EU CBAM Takes Full Effect... Government Provides One-on-One Support for Export Companies

With the European Union's Carbon Border Adjustment Mechanism (CBAM) coming into full effect this year, the government is moving to support export companies.

On March 29, the Ministry of Climate, Energy and Environment announced that it would conduct the "2026 EU CBAM Response Corporate Consultation Support" program from March 30 to April 26, and is recruiting participating companies. The key feature of this program is that it combines on-site visits to companies with customized one-on-one consultations, providing comprehensive support throughout the entire process of implementing the system.

CBAM is a system that requires exporters of six categories—steel, aluminum, fertilizer, cement, hydrogen, and electricity—to calculate and verify the carbon emissions of their exported products, and submit the results to EU importers. Starting next year, importers will be required to purchase certificates corresponding to the amount of emissions, meaning the cost burden on domestic companies will become a reality.

In particular, the calculation and verification of emissions are considered core tasks in responding to CBAM. Since emissions from raw materials used in the production process must also be included, the burden is expected to increase not only for small and medium-sized enterprises but also for large corporations within the supply chain.

Accordingly, the government will strengthen on-site support. The Korea Environment Corporation, under the Ministry, will conduct the consultations, providing comprehensive assistance—including emissions calculation, verification, and reporting procedures—to 100 selected business sites. Training and customized guidance for each site will also be provided to help companies build their own response capabilities.

Previously, the government provided related consultations to 160 companies over two years starting in 2024, and this year, the support scope has been expanded to include large corporations. This is due to the growing need for more precise calculations that include emissions from precursor materials.

Oh Ilyoung, policy chief of the Ministry of Climate, Energy and Environment, stated, "The implementation of CBAM is expected to increase the burden on our companies," and added, "We will continue to pursue not only support for responding to the system but also policies to strengthen the overall carbon competitiveness of the industry in order to maintain export competitiveness."

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