Preparing for CBAM: Regional Electricity Markets in Focus 

Energy Community Hosts Technical Dialogue on Aligning CBAM with Market Integration Ahead of Definitive Phase Starting 1 January 2026 

Ahead of CBAM’s definitive phase in January 2026, Energy Community Contracting Parties are working closely with the European Commission to ensure the mechanism’s implementation aligns with electricity market integration and regional decarbonisation goals. 

On 1 July, the Energy Community Secretariat, in cooperation with the European Commission, hosted a technical-level meeting to explore the interaction between the CBAM and the ongoing efforts of Contracting Parties to fully integrate their electricity markets with the EU—even ahead of EU accession. Officials from the European Commission joined representatives of Contracting Parties, national regulators, competent authorities, transmission system operators, electricity producers and traders, and industry experts to discuss the expected impact of CBAM implementation rules on electricity markets and investment dynamics in the region. 

Key technical discussions addressed the implications of CBAM for cross-border electricity flows, market liquidity, hedging strategies, and the deployment of renewable energy projects — all of which are essential to advancing decarbonisation and ensuring a smooth energy transition in the region. In this sense, participants largely agreed on the importance of completing full market coupling between EU Member States and Contracting Parties, avoiding unintended negative consequences of CBAM implementation, safeguarding regional market integration beyond 2026, and strengthening the role of renewables in the decarbonisation of the electricity mix. 

The meeting followed the Secretariat’s earlier efforts to identify and submit to the European Commission a comprehensive list of technical issues raised by stakeholders regarding the application of CBAM in the Energy Community context. The European Commission reiterated its commitment—together with the Energy Community Secretariat—to work closely with stakeholders to address the technical complexities surrounding CBAM implementation in the electricity sector. 

The Commission also announced the launch of a public consultation on a possible legislative proposal to amend the CBAM Regulation. Stakeholders are invited to submit their views by 26 August 2025.  

Mr. Adam Cwetsch, Head of the European Green Deal Unit at the Energy Community Secretariat, underlined the importance of maintaining close coordination with the European Commission and EU Member States to ensure fair and well-managed CBAM implementation for the Contracting Parties. He also reaffirmed the Secretariat’s ongoing commitment to supporting the alignment of energy and climate objectives across the region.