAM implementation highlights that Albania’s hydropower generation increased significantly, positioning the country as a far more aggressive net exporter of electricity to both the regional market and the European Union.

“Hydropower production in Albania increased by 1.34 TWh (+70%) in the first quarter of 2026 compared to the same period in 2025, rising from 1.93 TWh to 3.27 TWh,” the report states. This growth was concentrated in January and February, with increases of +72% and +84% respectively, reflecting exceptionally favorable hydrological conditions.

This surplus translated directly into higher exports. Albania increased scheduled electricity exports by approximately 4,100 MWh per day to Greece, 3,700 MWh per day to Kosovo, and 2,000 MWh per day to Montenegro.

The report estimates that “these shifts in trade flows represent a net movement of approximately 1.2 TWh of Albanian electricity exported in the first quarter of 2026,” a volume that closely matches the incremental increase in hydropower generation.

The economic impact is further amplified by how CBAM treats Albanian electricity. Unlike Serbia, Bosnia and Herzegovina, or Montenegro, Albania benefits from a zero emissions factor. This means its electricity exports to the European Union are not subject to additional carbon costs.

“Electricity imported into the European Union from Albania was not financially affected by CBAM,” the report notes, adding that this “created a commercial incentive to import Albanian electricity into EU markets.”

Such dynamics position Albania as a preferential energy corridor դեպի the European market, particularly through Greece and onward to Italy. The report observes that exports from Albania to Greece intensified, with Albanian electricity—combined with strong Greek domestic production—subsequently redirected toward Bulgaria and Italy.

The Energy Community further warns that hydropower-dominated systems like Albania’s “appear to be in a structurally more competitive position,” suggesting that CBAM is already creating long-term winners and losers in the region. In contrast, countries with higher coal-based generation face substantial financial penalties.

For example, Montenegro pays approximately €73.8 per MWh of electricity exported to the European Union, while Albania pays zero. “The contrast between Albania and Montenegro illustrates how country-level emission factors shape cross-border electricity trade,” the report concludes, placing Albania firmly on the side of Europe’s evolving energy transition.

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Strengthening Europe’s Energy Sovereignty: The Imperative of a Clean Heat Transition

While often framed as a macroeconomic abstraction, Europe’s reliance on fossil fuel imports carries direct, tangible consequences for millions of households. Domestic energy security is fundamentally tied to the home; space and water heating account for 77.6% of the average EU household’s energy consumption, with approximately one-third of these homes relying on gas. By 2025, 90% of the EU’s gas supply was sourced from third countries, creating a strategic vulnerability to energy coercion that endangers the stability of millions of residences.

Diversification vs. Decarbonization: The REPowerEU Challenge

Historically, Russia served as the primary architect of Europe’s gas supply. In the wake of the full-scale invasion of Ukraine, the EU successfully pivoted, slashing Russian imports from 45% to 12%. This shift was codified through the REPowerEU Regulation, which aims to secure energy independence by permanently banning Russian fossil gas.

However, the broader imperative is not merely to swap suppliers, but to reduce gas demand entirely. This requires equal commitment to the other two pillars of the 2022 REPowerEU Plan: energy conservation and an accelerated clean energy transition. Current projections are sobering:

  • Heat Pump Shortfall: Europe is currently on track to meet only half of its deployment targets.

  • Demand Impact: This lag means fossil gas demand will likely only decrease by 60% of 2024 Russian import levels, rather than the intended 120%.

Bridging the €78 Billion Funding Gap

Achieving a clean heat transition requires significant capital. A study by LCP Delta for the Cool Heating Coalition identifies an annual investment gap of €78 billion through 2050. At present, combined public and private sector contributions cover only half of this requirement.

To close this disparity, Europe must look toward smarter fiscal reallocation:

  • Subsidy Realignment: The EU currently directs approximately €111 billion per year toward fossil fuel subsidies. Redirecting this capital toward renewable solutions would effectively bridge the clean heat funding gap.

  • Innovative Business Models: Policymakers should incentivize “social leasing” frameworks. This requires updating the Consumer Credit Directive to ensure these schemes are covered by robust consumer protection laws.

  • The Role of ETS2: The upcoming ETS2—which prices emissions from buildings and road transport—will be a pivotal market driver. When paired with the Social Climate Fund, it provides a mechanism to finance the transition while shielding the most vulnerable consumers.

The Path to Strategic Autonomy

The postponement of ETS2 for one year in December 2025 sent a confusing signal to the clean heat market. There is no longer room for delay. Member States must utilize this additional window to aggressively support the shift to decarbonized heating, remediate housing inadequacies, and reduce the energy load of the continent’s worst-performing buildings.

Since 2022, the EU has demonstrated remarkable resilience in reducing its dependence on Russian energy. However, as new geopolitical shocks emerge, Europe must prioritize the elimination of all strategic vulnerabilities. The legal framework exists; the transition now requires the political resolve to see it through.

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The Great Atomic Pivot: EU Reclaims Nuclear Power as a Strategic Pillar for Energy Security

In a significant rhetorical shift for the European Union’s energy policy, Commission President Ursula von der Leyen characterized the continent’s historical move away from nuclear power as a “strategic mistake.” Speaking at the Nuclear Energy Summit in Paris, hosted by the International Atomic Energy Agency (IAEA), von der Leyen argued that turning away from the atom left Europe dangerously exposed to the volatility of global fossil fuel markets.

A Continent Re-evaluating its Baseload

The President noted a stark decline in nuclear’s contribution to the European grid, falling from one-third of total electricity generation in 1990 to approximately 15% today. This retreat, she argued, exacerbated Europe’s dependence on expensive, imported oil and gas—a vulnerability underscored by ongoing instability in the Middle East.

“I believe it was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emissions power,” von der Leyen stated.

She outlined a vision for a modernized energy system where nuclear works in tandem with renewables, supported by robust storage and smart grids.

The Rise of Small Modular Reactors (SMRs)

The EU’s strategy is increasingly focused on the next generation of nuclear technology. Key initiatives include:

  • Regulatory Reform: Recent changes to state aid rules now allow for expanded support for nuclear fission and fuel cycles.

  • Industrial Alliance: The launch of the world’s first industrial alliance dedicated to Small Modular Reactors (SMRs).

  • Financial Backing: Proposed investments of over €5 billion in fusion research and an additional €200 million in guarantees through 2028 to support the first commercial units of innovative nuclear technologies.

The goal is to have SMRs operational across Europe by the early 2030s to complement existing traditional plants.

Regional Expansion: Greece, Romania, and Serbia

The shift in sentiment at the Commission level is mirrored by renewed interest among member states and neighboring nations:

  • Greece: Prime Minister Kyriakos Mitsotakis echoed von der Leyen’s sentiments, noting that it is time for Greece to explore how SMRs could be integrated into the domestic grid. While Greece remains committed to renewables and gas as a bridge, a new committee will officially study nuclear integration.

  • Romania: Energy Minister Bogdan Ivan announced plans to triple the nation’s nuclear capacity over the next decade. This includes the modernization of the Cernavodă plant and the development of a pioneering SMR project in Doicești.

  • Serbia: Minister of Mining and Energy Dubravka Đedović Handanović signaled Serbia’s intent to join the “nuclear revival.” To support a growing economy and AI infrastructure, Serbia aims to select a technology by 2032, with the goal of bringing a plant online by approximately 2040.

As Europe seeks to reconcile its climate goals with energy security, the message from Paris was clear: the nuclear option is no longer on the sidelines—it is back at the center of the strategy.

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Renewable Gas Injections in the EU Rise to 4.3 bcm Over Two Gas Years, ENTSOG Reports

Renewable gas injections into natural gas grids across the European Union have climbed steadily over the past two gas years, reaching 4.3 billion cubic meters (bcm), according to the latest assessment by European Network of Transmission System Operators for Gas (ENTSOG).

The report, covering the period from October 1, 2023, to September 30, 2025, examines annual renewable gas injections into transmission and distribution networks. It encompasses both biomethane and renewable hydrogen.

Steady Growth in Renewable Gas Volumes

According to ENTSOG, renewable gas injections rose from 38.1 TWh to 43.2 TWh over the two most recent gas years—equivalent to approximately 4.3 bcm—representing an annual increase of 12%.

This marks ENTSOG’s second dedicated report on renewable gas injections into European gas networks. The first assessment was included in its 2024 Annual Report, published in April 2025, and covered data for the 2023–2024 gas year.

The latest growth was primarily driven by the commissioning of new biomethane plants and existing facilities reaching their nominal production capacity.

Renewable hydrogen injections remained limited. Germany was the only member state reporting hydrogen injection into its gas system, with volumes declining from 3 GWh to 1 GWh during the reporting period.

It should be noted that the report does not account for biomethane flows occurring outside transmission system operator (TSO) and distribution system operator (DSO) grids.

Biomethane Growth Without Major Infrastructure Investments

Piotr Kuś, ENTSOG’s General Director, emphasized that renewable and low-carbon gases can be readily integrated into existing natural gas infrastructure, supporting the transport of sustainable and secure energy molecules.

He stressed that gas TSOs will continue to provide the necessary infrastructure to facilitate the energy transition.

“In particular, biomethane market growth can be facilitated without the need for significant infrastructure investments. This growth is essential if we are serious about meeting the EU’s REPowerEU target of 35 bcm biomethane by 2030,” Kuś said, referring to the European Union’s REPowerEU objectives.

Five Countries Dominate Renewable Gas Injections

The distribution of biomethane injections varies significantly among EU member states. Five countries—France, Germany, Denmark, Italy, and Netherlands—accounted for 94% of total renewable gas injections, the report reveals.

Several member states reported no injections, in some cases due to on-site consumption of renewable gases that eliminates the need for grid injection.

Among the five leading countries, all recorded significant increases in biomethane injections into TSO and DSO grids during the last gas year.

France posted a 2 TWh rise in injections, reaching 13 TWh—approximately 1.3 bcm—by the end of the reporting period. The increase was attributed to the continued rollout of new injection points and the gradual ramp-up of production sites to full operational capacity, a process that often takes time following initial commissioning, according to the Report on Annual Renewable Gas Injections into Gas Networks.

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Montenegro Achieves Regulatory Milestone: Full Alignment with EU Electricity Integration Package

In a significant leap toward European energy integration, Montenegro has officially completed the transposition of the European Union’s Electricity Integration Package (EIP). According to the Energy Community Secretariat, this regulatory alignment positions Montenegro alongside Moldova and Serbia as frontrunners in the Western Balkans’ effort to merge with the European single electricity market.

The move is designed to catalyze Montenegro’s energy transition by enhancing market competitiveness and ensuring the country can participate in regional power exchanges even before formal EU accession.

The Gateway to Market Coupling: SDAC and SIDC

The primary objective of transposing the EIP is to enable Market Coupling. By harmonizing its domestic laws with EU standards, Montenegro is preparing to join two critical pillars of the European energy infrastructure:

  • Single Day-Ahead Coupling (SDAC): A mechanism that optimizes electricity prices and cross-border flows across Europe for the following day.

  • Single Intraday Coupling (SIDC): A continuous trading environment that allows market participants to adjust their positions as close to real-time as possible.

This integration is expected to lower costs for consumers, provide clearer signals for renewable energy investors, and significantly bolster the security of the national supply.

The Legislative Roadmap

The finalization of this process occurred on February 15, 2026, when the Montenegrin government adopted two pivotal decrees governing:

  1. System Operation: Establishing technical rules for grid stability.

  2. Emergency and Restoration: Outlining protocols for grid recovery during unforeseen outages.

These decrees complement existing legislation, including the Law on Energy and the Law on Cross-Border Exchanges in Electricity and Natural Gas. Together, these legal frameworks form the “four pillars” identified by the Secretariat as essential for a cost-efficient clean energy transition:

  • Clear investment signals.

  • Strengthened regional cooperation.

  • Reinforced fair competition.

  • Enhanced security of supply.

The Path to Verification

While the legislative work is complete, Montenegro now enters the Verification Phase. This process involves a rigorous audit by the Energy Community Secretariat and the European Commission to ensure that the laws on paper translate into functional market practices.

Country Status of EIP Transposition Verification Phase
Serbia Completed In Progress (Started Oct 2025)
Moldova Completed Initiating
Montenegro Completed Pending Request
North Macedonia Partial Pending Legislation

“Montenegro is now stepping up efforts to submit a formal request initiating the verification process,” the Secretariat noted, echoing recent sentiments from Director Artur Lorkowski regarding the rapid progress of the “Vienna Group” of energy reformers.

Expert Analysis: What This Means for the Region

For a small economy like Montenegro, market coupling is a “force multiplier.” By removing the barriers to cross-border electricity trade, the country can better manage the intermittency of new wind and solar projects. This regulatory bridge to the EU not only modernizes the grid but also makes Montenegro a more attractive destination for “green” capital, as energy produced domestically can now be more easily sold into the massive European market.

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Albania as a Regional Outlier: Diesel Dominance Persists Amid Europe’s Green Transition

New data from Eurostat reveals a significant divergence in automotive trends between Albania and the European Union. While the EU moves aggressively toward decarbonization, Albania has emerged as the country with the highest share of diesel-powered vehicles among first-time passenger car registrations in 2024.

This trend stands in sharp contrast to the broader European trajectory, where environmental regulations and technological shifts are rapidly phasing out internal combustion engines in favour of electric and hybrid alternatives.

The Data: A Stark Statistical Divide

According to Eurostat’s latest report on transportation, 66.2% of all passenger vehicles registered for the first time in Albania during 2024 were diesel-powered. To put this in perspective, the EU average for diesel registrations has plummeted to just 14.9%.

The regional comparison further highlights Albania’s unique position:

  • Albania: 66.2% diesel share

  • Moldova: 47.0%

  • Bosnia and Herzegovina: 34.5%

  • Other Balkan neighbors: Generally below 30% (excluding Kosovo and North Macedonia, for which data was unavailable).

In absolute numbers, out of the 85,700 passenger vehicles registered for the first time in Albania in 2024, approximately 56,700 were diesel. Conversely, gasoline vehicles accounted for only 17.6% of registrations—one of the lowest shares in Europe—while electric vehicles (EVs) represented a mere 3.3% of the total.

The European Shift Toward Electrification

The European landscape tells a completely different story. The transition to Battery Electric Vehicles (BEVs) is accelerating, driven by the EU’s ambitious climate goals to reduce the 27% of greenhouse gas emissions currently attributed to transport.

  • Denmark: Over half (51.3%) of new registrations are fully electric.

  • Sweden, Malta, and the Netherlands: EVs account for more than one-third of the market.

  • EU Average: Electric vehicle registrations reached 13.5% in 2024.

Looking back at the decade between 2014 and 2024, the shift is even more dramatic. In 20 representative EU countries, the registration of diesel vehicles fell by 67%, while registrations for fully electric cars grew by 45 times, moving from a negligible 0.3% share in 2014 to nearly 14% today.

Why is Albania Lagging Behind?

The dominance of diesel in Albania is not a matter of consumer preference alone but is rooted in several structural and economic factors:

  1. Second-Hand Market Dominance: The Albanian market is heavily reliant on imported used cars from Western Europe. As EU consumers sell off their older diesel models to switch to EVs, these vehicles often find a second life in the Albanian market.

  2. Initial Cost Barriers: The upfront cost of electric or hybrid vehicles remains high compared to older diesel models, making them less accessible to the average Albanian consumer.

  3. Infrastructure Gaps: The national charging network for electric vehicles is still in its infancy, leading to “range anxiety” and deterring potential EV buyers.

  4. Policy Incentives: There is a lack of robust fiscal incentives or subsidies to encourage the adoption of “green” vehicles compared to the aggressive tax breaks seen in EU member states.

Looking Ahead

While Albania remains a diesel stronghold for now, the European trend is inevitable. As EU emission standards tighten and the production of internal combustion engines scales down, the supply of diesel vehicles will eventually dwindle.

For Albania to bridge this gap, experts suggest a dual approach: investing in charging infrastructure and implementing fiscal policies that make cleaner alternatives more competitive. Without these interventions, Albania risks becoming a “parking lot” for Europe’s aging, high-emission fleet.

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Corridor VIII Emerges as a Strategic Pillar for Balkan Integration and NATO Security

TIRANA — High-level officials and international stakeholders gathered in the Albanian capital this week to chart the future of Pan-European Corridor VIII, a multi-billion euro infrastructure project designed to bridge the Adriatic and Black Seas. Billed as a modern successor to the ancient Roman Via Egnatia, the corridor is increasingly viewed by regional leaders and Western allies not merely as a transport route, but as a critical component of economic sovereignty and Euro-Atlantic security.

ECONOMIC FORUM: “Strategic Connectivity and Regional Economic Growth: The Economic Potential of Corridor VIII”

ECONOMIC FORUM: “Strategic Connectivity and Regional Economic Growth: The Economic Potential of Corridor VIII”

The forum, titled “Strategic Interconnectivity and Regional Economic Growth: The Economic Potential of Corridor VIII,” held on February 18, 2026, served as a platform for Albania and North Macedonia to reaffirm their commitment to the project. The discussions highlighted a shift in the corridor’s narrative, moving from a long-delayed logistical ambition to a certified strategic priority.

A Security Necessity: The NATO Dimension

In a significant development for the region’s geopolitical standing, Albanian Deputy Prime Minister and Minister of Infrastructure and Energy, Belinda Balluku, revealed that Corridor VIII has now received NATO certification. This designation elevates the project from a civilian transport initiative to a vital military and security asset for the alliance’s eastern flank.

“Corridor VIII is no longer just a road for the movement of goods and citizens,” Balluku stated during the forum. She characterized the project as a “safe infrastructure for Euro-Atlantic security,” noting that its completion would allow for the rapid deployment of resources between the Mediterranean and the Black Sea—a necessity brought into sharp focus by shifting security dynamics in Eastern Europe.

The certification ensures that the technical specifications of the roads and railways—connecting the port of Durrës in Albania to Varna and Burgas in Bulgaria—meet the rigorous standards required for military mobility, effectively integrating the Western Balkans into NATO’s logistical architecture.

Economic Integration and the EU Path

While security dominated the high-level briefings, the forum’s primary focus remained the economic transformation of the Balkan interior. For decades, the lack of east-west connectivity has been cited as a major bottleneck for regional trade.

ECONOMIC FORUM: “Strategic Connectivity and Regional Economic Growth: The Economic Potential of Corridor VIII”

ECONOMIC FORUM: “Strategic Connectivity and Regional Economic Growth: The Economic Potential of Corridor VIII”

Delina Ibrahimaj, Albania’s Minister of State for Local Government, described the corridor as a “key instrument for European integration and regional stability.” Ibrahimaj emphasized that the project is now a formal part of the Trans-European Transport Network (TEN-T), a status that unlocks significant funding from the European Union.

“The development of this corridor is synonymous with the development of our economies,” Ibrahimaj noted, arguing that the project will reduce transport costs, attract foreign investment, and foster a more unified regional market. Officials at the forum suggested that by linking the ports of Albania with the industrial hubs of North Macedonia and Bulgaria, the corridor would create a “short-circuit” for trade that currently relies on longer, more congested routes.

Strengthening the Balkan Backbone

Representing North Macedonia, Igor Hoxha echoed the sentiment of regional interdependence. He framed Corridor VIII as the “backbone of regional development,” essential for the landlocked nation’s access to international maritime routes.

The cooperation between Tirana and Skopje has intensified as both nations seek to synchronize their construction timelines. The project involves a complex mix of highway expansion and the modernization of ageing railway tracks, many of which have remained dormant since the end of the Cold War.

Corridor VIII connection.

Corridor VIII connection.

“From the Via Egnatia to Corridor VIII, the plan to connect East and West is finally making its definitive stop in Tirana,” noted reports from the forum, highlighting the historical weight of the project. By reviving this ancient trade artery, the participating nations aim to reverse a history of fragmentation and replace it with a corridor of “peace and prosperity.”

Challenges and the Road Ahead

Despite the diplomatic optimism, the path to completion remains fraught with logistical and financial hurdles. The rugged terrain of the Balkan interior requires extensive tunnelling and bridge construction, driving up costs. Furthermore, the synchronization of three different national bureaucracies—Albania, North Macedonia, and Bulgaria—remains a persistent challenge.

However, the consensus in Tirana was clear: the project has reached a point of no return. With the backing of the European Union’s Western Balkans Investment Framework and the newfound urgency of NATO’s security requirements, Corridor VIII is moving from a blueprint to a reality.

As the forum concluded, the message from the Albanian Ministry of Foreign Affairs was definitive: Corridor VIII is the strategic link that will finally anchor the Western Balkans into the broader European family, transforming the region from a “grey zone” of infrastructure into a modern hub of global connectivity.

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CBAM go-live: no electricity imports in week one

Iron and steel dominated the CBAM imports declared in the first reporting window, January 1-6, according to the European Commission.

The European Union’s Carbon Border Adjustment Mechanism entered into force on January 1. The European Commission used the January 1 to January 6 period for initial data collection to monitor and report on the CBAM go-live.

From the beginning of this year, firms in the EU that import aluminum, cement, electricity, iron and steel, hydrogen and fertilizers from non-EU countries are obliged to pay a carbon price under CBAM. But, the deadline to submit CBAM certificates for 2026 is May 31, 2027.

CBAM successfully entered into force on January 1, 2026, according to the commission.

CBAM imports declared in the first reporting window from January 1 to January 6 covered 1.655.613 tonnes

The full implementation followed a coordinated deployment across all EU member states, seamlessly integrating the CBAM Registry with national customs import systems, Taric and EU Customs Single Window, the commission explained.

This seamless interconnection ensured real-time data exchange, efficient validation of declarants, and uninterrupted import procedures at EU external borders, the EU’s executive arm claims.

CBAM imports declared in the first reporting window, from January 1 to January 6, covered 1.655.613 tonnes. This is the sectoral breakdown:

  • Iron and steel: 98%
  • Fertilizers: 1.2%
  • Cement: 0.5%
  • Aluminium: 0.3%
  • Electricity and hydrogen: 0%.

The main countries of origin of CBAM-covered imports included Turkey, China, India, Canada, Taiwan, and Vietnam. On the other hand, top importing member states are Belgium, Spain, Romania, the Netherlands, France, and Germany.

In total, more than 12,000 economic operators submitted applications for CBAM authorization by January 7.

The commission invited entities that have not yet submitted their CBAM authorization applications to do so as soon as possible via the CBAM Registry.

National authorities report stable processing times, supported by harmonized digital workflows, according to the commission.

Of note, in mid-December last year, the commission published implementing acts and amendments to the CBAM Regulation.

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CBAM go-live: no electricity imports in week one

Iron and steel dominated the CBAM imports declared in the first reporting window, January 1-6, according to the European Commission.

The European Union’s Carbon Border Adjustment Mechanism entered into force on January 1. The European Commission used the January 1 to January 6 period for initial data collection to monitor and report on the CBAM go-live.

From the beginning of this year, firms in the EU that import aluminum, cement, electricity, iron and steel, hydrogen and fertilizers from non-EU countries are obliged to pay a carbon price under CBAM. But, the deadline to submit CBAM certificates for 2026 is May 31, 2027.

CBAM successfully entered into force on January 1, 2026, according to the commission.

CBAM imports declared in the first reporting window from January 1 to January 6 covered 1.655.613 tonnes

The full implementation followed a coordinated deployment across all EU member states, seamlessly integrating the CBAM Registry with national customs import systems, Taric and EU Customs Single Window, the commission explained.

This seamless interconnection ensured real-time data exchange, efficient validation of declarants, and uninterrupted import procedures at EU external borders, the EU’s executive arm claims.

CBAM imports declared in the first reporting window, from January 1 to January 6, covered 1.655.613 tonnes. This is the sectoral breakdown:

  • Iron and steel: 98%
  • Fertilizers: 1.2%
  • Cement: 0.5%
  • Aluminium: 0.3%
  • Electricity and hydrogen: 0%.

The main countries of origin of CBAM-covered imports included Turkey, China, India, Canada, Taiwan, and Vietnam. On the other hand, top importing member states are Belgium, Spain, Romania, the Netherlands, France, and Germany.

In total, more than 12,000 economic operators submitted applications for CBAM authorization by January 7.

The commission invited entities that have not yet submitted their CBAM authorization applications to do so as soon as possible via the CBAM Registry.

National authorities report stable processing times, supported by harmonized digital workflows, according to the commission.

Of note, in mid-December last year, the commission published implementing acts and amendments to the CBAM Regulation.