On December 5, key directions for the European integration of energy markets were discussed in Vienna during the Friends of the Western Balkans meeting. The focus was on electricity market integration, CBAM, and the future model of carbon markets.
The meeting was attended by foreign ministers of the Western Balkan countries, representatives of EU Member States, and senior European officials, including EU High Representative Kaja Kallas.
The Director of the Energy Community Secretariat, Artur Lorkowski, presented key steps to deepen cooperation and accelerate energy integration.
The Western Balkans are moving closer to full integration of their electricity markets with the EU — opening up investment opportunities that individual local markets are unable to provide on their own.
At the same time, CBAM will enter into force on January 1, 2026, which may significantly affect electricity imports. There is a risk that, if the approach is not adjusted, CBAM could slow down integration and the transition to renewable energy in the region. Particular attention was also given to carbon markets as a tool for future integration and financing of the energy transition.
Lorkowski emphasized:
“It is imperative that CBAM uplifts market integration and encourages renewable growth,” Lorkowski stressed. “Integrating the Western Balkans into the EU’s energy market is just as important as tackling carbon leakage — and could ultimately deliver even greater climate benefits.”
From our side:
For Ukraine, this discussion is no less important. We expect that an exemption or a transitional arrangement will be предусмотрено for our country to avoid additional economic pressure and to continue integration with the European energy market without unnecessary barriers.
If the CBAM mechanism is not postponed or adapted to wartime conditions, it will create a significant burden for both industrial producers and the energy sector as a whole — at a time when the country is already operating at the limit of its available resources.