According to media reports, during the 22nd meeting of the Energy Community Ministerial Council, Minister Saša Mujović requested an exemption from the Carbon Border Adjustment Mechanism (CBAM) for the Pljevlja thermal power plant (TE Pljevlja), despite the plant’s violation of the Large Combustion Plants Directive.
Starting from January 1, 2026, EU countries importing electricity from non-EU countries will be required to pay carbon taxes under the CBAM. These additional costs will affect the competitiveness of Montenegro’s energy sector, with potential price reductions or decreased demand on the European market. This will make it less profitable for Italy to import electricity from Montenegro, significantly reducing the revenue of TE Pljevlja. Despite some progress in linking the markets of Montenegro and Italy, the country does not meet the criteria for exemption from CBAM.
Furthermore, TE Pljevlja has been operating illegally since 2020, continuing operations after exceeding the 20,000-hour limit during the transitional period. The plant also lacks an integrated environmental permit to prevent and control pollution, a requirement under international agreements that supersede national legislation. The government has not taken concrete measures to address this issue, with illegal operations being justified while harmful emissions continue to rise.
Meanwhile, the environmental pollution affecting the health of Pljevlja’s citizens is increasing, leading to premature deaths. According to a report by the CEE Bankwatch Network, sulfur dioxide emissions from the plant amounted to 44,017 tons in 2023, nitrogen oxides reached 3,982 tons, and particulate matter emissions rose from 560 tons in 2022 to 1,130 tons in 2023.
The European Commission’s recent opinion on Montenegro’s progress report clearly stated that “reconstructing the coal-fired thermal power plant in Pljevlja will not resolve the key issues” and urged Montenegro to “intensify efforts to permanently close the thermal power plant to meet EU emission standards.” Despite this clear message, Montenegro’s draft Energy and Climate Plan sets an unrealistic closure date for coal power generation by 2041, ignoring its contractual obligations and CBAM regulations.
“The conclusions of the Energy Community Ministerial Council do not contain any information about the request for exemption from CBAM, and if the Minister made such a request, then he has completely unrealistic expectations about the ability or willingness of the European Commission to amend EU legislation. This is a complicated process that cannot be done alone by the Commission; it requires the consent of the European Parliament and member states. Why would the EU agree to an exemption for Montenegro for a coal-fired plant that operates illegally?” said Nataša Kovačević from CEE Bankwatch Network.
She emphasized that Montenegro must introduce a functional carbon emission payment system, rather than seeking impossible legislative amendments. The final National Energy and Climate Plan must realistically consider TE Pljevlja, taking into account its technical condition and the necessary investments to reduce emissions. It is expected that the rise in carbon prices to EU emissions trading system levels by 2030 will make TE Pljevlja economically unfeasible before 2041, and that it will serve only as a cold reserve for emergency energy supply after 2030.
Milija Čabarkapa from the NGO Ekotim called on the Montenegrin government to urgently revise the proposed coal exit date, and to transparently present the basis for the proposed deadline in the draft National Energy and Climate Plan.
“The decision on closure must be based on comprehensive decarbonization scenario analyses and energy sector development, including economic sustainability, energy supply impact, and public health. Social analyses are also necessary to assess the impact on employment and propose solutions for workers affected by the transition. Without these key studies and a realistic assessment of the situation, any unrealistic plan will endanger public health, energy stability, and Montenegro’s European path,” Čabarkapa concluded.
