Berlin Economics at the 2nd Sustainable Investment Forum in Pristina, Kosovo
On 22 May, over 250 participants from the Kosovar government, the diplomatic corps, international institutions and the private sector gathered in Pristina for the 2nd Sustainable Investment Forum, organized by the European Investors Council. The forum focused on Kosovo’s path toward a greener and more sustainable future.
Representing Berlin Economics, Yiğit Tahmisoğlu from the Energy and Climate Policy team delivered a keynote presentation. He shared key findings from our analysis on the economic impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) on Kosovo, with a particular focus on its implications for the electricity sector and future market coupling with the EU.
The study estimates that CBAM could impose a financial burden of up to EUR 93 mn on Kosovo’s exports by 2034. This presents a significant challenge for the country’s future trade competitiveness.
Focusing on the electricity sector, the analysis also explores the link between CBAM and market coupling. As Kosovo moves toward regional and eventually EU electricity market coupling, securing a CBAM exemption for its electricity sector is crucial, as market coupling is unlikely to be viable without such exemption.
To facilitate this transition, Kosovo should advance the alignment of national legislation with the EU acquis, submit a clear roadmap containing timetable for CBAM exemption measure implementation, integrate the 2050 climate neutrality target into its long-term decarbonisation strategy, and most importantly, introduce a domestic carbon price aligned with the EU Emissions Trading System (EU ETS) price parity by 2030.
The full study is available here.