Bruegel: Without refining or delaying CBAM for electricity, EU risks market integration, security of supply

Brussels-based think tank Bruegel has analyzed the impacts of the CBAM application for electricity set for January 1, 2026.

Bruegel warns that applying the CBAM to electricity without refining or delaying could threaten market integration within the EU and jeopardize security of supply.
The analysis suggests that design flaws may create unintended cross-border distortions, complicating electricity trading and price formation.
It emphasizes the need for clear, implementable rules on intra-EU electricity flows, border adjustments, and allocation of CBAM revenues to maintain market coherence.
The piece argues that phased or targeted application, coupled with transitional provisions, could mitigate risks while preserving environmental objectives.
It notes potential administrative burdens for utilities and regulators, urging alignment with existing EU energy-market governance and data standards.

Balkan Green Energy News — 2025-12-03