Montenegro has issued a decree to implement its recently adopted (December 2019) legislation on greenhouse gas (GHG) emissions, passing the framework for GHG emission permits, for auctions, and for the transfer of emission credits. The decree specifies which large industrial emitters should take part in a new emission trading scheme (ETS) and determines the total amount of emission credits to be auctioned at a minimum price of €24/tCO2. It also sets up a stabilisation reserve and defines the method of recording allocated emission credits, their use and transfer. The Environmental Protection Fund will receive the funds raised from the emission credit auctions and will use it to support renewable energy development & innovation and to protect the environment.
In 2019, Montenegro abandoned plans to build a 254 MW coal-fired unit on the site of the Pljevlja power plant and decided to focus on the construction of new wind and solar capacities to meet its renewable targets and reduce its GHG emissions.