Saša Milovanović

As the European Union deepens its climate policy through the implementation of the Carbon Border Adjustment Mechanism (CBAM), Western Balkan countries—particularly Serbia—are confronted with an urgent and strategic imperative: to decarbonize their power sectors and align with European climate governance frameworks. CBAM is not merely a border tariff but a comprehensive instrument that demands accurate monitoring, reporting, and verification (MRV) of embedded carbon emissions in exported goods, starting with electricity, cement, steel, aluminum, and fertilizers. The implementation of CBAM is intrinsically linked to the principles of Industry 5.0, which emphasizes resilience, human-centric innovation, and environmental sustainability through the application of smart and digitalized systems. In this context, the Nikola Tesla Electrical Engineering Institute (INT) plays a pivotal role in developing Serbia’s capacity to comply with CBAM requirements and to lead the transition to a low-carbon economy. Positioned at the intersection of technological expertise, regulatory compliance, and applied research, INT contributes to the national energy transition through the following strategic pillars: (1) development and deployment of MRV systems aligned with ISO 14064 and EU Regulation 2023/1773, (2) integration of renewable energy sources via smart grid and microgrid platforms, (3) support for carbon capture and storage (CCS) pilot applications, and (4) training and technical guidance for energy sector stakeholders. The role of INT extends beyond regulatory compliance. By spearheading the development of digital infrastructure for continuous emissions monitoring and systematic energy performance reporting, the Institute is setting national standards for embedded carbon data governance. These capabilities are essential for Serbia’s exporters to remain competitive in the EU market under CBAM. Moreover, INT is advancing the application of artificial intelligence (AI) and digital twins to optimize grid stability, enhance renewable integration, and reduce transmission losses—core aspects of Industry 5.0 in the energy domain. The decarbonization of Serbia’s power sector is also a matter of long-term energy security and economic resilience. Coal, which currently dominates the national energy mix, is incompatible with the CBAM framework due to its high carbon intensity. A just energy transition strategy, supported by MRV-based investment planning and cross-border green financing (e.g., through Horizon Europe, IPA III, and the Green Agenda for the Western Balkans), is vital. INT’s expertise in system modeling, scenario forecasting, and MRV verification makes it a cornerstone of this transformation. This poster outlines INT’s comprehensive approach to decarbonization, with an emphasis on CBAM alignment, MRV implementation, and Industry 5.0 integration. It highlights technical pathways, economic feasibility, and regulatory preparedness, while also demonstrating how the Institute acts as a knowledge and innovation hub for Serbia’s energy future.

Keywords: Decarbonization, CBAM, Industry 5-0