New Decrees in Serbia: Measures to Reduce Emissions and Improve Waste Management

At the end of May and the beginning of June, two decrees were adopted in Serbia regulating the reduction of greenhouse gas emissions, as well as the improvement of waste reuse and recovery.

The Decree on the Types of Measures and the Method of Reporting on Implemented Activities for the Reduction of Carbon Dioxide Equivalent (CO2eq) Emissions specifies the conditions for exercising the right to a tax credit and the types of investments recognised as contributing to decarbonisation. According to this decree, the right to a tax credit may be exercised for activities that lead to permanent, measurable, and technically verifiable emission reductions. These are projects aimed at increasing energy production from renewable sources, improving energy efficiency, as well as developing energy storage capacities and greater flexibility of the power system.

Among the measures specifically highlighted are the reconstruction, revitalisation, and modernisation of existing energy facilities, including capital overhauls and investment maintenance, as well as the construction, expansion, or replacement of capacities for the production of electricity and heat from renewable sources.The development of energy storage systems is also emphasised, through the construction of new and the improvement of existing battery, thermal, electrochemical, and hydrogen systems, as well as pumped-storage hydropower plants and other technical solutions that contribute to greater stability and flexibility of the energy system.

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The decree also highlights the importance of investments in electricity infrastructure, namely the construction of the missing transmission and distribution network necessary for the connection and integration of new renewable energy capacities and energy storage systems.

Measures to improve the flexibility of power system operation are also specifically singled out, with the aim of better integrating renewable energy sources and increasing grid stability, as well as decarbonisation measures involving the gradual withdrawal, conservation, or permanent closure of thermal energy capacities.

At the same time, the decree also specifies which activities are not considered emission reduction measures. This primarily applies to investments in facilities that use fossil fuels, as well as activities that increase the use of energy sources with CO2eq emissions.

A legal entity that exercises the right to a tax credit is obliged to submit a report on the implemented emission reduction measures electronically to the ministry responsible for environmental protection. The report should contain data on the tax period for which it is submitted, identification data of the taxpayer, the name and description of the implemented measure, the period of its implementation, as well as data on the achieved reduction of CO2eq emissions, or the expected reduction after the full implementation of the measure.

Prepared by Katarina Vuinac

The story was published in Energy portal Magazine CLEAN ENERGY

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