Martial Arts "Do Not Discriminate Against Carbon Border Adjustment Mechanism"... Opinion Letter Delivered to EU

Comments on Carbon Border Adjustment Mechanism (CBAM) Rules
Requirements for Protecting Confidential Information of Overseas Businesses

The Brussels branch of the Korea International Trade Association (KITA) announced on the 12th that on the 11th (local time), it delivered the opinions of Korean companies on the European Union (EU) Carbon Border Adjustment Mechanism (CBAM) implementing rules to the EU Commission together with the European Korean Business Association.

KITA requested the Commission to ▲ protect the confidentiality of non-EU operators ▲ reduce the burden of data submission ▲ allow the application of the Korean Emissions Trading Scheme (K-ETS) standards for calculating embedded carbon emissions ▲ abolish fines during the transition period, among other things.

Regarding confidentiality protection, KITA stated, "The draft implementing rules require EU importers to disclose confidential information such as the ratio of raw materials and processes of products from non-EU manufacturers, raising significant concerns about confidentiality leaks for non-EU companies," and requested, "Please allow non-EU manufacturers to submit data directly to the CBAM registration authority."

Concerning the obligation to submit data, KITA said, "While EU-based companies only need to submit data once a year under the ETS system, non-EU companies subject to CBAM must submit data quarterly during the transition period from October 1 this year to December 31, 2025," and requested, "Please eliminate discriminatory elements."

On the afternoon of May 1st, shadows were cast over the Busan Port area. [Image source=Yonhap News]

Regarding the method of calculating emissions, KITA explained, "The draft specifies allowing the method for calculating embedded carbon emissions in non-EU countries, and Korea has been implementing the Greenhouse Gas Emissions Trading Scheme (K-ETS) since 2015," and requested, "Please apply Korean standards when Korean companies submit CBAM data."

On fines, KITA stated, "Considering that the transition period was introduced to collect data before CBAM operation, a fine of up to 50 euros (about 70,000 KRW) per ton is excessive, and if the fine calculation criteria differ by member state, it may cause confusion among companies," and requested, "Please delete the fine provisions or apply the EU member states' fine calculation methods to non-EU companies."

Joo Bitna, head of KITA's Brussels branch, said, "Since CBAM will be piloted this October and the implementing rules are the core regulations applied to all practical work during the pilot period, there are provisions in the draft implementing rules that apply different standards between domestic and foreign companies and that risk exposing Korean companies' confidential information." She added, "We strongly urge the EU Commission to actively reflect Korea's opinions."

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