The Ministry of SMEs and Startups said on the 2nd that it will hold this year's 13th joint government briefing to respond to the European Union (EU) Carbon Border Adjustment Mechanism (CBAM) at the Cheonma Art Center at Yeungnam University in Gyeongsan, North Gyeongsang, together with related ministries and affiliated agencies.
CBAM is a system that imposes an expense equivalent to the amount of carbon emitted during production on carbon-intensive products exported to the EU. It applies to six items: steel, aluminum, cement, fertilizer, electricity, and hydrogen. After a transition period that began in Oct. 2023, it has been fully implemented since Jan. this year.
This briefing focuses on improving domestic export corporations' understanding of the system and their practical response capabilities. In addition to the Ministry of SMEs and Startups (MSS), the Ministry of Trade, Industry and Resources, the Ministry of Climate, Energy and Environment, and the Korea Customs Service jointly held the briefing.
The first session provides guidance on key points and response methods for the CBAM definitive period, as well as on carbon emissions calculation and verification procedures. It will then share cases in which EU-exporting small and medium-sized enterprises built CBAM response systems and improved export performance.
Alongside the briefing, the government is also supporting training and consulting to help small and medium-sized enterprises respond to CBAM. Last month, it conducted five sessions of theory and hands-on training in which SMEs' employees directly calculate carbon emissions.
In addition, it supports the establishment of carbon emissions measurement facilities and verification expense for small and medium-sized enterprises that export CBAM-covered items to the EU. Corporations participating in the "CBAM response infrastructure construction project for SMEs" are being recruited until the 15th. It is also operating consulting that visits production sites to help calculate emissions by product and a corporations-only counseling desk.
Kim Dae-hee, small and medium-sized enterprise policy director at the Ministry of SMEs and Startups (MSS), said, "This year is an important year in which EU-exporting corporations must prepare for the full implementation of the EU CBAM," adding, "We hope this briefing helps corporations accurately understand CBAM-related systems and establish response frameworks, and we will continue to support smooth CBAM responses by domestic corporations."