This project seeks to inform Western Balkans (WB6) governments in selecting carbon pricing pathways that are cost-effective, socially just, and aligned with EU accession and climate neutrality goals. Through qualitative research and targeted analysis, the project evaluates four carbon pricing scenarios identified by the European Commission: a regional ETS, a fixed-price ETS, a carbon tax, and integration into the EU ETS. The project will also touch on alternative pathways and mechanisms for WB6 decarbonisation.

Drawing on regional data and the Energy Community’s risk assessment, the project assesses each scenario’s feasibility, implications, and potential for investment, industrial innovation, and a just transition future.

Carbon pricing in the Western Balkans is at a formative stage, with uneven adoption across the region. This project addresses a critical policy window in early 2025 as countries prepare carbon pricing preferences for the Energy Community’s Decarbonisation Roadmap. The proposed activities deliver policy-relevant analysis and implementation pathways that meet EU climate standards and CBAM requirements. The project is aligned with Carbon Balance Initiative’s mission to deliver evidence-based policy design for geological net zero, and work with academic partners such as University of Oxford to embed rigorous research in policy engagement.

This project is implemented by a team of experts from the University of Oxford and Carbon Balance Initiative, with deep experience in carbon pricing design, net zero policy, and regional energy transitions.