Ye Han-gu, Director General for Trade, "Domestic Support Measures to Be Prepared Regarding EU Carbon Border Adjustment Mechanism"

Held Online Steel Industry Meeting After On-Site Visit to POSCO FINEX Plant

Yeo Han-gu, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy. (File photo) [Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] Yeo Han-gu, Head of the Trade Negotiation Division at the Ministry of Trade, Industry and Energy, stated on the 26th that to alleviate the burden on steel companies caused by the introduction of the European Union (EU) Carbon Border Adjustment Mechanism (CBAM), "domestic support measures will be prepared and external negotiation strategies will be established."

On the same day, Head Yeo held an online meeting with the steel industry regarding CBAM at POSCO Pohang Steelworks. CBAM is a system that imposes a carbon price linked to the emissions trading system on the carbon emissions per unit of products imported into the EU.

Before the meeting, Head Yeo visited the POSCO FINEX site, where eco-friendly technology is being applied. The FINEX process is a technology that uses iron ore and pulverized coal in powder form, unlike the conventional blast furnace method, and compared to the traditional blast furnace process, it emits about 40% less sulfur oxides (SOx), 15% less nitrogen oxides (NOx), and 70% less particulate matter.

In the future, the FINEX process is expected to be utilized in the development of the hydrogen reduction steelmaking process, a core technology for the steel industry to achieve carbon neutrality. Hydrogen reduction steelmaking is an eco-friendly process that reduces iron ore using hydrogen instead of coal, producing no carbon dioxide emissions during steel production.

At the meeting, companies requested expanded tax support to alleviate the burden caused by the introduction of CBAM and consultations on exemption or reduction of CBAM emission costs through mutual recognition between the Korean and EU emissions trading systems. In response, Head Yeo said, "We will pursue external negotiations to ensure that import regulations in environmental areas such as CBAM fully reflect the efforts and circumstances of our companies and do not impose excessive administrative burdens," adding, "We will actively support companies' carbon reduction technology development and commercialization, expansion of renewable energy and hydrogen use from a trade perspective, and promote related infrastructure construction and incentive support."

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