In early October this year, the EU Carbon Border Adjustment Mechanism (CBAM) will come into effect. Its aim is to equalize the carbon price paid for products manufactured within the EU with the price paid for imported products from non-EU countries. This means that Serbian companies exporting to the EU products covered by the new regulation will, starting this autumn, be required to begin reporting the emissions embedded in the exported goods.
After a three-year transitional period, independent verification of these reports by an accredited body will become mandatory, as importers will then be obliged to pay the carbon tax. This calls for a strategic approach and the urgent implementation of ESG standards in business operations. Otherwise, domestic companies risk being excluded from the competitive market.
Article authors:
Uroš Milosavljević
Associate Partner – Advisory
KPMG Belgrade
Jovan Šljivić
Manager – Advisory
KPMG Belgrade
No More Time to Wait
Article reprinted from the magazine "Business and Finance", Issue No. 210 – Finance TOP 2022/2023, June 2023 edition.