Minister of Ecology, Sustainable Development and Northern Region Development Damjan Ćulafić and Minister of Energy and Mining Admir Šahmanović visited the Montenegrin state power utility EPCG today, where they met with the Board of Directors and company management to discuss key development projects and the challenges posed by the planned introduction of the Carbon Border Adjustment Mechanism (CBAM) in 2026.
Milutin Đukanović, President of EPCG’s Board of Directors, emphasized that the company is working intensively on the green transition, but warned that CBAM, in its current form, could have serious consequences for the energy system. He noted that EPCG has invested 75 million euros in the environmental reconstruction of the Pljevlja thermal power plant and expects this effort to be recognized. Applying CBAM to all exported electricity, he said, would be a direct blow to Montenegro’s energy stability, underscoring the need for a coordinated approach toward the European Commission.
Acting CEO of EPCG Bojan Đordan said that countries across the region face similar circumstances and that a coordinated regional position is essential. He added that CBAM still lacks clarity regarding its application to non-EU member states. For that reason, Montenegro is seeking understanding and transitional periods. In the meantime, EPCG is accelerating investments in solar power plants, the Gvozd wind farm, and battery storage systems, as only a major investment cycle can mitigate potential negative impacts.
Minister Ćulafić stressed that the state remains a firm partner to the energy sector. He noted that Montenegro is in constant dialogue with the European Commission, insisting on additional time and support. This is an issue of national importance, he said, and will be addressed through a joint effort.
Minister Šahmanović stated that while the European Commission has signaled a strict approach, Montenegro will continue to advocate for exemptions or postponements. The consequences, he noted, could be severe for both electricity producers and the transmission system. The Government is therefore negotiating at both the European and regional levels while simultaneously accelerating all energy projects that domestic industry can implement.
Participants agreed that EPCG and the two relevant ministries will maintain joint communication with EU institutions to secure a more favorable position for Montenegro during CBAM implementation. At the same time, EPCG will intensify the development of solar, wind, and battery projects, while the state accelerates harmonization of the national ETS system, ensuring the protection of the domestic energy sector and industry. Following the meeting at EPCG, Ministers Ćulafić and Šahmanović also visited EPCG–Željezara Nikšić.
