Moon Seung-wook, Minister of Industry, Requests EU to Exclude Korea from Carbon Tax Application

[Sejong=Asia Economy Reporter Kwon Haeyoung] Moon Seung-wook, Minister of Trade, Industry and Energy, conveyed the position to the European Union (EU) requesting the exclusion of the Carbon Border Adjustment Mechanism (CBAM) application to countries implementing emissions trading systems like Korea.

According to the Ministry of Trade, Industry and Energy on the 6th, Minister Moon met with Frans Timmermans, the First Vice-President of the European Commission in charge of the EU Green Deal, at a hotel in Seoul on the same day and conveyed this opinion.

The European Commission is set to announce the legislative package "Fit for 55" on the 14th, aimed at reducing Europe's greenhouse gas emissions by 55% by 2030. At that time, the draft of the EU Carbon Border Adjustment Mechanism will also be released. The CBAM is a system that imposes costs on high-carbon imports entering the EU market.

Minister Moon stated, "This system should not act as a barrier to international trade and must be designed to comply with World Trade Organization (WTO) regulations that prohibit discriminatory measures between domestic and foreign entities," adding, "Considering the possibility of double regulation, it should exclude application to countries like Korea that implement emissions trading systems similar to the EU."

Earlier, Kim Jeong-il, Director General of the New Trade Order Strategy Office at the Ministry of Trade, Industry and Energy, also visited Brussels, Belgium on the 5th to convey the Korean government's position.

Both sides also discussed cooperation plans related to the Green New Deal on the same day. Minister Moon said, "Korea declared its 2050 carbon neutrality goal last October and launched the public-private joint Carbon Neutrality Committee in May this year," adding, "We plan to prepare a cross-ministerial scenario and detailed implementation strategies by sector, including industry, transportation, and energy, to achieve the 2050 carbon neutrality goal within this year."

Furthermore, he emphasized that since the European Green Deal closely resembles Korea's Green New Deal in terms of policy direction and key industrial sectors, there is great potential for cooperation, urging to expand collaboration through policy exchanges and joint research and development (R&D) initiatives.

This content was produced with the assistance of AI translation services.