Montenegro is committed to the green transition and European integration and is moving towards decarbonization, but it is important that this process is gradual, well-thought-out and supported by concrete mechanisms from the European Union (EU), said the Executive Director of the Electric Power Company of Montenegro (EPCG), Ivan Bulatović.
At the international energy symposium, organized by EPCG in Budva, he pointed out the role of Montenegro and EPCG in the energy transition process.
"It truly gives me great pleasure and honor that, for the fourth time in a row, we have organized such a significant gathering," said Bulatović.
He stated that this year, through five thematic panels and three expert presentations, they opened up space for new perspectives and concrete solutions that are needed more than ever today.
The EPCG statement states that the symposium's special focus was on the CBAM mechanism (Carbon Border Adjustment Mechanism) and the EU ETS emissions trading system, which represent a challenge, but also an opportunity for the electricity sector of the Western Balkans.
Bulatović pointed out the implications that these mechanisms have on the operations of energy companies in the region.
"CBAM is something that, conditionally speaking, is hanging over our heads. In Montenegro, where coal-fired electricity accounts for around 40 percent of annual production – and up to 70 percent in the summer – it is clear that a tax on all exports would further complicate the situation," Bulatović said.
He said that they are aware of the decarbonization process and are moving in that direction.
"But we will have to rely on coal for some time to come. That is why it is important that this process is gradual, well-thought-out and supported by concrete mechanisms from the EU," Bulatović said.
He also pointed out the short-term and long-term challenges of decarbonization.
"From complex administrative procedures and technical network limitations, to issues of financing and market liberalization," said Bulatović.
According to him, if CBAM introduces new costs, it would significantly reduce the scope for investing in renewable sources.
"At the same time, the construction of new capacities – such as wind farms – takes years, and permits for solar power plants are often slow and inconsistent," Bulatović said.
He emphasized that a real transition and strong international support are needed.
Bulatović said that Montenegro remains committed to the green transition and European integration.
He also announced that the National Energy and Climate Plan, a strategic document that will define the directions of energy development until 2030, will soon be adopted.
"Our symposium has a clear goal - to promote contemporary trends and strengthen regional cooperation," said Bulatović.
According to him, in a time when energy challenges transcend borders, only through joint efforts can a secure, sustainable and competitive energy future be ensured.
As announced by EPCG, the meeting brought together over 250 participants from across the region and Europe, including representatives of energy companies, institutions, international organizations and the expert community.
It is stated that several experts from the region have highlighted the need for urgent legislative and financial measures that would enable a just transition to clean energy sources, with realistic consideration of local specificities.
"The CBAM mechanism, although conceptually supported as a tool to combat climate change, in its current form raises concerns because, as has been pointed out, it does not make a clear distinction between sources of electricity," the statement said.
As it is emphasized, EPCG remains committed to opening dialogue and paving the way towards a greener and more resilient future.
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