The government has moved to provide support to respond to the EU's carbon tariff. The Ministry of Trade, Industry and Energy said on Tuesday it held a meeting of a pan-government task force on a comprehensive response to the Carbon Border Adjustment Mechanism at the government complex in Sejong, chaired by Vice Minister for Trade Park Jeong-seong (박정성), and reviewed industry response trends. Related ministries and agencies attended, including the foreign ministry, the Ministry of Climate, Energy and Environment, the Ministry of SMEs and Startups, the Ministry of Strategy and Budget, the Korea Customs Service and the National Committee on the Climate Crisis Response.

With the European Union fully implementing the Carbon Border Adjustment Mechanism (CBAM) from Jan. 1, South Korean companies exporting covered products to Europe need to respond. The mechanism applies to 6 items: steel, aluminium, cement, fertilisers, hydrogen and electricity.

Unlike general import tariffs, the EU carbon border mechanism imposes carbon tariffs in the year after import clearance. Companies that export products to Europe this year must calculate carbon emissions and have the results verified next year. Exporters may not feel an immediate impact, but unexpected costs could arise next year due to importers' requirements, the government said.

The government will work with associations and organisations to step up promotion of the system for exporters and expand briefings, as well as education and training programmes. It also plans to make the most of relevant projects that support emissions calculations. With verification of emissions calculation results set to begin next year, it will also strengthen domestic response systems, including securing verification bodies.

The government will begin preparations to implement the support measures discussed at the meeting and plans to conduct additional consultations with the EU on the system. It will periodically review the results.

Park said, "Implementation of the carbon border adjustment mechanism could act as another burden on our export industry," and added, "The government will continue consultations with the European Union so that the system does not act as a trade barrier, while thoroughly supporting compliance and the establishment of low-carbon production systems so that our industry can use changes in the system as a new opportunity."