A Perfect Storm: the Western Balkans Power Sector in the Time of CBAM

A report published by the CEE Bankwatch Network in October 2025 examining the exposure of the Western Balkans power sector to the EU Carbon Border Adjustment Mechanism (CBAM). It warns that insufficient preparation and reliance on fossil fuels could create a perfect storm, a worst-case scenario where heavy export tariffs, massive utility revenue losses, and unmanaged coal phase-outs converge simultaneously to threaten regional stability and industrial competitiveness.

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