According to the state energy company EPCG, CBAM could cost Montenegro up to €191 million per year.

Electricity is the country's main export item — accounting for more than 35 % of total exports — and about 45 % of production comes from the sole coal power plant, TE Pljevlja.

The core of the problem is the price gap in emission allowances – Montenegro pays €24 per tonne of CO₂ under its national ETS, while the price on the European market is around €80. This gap will be reflected in the CBAM certificates that EU importers will have to purchase. It will reduce the competitiveness of Montenegrin electricity and ultimately the producers' revenues.

Montenegro is negotiating with the European Commission on a more flexible implementation model, especially with regard to the planned connection of its electricity market to the EU via an undersea cable with Italy.

While the annual costs associated with CBAM could reach approximately €191 million for Montenegro according to the CBAM Readiness Tracker, Serbia faces extra costs of €612.5 million, North Macedonia about €200 million, and Bosnia and Herzegovina around €158 million.