EU Carbon Border Adjustment Mechanism Introduced... Discussion on Public-Private Response Measures

The government and the steel industry discussed response measures to the European Union (EU) Carbon Border Adjustment Mechanism (CBAM).

On the 20th, the Ministry of Trade, Industry and Energy held a meeting at the Korea Iron & Steel Association to discuss the draft implementation bill of CBAM and to address export difficulties faced by the steel industry.

[Image source=Yonhap News]

The steel industry welcomed the temporary recognition of Korea's Emissions Trading Scheme (ETS) reporting method but requested the Ministry of Trade, Industry and Energy to further ask the EU for an extension of the reporting method application period and examples clarifying ambiguous parts of the draft implementation bill.

The government has continuously urged the EU for ▲ a system design compliant with World Trade Organization (WTO) norms, ▲ recognition of carbon prices already paid in Korea, and ▲ prohibition of discrimination between domestic and Korean companies.

In February, the Ministry of Trade, Industry and Energy led the formation of an inter-ministerial task force (TF) dedicated to responding to the Carbon Border Adjustment Mechanism, exploring domestic response measures and systematically working to reduce new burdens on Korean companies arising from the CBAM.

Based on the results of this meeting, the Ministry will prepare CBAM guidelines to support corporate compliance and plans to coordinate with the EU and experts to hold meetings and submit the government’s opinions on the draft implementation bill.

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