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POWER: Energy Community States Face EU Carbon Costs on Power Exports by 2026

POWER
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Energy Community states, which include the Western Balkans and Ukraine, will face EU ETS-equivalent carbon costs on electricity exports starting in 2026 under CBAM, as they have yet to meet market coupling requirements necessary for exemption, according to Energy Community Secretariat Director Artur Lorkowski, cited by Argus.

  • This will reshape trading patterns and arbitrage opportunities, Lorkowski added.
  • Exemption until 2030 requires full compliance with CBAM requirements, including market coupling, which states have yet to achieve, and market coupling in the day-ahead and intraday markets is essential for CBAM exemption and critical for energy market integration.
  • Without compliance by 2026, electricity from Energy Community states will face carbon costs equivalent to the EU ETS price upon import into the EU.
  • However, Energy Community states are aligning their frameworks with EU energy and climate policies, aiming for EU accession.
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Energy Community states, which include the Western Balkans and Ukraine, will face EU ETS-equivalent carbon costs on electricity exports starting in 2026 under CBAM, as they have yet to meet market coupling requirements necessary for exemption, according to Energy Community Secretariat Director Artur Lorkowski, cited by Argus.

  • This will reshape trading patterns and arbitrage opportunities, Lorkowski added.
  • Exemption until 2030 requires full compliance with CBAM requirements, including market coupling, which states have yet to achieve, and market coupling in the day-ahead and intraday markets is essential for CBAM exemption and critical for energy market integration.
  • Without compliance by 2026, electricity from Energy Community states will face carbon costs equivalent to the EU ETS price upon import into the EU.
  • However, Energy Community states are aligning their frameworks with EU energy and climate policies, aiming for EU accession.