Program Overview
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Montenegro has operated a national Emissions Trading System (ETS) since 2020 and has declared its intention to join the European Union (EU) by 2028. In anticipation of alignment with the EU ETS Phase 4 and the upcoming EU ETS 2 for buildings, road transport, and small industry, Montenegro is advancing its carbon pricing agenda.
Objectives & Activities
The PMI Program in Montenegro supports the country in strengthening and expanding its carbon pricing framework by providing targeted technical assistance, including:
- Evaluating the macroeconomic and sectoral impacts of carbon pricing including understanding the potential impacts of aligning with the Energy Community acquis, expanding its ETS to other sectors (including buildings and transport), integrating with the EU ETS, and complying with the EU Carbon Border Adjustment Mechanisms (CBAM)
- Delivering technical analysis to support potential enhancements to carbon policy and legal-regulatory frameworks, including evaluating options for a domestic carbon offsetting scheme, with a focus on the forestry sector
- Developing a communications strategy to improve public awareness of carbon pricing and to help communicate the purpose and objectives of the policy
- Assessing opportunities for carbon pricing to create co-benefits in sectors such as forestry and tourism and identifying pathways for clean energy investment and green growth