SARAJEVO (Reuters) -Western Balkan countries should work towards introducing their own carbon pricing on electricity generation to mitigate the impact of new EU taxes on fossil fuel-generated energy to be introduced next year, an environmental agency said in a report on Thursday.

Under its Carbon Border Adjustment Mechanism to be introduced on January 1, 2026, EU importers of goods including electricity from outside the bloc will have to pay for the carbon dioxide emissions associated with their production in their country of origin.

This will make electricity from heavily coal-reliant producers like Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia much more expensive for EU importers such as Italy, Croatia, Hungary, Romania, Bulgaria and Greece.

Those countries’ power exp

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