End of This Month EU CBAM 1st Report... "Support Needed for Non-Emission Trading Scheme Companies"

3rd Interministerial Task Force Meeting on Carbon Border Adjustment Mechanism Response

The government has begun checking the preparation status of our export companies ahead of the European Union (EU) Carbon Border Adjustment Mechanism (CBAM) first report.

The Ministry of Trade, Industry and Energy held the 3rd Pan-Government Task Force (TF) meeting on the Carbon Border Adjustment Mechanism response at the Seoul Export Insurance Corporation with related ministries, affiliated organizations, and relevant companies, jointly reviewing the first CBAM report on the 16th through a public-private partnership.

Following the start of the transition period last October, importers within the EU must report the carbon emissions of imports from the fourth quarter of last year to the EU authorities by the end of January this year, and exporters must cooperate in providing related information.

According to the Ministry of Trade, Industry and Energy, attendees agreed that domestic companies subject to the emissions trading system are well prepared, but companies not subject to it are still insufficiently prepared and require continuous support. However, since substitution reporting with default values is possible until July this year, efforts will focus on supporting emission reporting according to the EU’s unique methodology. They also agreed to actively cooperate in responding to the enforcement bill regarding emission verification, which will be announced in the third quarter of this year.

Yang Byeong-nae, Deputy Minister for Trade at the Ministry of Trade, Industry and Energy, who chaired the meeting, said, "Based on communication with EU authorities so far, it is judged that importers within the EU will prefer producers who submit accurate carbon emission information in the future," adding, "Related ministries, affiliated organizations, and associations must jointly respond so that our companies can acquire such capabilities in advance and gain a comparative advantage over competing countries."

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