Decarbonization is clearly established as an obligation that all regional countries have committed to, stated Ivan Mrvaljević, Executive Director of the Development and Investment Directorate of the Electric Power Company of Montenegro (EPCG). He noted that approximately 30 billion euros will be required for a just transition by 2030.

“We are all signatories to these commitments. Hence, there is a pressing need for a clear and thorough dialogue with the European Commission (EU), as the transition cannot be just or feasible without institutional backup,” Mrvaljević emphasized.

At the Energy 2025 conference held in Zlatibor, he remarked that the region currently lacks the necessary funding for a just transition.

“Our estimates indicate that around 30 billion euros will be needed by 2030 to achieve all set goals, raising the critical question of who will finance it,” Mrvaljević queried.

He advocated for a collective and pragmatic approach.

“Entering the ETS system is inevitable. What is crucial now is for everyone to recognize the severity of the challenge and for the region to prepare adequately, so we are ready for 2030,” Mrvaljević stated.

He delved into the current challenges in the region’s journey towards joining the EU ETS system, with a focus on Montenegro’s position.

“This year undoubtedly marks a new phase in terms of decarbonization and regional cohesion. The key question is no longer if, but rather how and when. We cannot be entirely exempt or completely outside the system,” Mrvaljević stated.

He highlighted that Montenegro is already making concrete strides to connect with the Italian market through market coupling, which involves aligning regulatory and technical standards.

According to current insights, the earliest possible date for establishing technical connectivity is not until late next year or early 2027.

“Other countries in the region face similar challenges, like North Macedonia, which plans to merge with Greece. Therefore, significant technical and physical changes cannot be achieved overnight,” explained Mrvaljević.

He underscored the necessity of implementing protective mechanisms against third parties.

“If Montenegro were to be exempt while Serbia remained bound, our traders would incur additional taxes when purchasing electricity from Serbia, severely jeopardizing our market’s competitiveness,” he elaborated.

The Energy Conference in Zlatibor gathered representatives from power companies, energy regulators, and international institutions from across the region to discuss critical challenges related to energy transition and climate policy within the framework of European integration during a series of panels.

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