Ministry of SMEs and Startups Supports Export Companies in Carbon Emission Calculation and Verification

Recruitment of Participating Companies from 29th to 22nd of Next Month
20 Million KRW Support for Carbon Border Adjustment Mechanism Preparation
Direct Connection with EU ETS Accredited Verification Bodies

The Ministry of SMEs and Startups will support the calculation and verification of carbon emissions for export companies.

The Ministry of SMEs and Startups announced on the 21st that it will recruit participating companies for the "2024 SME CBAM Response Infrastructure Construction Project" from February 29 to March 22.

[Image source=Yonhap News]

This project was newly established in 2024 to resolve difficulties faced by SMEs in reporting carbon emissions to the EU amid the implementation of the Carbon Border Adjustment Mechanism (CBAM). SMEs that directly or indirectly export six CBAM-targeted items to the EU and other regions are eligible for support.

CBAM, implemented since October last year, is a system that imposes a type of tariff based on the amount of carbon emitted during the production process when importing carbon-intensive products (steel, cement, aluminum, fertilizer, electricity, hydrogen). The targeted items are six products: steel, aluminum, cement, fertilizer, hydrogen, and electricity, which can be identified by the export CN codes presented by the EU.

Selected companies will receive support for consulting and verification costs up to 20 million KRW, and especially through one-on-one consulting, services such as process analysis before measuring emissions, emission calculation, and future reduction activity planning will be provided.

Through this, companies are expected to reduce the burden of consulting and verification costs and mitigate tariff burdens by receiving consulting on reduction activity plans such as energy efficiency improvements.

In particular, since CBAM is a system based on the European Emissions Trading System (EU ETS), this project is expected to facilitate SMEs' adaptation to the system by directly linking SMEs with EU ETS accredited verification bodies, allowing them to access CBAM and acquire local know-how.

During the transition period until 2025, only the obligation to report emissions applies, but from the full implementation period in 2026, obligations to verify emissions, purchase CBAM certificates, and submit them will be added. Therefore, SMEs corresponding to the targeted items should prepare for the full implementation.

Kim Woo-soon, Director of Technology Innovation Policy at the Ministry of SMEs and Startups, said, "Following the implementation of CBAM, domestic and international climate regulations are expected to be further strengthened, making carbon neutrality for SMEs no longer optional but essential," adding, "We will actively support reducing the burden on SMEs in response to trade barriers."

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