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Serbia has the “dirtiest” energy sector in Europe, high CO₂ emissions threaten competitiveness

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Professor Dejan Molnar from the University of Belgrade highlights that Serbia is one of the largest carbon emitters per unit of GDP in Europe, with an electricity carbon intensity of 670 grams CO₂ per kWh—far above EU countries, where it ranges between 100–300 g/kWh, and below 30 g/kWh in nations relying on clean energy like Norway, Iceland, and Albania.

Molnar stresses that decoupling economic growth from CO₂ emissions is crucial for Serbia’s competitiveness and access to EU green transition funds. Historically, fossil fuels have driven global growth, but this model is now shifting, requiring Serbia to modernize its energy sector.

In advanced economies, GDP growth increasingly occurs alongside declining emissions, thanks to technological progress, energy efficiency, and a higher share of renewables. Globally, carbon intensity has dropped over 30% since 2000 due to clean energy adoption and digitalization. Europe leads with a 40% reduction, driven by renewables and nuclear energy, while the U.S., Canada, and China have also seen progress, though they remain above EU levels.

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Molnar emphasizes that economic growth itself is not the problem—rather, how growth is achieved matters. For Serbia, reducing carbon intensity is now both possible and necessary, as EU mechanisms like carbon taxes will increase the cost of exports from high-emission countries.

Lowering carbon intensity also opens access to EU funds for green infrastructure and energy projects, supporting economic modernization. Serbia faces a dual challenge: transitioning from coal to renewable energy while strengthening environmental policies, administration, and enforcement.

Molnar concludes that reducing carbon intensity must become a national priority—not only for climate goals but also for economic survival and integration into the EU green economy.

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