Junggi Junganghoe-Korea Environment Corporation Sign MOU on 'EU CBAM Response'

Six Key Items: Steel, Aluminum, Cement, Hydrogen, etc.
Mandatory Emission Reporting by the End of 2025

The Korea Federation of SMEs announced that it signed a 'MOU for Customized Support for SMEs to Respond to the EU Carbon Border Adjustment Mechanism (CBAM)' with the Korea Environment Corporation on the 1st at the Federation of SMEs in Yeouido, Seoul.

Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business
Photo by Yonhap News

CBAM is a system that imposes carbon costs equivalent to those on EU-produced products for six items imported by EU countries, including steel. The six major items are steel, aluminum, fertilizer, electricity, cement, and hydrogen. Until the end of the transition period in 2025, there is an obligation to report emissions, and thereafter, obligations for emissions verification, certificate purchase, and submission will be imposed.

This agreement was signed to respond to the EU CBAM, which came into effect on the 1st of last month, aiming to enhance SMEs' capabilities for independent greenhouse gas emission management and reporting.

The Korea Federation of SMEs and the Korea Environment Corporation plan to cooperate in areas such as joint promotion of EU CBAM response, support for establishing SMEs' CBAM emission calculation and reporting management systems, mutual cooperation to support greenhouse gas reduction for SMEs and cooperatives, and support for eco-friendly process improvements for SMEs and cooperatives.

Attendees at the signing ceremony included Yang Chan-hoe, Head of the Innovation Growth Headquarters at the Korea Federation of SMEs; Yoo Seung-do, Head of the Climate and Air Headquarters at the Korea Environment Corporation; Jung Jin-woo, Executive Director of the Korea Fastener Industry Cooperative; and Moon Byung-yoon, Executive Director of the Korea Tool Industry Cooperative.

Head Yang said, “Since the scope of the system is determined mainly by the EU classification codes and is not limited to just the six major items, the direct and indirect impact range is broad, making it difficult for SMEs to understand and proactively respond. We will continuously monitor so that SMEs can prepare independently, support emission calculation and reporting systems, and seek ways to foster win-win cooperation with large corporations and primary contractors.”

Head Yoo stated, “Since last month, the Korea Environment Corporation has been operating a ‘Carbon Border Adjustment Mechanism Corporate Support Help Desk’ and provides one-on-one customized consultations to EU-exporting companies. We will continue to actively support minimizing the burden of emission calculation and reporting for exporting SMEs.”

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