Podgorica, (MINA-BUSINESS) – According to Minister of Ecology, Sustainable Development and Northern Region Development Damjan Culafic, a special export tax on electricity generated from coal come into effect on 1 January.
“Attempts for Montenegro to be exempt from this obligation, or for its implementation to be postponed, did not bear fruit, and this will be a major challenge for our power system, one we are facing together, and I believe we are on the right track to overcoming it,” Culafic stated in a press release.
Specifically, the new Regulation prepared by the Ministry will address this issue by aligning the national emissions trading system with the European one, which will certainly be a challenge for our largest national energy company, Elektroprivreda (EPCG).
“Despite this, I am confident that with a strategically designed sustainable development path, we can together overcome this blow to the economy,” Culafic said.
As he explained, the idea is that the funds the Environmental Protection Fund (Eco Fund) will collect from EPCG starting from this year will, through new programmes based on a clearly defined development plan for the power sector, be returned to the system via new green projects, on which the Ministry, EPCG, and the Eco Fund will primarily work.
“Therefore, the model we have prepared will turn the biggest challenge for our power system, and consequently for our economy, namely the alignment of the national ETS (emissions trading system) with the EU ETS (European emissions trading system), as well as CBAM (the Carbon Border Adjustment Mechanism), i.e. the tax on exported electricity generated from coal, into a new strong economic impulse within Montenegro, and will accelerate investment in green technologies, that is, in projects that will facilitet a concrete green transition,” Culafic said.
Simply put, tens of millions of euros that EPCG would lose due to the misalignment of national emission credit prices with those in the EU, or that Montenegro would lose through the application of CBAM, which would affect our market competitiveness, will instead go into the Eco Fund. With prior approval from the Ministry, the Eco Fund will use those same funds to finance new, sustainable, green projects.
Thus, a comprehensive system benefiting the environment, public health, and the economy has been designed.
“The Regulation that has been prepared is another very important step in fulfilling our obligations under Chapter 27, and a confirmation that we are starting this year actively and positively,” Culafic concluded.
