The Chamber of Commerce of the Federation of BiH (PKFBiH) is intensively monitoring the dynamics of the introduction of the CBAM (Carbon Border Adjustment Mechanism), the full implementation of which will begin on January 1, 2026, and which will introduce a cost for carbon dioxide (CO₂) emissions on goods imported into the EU from Bosnia and Herzegovina and other countries that are not members of the Union.
EU CBAM includes production branches such as steel, aluminum, iron, cement, electricity and other intensive sectors.
“So far, companies’ activities have mainly focused on reporting on emissions, while the lack of a domestic ETS system (emissions trading) further complicates the position of exporters. Without the ETS, CBAM costs will be paid directly when exporting to the EU, which means that significant funds will go to the European budget instead of staying in the country”, Feni was told in PKFBiH.
The FBiH Chamber of Commerce has launched a series of educations and workshops so that the industry understands the reporting requirements and prepares for the emissions charge. At the same time, they are advocating the accelerated adoption of laws and the establishment of a domestic ETS, which would reduce costs for exporters. In cooperation with domestic and international partners, technical support is provided for the development of emission monitoring models and adaptation of business processes, with a special emphasis on investments in energy-efficient technologies and the transition to clean energy.
The metal industry in Bosnia and Herzegovina faces the challenge of reducing emissions and maintaining competitiveness on the demanding EU market. Key steps, as pointed out by PKFBiH, include: modernization of production processes through energy-efficient technologies, transition to renewable energy sources such as solar systems and heat pumps, digitization and precise monitoring of emissions, which enables proving a low emission base and more favorable contracts, and optimization of logistics chains, because built-in emissions include transport.
“European customers are increasingly favoring products with low emissions, so adaptation is necessary for survival and growth”, they point out from PKFBiH.
They note that initiatives have been launched in Bosnia and Herzegovina that support the modernization and digitization of the industry, including the metal sector. Projects include employee training, development of digital competencies and application of advanced tools for simulation and diagnostics. Digital platforms have also been created to help small and medium-sized enterprises in business transformation.
Energy efficiency is encouraged through programs that finance the modernization of equipment and the reduction of energy consumption. The federal and cantonal levels support the industry through public calls and co-financing. Projects of international organizations also provide grants, loans and technical assistance for these projects. The pace of implementation varies, but there is a growing interest of companies to use the available instruments. Although insufficient, these initiatives allow industrial companies to reduce emissions, increase productivity and ensure competitiveness on the EU market
“BiH is formally committed to the establishment of the ETS and the electricity exchange, but implementation is slow. The electricity exchange has not yet been formed, but work is being done on the Law on the regulator, transmission and market of electricity in BiH, which is a prerequisite for its functioning. The law is in the parliamentary procedure and we believe that the delegates in the House of Peoples of BiH will show responsibility and support its adoption. The establishment of the exchange would enable domestic trading and potential integration with regional platforms”. pointed out from PKFBiH.
The lack of ETS means that Bosnia and Herzegovina will exporters pay the CBAM tax directly when exporting to the EU, which increases costs and reduces competitiveness. In order to mitigate these costs, as stated by PKFBiH, companies are investing in projects to reduce emissions through renewable energy sources and modernization of production processes. Lower emissions directly mean lower obligations for CBAM fees.
The Chamber provides advisory support and connects companies with financial programs that enable investments in green technologies. Grants and favorable loans from EU funds and the Development Bank of FBiH are instruments for financing these projects. In this way, funds that would go to the EU can be reinvested in the domestic economy. PKFBiH advocates the accelerated implementation of the ETS in order to enable the use of domestic quotas and reduce the departure of funds outside the country.
“The goal is for CBAM risks to become an opportunity for the modernization and growth of domestic industry”, they emphasized for Fena from PKFBiH.
